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Hain Celestial delivered modest improvements and an absence of drama in its fiscal Q1 2026 this morning as its interim CEO Alison Lewis outlined the progress she's been notching in nursing natural food/bev player back to profitable growth. "We're moving with speed and determination," she assured investors who've seen share price erode by 85% over past year. A longtime Coca-Cola hand, she'd stepped in from her board seat when her predecessor in role, Wendy Davidson, was given heave-ho last spring (BBI, May 7). Net sales declined 7% to $368 mil, -6% on organic basis, on 7% volume/mix decline offset a bit by 1% increase in price. N Amer biz sagged 12% to $204 mil, -7% on organic basis, as soft Snack biz offset growth in Bevs, Baby & Kids and Meal Prep segments. Int'l was flat at $164 mil, -4% on organic basis, as lower sales in Baby & Kids overcame growth in meal prep. Gross margin narrowed by 1.2 pts to 19.5%. Operating loss of $6.9 mil reversed income of $3.1 mil a year earlier. Hain took $14 mil to cover initial charges under ongoing restructuring program as it aims to slash 12%+ from payroll-related expenses and eliminates spending and events that don't meet strict ROI hurdles. It's cut trade spend as a % of revenue by 40%. Another area of focus: stringing along its suppliers on payments, aiming for 70+ days payable outstanding by fiscal year 2027 in a few quarters vs Q1 level of 57 days. Meanwhile, strategic review undertaken with Goldman Sachs is logging "good progress." This was all in keeping with actions she'd outlined when she made her debut to investors a few weeks ago (BBI, Sep 15). Shares were up 10% in trading today as investors digested message.By segment, Snacks plummeted 17% to $80 mil, Meal Prep was flat at $149 mil and Baby & Kids dropped 10% to $55 mil. But Bevs edged up 2% to $58 mil on improvements in Celestial Seasonings as its bagged teas gained distribution thanks in part to wellness innovation, per CFO Lee Boyce. As reported, that segment is slashing sku's by roughly one-third to eliminate slow movers that add complexity while accelerating innovation (BBI, Sep 15). By account of Lewis and Boyce this morning, that effort is starting to bear fruit. Tea, along with yogurt, is among the categories growing at double-digits in ecomm as Lewis prioritizes that channel.Among other bev-related activities, Joya non-dairy brand in Europe has updated its existing items to add more protein and also launched single-serve cartons in Double Chocolate and Banana & Toffee flavors, both with 20 g of plant-based protein.As Hain Implements RGM, No Surprises So Far in Elasticities As a Coke vet, Lewis is deeply familiar with revenue growth mgmt discipline and she's applying it to Hain, raising prices "after a long period where we did not keep up with inflation." Celestial Seasonings tea pricing went up in Q1 and Earth's Best baby food more recently took pricing. So far, "elasticities generally are in line with our expectations," she reported. The moves later drew a question from Jeffries' Kaumil Gajrawala, who wondered how pricing will go over with economically stressed consumers. But Lewis isn't concerned about that. Hain's consumers understand that its portfolio "brings value to the consumer in terms of those better-for-you credentials." Even at time consumers are showing "more value-seeking behavior," she thought it noteworthy that categories where Hain plays show little private-label development. That's not changing now, she noted, a PL even is waning in some segments. But following RGM practice, her team will "still insure that our price/pack architecture has price points that allow everyone to participate, no matter what their income level is," she assured.

After Recent Turmoil, Interim CEO Lewis Delivers Pockets of Progress in Q2 at Hain Celestial; Wellness Teas Well-Received Even as SKU Reductions Continue

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