PR Newswire | Aug 26, 2021 07:01AM EDT

08/26 06:00 CDT

Hain Celestial Reports Fourth Quarter and Fiscal Year 2021 Financial ResultsFourth Quarter Net Income Improved by $37 million from $4 million in the Prior YearFourth Quarter GAAP EPS of $0.40; Adjusted EPS of $0.39Fourth Quarter Adjusted EBITDA Growth of 10%Announces Incremental $300 Million Share Repurchase AuthorizationProvides Fiscal Year 2022 Guidance LAKE SUCCESS, N.Y., Aug. 26, 2021

LAKE SUCCESS, N.Y., Aug. 26, 2021 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial", "Hain" or the "Company"), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life(r), today reported financial results for the fourth quarter and fiscal year ended June 30, 2021.

Mark L. Schiller, Hain Celestial's President and Chief Executive Officer, commented, "We are very proud of our solid fourth quarter and full fiscal year 2021 results. In spite of the many challenges our industry faced this past year, we continued to successfully execute against our transformation plan, delivering robust full year margin expansion and strong adjusted EBITDA growth. Heading into 2022, we expect another strong year with adjusted net sales growth, margin expansion and adjusted EBITDA growth even in this challenging environment of high inflation and labor shortages."

FINANCIAL HIGHLIGHTS*

Summary of Fourth Quarter Results from Continuing Operations

* Net sales decreased 12% to $450.7 million, or 17% on a constant currency basis, compared to the prior year period. * When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 8% compared to the prior year period. * Gross margin of 25.0%, a 41 basis point decrease from the prior year period. * Adjusted gross margin of 25.7%, a 49 basis point increase from the prior year period. * Operating income of $41.6 million compared $25.3 million in the prior year period. * Adjusted operating income of $53.0 million compared to $47.9 million in the prior year period. * Net income of $40.5 million compared to $3.7 million in the prior year period. * Adjusted net income of $39.7 million compared to $32.3 million in prior year period. * Adjusted EBITDA of $68.1 million compared to $62.2 million in the prior year period. * Adjusted EBITDA margin of 15.1%, a 296 basis point increase compared to the prior year period. * Earnings per diluted share ("EPS") of $0.40 compared to $0.04 in the prior year period. * Adjusted EPS of $0.39 compared to $0.32 in the prior year period. * Repurchased 0.7 million shares, or 0.7% of the outstanding common stock, at an average price of $40.41 per share.

Summary of Fiscal Year 2021 Results from Continuing Operations

* Net sales decreased 4% to $1,970.3 million, or 7% on a constant currency basis, compared to the prior year. * When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 1% compared to the prior year. * Gross margin of 25.0%, a 227 basis point increase over the prior year. * Adjusted gross margin of 25.6%, a 249 basis point increase over the prior year. * Operating income of $107.4 million compared to $56.0 million in the prior year. * Adjusted operating income of $199.5 million compared to $140.0 million in the prior year. * Net income of $66.1 million compared to $25.6 million in the prior year. * Adjusted net income of $146.5 million compared to $87.1 million in the prior year. * Adjusted EBITDA of $258.9 million compared to $200.0 million in the prior year. * Adjusted EBITDA margin of 13.1%, a 340 basis point increase compared to the prior year. * EPS of $0.65 compared to $0.25 in the prior year. * Adjusted EPS of $1.45 compared to $0.84 in the prior year. * Repurchased 3.1 million shares, or 3.0% of the outstanding common stock, at an average price of $34.87 per share.

SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

The Company operates under two reportable segments: North America and International.

North AmericaNorth America net sales in the fourth quarter were $253.3 million, a decrease of 15% compared to the prior year period. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 12% from the prior year period.

Segment gross profit in the fourth quarter was $59.6 million, a 29% decrease from the prior year period. Adjusted gross profit was $62.4 million, a decrease of 25% from the prior year period. Gross margin was 23.5%, a 446 basis point decrease from the prior year period, and adjusted gross margin was 24.6%, a 313 basis point decrease from the prior year period.

Segment operating income in the fourth quarter was $23.8 million, a 25% decrease from the prior year period. Adjusted operating income was $29.6 million, a 24% decrease from the prior year period.

Adjusted EBITDA in the fourth quarter was $34.8 million, a 20% decrease from the prior year period. As a percentage of sales, North America adjusted EBITDA margin was 13.7%, a 92 basis point decrease from the prior year period.

North America net sales in fiscal year 2021 were $1,104.1 million, a decrease of 6% compared to the prior year. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 2% from the prior year. On an adjusted basis, the decrease was primarily driven by pantry stocking in the prior year as a result of stay-at-home orders at the beginning of the COVID-19 pandemic and a large program with a wholesale club which was not repeated in the current year.

Segment gross profit in fiscal year 2021 was $291.4 million, a 1% decrease from the prior year. Adjusted gross profit was $300.6 million, relatively flat compared to the prior year. Gross margin was 26.4%, a 134 basis point increase from the prior year and adjusted gross margin was 27.2%, a 155 basis point increase from the prior year.

Segment operating income in fiscal year 2021 was $129.0 million, a 34% increase from the prior year. Adjusted operating income was $143.7 million, a 19% increase from the prior year.

Adjusted EBITDA in fiscal year 2021 was $162.0 million, a 15% increase from the prior year. As a percentage of sales, North America adjusted EBITDA margin was 14.7%, a 265 basis point increase from the prior year.

InternationalInternational net sales in the fourth quarter were $197.3 million, a decrease of 7% compared to the prior year period. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 1% compared to the prior year period.

Segment gross profit in the fourth quarter was $53.0 million, a 14% increase from the prior year period. Adjusted gross profit was $53.6 million, an increase of 16% from the prior year period. Gross margin was 26.8%, a 509 basis point increase from the prior year period, and adjusted gross margin was 27.2%, a 543 basis point increase from the prior year period.

Segment operating income in the fourth quarter was $29.9 million, a 104% increase from the prior year period. Adjusted operating income was $31.3 million, an increase of 38% from the prior year period.

Adjusted EBITDA in the fourth quarter was $38.3 million, a 28% increase from the prior year period. As a percentage of sales, International adjusted EBITDA margin was 19.4%, a 536 basis point increase from the prior year period.

International net sales in fiscal year 2021 were $866.2 million, a decrease of 2% when compared to the prior year. When adjusted for foreign exchange, divestitures and discontinued brands, net sales increased 1% compared to the prior year. On an adjusted basis, the increase was mainly due to sustained demand from the prior year with additional growth in the current year from our plant-based food and beverage products.

Segment gross profit in fiscal year 2021 was $200.2 million, a 16% increase from the prior year. Adjusted gross profit was $204.7 million, an increase of 17% from the prior year. Gross margin was 23.1%, a 359 basis point increase from the prior year and adjusted gross margin was 23.6%, a 382 basis point increase from the prior year.

Segment operating income in fiscal year 2021 was $38.0 million, a 31% decrease from the prior year. Adjusted operating income was $103.3 million, an increase of 40% from the prior year.

Adjusted EBITDA in fiscal year 2021 was $133.9 million, a 27% increase from the prior year. As a percentage of sales, International adjusted EBITDA margin was 15.5%, a 348 basis point increase from the prior year.

CAPITAL MANAGEMENT

The Company is announcing today that its Board of Directors has approved an additional $300 million share repurchase authorization. Share repurchases under this 2021 authorization will commence after the Company's existing 2017 authorization is fully utilized. As of June 30, 2021, the Company had $82.4 million remaining under the 2017 authorization. The extent to which the Company repurchases its shares and the timing of such repurchases will be at the Company's discretion and will depend upon market conditions and other corporate considerations. Repurchases may be made from time to time in the open market, pursuant to pre-set trading plans, in private transactions or otherwise.

During the fourth quarter of fiscal year 2021, the Company repurchased 0.7 million shares, or 0.7% of the outstanding common stock, at an average price of $40.41 per share for a total of $27.2 million, excluding commissions, under its 2017 share repurchase authorization.

During fiscal year 2021, the Company repurchased 3.1 million shares, or 3.0% of the outstanding common stock, at an average price of $34.87 per share for a total of $107.4 million, excluding commissions, under its 2017 share repurchase authorization.

FISCAL YEAR 2022 GUIDANCE

For fiscal year 2022, compared to fiscal year 2021, the Company expects:

* Low single digit adjusted net sales growth, * Adjusted gross margin expansion, and * Mid to high single digit adjusted EBITDA growth.

Relative to fiscal 2019, the most recent pre-pandemic period, the Company expects full year adjusted net sales growth of high single digits with adjusted EBITDA and EBITDA margin growth of at least 65% and 500 bps, respectively.

Given the elevated demand during the first half of fiscal year 2021 from the COVID-19 pandemic and the timing of the price increase, among other factors, the Company expects:

* Net sales to be down low to mid single digits on an adjusted basis in the first half of fiscal year 2022 and up by mid to high single digits in the second half, and * Adjusted EBITDA to be close to flat in the first half of fiscal year 2022 and up high single digits to low double digits in the second half.

In addition, for the first quarter of fiscal year 2022, the Company expects:

* Net sales to be down low to mid single digits on an adjusted basis but down low double digits on a reported basis, compared to the first quarter of fiscal year 2021, * Net sales to be up by mid to high single digits on an adjusted basis compared to the first quarter of fiscal year 2020, the most recent pre-pandemic period, * Adjusted gross margin expansion, compared to the first quarter of fiscal year 2021, and * A mid to high teens adjusted EBITDA decrease compared to the first quarter of fiscal year 2021, given the overlap of 70% adjusted EBITDA growth in the first quarter of fiscal year 2021 versus prior year, lower sales due to divestitures, a highly inflationary environment and the timing of the Company's pricing actions.

Notes: Adjusted net sales is defined as adjusted for the impact of foreign currency changes, divestitures and discontinued brands. All references in this "Fiscal Year 2022 Guidance" section to growth or declines in adjusted net sales or adjusted EBITDA compared to a prior period represent percentage growth or percentage decline.

Webcast PresentationHain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company's website at www.hain.com.

About The Hain Celestial Group, Inc.The Hain Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings(r), Clarks(tm), Cully & Sully(r), Earth's Best(r), Ella's Kitchen(r), Frank Cooper's(r), Gale's(r), Garden of Eatin'(r), Hain Pure Foods(r), Hartley's(r), Health Valley(r), Imagine(r), Joya(r), Lima(r), Linda McCartney's(r) (under license), MaraNatha(r), Natumi(r), New Covent Garden Soup Co.(r), Robertson's(r), Rose's(r) (under license), Sensible Portions(r), Spectrum(r), Sun-Pat(r), Terra(r), The Greek Gods(r), Yorkshire Provender(r) and Yves Veggie Cuisine(r). The Company's personal care products are marketed under the Alba Botanica(r), Avalon Organics(r), JASON(r), Live Clean(r) and Queen Helene(r) brands.

Safe Harbor StatementCertain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of forward-looking terminology such as "plan," "continue," "expect," "anticipate," "intend," "predict," "project," "estimate," "likely," "believe," "might," "seek," "may," "will," "remain," "potential," "can," "should," "could," "future" and similar expressions, or the negative of those expressions, or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of the Company's strategic initiatives, including productivity and transformation, the Company's guidance for fiscal year 2022 and our future performance and results of operations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements of the Company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). Such factors include, among others, the impact of competition; challenges and uncertainty resulting from the COVID-19 pandemic; our ability to manage our supply chain effectively; disruption of operations at our manufacturing facilities; reliance on independent contract manufacturers; changes to consumer preferences; customer concentration; reliance on independent distributors; the availability of organic ingredients; risks associated with our international sales and operations; risks associated with outsourcing arrangements; our ability to execute our cost reduction initiatives and related strategic initiatives; our reliance on independent certification for a number of our products; the reputation of our Company and our brands; our ability to use and protect trademarks; general economic conditions; input cost inflation; the United Kingdom's exit from the European Union; cybersecurity incidents; disruptions to information technology systems; the impact of climate change; liabilities, claims or regulatory change with respect to environmental matters; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; pending and future litigation; compliance with data privacy laws; compliance with our credit agreement; the discontinuation of LIBOR; concentration in the ownership of our common stock; our ability to issue preferred stock; the adequacy of our insurance coverage; impairments in the carrying value of goodwill or other intangible assets; and other risks detailed from time-to-time in the Company's reports filed with the United States Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our subsequent reports on Forms 10-Q and 8-K. As a result of the foregoing and other factors, the Company cannot provide any assurance regarding future results, levels of activity and achievements of the Company, and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements. All forward-looking statements contained herein apply as of the date hereof or as of the date they were made and, except as required by applicable law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or new methods, future events or other changes.

Non-GAAP Financial MeasuresThis press release and the accompanying tables include non-GAAP financial measures, including adjusted operating income and its related margin, adjusted gross margin, adjusted net income, adjusted earnings per diluted share, net sales adjusted for the impact of foreign exchange, divestitures and discontinued brands, adjusted EBITDA and its related margin and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are provided herein in the tables. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.

Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.

The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

The Company provides net sales adjusted for the impact of foreign currency, divestitures and discontinued brands to understand the growth rate of net sales excluding the impact of such items. The Company's management believes net sales adjusted for such items is useful to investors because it enables them to better understand the growth of our business from period-to-period.

The Company defines adjusted EBITDA as net income (loss) before income taxes, net interest expense, depreciation and amortization, equity in net (loss of equity-method investees, stock-based compensation, net, unrealized currency gains and losses, productivity and transformation costs, proceeds from an insurance claim, impairment of long-lived assets and intangibles, warehouse and manufacturing consolidation and other costs, gains or losses on sales of assets and businesses, litigation and related expenses, plant closure related costs, SKU rationalization and inventory write-downs and other adjustments. The Company's management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of performance-based executive compensation.

The Company defines operating free cash flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less purchases of property, plant and equipment. The Company views operating free cash flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments.

* Notes:

The results contained in this press release are presented with the Hain(1) Pure Protein and Tilda operating segments being treated as discontinued operations. Unless otherwise noted, all results included in this press release are from continuing operations.

This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial(2) measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

(unaudited and in thousands)

June 30, 2021 June 30, 2020

ASSETS

Current assets:

Cash and cash equivalents $ 75,871 $ 37,771

Accounts receivable, net 174,066 170,969

Inventories 285,410 248,170

Prepaid expenses and other current assets 39,834 95,690

Assets held for sale 1,874 8,334

Total current assets 577,055 560,934

Property, plant and equipment, net 312,777 289,256

Goodwill 871,067 861,958

Trademarks and other intangible assets, net 314,895 346,462

Investments and joint ventures 16,917 17,439

Operating lease right-of-use assets 92,010 88,165

Other assets 21,187 24,238

Total assets $ 2,205,908 $ 2,188,452

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 171,947 $ 171,009

Accrued expenses and other current liabilities 117,957 124,045

Current portion of long-term debt 530 1,656

Liabilities related to assets held for sale - 3,567

Total current liabilities 290,434 300,277

Long-term debt, less current portion 230,492 281,118

Deferred income taxes 42,639 51,849

Operating lease liabilities, noncurrent portion 85,929 82,962

Other noncurrent liabilities 33,531 28,692

Total liabilities 683,025 744,898

Total stockholders' equity 1,522,883 1,443,554

Total liabilities and stockholders' equity $ 2,205,908 $ 2,188,452

THE HAIN CELESTIAL GROUP, INC.

Consolidated Statements of Operations

(unaudited and in thousands, except per share amounts)

Fourth Quarter Fourth Quarter Year to Date

2021 2020 2021 2020

Net sales $ 450,653 $ 511,746 $ 1,970,302 $ 2,053,903

Cost of sales 338,073 381,809 1,478,687 1,588,133

Gross profit 112,580 129,937 491,615 465,770

Selling, general and administrative expenses 62,082 79,171 299,077 324,376

Amortization of acquired intangible assets 2,160 2,192 8,931 11,638

Productivity and transformation costs 6,528 10,840 18,899 48,789

Proceeds from insurance claim - - (592) (2,962)

Goodwill impairment - 394 - 394

Long-lived asset and intangibles impairment 244 12,079 57,920 27,493

Operating income 41,566 25,261 107,380 56,042

Interest and other financing expense, net 1,834 3,190 8,654 18,258

Other (income) expense, net (9,215) 1,644 (10,067) 3,956

Income from continuing operations before income taxes and equity in net 48,947 20,427 108,793 33,828loss of equity-method investees

Provision for income taxes 7,896 15,958 41,093 6,205

Equity in net loss of equity-method investees 566 770 1,591 1,989

Net income from continuing operations $ 40,485 $ 3,699 $ 66,109 $ 25,634

Net (loss) income from discontinued operations, net of tax - (460) 11,255 (106,041)

Net income (loss) $ 40,485 $ 3,239 $ 77,364 $ (80,407)

Net income (loss) per common share:

Basic net income per common share from continuing operations $ 0.41 $ 0.04 $ 0.66 $ 0.25

Basic net income (loss) per common share from discontinued operations - - 0.11 (1.02)

Basic net income (loss) per common share $ 0.41 $ 0.04 $ 0.77 $ (0.77)

Diluted net income per common share from continuing operations $ 0.40 $ 0.04 $ 0.65 $ 0.25

Diluted net income (loss) per common share from discontinued operations - - 0.11 (1.02)

Diluted net income (loss) per common share $ 0.40 $ 0.04 $ 0.76 $ (0.77)

Shares used in the calculation of net income (loss) per common share:

Basic 99,435 101,895 100,235 103,618

Diluted 101,133 102,280 101,322 103,937

THE HAIN CELESTIAL GROUP, INC.

Consolidated Statements of Cash Flows

(unaudited and in thousands)

Fourth Quarter Fourth Quarter Year to Date

2021 2020 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 40,485 $ 3,239 $ 77,364 $ (80,407)

Net (loss) income from discontinued operations, net of tax - (460) 11,255 (106,041)

Net income from continuing operations 40,485 3,699 66,109 25,634

Adjustments to reconcile net income from continuing operations to net cashprovided by operating activities from continuing operations:

Depreciation and amortization 11,801 12,019 49,569 52,088

Deferred income taxes 6,668 45,195 9,884 36,160

Equity in net loss of equity-method investees 566 770 1,591 1,989

Stock-based compensation, net 3,771 3,497 15,659 13,078

Goodwill impairment - 394 - 394

Long-lived asset and intangibles impairment 244 12,079 57,920 27,493

Gain on sale of assets (4,900) - (4,900) -

(Gain) loss on sale of businesses (3,897) 1,448 (2,604) 3,564

Other non-cash items, net 1,152 123 353 342

(Decrease) increase in cash attributable to changes in operating assets andliabilities:

Accounts receivable 17,831 64,726 (2,890) 33,856

Inventories 21,782 (14,044) (38,522) 33,236

Other current assets (1,315) (55,639) 55,172 (45,337)

Other assets and liabilities 732 7,152 (220) 5,986

Accounts payable and accrued expenses (44,678) 11,403 (10,362) (31,569)

Net cash provided by operating activities from continuing operations 50,242 92,822 196,759 156,914

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and equipment (18,491) (13,932) (71,553) (60,893)

Proceeds from sale of assets 10,395 - 10,395 -

Proceeds from sale of businesses, net and other 31,700 1,337 58,794 15,765

Net cash provided by (used in) investing activities from continuing operations 23,604 (12,595) (2,364) (45,128)

CASH FLOWS FROM FINANCING ACTIVITIES

Borrowings under bank revolving credit facility 35,000 65,000 241,000 262,000

Repayments under bank revolving credit facility (60,000) (147,169) (291,000) (401,669)

Repayments under term loan - - - (206,250)

Proceeds from discontinued operations entities - 398 - 305,645

Repayments of other debt, net (177) (538) (2,094) (2,040)

Share repurchases (25,769) (2,815) (106,067) (60,221)

Shares withheld for payment of employee payroll taxes (541) (425) (4,282) (1,931)

Net cash used in financing activities from continuing operations (51,487) (85,549) (162,443) (104,466)

Effect of exchange rate changes on cash from continuing operations 498 1,544 6,148 (566)

CASH FLOWS FROM DISCONTINUED OPERATIONS

Cash provided by (used in) operating activities - 398 - (5,748)

Cash provided by investing activities - - - 297,592

Cash used in financing activities - (398) - (299,816)

Effect of exchange rate changes on cash from discontinued operations - - - (537)

Net cash flows used in discontinued operations - - - (8,509)

Net increase (decrease) in cash and cash equivalents 22,857 (3,778) 38,100 (1,755)

Cash and cash equivalents at beginning of period 53,014 41,549 37,771 39,526

Cash and cash equivalents at end of period $ 75,871 $ 37,771 $ 75,871 $ 37,771

THE HAIN CELESTIAL GROUP, INC.

Net Sales, Gross Profit and Operating Income (Loss) by Segment

(unaudited and in thousands)

North America International Corporate/Other Hain Consolidated

Net Sales

Net sales - Q4 FY21 $ 253,348 $ 197,305 $ - $ 450,653

Net sales - Q4 FY20 $ 298,644 $ 213,102 $ - $ 511,746

% change - FY21 net sales vs. (15.2)% (7.4)% (11.9)%FY20 net sales

Gross Profit

Q4 FY21

Gross profit $ 59,622 $ 52,958 $ - $ 112,580

Non-GAAP adjustments ^(1) 2,752 686 - 3,438

Adjusted gross profit $ 62,374 $ 53,644 $ - $ 116,018

Gross margin 23.5% 26.8% 25.0%

Adjusted gross margin 24.6% 27.2% 25.7%

Q4 FY20

Gross profit $ 83,589 $ 46,348 $ - $ 129,937

Non-GAAP adjustments ^(1) (728) 13 - (715)

Adjusted gross profit $ 82,861 $ 46,361 $ - $ 129,222

Gross margin 28.0% 21.7% 25.4%

Adjusted gross margin 27.7% 21.8% 25.3%

Operating income (loss)

Q4 FY21

Operating income (loss) $ 23,822 $ 29,892 $ (12,148) $ 41,566

Non-GAAP adjustments ^(1) 5,732 1,439 4,227 11,398

Adjusted operating income (loss) $ 29,554 $ 31,331 $ (7,921) $ 52,964

Operating income margin 9.4% 15.2% 9.2%

Adjusted operating income margin 11.7% 15.9% 11.8%

Q4 FY20

Operating income (loss) $ 31,867 $ 14,667 $ (21,273) $ 25,261

Non-GAAP adjustments ^(1) 7,020 8,056 7,521 22,597

Adjusted operating income (loss) $ 38,887 $ 22,723 $ (13,752) $ 47,858

Operating income margin 10.7% 6.9% 4.9%

Adjusted operating income margin 13.0% 10.7% 9.4%

^(1)See accompanying table "Adjusted Gross Profit, Adjusted Operating Income,Adjusted Net Income and Adjusted EPS"

THE HAIN CELESTIAL GROUP, INC.

Net Sales, Gross Profit and Operating Income (Loss) by Segment

(unaudited and in thousands)

North America International Corporate/Other Hain Consolidated

Net Sales

Net sales - Q4 FY21 YTD $ 1,104,128 $ 866,174 $ - $ 1,970,302

Net sales - Q4 FY20 YTD $ 1,171,478 $ 882,425 $ - $ 2,053,903

% change - FY21 net sales vs. (5.7)% (1.8)% (4.1)%FY20 net sales

Gross Profit

Q4 FY21 YTD

Gross profit $ 291,435 $ 200,180 $ - $ 491,615

Non-GAAP adjustments ^(1) 9,190 4,555 - 13,745

Adjusted gross profit $ 300,625 $ 204,735 $ - $ 505,360

Gross margin 26.4% 23.1% 25.0%

Adjusted gross margin 27.2% 23.6% 25.6%

Q4 FY20 YTD

Gross profit $ 293,545 $ 172,225 $ - $ 465,770

Non-GAAP adjustments ^(1) 7,309 2,679 - 9,988

Adjusted gross profit $ 300,854 $ 174,904 $ - $ 475,758

Gross margin 25.1% 19.5% 22.7%

Adjusted gross margin 25.7% 19.8% 23.2%

Operating income (loss)

Q4 FY21 YTD

Operating income (loss) $ 129,010 $ 38,036 $ (59,666) $ 107,380

Non-GAAP adjustments ^(1) 14,661 65,231 12,208 92,100

Adjusted operating income (loss) $ 143,671 $ 103,267 $ (47,458) $ 199,480

Operating income margin 11.7% 4.4% 5.4%

Adjusted operating income margin 13.0% 11.9% 10.1%

Q4 FY20 YTD

Operating income (loss) $ 95,934 $ 55,333 $ (95,225) $ 56,042

Non-GAAP adjustments ^(1) 25,083 18,559 40,296 83,938

Adjusted operating income (loss) $ 121,017 $ 73,892 $ (54,929) $ 139,980

Operating income margin 8.2% 6.3% 2.7%

Adjusted operating income margin 10.3% 8.4% 6.8%

^(1)See accompanying table "Adjusted Gross Profit, Adjusted Operating Income,Adjusted Net Income and Adjusted EPS"

THE HAIN CELESTIAL GROUP, INC.

Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income andAdjusted EPS

(unaudited and in thousands, except per share amounts)

Fourth Quarter

2021 GAAP Adjustments 2021 Adjusted 2020 GAAP Adjustments 2020 Adjusted

Net sales $ 450,653 $ - $ 450,653 $ 511,746 $ - $ 511,746

Cost of sales 338,073 (3,438) 334,635 381,809 715 382,524

Gross profit 112,580 3,438 116,018 129,937 (715) 129,222

Operating expenses (a) 64,486 (1,432) 63,054 93,442 (12,079) 81,363

Productivity and transformation costs 6,528 (6,528) - 10,840 (10,840) -

Goodwill impairment - - - 394 (394) -

Operating income 41,566 11,398 52,964 25,261 22,597 47,858

Interest and other (income) expense, net (b) (7,381) 7,510 129 4,834 (1,803) 3,031

Provision (benefit) for income taxes 7,896 4,714 12,610 15,958 (4,243) 11,715

Net income (loss) from continuing operations 40,485 (826) 39,659 3,699 28,644 32,343

Net (loss) income from discontinued operations, - - - (460) 460 -net of tax

Net income (loss) 40,485 (826) 39,659 3,239 29,104 32,343

Diluted net income (loss) per common share from 0.40 (0.01) 0.39 0.04 0.28 0.32continuing operations

Diluted net income per common share from discontinued - - - - - -operations

Diluted net income (loss) per common share 0.40 (0.01) 0.39 0.04 0.28 0.32

Detail of Adjustments:

Q4 FY21 Q4 FY20

Warehouse/manufacturing consolidation and other costs $ 4,038 $ 385

Plant closure related costs 132 3

SKU rationalization and inventory write-down (732) (1,103)

Cost of sales 3,438 (715)

Gross profit 3,438 (715)

Litigation and related expenses 943 -

Warehouse/manufacturing consolidation and other costs 245 -

Long-lived asset impairment 244 12,079

Operating expenses ^(a) 1,432 12,079

Productivity and transformation costs 6,528 10,840

Productivity and transformation costs 6,528 10,840

Goodwill impairment - 394

Goodwill impairment - 394

Operating income 11,398 22,597

Unrealized currency losses 1,287 355

Gain on sale of assets (4,900) -

(Gain) loss on sale of businesses (3,897) 1,448

Interest and other (income) expense, net (b) (7,510) 1,803

Income tax related adjustments (4,714) 4,243

(Benefit) provision for income taxes (4,714) 4,243

Net (loss) income from continuing operations $ (826) $ 28,644

^(a)Operating expenses include amortization of acquired intangibles, selling,general and administrative expenses and long-lived asset impairment.

^(b)Interest and other (income) expense, net includes interest and otherfinancing expenses, net, unrealized currency losses, (gain) loss on sale ofassets and businesses and other expense, net.

THE HAIN CELESTIAL GROUP, INC.

Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income andAdjusted EPS

(unaudited and in thousands, except per share amounts)

Fourth Quarter Year to Date

2021 GAAP Adjustments 2021 Adjusted 2020 GAAP Adjustments 2020 Adjusted

Net sales $ 1,970,302 $ - $ 1,970,302 $ 2,053,903 $ - $ 2,053,903

Cost of sales 1,478,687 (13,745) 1,464,942 1,588,133 (9,988) 1,578,145

Gross profit 491,615 13,745 505,360 465,770 9,988 475,758

Operating expenses ^(a) 365,928 (60,048) 305,880 363,507 (27,730) 335,777

Productivity and transformation costs 18,899 (18,899) - 48,789 (48,789) -

Proceeds from insurance claim (592) 592 - (2,962) 2,962 -

Goodwill impairment - - - 394 (394) -

Operating income 107,380 92,100 199,480 56,042 83,938 139,980

Interest and other (income) expense, net ^(b) (1,413) 6,752 5,339 22,214 (5,082) 17,132

Provision for income taxes 41,093 4,929 46,022 6,205 27,575 33,780

Net income from continuing operations 66,109 80,419 146,528 25,634 61,445 87,079

Net income (loss) from discontinued operations, net of tax 11,255 (11,255) - (106,041) 106,041 -

Net income (loss) 77,364 69,164 146,528 (80,407) 167,486 87,079

Diluted net income per common share from continuing operations 0.65 0.80 1.45 0.25 0.59 0.84

Diluted net income (loss) per common share from discontinued 0.11 (0.11) - (1.02) 1.02 -operations

Diluted net income (loss) per common share 0.76 0.69 1.45 (0.77) 1.61 0.84

Detail of Adjustments:

Q4 FY21 YTD Q4 FY20 YTD

Warehouse/manufacturing consolidation and other costs $ 11,313 $ 3,251

Plant closure related costs 2,853 2,562

SKU rationalization and inventory write-down (421) 4,175

Cost of sales 13,745 9,988

Gross profit 13,745 9,988

Long-lived asset impairment 57,920 17,954

Litigation and related expenses 1,587 48

Warehouse/manufacturing consolidation and other costs 508 189

Plant closure related costs 33 -

Intangibles impairment - 9,539

Operating expenses ^(a) 60,048 27,730

Productivity and transformation costs 18,899 48,789

Productivity and transformation costs 18,899 48,789

Proceeds from insurance claim (592) (2,962)

Proceeds from insurance claim (592) (2,962)

Goodwill impairment - 394

Goodwill impairment - 394

Operating income 92,100 83,938

Unrealized currency losses 752 543

Gain on sale of assets (4,900) -

(Gain) loss on sale of businesses (2,604) 3,564

Deferred financing cost write-off - 975

Interest and other (income) expense, net ^(b) (6,752) 5,082

Income tax related adjustments (4,929) (27,575)

Benefit for income taxes (4,929) (27,575)

Net income from continuing operations $ 80,419 $ 61,445

^(a)Operating expenses include amortization of acquired intangibles, selling,general and administrative expenses and long-lived asset and intangiblesimpairment.

^(b)Interest and other (income) expense, net includes interest and otherfinancing expenses, net, unrealized currency losses, (gain) loss on sale ofassets and businesses and other expense, net.

THE HAIN CELESTIAL GROUP, INC.

Adjusted Net Sales Growth

(unaudited and in thousands)

Q4 FY21 North America International Hain Consolidated

Net sales $ 253,348 $ 197,305 $ 450,653

Divestitures and discontinued brands (525) - (525)

Impact of foreign currency exchange (3,940) (20,091) (24,031)

Net sales on a constant currency basis adjusted for $ 248,883 $ 177,214 $ 426,097 divestitures and discontinued brands

Q4 FY20

Net sales $ 298,644 $ 213,102 $ 511,746

Divestitures and discontinued brands (15,551) (35,051) (50,602)

Net sales adjusted for divestitures and discontinued $ 283,093 $ 178,051 $ 461,144 brands

Net sales decline (15.2)% (7.4)% (11.9)%

Impact of divestitures and discontinued brands 4.4% 16.3% 9.0%

Impact of foreign currency exchange (1.3)% (9.4)% (4.7)%

Net sales decline on a constant currency basis adjusted for (12.1)% (0.5)% (7.6)% divestitures and discontinued brands

Q4 FY21 YTD North America International Hain Consolidated

Net sales $ 1,104,128 $ 866,174 $ 1,970,302

Divestitures and discontinued brands (4,630) (5,052) (9,682)

Impact of foreign currency exchange (6,083) (55,224) (61,307)

Net sales on a constant currency basis adjusted for $ 1,093,415 $ 805,898 $ 1,899,313 divestitures and discontinued brands

Q4 FY20 YTD

Net sales $ 1,171,478 $ 882,425 $ 2,053,903

Divestitures and discontinued brands (59,671) (83,173) (142,844)

Net sales adjusted for divestitures and discontinued $ 1,111,807 $ 799,252 $ 1,911,059 brands

Net sales decline (5.7)% (1.8)% (4.1)%

Impact of divestitures and discontinued brands 4.5% 8.9% 6.5%

Impact of foreign currency exchange (0.5)% (6.3)% (3.0)%

Net sales (decline) growth on a constant currency basis adjusted (1.7)% 0.8% (0.6)% for divestitures and discontinued brands

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA

(unaudited and in thousands)

Fourth Quarter Fourth Quarter Year to Date

2021 2020 2021 2020

Net income (loss) $ 40,485 $ 3,239 $ 77,364 $ (80,407)

Net (loss) income from discontinued operations, net of tax - (460) 11,255 (106,041)

Net income from continuing operations $ 40,485 $ 3,699 $ 66,109 $ 25,634

Provision for income taxes 7,896 15,958 41,093 6,205

Interest expense, net 1,099 2,467 5,880 14,351

Depreciation and amortization 11,801 12,019 49,569 52,088

Equity in net loss of equity-method investees 566 770 1,591 1,989

Stock-based compensation, net 3,771 3,497 15,659 13,078

Goodwill impairment - 394 - 394

Unrealized currency losses 1,287 355 752 543

Productivity and transformation costs 5,435 10,194 15,863 47,596

Proceeds from insurance claim - - (592) (2,962)

Long-lived asset and intangibles impairment 244 12,079 57,920 27,493

Warehouse/manufacturing consolidation and other costs 4,061 385 11,374 3,440

Litigation and related expenses 943 - 1,587 48

Plant closure related costs 41 3 58 2,357

Gain on sale of assets (4,900) - (4,900) -

(Gain) loss on sale of businesses (3,897) 1,448 (2,604) 3,564

SKU rationalization and inventory write-down (732) (1,103) (421) 4,175

Adjusted EBITDA $ 68,100 $ 62,165 $ 258,938 $ 199,993

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

(unaudited and in thousands)

North America International Corporate/Other Hain Consolidated

Q4 FY21

Operating income (loss) $ 23,822 $ 29,892 $ (12,148) $ 41,566

Depreciation and amortization 4,123 6,946 732 11,801

Stock-based compensation, net 841 312 2,618 3,771

Productivity and transformation costs 2,954 285 2,196 5,435

Long-lived asset impairment - 244 - 244

Warehouse/manufacturing consolidation and other costs 3,396 665 - 4,061

Plant closure related costs 41 - - 41

SKU rationalization and inventory write-down (732) - - (732)

Litigation and related expenses - - 943 943

Other 372 (85) 683 970

Adjusted EBITDA $ 34,817 $ 38,259 $ (4,976) $ 68,100

Net sales $ 253,348 $ 197,305 $ 450,653

Adjusted EBITDA margin 13.7% 19.4% 15.1%

North America International Corporate/Other Hain Consolidated

Q4 FY20

Operating income (loss) $ 31,867 $ 14,667 $ (21,273) $ 25,261

Depreciation and amortization 4,101 7,179 739 12,019

Stock-based compensation, net 631 333 2,533 3,497

Goodwill impairment - 394 - 394

Productivity and transformation costs 1,553 2,765 5,876 10,194

Long-lived asset impairment 6,196 4,883 1,000 12,079

SKU rationalization and inventory write-down (1,103) - - (1,103)

Warehouse/manufacturing consolidation and other costs 385 - - 385

Plant closure related costs 3 - - 3

Other 153 (312) (405) (564)

Adjusted EBITDA $ 43,786 $ 29,909 $ (11,530) $ 62,165

Net sales $ 298,644 $ 213,102 $ 511,746

Adjusted EBITDA margin 14.7% 14.0% 12.1%

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

(unaudited and in thousands)

North America International Corporate/Other Hain Consolidated

Q4 FY21 YTD

Operating income (loss) $ 129,010 $ 38,036 $ (59,666) $ 107,380

Depreciation and amortization 16,816 29,915 2,838 49,569

Stock-based compensation, net 3,410 1,535 10,714 15,659

Productivity and transformation costs 5,388 3,880 6,595 15,863

Proceeds from insurance claim - - (592) (592)

Long-lived asset impairment (11) 56,348 1,583 57,920

Warehouse/manufacturing consolidation and other costs 7,809 3,565 - 11,374

Plant closure related costs 34 24 - 58

SKU rationalization and inventory write-down (421) - - (421)

Litigation and related expenses - - 1,587 1,587

Other 10 579 (48) 541

Adjusted EBITDA $ 162,045 $ 133,882 $ (36,989) $ 258,938

Net sales $ 1,104,128 $ 866,174 $ 1,970,302

Adjusted EBITDA margin 14.7% 15.5% 13.1%

North America International Corporate/Other Hain Consolidated

Q4 FY20 YTD

Operating income (loss) $ 95,934 $ 55,333 $ (95,225) $ 56,042

Depreciation and amortization 16,890 31,437 3,761 52,088

Stock-based compensation, net 2,716 1,316 9,046 13,078

Goodwill impairment - 394 - 394

Productivity and transformation costs 9,053 7,034 31,509 47,596

Proceeds from insurance claim - - (2,962) (2,962)

Long-lived asset and intangibles impairment 8,499 8,454 10,540 27,493

SKU rationalization and inventory write-down 3,996 179 - 4,175

Warehouse/manufacturing consolidation and other costs 3,440 - - 3,440

Plant closure related costs 75 2,282 - 2,357

Litigation and related expenses - - 48 48

Other 283 (733) (3,306) (3,756)

Adjusted EBITDA $ 140,886 $ 105,696 $ (46,589) $ 199,993

Net sales $ 1,171,478 $ 882,425 $ 2,053,903

Adjusted EBITDA margin 12.0% 12.0% 9.7%

THE HAIN CELESTIAL GROUP, INC.

Operating Free Cash Flow

(unaudited and in thousands)

Fourth Quarter Fourth Quarter Year to Date

2021 2020 2021 2020

Net cash provided by operating activities from continuing operations $ 50,242 $ 92,822 $ 196,759 $ 156,914

Purchases of property, plant and equipment (18,491) (13,932) (71,553) (60,893)

Operating free cash flow from continuing operations $ 31,751 $ 78,890 $ 125,206 $ 96,021

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SOURCE The Hain Celestial Group, Inc.