Hain Celestial’s third quarter results received a positive market response despite ongoing year-over-year sales declines. Management attributed the improvement to sequential gains in organic net sales trends, particularly in North America, where Beverages, Baby and Kids, and Meal Prep segments all returned to growth, partially offsetting continued softness in Snacks. Interim CEO Alison Lewis emphasized that cost control measures, a revamped operating model, and targeted brand renovation initiatives are beginning to yield tangible benefits. Lewis noted, “We are already beginning to see results with an improvement in forecast accuracy, a reduction in inventory in North America and an acceleration in the innovation pipeline across the business.”
Is now the time to buy HAIN? Find out in our full research report (it’s free for active Edge members).
Hain Celestial (HAIN) Q3 CY2025 Highlights:
- Revenue: $367.9 million vs analyst estimates of $360.5 million (6.8% year-on-year decline, 2.1% beat)
- Adjusted EPS: -$0.08 vs analyst expectations of -$0.05 (48.1% miss)
- Adjusted EBITDA: $19.73 million vs analyst estimates of $19.81 million (5.4% margin, in line)
- Operating Margin: 1.8%, in line with the same quarter last year
- Organic Revenue fell 6% year on year vs analyst estimates of 5.4% declines (61.1 basis point miss)
- Market Capitalization: $125.9 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions.
Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated.
Here is what has caught our attention.
Our Top 5 Analyst Questions From Hain Celestial’s Q3 Earnings Call
- Andrew Lazar (Barclays) questioned whether organic sales declines would continue to moderate in the next quarter. CFO Lee Boyce responded that improvement is expected, particularly in the second half, driven by innovation and recovery in key categories.
- Andrew Lazar (Barclays) asked about elasticity from recent pricing actions in North America. Interim CEO Alison Lewis explained that early results in tea align with the 1% elasticity assumption, but noted more competitive dynamics and ongoing monitoring in the Baby category.
- Kaumil Gajrawala (Jefferies) inquired about consumer value-seeking behavior and pricing premium for health-focused products. Lewis emphasized that Hain Celestial’s better-for-you brands offer value that consumers are willing to pay for, and highlighted the company’s efforts to provide accessible price points across channels.
- Kaumil Gajrawala (Jefferies) also probed the impact of private label competition. Lewis stated that private label growth remains modest and that Hain’s brands retain loyalty due to their nutritional profile and taste.
- No additional analyst questions were raised on the call, and management reiterated its focus on execution and cost discipline.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be closely monitoring (1) the pace and impact of new product launches and relaunches in categories like Snacks and Baby and Kids, (2) the effectiveness of cost reduction and SG&A initiatives in supporting margin recovery, and (3) the execution of portfolio simplification, including SKU rationalization and exits from low-margin businesses. Progress on digital marketing and success in e-commerce channels will also be important markers of turnaround momentum.
Hain Celestial currently trades at $1.38, up from $1.07 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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