Hain Celestial reported substantially stronger cash generation and lower debt for fiscal 2026 as the health and wellness products company continued simplifying its portfolio and prepared to become a more focused North American business.
Fiscal-year operating cash flow increased to $78 million from $22 million, while free cash flow improved to $58 million from a $3 million outflow. Total debt declined to $558 million from $705 million at the beginning of the year, while net debt fell to $500 million from $650 million.
The company separately announced a definitive agreement to sell its International business. CEO Alison Lewis said that, assuming the transaction closes and Hain reaches an agreement with lenders to extend its December debt maturity, the company expects to emerge as a more streamlined North American operation.
Fourth-quarter net sales were $263 million, down 28% largely because of the divestiture of Hain’s North American snacks business. Organic sales declined 2%, while gross margin expanded 200 basis points to 22.5%. The quarterly net loss narrowed to $62 million from $273 million, and adjusted EBITDA was $19 million compared with $20 million a year earlier.
The strongest improvement came from North America. Organic sales increased 2% in the quarter, driven primarily by meal-prep growth and strength in yogurt. Adjusted gross margin reached 31.1%, an improvement of 1,190 basis points, while North American adjusted EBITDA increased 55% to approximately $16.1 million and reached a 14.4% margin.
For the full fiscal year, Hain generated $1.35 billion in sales, down 13%, with organic sales down 3%. Adjusted EBITDA declined to $89 million from $114 million and the adjusted net result swung to a $16 million loss from $8 million of income.
The results nevertheless show meaningful progress in cash flow, leverage and North American profitability as Hain reshapes its portfolio around a smaller set of businesses.
KEY QUOTES:
“Fiscal 2026 was a pivotal year for Hain. We simplified our portfolio, reduced debt, significantly improved free cash flow and exited the year with improving momentum across the business. Our fourth quarter results reflected encouraging sequential improvement, including organic net sales growth in North America, gross margin and adjusted EBITDA margin expansion, and continued progress on productivity and cost discipline initiatives.”
“Assuming we successfully complete the transaction announced today to sell our International business and that we reach an agreement with our lenders to extend of our December debt maturity, we would expect to become a more focused North American company with leading brands in attractive categories and a streamlined operating model.”
Alison Lewis, President and CEO of Hain Celestial
