EX-99.1 2 exhibit991pressrelease-ear.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

haincelestialnewlogoa01a23.jpg

Hain Celestial Reports Fourth Quarter and Fiscal Year 2018 Financial Results


Provides Fiscal Year 2019 Guidance for Net Sales of $2.500 Billion to $2.560 Billion Adjusted EBITDA of $275 Million to $300 Million

Lake Success, NY, August 28, 2018 - The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial” 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™, today reported financial results for the fourth quarter and fiscal year ended June 30, 2018. The results contained herein are presented with the Hain Pure Protein operating segment being treated as a discontinued operation given the Company’s previously announced decision to divest the business, which is expected to be completed during the first half of fiscal year 2019.
“We continued to execute on our global strategic objectives, with marketing investments in our core brands and incremental savings and productivity through Project Terra, although a number of cost and operational headwinds in the United States impacted our consolidated annual results,” said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. “Our top priorities in fiscal year 2019 are to return our United States business to growth and to generate increased profitability. We remain optimistic that the aggressive strategic changes and investments in our go-to-market strategy will fuel our future results and value for our stockholders.”

FINANCIAL HIGHLIGHTS1 
 
Summary of Fourth Quarter Results from Continuing Operations2 

Net sales increased 3% to $619.6 million compared to the prior year period, or a 1% decrease on a constant currency basis, primarily reflecting low double digit net sales increases from the United Kingdom and Rest of World reporting segments, which includes the Canada and Europe operating segments, partially offset by a mid-single digit net sales decrease from the United States reporting segment. When adjusted for Foreign Exchange and Acquisitions, Divestitures and certain other items, including the 2017 and 2018 Project Terra Stock Keeping Unit (“SKU”) rationalization3, net sales would have increased 3% compared to the prior year period.
Gross margin of 20.2%, a 370 basis point decrease over the prior year period; adjusted gross margin of 21.1%, a 290 basis point decrease over the prior year period as a result of higher trade and promotional investments in the United States and increased freight and commodity costs.
Operating income of $16.6 million, an increase of $9.4 million over the prior year period; adjusted operating income of $44.5 million, a $21.3 million decrease over the prior year period.
Net loss of $4.6 million, a $3.1 million increase in net loss over the prior year period; adjusted net income of $27.7 million, a $14.8 million decrease over the prior year period.
EBITDA of $45.8 million, a 41% decrease over the prior year period; Adjusted EBITDA of $61.4 million, a 25% decrease over the prior year period.
Earnings per diluted share (“EPS”) loss of $0.04 compared to an EPS loss of $0.01 in the prior year period; Adjusted EPS of $0.27 compared to $0.41 in the prior year period.

1 This press release includes certain nonGAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of nonGAAP financial measures to GAAP financial measures are provided herein in the tables "Reconciliation of GAAP Results to Non-GAAP Measures".
2 Unless otherwise noted all results included in this press release are from continuing operations.
3 Refer to “Net Sales Growth at Constant Currency and Adjusted for Acquisitions, Divestitures and Other” provided herein.


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com




Summary of Fiscal Year 2018 Results from Continuing Operations

Net sales increased 5% to $2.458 billion compared to the prior year, or 2% on a constant currency basis, primarily reflecting low to mid double-digit net sales increases from the United Kingdom and Rest of World reporting segments, which includes the Canada and Europe operating segments, partially offset by a low single digit net sales decrease from the United States reporting segment. When adjusted for Foreign Exchange and Acquisitions, Divestitures and certain other items including the 2017 and 2018 Project Terra SKU rationalization3, net sales would have increased 2% compared to the prior year.
Gross margin of 21.0%, a 120 basis point decrease over the prior year; adjusted gross margin of 22.1%, a 40 basis point decrease over the prior year as a result of higher trade and promotional investments in Hain Celestial United States, increased freight and commodity costs and unfavorable mix, partially offset by Project Terra cost savings.
Operating income of $106.0 million, a $3.4 million decrease over the prior year; adjusted operating income of $186.1 million, a $14.5 million decrease over the prior year.
Net income of $82.4 million, a $16.9 million increase over the prior year; adjusted net income of $121.3 million, a $3.8 million decrease over the prior year.
EBITDA of $197.2 million, a 14% decrease over the prior year; Adjusted EBITDA of $255.9 million, a 3% decrease over the prior year.
EPS of $0.79 compared to $0.63 in the prior year; Adjusted EPS of $1.16 compared to $1.20 in the prior year.
Cash flow provided by operating activities from continuing operations of $121.3 million; operating free cash flow of $50.4 million.


SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

Hain Celestial United States
Hain Celestial United States net sales in the fourth quarter decreased 6% over the prior year period to $269.9 million; when adjusted for Acquisitions, Divestitures and certain other items including the 2017 and 2018 Project Terra SKU rationalization3, net sales would have been generally flat. Net sales growth from the Personal Care platform was offset by declines in other platforms. As previously discussed, the decline in net sales was due in part to the strategic decision to no longer support certain lower margin SKUs in order to reduce complexity and increase gross margin over time, as the United States reporting segment continued its focus on its top 500 SKUs, which disproportionately impacted the other platforms. Segment operating income in the fourth quarter was $18.6 million, a 56% decrease from the prior year period, and adjusted operating income was $23.2 million, a 45% decrease over the prior year period, driven primarily by higher trade and marketing investments to drive future period growth and increased freight and logistics costs. The financial results for the current period as well as the prior year fourth quarter results exclude the United Kingdom operations of the Ella’s Kitchen® brand, thereby eliminating net sales of approximately $25.3 million and $23.6 million, respectively, as these net sales are now reported as part of the United Kingdom reportable segment.

Hain Celestial United States net sales in fiscal year 2018 decreased 2% over the prior year to $1.085 billion; when adjusted for Acquisitions, Divestitures and certain other items including the 2017 and 2018 Project Terra SKU rationalization3, net sales would have decreased 1%. The decrease in net sales was driven by declines in the Better-for-You Snacking, Fresh Living and Better-for-You Pantry platforms, partially offset by growth in the Pure Personal Care, Better-for-You Baby and Tea platforms. The decline in net sales was also due to the aforementioned fourth quarter fiscal 2018 items. Segment operating income in fiscal year 2018 was $86.3 million, a 41% decrease from



the prior year, and adjusted operating income was $113.2 million, a 25% decrease over the prior year, driven primarily by higher trade and marketing investments to drive future period growth, increased freight and commodity costs and unfavorable mix. The financial results for fiscal years 2018 and 2017 exclude the United Kingdom operations of the Ella’s Kitchen® brand, thereby eliminating net sales of approximately $94.9 million and $83.5 million, respectively, as these net sales are now reported as part of the United Kingdom reportable segment.
Hain Celestial United Kingdom
Hain Celestial United Kingdom net sales in the fourth quarter increased 10% to $239.1 million over the prior year period, or 5% after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. The strong results for the United Kingdom segment were driven by 15% growth from Tilda®, 9% growth from Hain Daniels and 8% growth from Ella’s Kitchen®, or 9%, 4% and 1% growth, respectively, after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. Segment operating income was $19.0 million, a 9% decrease from the prior year period, and adjusted operating income was $20.2 million, a decrease of 7% over the prior year period. The financial results for the current period as well as the prior year fourth quarter results include the United Kingdom operations of the Ella’s Kitchen® brand, which was previously reported as part of the United States reportable segment.

Hain Celestial United Kingdom net sales in fiscal year 2018 increased 10% to $938.0 million over the prior year, or 5% after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. The strong results for the United Kingdom segment were driven by 14% growth from Tilda®, 9% growth from Hain Daniels and 14% growth from Ella’s Kitchen®, or 8%, 3% and 7% growth, respectively, after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. Segment operating income for fiscal year 2018 was $56.0 million, an 8% increase from the prior year, and adjusted operating income was $70.3 million, an increase of 24% over the prior year driven by strong contribution from the Hain Daniels brands. As discussed above, the financial results for fiscal years 2018 and 2017 include the United Kingdom operations of the Ella’s Kitchen® brand, which was previously reported as part of the United States reportable segment.
Rest of World
Rest of World net sales in the fourth quarter increased 12% to $110.7 million over the prior year period, or by 6% on a constant currency basis. Net sales for Hain Celestial Europe grew 18%, or 8% on a constant currency basis, driven by strong performance from the Tilda®, Danival® and Joya® brands as well as own-label products. Net sales for Hain Celestial Canada grew 9%, or 5% on a constant currency basis, driven by strong performance from the Yves Veggie Cuisine®, Alba Botanica®, Sensible Portions® and Live Clean® brands. Segment operating income in the fourth quarter was $8.1 million, a $2.0 million decrease from the prior year period. Adjusted operating income was $9.9 million, a 2% decrease over the prior year period.

Rest of World net sales in fiscal year 2018 increased 13% to $434.9 million over the prior year, or by 7% on a constant currency basis. Net sales for Hain Celestial Europe grew 19%, or 8% on a constant currency basis, driven by strong performance from the Tilda®, Danival®, Joya®, as well as own label products. Net sales for Hain Celestial Canada grew 13%, or 8% on a constant currency basis, driven by strong performance from Yves Veggie Cuisine®, Tilda®, Live Clean® and Sensible Portions® brands. Segment operating income in fiscal year 2018 was $38.7 million, a 21% increase from the prior year, and adjusted operating income was $42.6 million, a 34% increase over the prior year.

Hain Pure Protein Discontinued Operations
As previously disclosed on May 5, 2018, the results of operations, financial position and cash flows related to the operations of the Hain Pure Protein business segment have been moved to discontinued operations in the current and prior periods. Net sales for Hain Pure Protein in the fourth quarter were $113.2 million, a decrease of 7% compared to the prior year period, primarily due to the shift in timing of the Passover holiday. Segment operating loss in the fourth quarter was $83.8 million and included a $78.5 million pre-tax non-cash impairment charge.

For fiscal year 2018, net sales for Hain Pure Protein were $509.5 million, relatively flat compared to the prior year. Segment operating loss for fiscal year 2018 was $78.3 million and includes a $78.5 million pre-tax non-cash impairment charge.





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



Fiscal Year 2019 Guidance

The Company provided its annual guidance for continuing operations for fiscal year 2019:
Total net sales of $2.500 billion to $2.560 billion, an increase of approximately 2% to 4% as compared to fiscal year 2018.
Adjusted EBITDA of $275 million to $300 million, an increase of approximately 7% to 17% as compared to fiscal year 2018.
Adjusted EPS of $1.21 to $1.38, an increase of approximately 4% to 19% as compared to fiscal year 2018.

The Company expects growth in net sales, adjusted EBITDA, and adjusted EPS to be weighted towards the second half of fiscal 2019 as it benefits from the planned Hain Celestial United States strategic brand investments, distribution gains and price optimization efforts. As a result of the continued strategic brand investments and expected near-term cost headwinds, the Company expects first quarter of fiscal 2019 net sales to be flat to slightly down, adjusted EBITDA and adjusted EPS to be down year-over-year on a percentage basis similar to the fourth quarter of fiscal 2018. In addition, the timing of the annual global Project Terra cost savings and productivity benefits that are already in process is expected to accelerate as the fiscal year progresses. Details of the Project Terra cost savings and productivity with expected timing are contained in the presentation for the Fourth Quarter Fiscal Year 2018 earnings call available under the Investor Relations section of the Company’s website at www.hain.com.
Guidance, where adjusted, is provided on a non-GAAP basis and excludes acquisition-related expenses, integration and restructuring charges, start-up costs, costs associated with the CEO Succession Agreement, unrealized net foreign currency gains or losses, accounting review and remediation costs and other non-recurring items that may be incurred during the Company’s fiscal year 2019, which the Company will continue to identify as it reports its future financial results. Guidance also excludes the impact of any future acquisitions.
The Company cannot reconcile its expected Adjusted EBITDA to net income or adjusted earnings per diluted share to earnings per share under “Fiscal Year 2019 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
Contact:
James Langrock / Katie Turner
The Hain Celestial Group, Inc.
516-587-5000
























The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



Effective July 1, 2017, due to changes to the Company’s internal management and reporting structure, the United Kingdom operations of the Ella’s Kitchen® brand, which was previously included within the United States reportable segment, is included in the United Kingdom reportable segment. The prior period segment information contained below has been adjusted to reflect the Company’s new operating and reporting structure.

(unaudited and dollars in thousands)
United States
 
United Kingdom
 
Rest of World
 
Corporate / Other
 
Total
NET SALES
 
 
 
 
 
 
 
 
 
Net sales - Three months ended 6/30/18
$
269,857

 
$
239,061

 
$
110,680

 
$

 
$
619,598

Net sales - Three months ended 6/30/17
$
285,432

 
$
218,315

 
$
99,144

 
$

 
$
602,891

% change - FY'18 net sales vs. FY'17 net sales
(5.5
)%
 
9.5
%
 
11.6
%
 
 
 
2.8
%
 
 
 
 
 
 
 
 
 
 
OPERATING INCOME


 


 


 
 



Three months ended 6/30/18
 
 
 
 
 
 
 
 
 
Operating income
$
18,623

 
$
18,984

 
$
8,069

 
$
(29,096
)
 
$
16,580

Non-GAAP adjustments (1)
4,571

 
1,257

 
1,862

 
20,211

 
27,901

Adjusted operating income
$
23,194

 
$
20,241

 
$
9,931

 
$
(8,885
)
 
$
44,481

Operating income margin
6.9
 %
 
7.9
%
 
7.3
%
 
 
 
2.7
%
Adjusted operating income margin
8.6
 %
 
8.5
%
 
9.0
%
 
 
 
7.2
%
 
 
 
 
 
 
 
 
 
 
Three months ended 6/30/17


 


 


 


 


Operating income
$
42,262

 
$
20,748

 
$
10,117

 
$
(65,953
)
 
$
7,174

Non-GAAP adjustments (1)

 
942

 

 
57,661

 
58,603

Adjusted operating income
$
42,262

 
$
21,690

 
$
10,117

 
$
(8,292
)
 
$
65,777

Operating income margin
14.8
 %
 
9.5
%
 
10.2
%
 
 
 
1.2
%
Adjusted operating income margin
14.8
 %
 
9.9
%
 
10.2
%
 



10.9
%
(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



 
United States
 
United Kingdom
 
Rest of World
 
Corporate / Other
 
Total
NET SALES
 
 
 
 
 
 
 
 
 
Net sales - Twelve months ended 6/30/18
$
1,084,871

 
$
938,029

 
$
434,869

 
$

 
$
2,457,769

Net sales - Twelve months ended 6/30/17
$
1,107,806

 
$
851,757

 
$
383,942

 
$

 
$
2,343,505

% change - FY'18 net sales vs. FY'17 net sales
(2.1
)%
 
10.1
%
 
13.3
%
 
 
 
4.9
%
 
 
 
 
 
 
 
 
 
 
OPERATING INCOME
 
 
 
 
 
 
 
 
 
Twelve months ended 6/30/18
 
 
 
 
 
 
 
 
 
Operating income
$
86,319

 
$
56,046

 
$
38,660

 
$
(74,985
)
 
$
106,040

Non-GAAP adjustments (1)
26,841

 
14,227

 
3,985

 
34,980

 
80,033

Adjusted operating income
$
113,160

 
$
70,273

 
$
42,645

 
$
(40,005
)
 
$
186,073

Operating income margin
8.0
 %
 
6.0
%
 
8.9
%
 
 
 
4.3
%
Adjusted operating income margin
10.4
 %
 
7.5
%
 
9.8
%
 
 
 
7.6
%
 
 
 
 
 
 
 
 
 
 
Twelve months ended 6/30/17
 
 
 
 
 
 
 
 
 
Operating income
$
145,307

 
$
51,948

 
$
32,010

 
$
(119,842
)
 
$
109,423

Non-GAAP adjustments (1)
6,193

 
4,696

 
(110
)
 
80,402

 
91,181

Adjusted operating income
$
151,500

 
$
56,644

 
$
31,900

 
$
(39,440
)
 
$
200,604

Operating income margin
13.1
 %
 
6.1
%
 
8.3
%
 
 
 
4.7
%
Adjusted operating income margin
13.7
 %
 
6.7
%
 
8.3
%
 
 
 
8.6
%
(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"

Webcast Presentation
Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. The webcast, and any 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 Alba Botanica®, Almond Dream®, Arrowhead Mills®, Avalon Organics®, Bearitos®, Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth’s Best®, Ella’s Kitchen®, Empire®, Europe’s Best®, Farmhouse Fare™, Frank Cooper’s®, FreeBird®, Gale’s®, Garden of Eatin’®, GG UniqueFiber™, Hain Pure Foods®, Hartley’s®, Health Valley®, Imagine®, JÂSÖN®, Johnson’s Juice Co.®, Joya®, Kosher Valley®, Lima®, Linda McCartney’s® (under license), Live Clean®, MaraNatha®, Mary Berry (under license), Natumi®, New Covent Garden Soup Co.®, Orchard House®, Plainville Farms®, Queen Helene®, Rice Dream®, Robertson’s®, Rudi’s Gluten-Free Bakery®, Rudi’s Organic Bakery®, Sensible Portions®, Spectrum Organics®, Soy Dream®, Sun-Pat®, Sunripe®, SunSpire®, Terra®, The Greek Gods®, Tilda®, Walnut Acres®, WestSoy®, Yorkshire Provender®, Yves Veggie Cuisine® and William’s™. Hain Celestial has been providing A Healthier Way of LifeTM since 1993. For more information, visit www.hain.com.

Safe Harbor Statement
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of 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 facts. You can also identify forward-looking statements by discussions of the Project Terra strategic initiatives, the Company’s potential divestiture


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



of its Hain Pure Protein business, and our future performance and results of operations. Such 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 Company’s beliefs or expectations relating to (i) the Company’s guidance for Fiscal Year 2019; (ii) the potential divestiture of the Hain Pure Protein business during the first half of fiscal year 2019; (iii) the Company's ability to return our United States business to growth and generate increased profitability; and (iv) the Company’s ability to fuel future results and value for stockholders; and the other risks detailed from time-to-time in the Company’s reports filed with the United States Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended June 30, 2018, and our quarterly reports. 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 reflects changes in underlying assumptions or factors of new methods, future events or other changes.

Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including net sales adjusted for the impact of Foreign currency, Acquisitions and Divestitures and certain other items, including SKU rationalization, as applicable in each case, adjusted operating income, adjusted gross margin, adjusted net income, adjusted earnings per diluted share, EBITDA, Adjusted EBITDA and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are presented in the tables “Reconciliation of GAAP Results to Non-GAAP Measures” for the three months and twelve months ended June 30, 2018 and 2017 and in the paragraphs below. 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 Income presented in accordance with GAAP.
The Company defines Operating Free Cash Flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. 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.
 
For the twelve months ended June 30, 2018 and 2017, Operating Free Cash Flow from continuing operations was calculated as follows:
 
Twelve Months Ended
 
6/30/2018
 
6/30/2017
 
(unaudited and dollars in thousands)
 
 
 
 
Cash flow provided by operating activities - continuing operations
$
121,308

 
$
232,695

Purchases of property, plant and equipment
(70,891
)
 
(47,307
)
Operating Free Cash Flow - continuing operations
$
50,417

 
$
185,388


The Company's Operating Free Cash Flow from continuing operations was $50.4 million for the 12 months ended June 30, 2018, a decrease of $135.0 million from the twelve months ended June 30, 2017. The decrease in Operating Free Cash Flow was primarily attributable to increased capital expenditures in the current year and an increase in inventories and accounts receivable.




The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



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 constant currency, acquisitions and divestitures, and certain other items including SKU rationalization, as applicable in each case, 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 EBITDA as net income from continuing operations (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, equity in net income of equity method investees, stock based compensation expense and unrealized currency gains. Adjusted EBITDA is defined as EBITDA before acquisition-related expenses, including integration and restructuring charges, and other non-recurring items. 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 Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



For the three months and twelve months ended June 30, 2018 and 2017, EBITDA and Adjusted EBITDA from continuing operations was calculated as follows:
 
Three Months Ended
 
Twelve Months Ended
 
6/30/2018
 
6/30/2017
 
6/30/2018
 
6/30/2017
 
(unaudited and dollars in thousands)
Net (loss) income
$
(69,941
)
 
$
313

 
$
9,694

 
$
67,430

Net (loss) income from discontinued operations
(65,385
)
 
1,817

 
(72,734
)
 
1,889

Net (loss) income from continuing operations
(4,556
)
 
(1,504
)
 
82,428

 
65,541

 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
10,629

 
2,954

 
(887
)
 
22,466

Interest expense, net
6,804

 
4,914

 
24,339

 
18,391

Depreciation and amortization
15,670

 
14,832

 
60,809

 
59,567

Equity in net income of equity-method investees
(235
)
 
(84
)
 
(339
)
 
(129
)
Stock-based compensation expense
3,122

 
2,139

 
13,380

 
9,658

Stock-based compensation expense in connection with CEO succession agreement
(2,203
)
 

 
(2,203
)
 

Goodwill impairment
7,700

 

 
7,700

 

Long-lived asset and intangibles impairment
5,743

 
40,452

 
14,033

 
40,452

Unrealized currency losses/(gains)
3,143

 
14,056

 
(2,027
)
 
12,570

EBITDA
45,817

 
77,759

 
197,233

 
228,516

 
 
 
 
 
 
 
 
Acquisition related expenses, restructuring, integration and other charges
6,999

 
6,095

 
20,749

 
9,694

Accounting review and remediation costs, net of insurance proceeds
2,887

 
9,473

 
9,293

 
29,562

Warehouse/Manufacturing Facility start-up costs
3,024

 

 
4,179

 

Plant closure related costs
1,567

 

 
5,513

 
1,804

Recall and other related costs
307

 

 
580

 
809

Litigation expense
780

 

 
1,015

 

Machine break-down costs

 

 
317

 

Co-packer disruption

 

 
3,692

 

Losses on terminated chilled desserts contract

 
2,583

 
6,553

 
2,583

Regulated packaging change

 

 
1,007

 

2018 Project Terra SKU rationalization

 

 
4,913

 

Toys "R" Us bad debt

 

 
897

 

2017 Project Terra SKU rationalization

 

 

 
5,360

U.K. deferred synergies due to CMA Board decision

 

 

 
918

Realized currency gain on repayment of GBP denominated debt

 
(14,290
)
 

 
(14,290
)
Adjusted EBITDA
$
61,381

 
$
81,620

 
$
255,941

 
$
264,956





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(unaudited and in thousands)
 
 
 
 
 
June 30,
 
2018
 
2017
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
106,557

 
$
137,055

Accounts receivable, net
252,708

 
225,765

Inventories
391,525

 
341,995

Prepaid expenses and other current assets
59,946

 
46,179

Current assets of discontinued operations
240,851

 
123,787

    Total current assets
1,051,587

 
874,781

 
 
 
 
Property, plant and equipment, net
310,172

 
291,866

Goodwill
1,024,136

 
1,018,892

Trademarks and other intangible assets, net
510,387

 
521,228

Investments and joint ventures
20,725

 
18,998

Other assets
29,667

 
30,235

Noncurrent assets of discontinued operations

 
175,104

Total assets
$
2,946,674

 
$
2,931,104

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
229,993

 
$
186,193

Accrued expenses and other current liabilities
116,001

 
106,727

Current portion of long-term debt
26,605

 
9,626

Current liabilities of discontinued operations
49,846

 
37,948

    Total current liabilities
422,445

 
340,494

 
 
 
 
Long-term debt, less current portion
687,501

 
740,135

Deferred income taxes
86,909

 
98,346

Other noncurrent liabilities
12,770

 
15,975

Noncurrent liabilities of discontinued operations

 
23,322

Total liabilities
1,209,625

 
1,218,272

 
 
 
 
Stockholders' equity:
 
 
 
Common stock
1,084

 
1,080

Additional paid-in capital
1,148,196

 
1,137,724

Retained earnings
878,516

 
868,822

Accumulated other comprehensive loss
(184,240
)
 
(195,479
)
 
1,843,556

 
1,812,147

Treasury stock
(106,507
)
 
(99,315
)
    Total stockholders' equity
1,737,049

 
1,712,832

    Total liabilities and stockholders' equity
$
2,946,674

 
$
2,931,104

   

10





THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Income
 (unaudited and in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Twelve Months Ended June 30,
 
2018

2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Net sales
$
619,598

 
$
602,891

 
$
2,457,769

 
$
2,343,505

Cost of sales
494,501

 
459,029

 
1,942,321

 
1,824,109

  Gross profit
125,097

 
143,862

 
515,448

 
519,396

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
80,845

 
74,926

 
339,431

 
312,583

Amortization of acquired intangibles
4,343

 
4,101

 
18,202

 
16,988

Acquisition related expenses, restructuring, integration and other charges
6,999

 
7,736

 
20,749

 
10,388

Accounting review and remediation costs, net of insurance proceeds
2,887

 
9,473

 
9,293

 
29,562

Goodwill impairment
7,700

 

 
7,700

 

Long-lived asset and intangibles impairment
5,743

 
40,452

 
14,033

 
40,452

  Operating income
16,580

 
7,174

 
106,040

 
109,423

 
 
 
 
 
 
 
 
Interest expense and other financing expense, net
7,382

 
5,624

 
26,925

 
21,115

Other expense/(income), net
3,360

 
184

 
(2,087
)
 
430

Income from continuing operations before income taxes and equity in net income of equity-method investees
5,838

 
1,366

 
81,202

 
87,878

 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
10,629

 
2,954

 
(887
)
 
22,466

Equity in net income of equity-method investees
(235
)
 
(84
)
 
(339
)

(129
)
Net (loss) income from continuing operations
$
(4,556
)
 
$
(1,504
)
 
$
82,428

 
$
65,541

Net (loss) income from discontinued operations, net of tax
(65,385
)
 
1,817

 
(72,734
)
 
1,889

Net (loss) income
$
(69,941
)
 
$
313

 
$
9,694

 
$
67,430

 
 
 
 
 
 
 
 
Net (loss) income per common share:
 
 
 
 
 
 
 
Basic net (loss) income per common share from continuing operations
$
(0.04
)
 
$
(0.01
)
 
$
0.79

 
$
0.63

Basic net (loss) income per common share from discontinued operations
(0.63
)
 
0.02

 
(0.70
)
 
0.02

Basic net (loss) income per common share
$
(0.67
)
 
$

 
$
0.09

 
$
0.65

 
 
 
 
 
 
 
 
Diluted net (loss) income per common share from continuing operations
$
(0.04
)
 
$
(0.01
)
 
$
0.79

 
$
0.63

Diluted net (loss) income per common share from discontinued operations
(0.63
)
 
0.02

 
(0.70
)
 
0.02

Diluted net (loss) income per common share
$
(0.67
)
 
$

 
$
0.09

 
$
0.65

 
 
 
 
 
 
 
 
Shares used in the calculation of net (loss) income per common share:
 
 
 
 
 
 
 
Basic
103,927

 
103,693

 
103,848

 
103,611

Diluted
103,927

 
103,693

 
104,477

 
104,248


11






THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
 
2018 GAAP
 
Adjustments
 
2018 Adjusted
 
2017 GAAP
 
 Adjustments
 
2017 Adjusted
Net sales
 
$
619,598

 
$

 
$
619,598

 
$
602,891

 
$

 
$
602,891

Cost of sales
 
494,501

 
(5,346
)
 
489,155

 
459,029

 
(942
)
 
458,087

Gross profit
 
125,097

 
5,346

 
130,443

 
143,862

 
942

 
144,804

Operating expenses (a)
 
90,931

 
(4,969
)
 
85,962

 
119,479

 
(40,452
)
 
79,027

Acquisition related expenses, restructuring, integration and other charges
 
6,999

 
(6,999
)
 

 
7,736

 
(7,736
)
 

Accounting review and remediation costs, net of insurance proceeds
 
2,887

 
(2,887
)
 

 
9,473

 
(9,473
)
 

Goodwill impairment
 
7,700

 
(7,700
)
 

 

 

 

Operating income
 
16,580

 
27,901

 
44,481

 
7,174

 
58,603

 
65,777

Interest and other expense (income), net (b)
 
10,742

 
(3,143
)
 
7,599

 
5,808

 
234

 
6,042

Provision (benefit) for income taxes
 
10,629

 
(1,255
)
 
9,374

 
2,954

 
14,332

 
17,286

Net (loss) income from continuing operations
 
(4,556
)
 
32,299

 
27,743

 
(1,504
)
 
44,037

 
42,533

Net (loss) income from discontinued operations, net of tax
 
(65,385
)
 
65,385

 

 
1,817

 
(1,817
)
 

Net (loss) income
 
(69,941
)
 
97,684

 
27,743

 
313

 
42,220

 
42,533

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net (loss) income per common share from continuing operations
 
(0.04
)
 
0.31

 
0.27

 
(0.01
)
 
0.42

 
0.41

Diluted net (loss) income per common share from discontinued operations
 
(0.63
)
 
0.63

 

 
0.02

 
(0.02
)
 

Diluted net (loss) income per common share
 
(0.67
)
 
0.94

 
0.27

 

 
0.40

 
0.41


(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense (income), net include interest and other financing expense, net and other (income)/expense, net.





12





THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands, except per share amounts)
 
 
 
 
 
Detail of Adjustments:
 
 
 
 
 
 
Three Months Ended June 30,
 
 
2018
 
2017
 
 
 
 
 
Warehouse/Manufacturing Facility start-up costs
 
$
3,024

 
$

Plant closure related costs
 
2,015

 

Recall and other related costs
 
307

 

Losses on terminated chilled desserts contract
 

 
942

Cost of sales
 
5,346

 
942

 
 
 
 
 
Gross profit
 
5,346

 
942

 
 
 
 
 
Intangibles impairment
 
5,632

 
14,079

Long-lived asset impairment charge associated with plant closure
 
111

 
26,373

Accelerated Depreciation on software disposal
 
461

 

Litigation expense
 
780

 

Warehouse/Manufacturing Facility start-up costs
 
188

 

Stock-based compensation expense in connection with CEO succession agreement
 
(2,203
)
 

Operating expenses (a)
 
4,969

 
40,452

 
 
 
 
 
Acquisition related expenses, restructuring, integration and other charges
 
6,999

 
7,736

Acquisition related expenses, restructuring, integration and other charges
 
6,999

 
7,736

 
 
 
 
 
Accounting review and remediation costs, net of insurance proceeds
 
2,887

 
9,473

Accounting review and remediation costs, net of insurance proceeds
 
2,887

 
9,473

 
 
 
 
 
Goodwill impairment
 
7,700

 

Goodwill impairment
 
7,700

 

 
 
 
 
 
Operating income
 
27,901

 
58,603

 
 
 
 
 
Unrealized currency losses
 
3,143

 
14,056

Realized currency gain on repayment of GBP denominated debt
 

 
(14,290
)
Interest and other expenses (income), net (b)
 
3,143

 
(234
)
 
 
 
 
 
Income tax related adjustments
 
1,255

 
(14,332
)
Provision (benefit) for income taxes
 
1,255

 
(14,332
)
 
 
 
 
 
Net income from continuing operations
 
$
32,299

 
$
44,037


(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense (income), net includes interest and other financing expense, net and other (income)/expense, net.


13






THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended June 30,
 
 
2018 GAAP
 
Adjustments
 
2018 Adjusted
 
2017 GAAP
 
 Adjustments
 
2017 Adjusted
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
2,457,769

 
$

 
$
2,457,769

 
$
2,343,505

 
$

 
$
2,343,505

Cost of sales
 
1,942,321

 
(27,200
)
 
1,915,121

 
1,824,109

 
(7,205
)
 
1,816,904

Gross profit
 
515,448

 
27,200

 
542,648

 
519,396

 
7,205

 
526,601

Operating expenses (a)
 
371,666

 
(15,091
)
 
356,575

 
370,023

 
(44,026
)
 
325,997

Acquisition related expenses, restructuring, integration and other charges
 
20,749

 
(20,749
)
 

 
10,388

 
(10,388
)
 

Accounting review and remediation costs, net of insurance proceeds
 
9,293

 
(9,293
)
 

 
29,562

 
(29,562
)
 

Goodwill impairment
 
7,700

 
(7,700
)
 

 

 

 

Operating income
 
106,040

 
80,033

 
186,073

 
109,423

 
91,181

 
200,604

Interest and other expense, net (b)
 
24,838

 
2,027

 
26,865

 
21,545

 
1,720

 
23,265

Provision (benefit) for income taxes
 
(887
)
 
39,133

 
38,246

 
22,466

 
29,883

 
52,349

Net income from continuing operations
 
82,428

 
38,873

 
121,301

 
65,541

 
59,578

 
125,119

Net (loss) income from discontinued operations, net of tax
 
(72,734
)
 
72,734

 

 
1,889

 
(1,889
)
 

Net income
 
9,694

 
111,607

 
121,301

 
67,430

 
57,689

 
125,119

 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net income per common share from continuing operations
 
0.79

 
0.37

 
1.16

 
0.63

 
0.57

 
1.20

Diluted net (loss) income per common share from discontinued operations
 
(0.70
)
 
0.70

 

 
0.02

 
(0.02
)
 

Diluted net income per common share
 
0.09

 
1.07

 
1.16

 
0.65

 
0.55

 
1.20


(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net include interest and other financing expense, net and other (income)/expense, net.








14





THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands, except per share amounts)
 
 
 
 
 
Detail of Adjustments:
 
 
 
 
 
 
Twelve Months Ended June 30,
 
 
2018
 
2017
 
 
 
 
 
Losses on terminated chilled desserts contract
 
$
6,553

 
$
942

2018 Project Terra SKU rationalization
 
4,913

 

Plant closure related costs
 
5,958

 
464

Co-packer disruption
 
3,692

 

Warehouse/Manufacturing Facility start-up costs
 
4,179

 

Regulated packaging change
 
1,007

 

Machine break-down costs
 
317

 

Recall and other related costs
 
580

 
73

2017 Project Terra SKU rationalization
 

 
5,360

U.K. deferred synergies due to CMA Board decision
 

 
366

Cost of sales
 
27,200

 
7,205

 
 
 
 
 
Gross profit
 
27,200

 
7,205

 
 
 
 
 
Long-lived asset impairment charge associated with plant closure
 
8,401

 
26,373

Intangibles impairment
 
5,632

 
14,079

Toys "R" Us bad debt
 
897

 

Stock-based compensation acceleration associated with Board of Directors
 
700

 

Litigation expenses
 
1,015

 

Accelerated Depreciation on software disposal
 
461

 

Warehouse/Manufacturing Facility start-up costs
 
188

 

Stock-based compensation expense in connection with CEO succession agreement
 
(2,203
)
 
 
Plant closure related costs
 

 
1,340

U.K. deferred synergies due to CMA Board decision
 

 
551

Recall and other related costs
 

 
736

Tilda fire insurance recovery costs and other startup/integration Costs
 

 
947

Operating expenses (a)
 
15,091

 
44,026

 
 
 
 
 
Acquisition related expenses, restructuring, integration and other charges
 
20,749

 
10,388

Acquisition related expenses, restructuring, integration and other charges
 
20,749

 
10,388

 
 
 
 
 
Accounting review and remediation costs, net of insurance proceeds
 
9,293

 
29,562

Accounting review and remediation costs, net of insurance proceeds
 
9,293

 
29,562

 
 
 
 
 
Goodwill impairment
 
7,700

 

Goodwill impairment
 
7,700

 

 
 
 
 
 
Operating income
 
80,033

 
91,181

 
 
 
 
 
Unrealized currency (gains)/losses
 
(2,027
)
 
12,570

Realized currency gain on repayment of GBP denominated debt
 

 
(14,290
)
Interest and other expense, net (b)
 
(2,027
)
 
(1,720
)
 
 
 
 
 
Income tax related adjustments
 
(39,133
)
 
(29,883
)
Provision (benefit) for income taxes
 
(39,133
)
 
(29,883
)
 
 
 
 
 
Net income from continuing operations
 
$
38,873

 
$
59,578


(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net includes interest and other financing expenses, net and other (income)/expense, net.

15





THE HAIN CELESTIAL GROUP, INC.
Net Sales Growth at Constant Currency
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
Hain Consolidated
 
United Kingdom
 
Rest of World
 Net sales - Three months ended 6/30/18
 
$
619,598

 
$
239,061

 
$
110,680

 Impact of foreign currency exchange
 
(19,934
)
 
(13,949
)
 
(5,985
)
 Net sales on a constant currency basis - Three months ended 6/30/18
 
$
599,664

 
$
225,112

 
$
104,695

 
 
 
 
 
 
 
Net sales - Three months ended 6/30/17
 
$
602,891

 
$
218,315

 
$
99,144

Net sales growth on a constant currency basis
 
(0.5
)%
 
3.1
%
 
5.6
%
 
 
 
 
 
 
 
 
 
Hain Consolidated
 
United Kingdom
 
Rest of World
 Net sales - Twelve months ended 6/30/18
 
$
2,457,769

 
$
938,029

 
$
434,869

 Impact of foreign currency exchange
 
(79,959
)
 
(54,419
)
 
(25,540
)
 Net sales on a constant currency basis - Twelve months ended 6/30/18
 
$
2,377,810

 
$
883,610

 
$
409,329

 
 
 
 
 
 
 
Net sales - Twelve months ended 6/30/17
 
$
2,343,505

 
$
851,757

 
$
383,942

Net sales growth on a constant currency basis
 
1.5
 %
 
3.7
%
 
6.6
%


16





THE HAIN CELESTIAL GROUP, INC.
 
 
Net Sales Growth at Constant Currency
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales Growth at Constant Currency and Adjusted for Acquisitions, Divestitures and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hain Consolidated
 
United States
 
United Kingdom
 
Rest of World
 
 
Net sales on a constant currency basis - Three months ended 6/30/18
 
$
599,664

 
$
269,857

 
$
225,112

 
$
104,695

 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales - Three months ended 6/30/17
 
$
602,891

 
$
285,432

 
$
218,315

 
$
99,144

 
 
  Acquisitions
 
3,538

 

 
3,165

 
373

 
 
  Divestitures
 
(1,632
)
 
(1,632
)
 

 

 
 
  Castle contract termination
 
(6,773
)
 

 
(6,773
)
 

 
 
  2017 Project Terra SKU rationalization
 
(3,185
)
 
(3,185
)
 

 

 
 
  2018 Project Terra SKU rationalization
 
(12,093
)
 
(11,165
)
 

 
(928
)
 

  Inventory realignment
 

 

 

 

 
 
Net sales on a constant currency basis adjusted for acquisitions, divestitures and other - Three months ended 6/30/17
 
$
582,746

 
$
269,450

 
$
214,707

 
$
98,589

 
 
Net sales growth on a constant currency basis adjusted for acquisitions, divestitures and other
 
2.9
 %
 
0.2
 %
 
4.8
 %
 
6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tilda
 
Hain Daniels
 
Ella's Kitchen
 
Hain Celestial Europe
 
Hain Celestial Canada
Net sales growth - Three months ended 6/30/18
 
14.5
 %
 
8.5
 %
 
7.5
 %
 
17.7
 %
 
9.3
 %
   Impact of foreign currency exchange
 
(5.6
)%
 
(6.6
)%
 
(6.5
)%
 
(9.4
)%
 
(4.4
)%
   Impact of acquisitions
 
 %
 
(2.0
)%
 
 %
 
 %
 
 %
   Impact of castle contract termination
 
 %
 
4.5
 %
 
 %
 
 %
 
 %
Net sales growth on a constant currency basis adjusted for acquisitions, divestitures and other - Three months ended 6/30/18
 
9.0
 %
 
4.3
 %
 
1.0
 %
 
8.3
 %
 
4.9
 %









17





THE HAIN CELESTIAL GROUP, INC.
 
 
Net Sales Growth at Constant Currency
 
 
(unaudited and in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales Growth at Constant Currency and Adjusted for Acquisitions, Divestitures and Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hain Consolidated
 
United States
 
United Kingdom
 
Rest of World
 
 
Net sales on a constant currency basis - Twelve months ended 6/30/18
 
$
2,377,810

 
$
1,084,871

 
$
883,610

 
$
409,329

 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales - Twelve months ended 6/30/17
 
$
2,343,505

 
$
1,107,806

 
$
851,757

 
$
383,942

 
 
  Acquisitions
 
16,000

 

 
14,796

 
1,204

 
 
  Divestitures
 
(14,967
)
 
(7,999
)
 
(6,968
)
 

 
 
  Castle contract termination
 
(14,401
)
 

 
(14,401
)
 

 
 
  2017 Project Terra SKU rationalization
 
(14,359
)
 
(14,359
)
 

 

 
 
  2018 Project Terra SKU rationalization
 
(25,357
)
 
(23,154
)
 

 
(2,203
)
 
 
  Inventory realignment
 
33,999

 
33,999

 

 

 
 
Net sales on a constant currency basis adjusted for acquisitions, divestitures and other - Twelve months ended 6/30/17
 
$
2,324,420

 
$
1,096,293

 
$
845,184

 
$
382,943

 
 
Net sales growth on a constant currency basis adjusted for acquisitions, divestitures and other
 
2.3
 %
 
(1.0
)%
 
4.5
 %
 
6.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tilda
 
Hain Daniels
 
Ella's Kitchen
 
Hain Celestial Europe
 
Hain Celestial Canada
Net sales growth - Twelve months ended 6/30/18
 
14.0
 %
 
8.7
 %
 
13.7
 %
 
18.5
 %
 
12.5
 %
   Impact of foreign currency exchange
 
(5.8
)%
 
(6.5
)%
 
(6.6
)%
 
(10.5
)%
 
(4.9
)%
   Impact of acquisitions
 
 %
 
(2.4
)%
 
 %
 
 %
 
 %
   Impact of castle contract termination
 
 %
 
2.5
 %
 
 %
 
 %
 
 %
   Impact of divestitures
 
 %
 
1.1
 %
 
 %
 
 %
 
 %
Net sales growth on a constant currency basis adjusted for acquisitions, divestitures and other - Twelve months ended 6/30/18
 
8.2
 %
 
3.3
 %
 
7.0
 %
 
8.0
 %
 
7.6
 %


18