Hain's Organic Sales Decline Widens as International Sale Stalls

The Tip Desk · November 12, 2026 · 3 min read

Net sales were $260 million in the fiscal first quarter ended Sept. 30, 2026, as organic sales fell 7% and the International sale to AURELIUS missed a credit-agreement condition.

The Hain Celestial Group, Inc. (HAIN), a global health and wellness company, reported net sales of $260 million for the fiscal first quarter ended Sept. 30, 2026, down 29% from a year earlier.

The year-over-year decline included a 22% impact from divestitures, discontinued brands and exited product categories. Organic net sales decreased 7%, a 7-point volume/mix decline partially offset by a 1-point pricing increase. That organic decline widened from a 2% organic drop in the fiscal fourth quarter ended June 30, 2026, when volume/mix fell 2 points and pricing was flat. Reported net sales were essentially unchanged from $263 million in that prior quarter.

President and Chief Executive Officer Alison Lewis said the company made progress on actions to realign its cost structure, drive productivity and improve commercial and innovation capabilities, and that gross margin improved meaningfully year over year.

Gross profit margin was 21.8%, a 330-basis-point increase from the year-ago period. Adjusted gross profit margin was 22.8%, a 320-basis-point increase. Net loss was $11 million, or $0.12 a share, compared with a net loss of $21 million, or $0.23 a share, a year earlier. Adjusted net loss was $7 million, unchanged from the prior-year period. Adjusted EBITDA was $18 million, compared with $20 million a year earlier.

North America net sales were $111 million, down 46% year over year, with a 40-point M&A/exit impact and a 6% organic decline driven by lower sales in baby & kids, beverages and meal prep. Segment gross margin was 31.1%, a 1,030-basis-point increase, and adjusted gross margin was 33.5%, a 1,080-basis-point increase, primarily from the North American Snacks transaction, partially offset by lower volume/mix. North America adjusted EBITDA was $17 million, flat versus the year-ago period, with adjusted EBITDA margin of 15.6% versus 8.3%, driven by SG&A reduction, productivity savings and pricing, partially offset by lower volume/mix.

International net sales were $149 million, down 9% year over year, with a 7% organic decline driven by lower meal prep, partially offset by growth in baby & kids and beverages. International gross margin and adjusted gross margin were each 14.9%, 80-basis-point decreases, driven by cost inflation and lower volume/mix, partially offset by productivity savings. International adjusted EBITDA was $9 million, down 29% from $13 million a year earlier, with adjusted EBITDA margin of 6.0% versus 7.7%.

Meal Prep organic net sales decreased 10% year over year, driven primarily by spreads & drizzles and soup in International, partially offset by yogurt growth in North America. Baby & Kids organic sales fell 1% and Beverages organic sales fell 1%. Following the North American snacks disposition, the Snacks category, comprised of jellies in International, had $7 million of net sales, down 92% reported and 16% organically year over year.

Net cash used in operating activities was $19 million, versus $8 million used a year earlier. Free cash flow was negative $23 million, versus negative $14 million. Total debt at Sept. 30 was $586 million, up from $558 million at the beginning of the fiscal year. Net debt was $523 million, versus $500 million at fiscal-year start. The company ended the quarter with a net secured leverage ratio of 5.3x as calculated under its credit agreement.

In early November 2026, the company said it received final required regulatory approvals for the sale of its International business to global private equity firm AURELIUS, satisfying the regulatory approval condition to closing. The separate condition that the company enter into an amendment to its credit agreement with its lenders by Oct. 12, 2026, was not satisfied. The company remains in discussions with AURELIUS and continues to pursue a path forward to complete the transaction.

Lewis said that if completed, the International sale would allow the company to reduce debt and create a more focused North America business with strong brands in attractive categories.