Transformation Program - Hain Reimagined

3 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Transformation Program - Hain Reimagined

15.TRANSFORMATION PROGRAM - HAIN REIMAGINED

During the first quarter of fiscal year 2024, the Company initiated a multi-year growth, transformation and restructuring program (the “Hain Reimagined Program”). The Hain Reimagined Program is intended to optimize the Company’s portfolio, improve underlying profitability and increase its flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth. The savings initiatives are expected to impact the Company’s reportable segments and Corporate and Other. Implementation of the Hain Reimagined Program is expected to be completed by the end of the 2027 fiscal year and is comprised of: contract termination costs, asset write-downs, employee-related costs and other transformation-related expenses.

For the three months ended September 30, 2024, expenses associated with the Hain Reimagined Program in the amount of $5,018, $376, and $31, respectively, were recorded in productivity and transformation costs, cost of sales, and intangibles and long-lived asset impairment, respectively, on the consolidated statements of operations. For the three months ended September 30, 2023, expenses associated with the Hain Reimagined Program in the amount of $6,403 and $3,320, respectively, were recorded in productivity and transformation costs and cost of sales, respectively, on the consolidated statements of operations.

The table below sets forth expenses associated with the Hain Reimagined Program for the period ended September 30, 2024 and September 30, 2023 by reportable segments and Corporate and Other.

	Three Months Ended September 30, 2024		Three Months Ended September 30, 2023
North America	$	2,241	$	3,358
Corporate and Other		1,990		5,770
International		1,194		595
	$	5,425	$	9,723

The following table displays the activities and liability balances relating to the Hain Reimagined Program for the period ended as of September 30, 2024. The Company expects to pay the remaining accrued restructuring costs during the next 12 months.

	Balance at June 30, 2024		Charges		Amounts Paid			Non-cash settlements/ Adjustments			Balance at September 30, 2024
Employee-related costs	$	1,985	$	2,280	$	(2,820	)	$	—		$	1,445
Contract termination costs		347		367		(8	)		(70	)		636
Asset write-downs1		—		31		—			(31	)		—
Other transformation-related expenses2		3,988		2,747		(2,454	)		(600	)		3,681
	$	6,320	$	5,425	$	(5,282	)	$	(701	)	$	5,762

1Represents non-cash asset write-downs including asset impairment and accelerated depreciation.
2Other transformation-related expenses primarily include consultancy charges related to reorganization of global functions and related personnel resource requirements, and rationalizing sourcing and supply chain processes.