The Hain Celestial Group, Inc. Q2 FY2026 earnings call

• Strategic review: Conducting a comprehensive strategic review to simplify portfolio, enhance financial flexibility, reduce leverage, and maximize shareholder value. Sold North American snacks business for $115 million to focus on key categories. • Operational progress: Measurable results from reshaping cost structure, enhancing operating model, and executing five actions to win. Forecast accuracy improved, days inventory outstanding improved, service levels increased, SG&A improved. • Quarterly results: Second quarter results reflect progress and near-term pressure. Organic net sales flat when excluding certain hotspots. Adjusted EBITDA $24 million. • Cash flow and balance sheet: Strong cash delivery, free cash flow $30 million, net debt reduced by $32 million, available liquidity under revolver $144 million

North America: Organic net sales declined 10% year over year. Adjusted gross margin was 20.8%, a 440 basis point decrease. Adjusted EBITDA was $11 million, or 5.5% of net sales. Excluding snacks and eaves, gross margin would have been 28.6% and EBITDA margin on a comparable basis would have been 12.8%. International: Organic net sales declined 3% in the quarter. Adjusted gross margin was 18.1%, a 200 basis point decrease. Adjusted EBITDA was $19 million or 10.2% of net sales. Snacks: Organic net sales down 20% year over year. Baby and kids: Organic net sales growth down 14% year over year. Beverages: Organic net sales growth 3% year over year. Meal prep: Organic net sales growth down 1% year over year

• Not providing numeric guidance on fiscal 2026 operating results currently due to strategic review uncertainty. • Expect divestiture of North American Snacks to be gross margin and EBITDA accretive. • Go-forward North American portfolio expected to have gross margin above 30% and EBITDA margin in the low double digits. • Expect stronger top and bottom line performance in second half of fiscal 2026 as initiatives take hold, positive free cash flow expected for full year

• Risks and uncertainties related to forward-looking statements, including factors that could cause actual results to differ from expectations. • Potential impact of market conditions on various segments, such as industry-wide softness in certain baby and kids categories. • Uncertainty around the outcome and timing of the strategic review, including potential challenges in executing asset sales and operational improvements. • Exposure to credit agreement covenants and upcoming maturity of credit facility

Q: Details on decision to divest Snacks portfolio.

A: Alison Lewis said simplifying portfolio was key, snacks being an impulse category with difficult capabilities to develop compared to other portfolio categories. Lee Boyce mentioned stranded cost impact of $20 - $25 million.

Q: Thoughts on upcoming maturity.

A: Lee Boyce said in frequent dialogue with bank group, leverage decreased with divestiture, and ongoing evaluation of strategy and portfolio.

Q: Characteristics of categories to pursue.

A: Alison Lewis said focus on demand fulfillment categories with strengths, like tea, yogurt, baby and kids, and finding growth pockets with innovation.

Q: Sequential improvement in fiscal second half.

A: Alison Lewis said international segment expected to continue improvement with innovation and cycling challenges, North America expected to improve with innovation and pricing actions.

Q: Stranded costs and leverage.

A: Lee Boyce said pro forma leverage included some stranded costs, with plan to mitigate in six to twelve months.

Q: Revenue contribution of Snack business and driver of sale.

A: Lee Boyce said it was 38% of North America segment net sales. Lee Boyce said decision driven by strategic review and right to win in category.

Q: Cadence in baby and kids business.

A: Alison Lewis said cycling of UK challenges in Q4, doubling down on marketing and innovation in Ella's, and work on North America baby and kids segments with cycles and innovation