Hain Celestial Group, the New Jersey-based maker of better-for-you food and drinks, has slowed the bleeding with its restructuring efforts, but the company still faces significant challenges in its quest to return to profitability.
The manufacturer of well-known brands, including Garden Veggie Snacks, Celestial Seasonings teas, Earth’s Best baby food and Terra chips, reported a loss of 8 cents per share on revenue of $367.88 million for the first quarter of fiscal year 2026 on Friday.
That came in well below the consensus analyst estimate of positive 4 cents per share on revenue of $361.88 million, according to Earnings Whispers. Meanwhile, revenue dropped 6.77% year over year for the quarter ended September 2025.
Hain Celestial’s rebound
Organic net sales for North America dropped 7% year over year, driven primarily by lower volume in snacks and partially offset by growth in beverage, meal prep and baby and kids food, said Hain Chief Financial Officer Lee Boyce in the company’s earnings call.
Organic net sales growth in snacks was down 17% year over year, Boyce said, adding that the continued struggles were “driven by velocity challenges and distribution losses in North America.”
Alison Lewis, interim president and CEO, said, “In the quarter, we demonstrated sequential improvement in organic net sales trends in both of our segments in North America, beverages, baby and kids and meal prep all turned to growth, partially offsetting the continued year-over-year decline in snacks.”
William Blair, an investment bank and financial services company, released a statement following the Q1 report’s release, noting that Hain still faces the risks of changing consumer demand, growing competition and transformation complexity.
“The organic sales decline of 6% marked a sequential improvement versus the decrease of 11% in the prior quarter. By category, beverages and meal preparation grew or were flat, while snacks and baby were down,” the report noted.
Hain brands reboot
Lewis said Hain Celestial is deploying five strategies – known at the company as Hain Reimagined – to get the company back on track, including: streamlining the portfolio; accelerating brand renovation and innovation; implementing strategic revenue growth management and pricing; driving productivity and working capital efficiency; and strengthening the company’s digital capabilities.
That includes divesting Hain Celestial of underperforming brands and launching new products.
Hain sold both Thinster cookies and ParmaCrisps in 2024 and discontinued its Yves Veggie Cuisine brand in August – and the cuts are expected to continue.
“We are targeting the elimination of approximately 30% of our SKUs in North America through fiscal 2027 representing low value in our portfolio and enabling us to improve supply chain efficiency and shelf productivity,” Lewis said. “These actions enable us to sharpen our focus and resources to accelerate growth in our highest potential brands and categories.”
Lewis added that the company also is launching new products in every category in Hain Celestial’s portfolio.
The food manufacturer relaunched its Garden Veggie Snacks, introducing flavors like sweet potato.
“In consumer testing, our new garden veggie straws were significantly preferred compared to a leading competitor,” Lewis said. “We debuted the new items in breakthrough new packaging in late September at a key national retail partner and will expand to additional national retailers this winter and into the new year.”
Hain Celestial also is launching a line of snacks “designed to bridge the gap between toddlerhood and big kid independence with Organic Power Bites, Organic Veggie Ways and Organic Crispy Sticks,” Lewis added.