Hain Celestial Group Inc (NASDAQ:HAIN), a leading global health and wellness company, stock fell 3.70% (As on September 16, 11:24:27 AM UTC-4, Source: Google Finance) after the company reported disappointing fourth-quarter results, with both earnings and revenue falling short of analyst expectations as the health and wellness company continues to struggle with declining sales and profitability. The company’s North America segment was particularly weak, with organic net sales dropping 14% YoY, primarily due to lower sales in snacks and meal prep categories. The International segment saw a 6% decline in organic net sales, primarily driven by lower sales in meal prep and beverages. Snacks fiscal fourth quarter and fiscal 2025 year-over-year organic net sales declines of 19% and 14%, respectively, were driven by velocity challenges and distribution losses. The company has outlined a turnaround strategy focused on five key actions including, aggressively streamlining our portfolio, accelerating innovation, implementing pricing along with revenue growth management, driving productivity and working capital efficiency, and enhancing digital capabilities. Free cash flow was negative $9 million in the fiscal fourth quarter compared to positive $31 million in the prior year period.

Further, net cash used in operating activities in the fiscal fourth quarter was $3 million compared to net cash provided by operating activities of $39 million in the prior year period, and net cash provided by operating activities was $22 million in fiscal 2025 compared to $116 million in the prior year. Net debt at the end of the fiscal fourth quarter was $650 million compared to $690 million at the beginning of the fiscal year. The company ended the fourth quarter with a net secured leverage ratio of 4.7x as calculated under the credit agreement.

The company reported an adjusted loss per share of -$0.02 for its fiscal fourth quarter, missing analyst estimates of $0.07. The company had reported the adjusted revenue decline of 13 percent to $363.4 million in the fourth quarter of FY 25, missing the analysts’ estimates for revenue of $379 million. Organic net sales decreased 11% YoY, driven primarily by an 11-point decline in volume and mix. Adjusted EBITDA for the quarter fell to $20 million from $40 million in the prior year period, reflecting the company’s ongoing challenges. The company also recorded significant non-cash impairment charges of $252 million related to goodwill and certain intangible assets.