Transformation Program - Hain Reimagined

9 Months Ended

Mar. 31, 2025

Restructuring and Related Activities [Abstract]

Transformation Program - Hain Reimagined

16.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 March 31, 2025, expenses associated with the Hain Reimagined Program in the amount of $7,289 and $379 were recorded in productivity and transformation costs and cost of sales, respectively, on the consolidated statements of operations. For the three months ended March 31, 2024, expenses associated with the Hain Reimagined Program in the amount of $1,353, $7,175 and $1,329 were recorded in long-lived asset and intangibles impairment, productivity and transformation costs, and cost of sales, respectively, on the consolidated statements of operations.

For the nine months ended March 31, 2025, expenses associated with the Hain Reimagined Program in the amount of $16,497, $2,285, and $1,613 were recorded in productivity and transformation costs, long-lived asset and intangibles impairment, and cost of sales, on the consolidated statements of operations. For the nine months ended March 31, 2024, expenses associated with the Hain Reimagined Program in the amount of $22,019, $20,447 and $7,762 were recorded in long-lived asset impairments, 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 three- and nine-month periods ended March 31, 2025 and March 31, 2024 by reportable segments and Corporate and Other.

	Three Months Ended				Nine Months Ended
	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
North America	$	3,650	$	2,007	$	9,300	$	30,458
Corporate and Other		2,538		5,799		8,260		16,636
International		1,480		2,051		2,835		3,134
	$	7,668	$	9,857	$	20,395	$	50,228

The following table displays the activities and liability balances relating to the Hain Reimagined Program for the nine-month period ended March 31, 2025. 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 March 31, 2025
Employee-related costs	$	1,985	$	6,082	$	(5,185	)	$	—		$	2,882
Contract termination costs		347		1,603		(1,269	)		(59	)		622
Asset write-downs(1)		—		2,285		—			(2,285	)		—
Other transformation-related expenses(2)		3,988		10,425		(11,741	)		(1,200	)		1,472
	$	6,320	$	20,395	$	(18,195	)	$	(3,544	)	$	4,976

(1)Represents non-cash asset write-downs including asset impairment and accelerated depreciation.

(2)Other 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.