Hain Celestial Group Inc (HAIN) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to the Hain Celestial Group Inc fiscal second quarter 2025 earnings call. Today's call is being recorded. (Operator Instructions) At this time, I will now turn the call over to Alexis Tessier. Please proceed.

大家好，歡迎參加 Hain Celestial Group Inc 2025 財年第二季財報電話會議。今天的通話正在錄音。（操作員指示）現在，我將把電話轉給 Alexis Tessier。請繼續。

Good morning and thank you for joining us for a review of our second quarter results. I am joined this morning by Wendy Davidson, our President and Chief Executive Officer; and Lee Boyce, our Chief Financial Officer. Slide 2 shows our forward-looking statements disclaimer. As you are aware, during the course of this call, we may make forward-looking statements within the meaning of federal securities laws. These include expectations and assumptions regarding the company's future operations and financial performance.

早安，感謝您加入我們對第二季業績的回顧。今天上午，我們與總裁兼執行長 Wendy Davidson 一起出席了會議；以及我們的財務長 Lee Boyce。投影片 2 顯示了我們的前瞻性聲明免責聲明。如您所知，在本次電話會議期間，我們可能會根據聯邦證券法做出前瞻性陳述。其中包括對公司未來營運和財務表現的預期和假設。

These statements are based on our current expectations and involve risks and uncertainties that could cause actual results to differ materially from our expectations. Please refer to our annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed from time to time with the SEC as well as the press release issued this morning for a detailed discussion of the risks.

這些聲明是基於我們目前的預期，涉及可能導致實際結果與我們的預期有重大差異的風險和不確定性。有關風險的詳細討論，請參閱我們不時向美國證券交易委員會提交的 10-K 表年度報告、10-Q 表季度報告和其他報告以及今天上午發布的新聞稿。

We have also declared a presentation inclusive of additional supplemental financial information, which is posted on our website at hain.com under the Investors heading. As we discuss our results today, unless noted as reported, our remarks will focus on non-GAAP or adjusted financial measures. Reconciliations of non-GAAP financial measures to GAAP results are available in the earnings release and the slide presentation accompanying this call. This call is being webcast, and an archive will be made available on the website.

我們還宣布了一份包含額外補充財務資訊的簡報，該簡報發佈在我們的網站 hain.com 的「投資者」標題下。當我們今天討論我們的業績時，除非另有說明，否則我們的評論將集中於非公認會計準則或調整後的財務指標。非 GAAP 財務指標與 GAAP 結果的對帳可在本次電話會議的收益報告和幻燈片簡報中找到。本次電話會議將進行網路直播，會議檔案將在網站上發布。

And now I'd like to turn the call over to Wendy.

現在我想把電話轉給溫蒂。

Thank you, Alexis, and good morning, everyone. I'll start the call by walking through today's key messages. I'll then review our second quarter results, category performance, progress on our Hain Reimagine strategy and the building blocks to support our pivot to growth in the back half of fiscal 2025. Lee will then provide more detail on our financial results along with our updated outlook. Despite a disappointing revenue quarter, we generated strong operating cash flow and continued our progress to further reduce net debt.

謝謝你，亞歷克西斯，大家早安。我首先將介紹今天的關鍵訊息。然後，我將回顧我們第二季度的業績、類別表現、Hain Reimagine 策略的進展以及支持我們在 2025 財年下半年實現成長的基石。隨後，李將提供有關我們財務業績的更多細節以及我們最新的展望。儘管本季收入令人失望，但我們仍然產生了強勁的營運現金流，並繼續努力進一步減少淨債務。

We drove sequential improvement in Baby & Kids, driven by the recovery in infant formula supply and in Meal Prep led by the continued momentum in our soup brands across both regions and growth in Greek Gods Yogurt. However, sales growth in the quarter was hindered by poor in-store performance in snacks driven by marketing and promotion effectiveness as well as short-term supply challenges, particularly in our International segment, where demand outpaced our supply in several of our core categories and brands.

我們推動了嬰幼兒產品系列的連續改善，這得益於嬰兒配方奶粉供應的恢復，以及膳食準備產品的連續改善，這得益於我們在兩個地區的湯類品牌的持續增長以及希臘眾神酸奶的增長。然而，本季的銷售成長受到零食店內表現不佳的阻礙，這歸因於行銷和促銷效果不佳以及短期供應挑戰，尤其是在我們的國際部門，我們的幾個核心類別和品牌的需求超過了供應。

To address these issues, we have improved in-store marketing activation, added production capacity to rebuild inventory and support growth and reorganize our customer service supply chain. We are confident that these actions, combined with the previously communicated promotional shifts, fully recovered infant formula supply in North America, brand campaign momentum and confirmed distribution gains in both regions will drive organic net sales growth in the second half.

為了解決這些問題，我們改進了店內行銷活動，增加了生產能力以重建庫存和支援成長，並重組了我們的客戶服務供應鏈。我們相信，這些舉措，加上先前傳達的促銷轉變、北美嬰兒配方奶粉供應的全面恢復、品牌活動的勢頭以及兩個地區確認的分銷增長，將推動下半年有機淨銷售額的增長。

Organic net sales declined 7% in the second quarter. While not satisfied with this result, we did generate free cash flow of $25 million and continued to make progress on net debt reducing it by $12 million in the quarter. Adjusted EBITDA in the quarter was $38 million, and adjusted EBITDA margin increased 350 basis points from the first quarter. We remain confident in the building blocks we have in place to deliver top line growth in the back half. However, due to the softer-than-expected front half and a more volatile macro environment, we feel it is prudent to approach our guidance with a more cautious outlook for the full year.

第二季有機淨銷售額下降7%。雖然對這個結果並不滿意，但我們確實產生了 2,500 萬美元的自由現金流，並繼續在淨債務方面取得進展，本季淨債務減少了 1,200 萬美元。本季調整後的 EBITDA 為 3,800 萬美元，調整後的 EBITDA 利潤率較第一季增加 350 個基點。我們仍然對現有的基礎充滿信心，相信我們能夠在下半年實現營收成長。然而，由於上半年表現弱於預期，且宏觀環境更加動盪，我們認為，以更為謹慎的全年展望來制定指引是明智之舉。

Lee will provide details shortly. Before I get into the detailed category performance, I want to touch on our positioning, which is particularly relevant in today's environment. better-for-you trends continue to outpace traditional categories with consumers increasingly looking for healthier options without sacrificing taste, convenience or affordability. We also acknowledge the evolving trend of individuals opting for better-for-you products to align with their diverse dietary goals. Our purpose is to inspire healthier living through better-for-you brands.

李先生將很快提供詳細資訊。在介紹詳細的類別表現之前，我想先談談我們的定位，這在當今環境下尤其重要。 「對您更有益」的趨勢繼續超越傳統類別，越來越多的消費者尋求更健康的選擇，同時又不犧牲口味、便利性或可負擔性。我們也認識到，人們選擇更適合自己的產品以符合其多樣化的飲食目標的趨勢正在不斷發展。我們的宗旨是透過對您更有益的品牌來激勵更健康的生活。

It's part of our ethos and something we've been focused on for more than 30 years. We view the consumer demand shift in evolving regulatory space as a tailwind for Hain. Our positioning and free from artificial portfolio is a true differentiator, particularly in the US. Today, 100% of Hain's global portfolio is free from artificial colors.

這是我們精神的一部分，也是我們 30 多年來一直在關注的事情。我們認為，監管空間不斷演變中消費者需求的轉變對 Hain 來說是一個順風。我們的定位和不受人為影響的投資組合是真正的差異化因素，尤其是在美國。如今，Hain 的全球產品組合 100% 均不含人工色素。

Historically, we've not used red dye number three in our portfolio. And in the US, we only use colors for natural sources such as fruits and vegetables, and we do not use artificial flavors. Internationally, more than 95% of our portfolio is free from artificial flavors, and we don't use any artificial colors. We have partnered with experts to understand the unique nutritional needs of consumers on GLP-1 treatments and assess our portfolio against those needs.

從歷史上看，我們的產品組合中沒有使用過三號紅色染料。在美國，我們只使用水果和蔬菜等天然來源的色素，不使用人工香料。在國際上，我們 95% 以上的產品均不含人工香料，且不使用任何人工色素。我們與專家合作，了解 GLP-1 治療消費者的獨特營養需求，並根據這些需求評估我們的產品組合。

We are currently developing our criteria to define what is GLP-1 friendly based on available science, and we have already identified a number of products in the US that are a good fit for these consumers across our beverage, soups and yogurt brands. We plan to begin marketing certain items within our portfolio to GLP-1 users in the near future. These authentic better-for-you credentials position us well to meet increasing consumer demand for better-for-you products.

我們目前正在根據現有科學制定標準來定義什麼是 GLP-1 友好的，並且我們已經在美國確定了多種適合這些消費者的產品，包括我們的飲料、湯和優格品牌。我們計劃在不久的將來開始向 GLP-1 用戶行銷我們產品組合中的某些產品。這些真實的「對您更有益」的資格使我們能夠很好地滿足消費者對「對您更有益」產品日益增長的需求。

Let's now review each of our categories and early signals in our pivot to growth in the back half of fiscal 2025. Sales growth in snacks was hindered by in-store marketing activation and promotion effectiveness. As we mentioned at the start of this fiscal year, snacks were affected by a shift in our promotional activity on the Garden Veggie brand and by key retailer shelving changes for Garden Veggie and Terra as we discussed last quarter.

現在讓我們回顧一下我們在 2025 財年下半年轉向成長的各個類別和早期訊號。零食銷量的成長受到店內行銷活動和促銷效果的阻礙。正如我們在本財年初所提到的，零食受到了 Garden Veggie 品牌促銷活動轉變以及我們上個季度所討論的 Garden Veggie 和 Terra 主要零售商貨架變化的影響。

Garden Veggie remains a strong brand with high brand awareness and one of the highest levels of household penetration among better-for-you snacks. The shift of our promotional activity from the first half of the year to the second half impacted absolute sales volumes in both time periods and had a carry-on effect in overall velocity. As a result, we have adjusted our in-store activation and shopper marketing for the second half of the year based on these learnings.

Garden Veggie 仍然是一個強大的品牌，具有很高的品牌知名度，也是健康零食中家庭滲透率最高的品牌之一。我們的促銷活動從上半年轉移到下半年，影響了兩個時期的絕對銷售量，並對整體速度產生了持續影響。因此，我們根據這些經驗調整了下半年的店內活動和購物者行銷。

Despite these impacts, Garden Veggie delivered mid-single-digit distribution growth in the quarter and continues to be a top velocity snack brand in convenience stores. We continue to expand in this important channel and have confirmed distribution expansion up 17% year-on-year in the back half of the year. Terra saw strong base unit velocities up 9%. And in the UK, our leading snack brand, Hartley's, also delivered mid-single-digit distribution growth in the quarter.

儘管受到這些影響，Garden Veggie 在本季度仍實現了中等個位數的分銷成長，並繼續成為便利商店中銷量最快的零食品牌。我們繼續擴大這一重要管道，並已確認下半年分銷擴張年增 17%。Terra 的基本單位速度強勁上升了 9%。在英國，我們領先的零食品牌 Hartley's 本季也實現了中等個位數的分銷成長。

We expect to see accelerated snacks performance in the second half of the year, driven by expanded distribution of our brands, including a 5% increase in distribution for snacks at our largest retail partner. We will also have new innovation, including exciting flavors in Garden Veggie Flavor Burst, which was recently named the top new product in the tortilla category by Newsweek.

我們預計下半年零食業務的業績將加速成長，這得益於我們品牌分銷範圍的擴大，其中包括我們最大的零售合作夥伴的零食分銷量將增加 5%。我們還將推出新的創新產品，包括 Garden Veggie Flavor Burst 中令人興奮的口味，最近被《新聞周刊》評為玉米餅類別的頂級新產品。

Beginning in this quarter, we have better placement in aisle with key customer resets as well as increased merchandising and promotional activity across top customers. To support consumers sticking to their healthier living resolutions, we have robust new year, new you campaigns in place for this quarter, and we have actively shifted our marketing spend to social. This shift enables us to expand reach across a broader set of usage occasions and audiences and leverage influencers with user-generated content to drive engagement.

從本季度開始，我們將透過重新設定主要客戶，在過道中更好地定位，並增加針對頂級客戶的商品推銷和促銷活動。為了支持消費者堅持更健康的生活決心，我們在本季開展了強而有力的新年新氣象活動，並積極將行銷支出轉向社群媒體。這種轉變使我們能夠擴大覆蓋範圍，接觸更廣泛的使用場合和受眾，並利用具有用戶生成內容的影響力人士來推動參與度。

In Baby & Kids, we continue to see sequential improvement in year-over-year organic net sales trends. First Best infant formula supply has fully recovered with a return of all formulations and sizes at the end of December as planned. As expected, consumption of infant formula pivoted to growth in the quarter, increasing 29% year-on-year, further demonstrating the strength of the Earth's Best brand.

在嬰兒和兒童產品方面，我們繼續看到有機淨銷售額同比趨勢的持續改善。First Best 嬰兒配方奶粉供應已全面恢復，所有配方和規格均按計劃於 12 月底恢復供應。正如預期的那樣，本季嬰兒配方奶粉的消費量轉為成長，年成長 29%，進一步證明了 Earth's Best 品牌的實力。

Outside of formula, consumption of Earth's Best snacks and cereal were each up double digits in the quarter, and household penetration for Earth's Best has increased. We believe in the return to leadership in infant formula led by the strong brand awareness and loyalty and Earth's Best. In fact, 83% of Earth's Best Dairy formula shoppers won't substitute for another brand but will instead seek their preferred formula at another retailer if what they're looking for isn't on shelf.

除了配方奶粉之外，Earth's Best 零食和穀物的消費量在本季度均實現了兩位數的增長，Earth's Best 的家庭滲透率也有所提高。我們相信，憑藉強大的品牌知名度和忠誠度以及 Earth's Best 的引領，該公司將重返嬰兒配方奶粉的領導地位。事實上，83% 的 Earth's Best Dairy 配方奶粉購物者不會更換其他品牌，而是在貨架上找不到自己喜歡的配方奶粉時，去其他零售商處尋找。

We expect Baby & Kids trends to continue to improve in the second half of the year, driven by the full recovery of infant formula supply, additional distribution gains increased marketing, especially in e-commerce and exciting new innovation with our Earth's Best self-feeding platform, which reinforces our leadership from birth to backpack.

我們預計，受嬰兒配方奶粉供應全面恢復、分銷收益增加、營銷增加（尤其是在電子商務領域）以及 Earth's Best 自助餵養平台令人興奮的創新的推動，嬰幼兒產品趨勢將在下半年繼續改善，這將鞏固我們從出生到背包領域的領先地位。

We are excited to continue our progress towards regaining leadership in organic infant formula. Our Earth's Best brand has been a pioneer in organic formula and a trusted leader in the growing powdered formula market for more than 35 years and Earth's Best was recently recognized by Baby Center as best organic baby formula of 2024.

我們很高興能夠繼續取得進展，重新奪回有機嬰兒配方奶粉的領導地位。35 多年來，我們的 Earth's Best 品牌一直是有機配方奶粉的先驅，也是不斷增長的奶粉市場中值得信賴的領導者，Earth's Best 最近被 Baby Center 評為 2024 年最佳有機嬰兒配方奶粉。

In Ella's Kitchen, the leading baby food brand in the UK, we grew distribution by low single digits and outpaced the category on volumes in the quarter. Fiscal year-to-date, Ella's has gained share in its core wet baby food category, and we are strengthening our storytelling and partnership with a large retailer with branded in-aisle activation in more than 200 top stores. Early results are promising, with sales up high single digits in the quarter.

在英國領先的嬰兒食品品牌 Ella's Kitchen，我們的分銷量以低個位數增長，並且本季度的銷量超過了同類產品。本財年迄今為止，Ella's 在其核心嬰兒濕食品類別中的份額有所增長，我們正在加強我們的故事講述和與一家大型零售商的合作，該零售商在 200 多家頂級商店中設有品牌貨架活動。早期業績令人鼓舞，本季銷售額實現了高個位數成長。

In the beverage category, nondairy beverage sales moderated in the quarter with industry shift to discount channels where we are underindexed. Despite these category headwinds, Natumi continued to grow share in the natural channel.

在飲料類別中，非乳製品飲料的銷售在本季度有所放緩，因為行業轉向了我們低估的折扣管道。儘管面臨這些類別阻力，Natumi 在天然管道的份額仍然持續增長。

Celestial seasoning sales in the quarter were impacted by short-term service issues driven by a shortage of a long lead time raw material used in our blends, which resulted in fill rate issues at the beginning of the hot tea season. This issue has since been resolved and consumption improved throughout the quarter as we moved past these service challenges and our Taste Our World brand campaign gained momentum.

本季 Celestial 調味品的銷售受到短期服務問題的影響，問題源自於我們混合茶中使用的長交貨期原料短缺，從而導致熱茶季節開始時出現填充率問題。隨著我們克服了這些服務挑戰並且我們的「品味世界」品牌活動勢頭強勁，這個問題已經得到解決，並且整個季度的消費量都有所改善。

Celestial Seasonings has high brand awareness and our recently launched innovation, Celestial Seasonings Lemon Honey Drop, and the Sleepytime Biotin Beauty Rest are both performing well. We've seen continued strength in Sleepy time with melatonin launched last year, which remains a top 100 item in the category.

Celestial Seasonings 具有很高的品牌知名度，我們最近推出的創新產品 Celestial Seasonings Lemon Honey Drop 和 Sleepytime Biotin Beauty Rest 都表現良好。我們看到 Sleepy time 的持續強勁成長，去年推出的褪黑激素至今仍是該類別中排名前 100 的產品。

Our efforts to reduce plastic waste led to recognition by beverage industry, and we were named best beverage packages of 2024. We are leaning into our marketing on taste and wellness through our new master brand campaign, Taste our World, building strong PCs and programs and expanding our away-from-home presence to drive greater trial and awareness. Additionally, we will be expanding offerings in the second half with innovation focusing on all-day wellness, women's health and GLP-1 support.

我們減少塑膠垃圾的努力得到了飲料行業的認可，並被評為2024年最佳飲料包裝。我們正透過新的主品牌活動「品味我們的世界」將行銷重點放在口味和健康上，建立強大的 PC 和程序，並擴大我們的戶外影響力，以推動更大的嘗試和知名度。此外，我們將在下半年擴大產品範圍，創新重點關注全天健康、女性健康和 GLP-1 支援。

In Meal Prep, our largest global category, we saw sequential improvement in year-over-year organic net sales growth trends. Greek Gods Yogurt is showing healthy velocities at key mass customers, and has lapped the impact faced last year from customer shifts. The Greek Gods brand remains strong with increased household penetration fiscal year-to-date. We continue to see strong growth in branded soup in the UK with double-digit dollar sales growth and share gains in each of our three leading brands.

在我們全球最大的類別—餐點準備產品中，我們看到有機淨銷售額較去年同期成長趨勢連續改善。希臘眾神優格在主要大眾客戶中表現出健康的發展速度，並克服了去年客戶變化帶來的影響。希臘眾神品牌保持強勁勢頭，本財年迄今的家庭滲透率不斷提高。我們繼續看到英國品牌湯的強勁增長，我們的三個主要品牌的銷售額均實現兩位數增長，份額也隨之增加。

We grew distribution by 25%, outpacing the overall category and our recent launch of Destination lunch has delivered strong early results in market up 22% in the quarter compared to 9% in the category at the same retailer. Demand was so strong, in fact, that we had to pull back on certain promotions in the quarter to ensure we could service our customers. As we look to the balance of the year, we expect trends to improve in the back half as we fully lap the private label contract loss in our UK spreads and drizzles business.

我們的分銷量成長了 25%，超過了整個類別的成長速度，我們最近推出的目的地午餐在市場上取得了強勁的早期業績，本季度增長了 22%，而同一零售商的同類產品增長了 9%。事實上，由於需求如此強勁，我們不得不取消本季的某些促銷活動，以確保能夠為客戶提供服務。展望今年的平衡，我們預計下半年趨勢將會改善，因為我們完全彌補了英國塗抹醬和淋醬業務中的自有品牌合約損失。

We have increased soup capacity and are expanding our rollout of destination lunch merchandising based on the early success in quarter two. And Greek Gods growth in the back half will be supported by a new brand campaign in the third quarter to support gains in incremental distribution in key channels.

我們增加了湯的容量，並根據第二季的早期成功擴大了目的地午餐商品的推廣。第三季的新品牌活動將支持希臘神下半年的成長，以支持主要通路的增量分銷收益。

And finally, Personal Care, our smallest category, the progress we have made towards stabilizing our Personal Care business is driving improvement in gross margin sequentially and in sales trends in our core channels of natural and e-commerce. With the goal of further advancing the focused pillar of our Hain Reimagined strategy and simplifying our portfolio to concentrate on better-for-you food and beverage, we are exploring strategic options for this business. We believe this is the best path to focus the organization, simplify our business and create long-term value for shareholders.

最後，個人護理是我們最小的類別，我們在穩定個人護理業務方面取得的進展正在推動毛利率的連續改善以及我們天然和電子商務核心管道的銷售趨勢的改善。為了進一步推進我們的 Hain Reimagined 策略的重點支柱並簡化我們的產品組合以專注於更適合您的食品和飲料，我們正在探索該業務的戰略選擇。我們相信這是集中組織、簡化業務和為股東創造長期價值的最佳途徑。

We continue to make progress in the transformation we outlined in our Henry Reimagined strategy to position the company for growth. While our shift to growth has taken longer than initially anticipated, we remain confident in the pivot to growth in the back half and in our ability to execute on our transformation strategy.

我們在「亨利重塑」策略中概述的轉型方面繼續取得進展，為公司的成長做好準備。雖然我們向成長轉變所花的時間比最初預期的要長，但我們仍然對下半年轉向成長以及執行轉型策略的能力充滿信心。

The progress made to date under our focus pillar has simplified our operations and our portfolio. This includes today's announcement on Personal Care and last year's portfolio divestitures, footprint consolidations and SKU simplification initiatives, some of which impacted year-on-year organic net sales in the first half of 2025 as expected. We estimate these actions account for an approximately 1% impact on organic net sales growth year-to-date.

迄今為止，我們在重點支柱下取得的進展簡化了我們的營運和產品組合。其中包括今天宣布的個人護理業務以及去年的產品組合剝離、業務佈局整合和 SKU 簡化舉措，其中一些舉措如預期的那樣對 2025 年上半年的同比有機淨銷售額產生了影響。我們估計這些舉措將對年初至今的有機淨銷售額成長產生約 1% 的影響。

In addition, our new North America commercial structure designed to better align our go-to-market model for improved customer focus and consumer engagement was implemented in the first half of this fiscal year. We are seeing notable improvement in our customer engagement with increased distribution at major customers on our largest brands in the second half of the year.

此外，我們在本財年上半年實施了新的北美商業結構，旨在更好地調整我們的市場進入模式，以提高客戶關注度和消費者參與度。我們看到客戶參與度顯著提高，下半年我們最大品牌在主要客戶的分銷量增加。

Quantitative and qualitative feedback from customers has been positive, and we have innovation and collaboration sessions with top retailers scheduled over the next few months, including in our Innovation Experience Center recently opened in our Hoboken, New Jersey headquarters. We expect this new commercial structure to be a key enabler of our future growth. Underpinning our fuel pillar, we started fiscal 2025 strong, delivering above target savings in the first half. And for the full year, we expect to outpace the record delivery and savings we achieved in fiscal 2024.

來自客戶的定量和定性回饋都是正面的，我們計劃在未來幾個月與頂級零售商進行創新和合作會議，包括我們最近在新澤西州霍博肯總部開設的創新體驗中心。我們預計這種新的商業結構將成為我們未來成長的關鍵推動因素。在燃料支柱的支撐下，我們在 2025 財年開局強勁，上半年實現了超額目標的節省。我們預計全年交付量和節省額將超過 2024 財年所創下的紀錄。

We expect to continue to enhance our revenue growth management capabilities, including trade optimization for improved price, volume and mix as well as gross margin expansion. Within working capital management, you'll recall we unlocked approximately one-third of the total Hain Reimagined target of $165 million from working capital improvement in our first year, and we continue to make progress in fiscal 2025.

我們希望繼續增強我們的收入成長管理能力，包括貿易優化以提高價格、數量和組合以及擴大毛利率。在營運資本管理方面，您會記得，我們​​在第一年就透過營運資本改善解鎖了 Hain Reimagined 總目標 1.65 億美元的約三分之一，並且我們將在 2025 財年繼續取得進展。

From our starting point in fiscal 2023, we have extended payables by 19 days and reduced inventory levels by 5 days. In fiscal 2025, we continue to expect fuel to deliver gross margin expansion with further reduction in debt, improvement in leverage and investments in our brands and our capabilities.

從 2023 財年起，我們將應付款項期限延長了 19 天，並將庫存水準降低了 5 天。在 2025 財年，我們繼續預期燃料業務將透過進一步減少債務、提高槓桿率以及對我們的品牌和能力進行投資來實現毛利率的擴大。

We are seeing continued progress under the build pillar in our channel expansion strategy, especially Away-From-Home. We have recent distribution wins with strategic convenience to our customers, and we'll have at least 2 snack items in 11 of the top 15 C-store retail chains by year-end, up from 5 in fiscal 2024.

我們看到，我們的通路擴展策略，尤其是客場通路的建設支柱下正在持續取得進展。我們最近透過為客戶提供策略性便利性而在分銷方面取得了勝利，到年底，我們將在排名前 15 家的便利商店零售連鎖店中的 11 家推出至少 2 種零食產品，而 2024 財年則為 5 種。

In the fiscal second quarter, away-from-home net sales grew 38% in North America and 52% in international. Garden Veggie remains strong in convenience stores with dollar volume up over 40% in the quarter gaining over 200 basis points of better-for-use salty snack share.

在第二財季，北美地區的戶外淨銷售額成長了 38%，國際地區的戶外淨銷售額成長了 52%。Garden Veggie 在便利商店中依然保持強勁勢頭，本季銷售額成長超過 40%，在更適宜食用的鹹味零食市場佔有率上升了 200 多個基點。

We have a clear line of sight to growth in the back half of fiscal 2025. We have a number of second half initiatives in place, including the previously communicated promotional activity shifts, adjustment of our marketing actions, increased promotional activity on brand campaigns known distribution gains and a return to full supply of our infant formula business.

我們對 2025 財年下半年的成長有著清晰的預期。我們已實施多項下半年舉措，包括先前傳達的促銷活動轉變、行銷行動的調整、增加品牌活動的促銷活動、已知的分銷收益以及恢復嬰兒配方奶粉業務的全面供應。

We remain focused on execution to deliver growth and drive operational improvements across the business, in particular, through our enhanced commercial go-to-market model in North America. Our supply chain team overdelivered on our fuel pillar in fiscal 2024, and we are confident in the work being done to address the short-term supply challenges in international.

我們將繼續專注於執行，以實現成長並推動整個業務的營運改進，特別是透過我們在北美增強的商業上市模式。我們的供應鏈團隊在 2024 財政年度超額完成了燃料支柱任務，我們對正在進行的解決國際短期供應挑戰的工作充滿信心。

And now I'll turn it over to Lee to discuss our second quarter financial results and updated fiscal 2025 outlook in more detail.

現在，我將讓李更詳細地討論我們的第二季財務表現和更新的 2025 財年展望。

Thank you, Wendy, and good morning, everyone. For the second quarter, we saw organic net sales declined 7% year-over-year. The decline was driven primarily by lower sales in the North American segment. The decline in organic net sales growth reflects a 5-point decrease in volume/mix and a 2-point decrease in price. We delivered adjusted EBITDA of $38 million in the second quarter compared with $47 million a year ago.

謝謝你，溫迪，大家早安。第二季度，有機淨銷售額較去年同期下降 7%。下滑的主因是北美市場銷售下降。有機淨銷售額成長的下降反映了銷售/產品組合下降 5 個百分點以及價格下降 2 個百分點。我們第二季的調整後 EBITDA 為 3,800 萬美元，而去年同期為 4,700 萬美元。

Adjusted EBITDA margin was 9.2%, a 350 basis point increase from the first quarter. Adjusted gross margin was 22.9% in the second quarter, a decrease of approximately 60 basis points year-over-year. The decrease was driven by cost inflation and pricing due to higher trade spend on promotional activities and efforts to execute winning portfolio actions, partially offset by productivity. SG&A decreased 5% year-over-year to $70 million, representing 17% of net sales for the quarter as compared to 16.3% in the year ago period.

調整後的 EBITDA 利潤率為 9.2%，較第一季增加 350 個基點。第二季調整後毛利率為22.9%，較去年同期下降約60個基點。下降的原因是成本上漲和定價上漲，原因是促銷活動和執行成功投資組合行動的貿易支出增加，但生產力提高，從而部分抵消了這一影響。銷售、一般及行政費用較去年同期下降 5% 至 7,000 萬美元，佔本季淨銷售額的 17%，而去年同期為 16.3%。

The decrease was primarily driven by lower employee-related expenses on efficiencies from our integrated operating model. During the quarter, we took charges totaling $7 million associated with actions under the restructuring program, including contract termination costs, asset write-downs, employee-related costs and other transformation-related expenses.

下降的主要原因是我們的綜合營運模式提高了效率，從而降低了員工相關費用。本季度，我們根據重組計畫採取的行動共花費 700 萬美元，包括合約終止費用、資產減記、員工相關費用和其他轉型相關費用。

To date, we have taken $75 million in charges associated with the transformation program, which is comprised of $72 million of restructuring charges and $3 million of expenses associated with inventory write-downs. Of these charges, $29 million were noncash. As previously discussed, the total transformation program charges are expected to be $115 million to $125 million by fiscal 2027 inclusive of potential inventory write-downs of approximately $25 million related to brand and category exits.

到目前為止，我們已經承擔了與轉型計畫相關的 7,500 萬美元費用，其中包括 7,200 萬美元的重組費用和 300 萬美元的庫存減記相關費用。其中，2,900 萬美元為非現金費用。如前所述，到 2027 財年，轉型計畫總費用預計將達到 1.15 億美元至 1.25 億美元，其中包括與品牌和類別退出相關的約 2,500 萬美元的潛在庫存減記。

Restructuring charges, excluding inventory write-downs are expected to be $90 million to $100 million by fiscal 2027 and are excluded from adjusted operating results. Interest costs fell 21% and year-over-year to $13 million in the quarter, driven by lower outstanding borrowings and a reduction in interest rates. As a reminder, we have hedged our rate exposure on more than 50% of our loan facilities with fixed rates at 5.6%. We continue to prioritize reducing net debt over time.

預計到 2027 財年，重組費用（不包括庫存減記）將達到 9,000 萬至 1 億美元，且不計入調整後的營運績效。由於未償還借款減少和利率下降，本季利息成本年減 21% 至 1,300 萬美元。提醒一下，我們已將超過 50% 的貸款以 5.6% 的固定利率對沖了利率風險。我們將繼續優先考慮逐步減少淨債務。

Adjusted net income, which excludes the effect of restructuring charges, amongst other items, was $8 million in the quarter or $0.08 per diluted share as compared to $11 million or $0.12 per diluted share in the prior year period.

調整後淨收入（不含重組費用等影響）本季為 800 萬美元或每股攤薄收益 0.08 美元，而去年同期為 1,100 萬美元或每股攤薄收益 0.12 美元。

Turning now to our individual reporting segments. In North America, organic net sales declined 9% year-over-year. The decrease was primarily driven by lower sales in snacks due to in-store activation and promotional timing shifts as well as by lower sales in Personal Care in part due to SKU simplification initiatives.

現在轉向我們各自的報告部分。在北美，有機淨銷售額較去年同期下降 9%。銷售額下降的主要原因是店內活動和促銷時間變化導致零食銷售額下降，以及 SKU 簡化措施導致個人護理銷售額下降。

We expect North America to return to growth in the back half of the year, driven by snacks on the promotion timing shift improved shelf placement and distribution and execution of marketing. Infant formula on recovered supply and key on recovery from supply chain issues, innovation and the new brand building campaign.

我們預計北美市場將在下半年恢復成長，這得益於零食促銷時機的轉變、貨架擺放和分銷的改善以及行銷執行的改善。嬰兒配方奶粉供應恢復，關鍵在於供應鏈問題的恢復、創新和新的品牌建立活動。

Second quarter adjusted gross margin in North America was 25.2%, a 40 basis point increase versus the prior year, driven by productivity, partially offset by pricing due to trade spend as discussed. Adjusted EBITDA in North America was $25 million as compared to $31 million in the year ago period.

北美第二季調整後毛利率為 25.2%，較上年同期增加 40 個基點，主要得益於生產力的提高，但如上所述，貿易支出導致的定價部分抵消了這一影響。北美調整後 EBITDA 為 2,500 萬美元，而去年同期為 3,100 萬美元。

The year-over-year decline resulted primarily from pricing and deleverage on lower volume, partially offset by productivity. Adjusted EBITDA margin was 11%, a 60 basis point increase year-over-year. In our international business, organic net sales declined 4% in the quarter, driven primarily by lower sales in mill prep and short-term service challenges.

年比下降主要由於定價和產量下降導致的去槓桿，但被生產力部分抵消。調整後的 EBITDA 利潤率為 11%，較去年同期成長 60 個基點。在我們的國際業務中，本季有機淨銷售額下降了 4%，主要原因是工廠準備銷售額下降和短期服務挑戰。

We expect the International segment to return to growth in the back half of the year as we lap the loss of the private label spreads contract, accelerate growth in Hartley Snacks. Ella's Kitchen accelerates on increased TDPs and brand building, and we realized the benefits of innovation and new contracts in nondairy beverage.

我們預計，隨著我們彌補自有品牌塗抹醬合約的損失並加速 Hartley Snacks 的成長，國際業務將在下半年恢復成長。Ella's Kitchen 加速提高 TDP 和品牌建設，我們意識到非乳製飲料創新和新合約的好處。

International adjusted gross margin was 20%, approximately 160 basis points below the prior year period, driven by inflation and deleverage on lower volume and mix, partially offset by productivity. International adjusted EBITDA was $23 million, a decrease of 13% compared to the prior year period as deleverage on lower volume and product mix more than offset productivity.

國際調整後毛利率為 20%，比去年同期低約 160 個基點，原因是通貨膨脹和產量及產品組合下降導致的去槓桿，但被生產力部分抵消。國際調整後 EBITDA 為 2,300 萬美元，與去年同期相比下降了 13%，因為產量和產品組合下降帶來的去槓桿作用超過了生產力的影響。

Adjusted EBITDA margin was 12.4%, down approximately 160 basis points year-over-year. Shifting to cash flow and the balance sheet. Free cash flow in the second quarter was $25 million compared to $15 million in the year ago period and an outflow of $17 million in the first quarter. The increase was primarily due to improved cash flow from accounts receivable and accounts payable, partially offset by a reduced benefit from the inventory related to short-term supply challenges.

調整後 EBITDA 利潤率為 12.4%，較去年同期下降約 160 個基點。轉向現金流和資產負債表。第二季的自由現金流為 2,500 萬美元，而去年同期為 1,500 萬美元，第一季的自由現金流為 1,700 萬美元。成長的主要原因是應收帳款和應付帳款的現金流改善，但因短期供應挑戰導致的庫存收益減少，部分抵銷了這一成長。

We continue to see the benefit of our days payable outstanding as well as an improvement in our days inventory outstanding in the second quarter. Days payable outstanding improved to 56 days from 37 days in fiscal 2023. Days inventory outstanding improved to 77 days from 82 days in fiscal 2023.

我們繼續看到第二季應付帳款週轉天數的增加以及存貨週轉天數的改善。應付帳款週轉天數從 2023 財年的 37 天改善至 56 天。庫存週轉天數從 2023 財年的 82 天改善至 77 天。

We continue to make progress against our Hain Reimagined targets of 70 days-plus payable outstanding and 55 days inventory outstanding by fiscal year 2027. CapEx of $6 million in the quarter was in line with the prior year period. We now expect expenditures to be less than $40 million for fiscal 2025.

我們將繼續朝著 Hain Reimagined 的目標邁進，即到 2027 財年，應付帳款餘額將超過 70 天，庫存餘額將達到 55 天。本季資本支出為 600 萬美元，與去年同期持平。我們現在預計 2025 財年的支出將少於 4,000 萬美元。

Finally, we closed the quarter with cash on hand of $56 million and net debt of $672 million. Our net leverage ratio, as calculated under our credit agreement ticked up modestly to 4.1 times. We expect our net leverage to end the year in the high 3s. We remain comfortable that we have sufficient headroom under our existing covenants.

最後，我們在本季結束時持有現金 5,600 萬美元，淨債務 6.72 億美元。根據我們的信貸協議計算，我們的淨槓桿率小幅上升至 4.1 倍。我們預計今年年底我們的淨槓桿率將達到 3% 的高點。我們仍然確信，在現有契約下我們擁有足夠的空間。

Paying down debt and strategically investing in the business continue to be our priorities for cash and we reduced net debt by $12 million in the quarter. Our long-term goal remains to reduce balance sheet leverage to 3 times adjusted EBITDA or less as calculated under our credit agreement.

償還債務和對業務進行策略性投資仍然是我們現金的首要任務，我們在本季減少了 1,200 萬美元的淨債務。我們的長期目標仍然是將資產負債表槓桿率降低至根據我們的信貸協議計算的調整後 EBITDA 的 3 倍或更低。

Turning now to our outlook. While we continue to expect to pivot to growth in the back half of the year, given performance year-to-date and the challenging macroeconomic backdrop, we are adjusting our full year outlook.

現在談談我們的展望。雖然我們仍然預計下半年將轉向成長，但考慮到年初至今的表現和充滿挑戰的宏觀經濟背景，我們正在調整全年展望。

For fiscal 2025, we now expect organic net sales to be down 2% to 4%. And adjusted EBITDA to be flat year-over-year, gross margin to expand by at least 90 basis points year-over-year and free cash flow of at least $60 million. Please note that while changes in exchange rates do not impact organic net sales growth, it does impact adjusted EBITDA.

對於 2025 財年，我們目前預期有機淨銷售額將下降 2% 至 4%。調整後的EBITDA與去年同期持平，毛利率與去年同期相比至少擴大90個基點，自由現金流至少達到6,000萬美元。請注意，雖然匯率變動不會影響有機淨銷售額成長，但會影響調整後的 EBITDA。

The impact on adjusted EBITDA of exchange rate movements since we gave our initial guidance is approximately $2 million unfavorable. In terms of cadence for the balance of the fiscal year, we expect gross margin and adjusted EBITDA to improve sequentially with a material step-up in Q4.

自我們給予初步指引以來，匯率變動對調整後 EBITDA 的影響約為 200 萬美元。就本財年餘下的節奏而言，我們預計毛利率和調整後的 EBITDA 將連續改善，並在第四季度實現實質提升。

While we have made significant progress in executing our Hain Reimagined strategy, growth has taken longer to realize as we have discussed. As such, we want to provide an update to our Hain Reimagined growth algorithm. We expect that organic net sales growth will improve throughout the Hain Reimagined time horizon with a sustainable exit rate of 3%-plus by fiscal 2027.

雖然我們在執行 Hain Reimagined 策略方面取得了重大進展，但正如我們所討論的，實現成長需要更長的時間。因此，我們希望對我們的 Hain Reimagined 成長演算法進行更新。我們預計，在 Hain Reimagined 的時間範圍內，有機淨銷售額成長將會改善，到 2027 財年，永續退出率將達到 3% 以上。

We continue to expect gross margin of at least 26% by fiscal 2027. We continue to expect 12%-plus adjusted EBITDA margins by fiscal 2027 and we also continue to expect to unlock $165 million in working capital improvement by fiscal 2027. And we continue to expect to achieve leverage between 2 and 3 times by 2027.

我們繼續預計 2027 財年的毛利率至少達到 26%。我們繼續預計到 2027 財年調整後的 EBITDA 利潤率將達到 12% 以上，我們也繼續預計到 2027 財年將解鎖 1.65 億美元的營運資本改善。我們預計到 2027 年槓桿率將達到 2 至 3 倍。

And now, I'll hand it back over to Wendy for closing remarks.

現在，我將把發言權交還給溫迪，請她做最後發言。

Thank you, Lee. With leading brands and better-for-you, Hain is well positioned to meet increasing consumer demand for better-for-you products. We have made progress against our Hina Hain Reimagined strategy, particularly in the focus and fuel pillars of our transformation.

謝謝你，李。憑藉領先的品牌和「對您更有益」的理念，Hain 能夠很好地滿足消費者對「對您更有益」產品日益增長的需求。我們在實施 Hina Hain Reimagined 策略方面取得了進展，特別是在轉型的重點和燃料支柱方面。

We have simplified our portfolio of brands and SKUs, our geographic footprint and our operating model. We launched our fuel program, delivering strong cash flow, which we have used to reduce net debt while investing in our brands and capabilities to drive future growth.

我們簡化了我們的品牌和 SKU 組合、地理覆蓋範圍和營運模式。我們啟動了燃料計劃，帶來了強勁的現金流，我們利用這些現金流減少淨債務，同時投資於我們的品牌和能力，以推動未來的成長。

We are confident in our portfolio of brands in categories that are positioned for growth with ample white space to drive distribution. We have strengthened our relationships with top customers and are partnering to enable them to support consumer trends and better-for-you.

我們對我們的品牌組合充滿信心，這些品牌類別具有成長潛力，並且擁有充足的空白空間來推動分銷。我們加強了與頂級客戶的關係，並與他們合作，使他們能夠支持消費趨勢並為您提供更好的服務。

We are focused on driving improved commercial execution and supply chain reliability to enable our pivot to growth in the back half of fiscal 2025. Before I close, I want to acknowledge our team members, our supply partners and our customers. We believe that better-for-you doesn't have to mean sacrificing taste, convenience and availability. Together, we can deliver on the promise to inspire healthier living.

我們專注於推動商業執行力和供應鏈可靠性的提升，以實現 2025 財年下半年的成長。在結束之前，我想感謝我們的團隊成員、供應夥伴和客戶。我們相信，對您來說更好並不意味著要犧牲口味、便利性和可用性。我們可以共同兌現激勵更健康生活的承諾。

Operator, please open the line for questions.

接線員，請打開熱線以回答問題。

(Operator Instructions)

（操作員指示）

Jim Salera, Stephens.

吉姆·薩萊拉、史蒂芬斯。

Hey. Good morning. Thanks for taking my question. Wendy, you had mentioned on the stack side, just some in-store performance driven by marketing and promotion effectiveness. Can you just give us a little more detail on what you saw specifically and then maybe what gives you confidence that some of the promo you have shifted into the back half of the year will be more effective as we progress through the year?

嘿。早安.感謝您回答我的問題。溫迪，您提到了堆疊方面，只是一些由行銷和促銷效果驅動的店內表現。您能否向我們詳細介紹一下您所看到的具體情況，然後是什麼讓您有信心，您轉移到下半年的一些促銷活動將會在今年的進展中更加有效？

Absolutely. Good morning, Jim. When we look at the three brands in the portfolio, you would have heard us talking about the strength of those brands in their awareness and that our biggest challenge was actually driving distribution while they were beloved brands, we made it very hard for you to find them.

絕對地。早安，吉姆。當我們審視投資組合中的三個品牌時，您會聽到我們談論這些品牌在知名度方面的優勢，而我們面臨的最大挑戰實際上是推動分銷，雖然它們是受人喜愛的品牌，但我們讓您很難找到它們。

The shift in promotional activity from quarter one into the back half of the year didn't just have an absolute dollar impact of just those activities from front half to back half, but it also impacted the awareness just broadly with consumers because those feature and display actually had a disproportionate impact on overall velocities in our brands. And that was learning that we got in quarter one. I would also say that we identified that we had strong awareness and what we needed was to actually have conversion-driven marketing activation in store rather than awareness building.

促銷活動從第一季轉移到下半年，不僅對上半年到下半年的促銷活動產生了絕對的美元影響，而且還對消費者的認知度產生了廣泛影響，因為這些功能和展示實際上對我們品牌的整體速度產生了不成比例的影響。這就是我們在第一季學到的知識。我還想說，我們發現我們具有很強的意識，我們需要的實際上是在商店中進行轉化驅動的營銷激活，而不是意識建設。

So what does that look like? It looks like in quarter one, we did a master brand campaign on Garden Veggie. What we really needed to be doing was driving specific conversion and reaching consumers where they were in driving occasion-based marketing. So we've done a pretty dramatic shift in the overall snack portfolio. We have the known distribution gains and the known promotional activity that moved from front half into back half.

那麼它看起來像什麼？看起來在第一季度，我們對 Garden Veggie 進行了一個主品牌活動。我們真正需要做的是推動特定的轉化，並在基於場合的行銷中接觸消費者。因此，我們對整體零食產品組合進行了相當大的轉變。我們知道分銷收益和促銷活動從前半部分轉移到後半部分。

We have incremental distribution that comes in the back half. In C-stores alone, we will go from five chain C-stores with two of our SKUs to 11 of the 15 largest chain C stores. We also picked up 5% distribution in our largest retail partner, and we've added the value channel with 20,000 stores beginning in March. So we have some really good incremental distribution and incremental availability.

後半部我們有增量分佈。僅在 C 型商店中，我們將從擁有 2 個 SKU 的 5 家連鎖 C 型商店增加到 15 家最大連鎖 C 型商店中的 11 家。我們還從我們最大的零售合作夥伴那裡獲得了 5% 的分銷權，並且從 3 月開始我們增加了 20,000 家商店的價值管道。因此，我們擁有一些非常好的增量分佈和增量可用性。

What we've done to shift our marketing is to actually drive it in lower funnel activity so much more on social, which you should start seeing actually be seen in the last couple of weeks to really drive awareness and reach to a broader consumer cohort in driving conversion.

我們為轉變行銷方式所做的實際上是在社交媒體上更多地推動低端管道活動，您應該在過去幾週內看到這一點，這確實提高了知名度，並觸及了更廣泛的消費者群體，從而推動了轉換。

Okay. Great. And then maybe a follow-up on that. I know in December, in particular, there was a little bit of softness in salty snacks. Is that something that also impacted this? Or is it really just what you guys saw from the in-store effectiveness. I'm just trying to parse out category impact relative to kind of pain-specific impact.

好的。偉大的。然後也許會對此進行跟進。我知道，尤其是在 12 月份，鹹味小吃的銷量有所下滑。這是否也對此產生了影響？或者這真的只是大家從店內效果看到的。我只是想分析出相對於特定疼痛影響的類別影響。

Yeah. The -- there is overall in the snacking category, there was softness in the December time period. What's interesting though is better for us snacking continues to perform and we think actually, those are tailwinds overall for better-for-you, but also for Hain.

是的。整體而言，12 月零食類商品銷售疲軟。但有趣的是，對我們更有利的零食繼續表現良好，我們認為實際上，這對您來說總體上是順風，對 Hain 來說也是如此。

So we don't see a lot of transfer between conventional snacking and our brands. So for us, it really was about availability in all the right places, promotion display and promotional effectiveness. I think I've told you before, our brands don't respond to deeper discounts. They do respond to feature and display. So more frequency available more often, and that's what you'll see us driving in the back half.

因此，我們並沒有看到傳統零食和我們的品牌之間出現太多的轉變。因此，對我們來說，真正重要的是在所有正確的地點提供促銷展示以及促銷效果。我想我之前告訴過你，我們的品牌對更大幅度的折扣沒有反應。它們確實對功能和顯示做出響應。因此，我們會更頻繁地提供更多頻率的服務，這就是我們在後半部分所做的事情。

Great. Appreciate the color. I'll get back in the queue.

偉大的。欣賞色彩。我會回到隊列中。

Andrew Lazar, Barclays.

巴克萊銀行的安德魯·拉扎爾。

Great. Thanks so much. Wendy, in the last several quarters, you've talked a lot about the executional issues in various segments. And certainly, I can appreciate some of the wins you have in distribution coming up and having put some of the supply issues in the rear view. I guess I'm curious if you're building in some flexibility in your back half guidance for any other potential unforeseen challenges that may arise. -- particularly in light of what -- as you've noted, a still very dynamic sort of packaged food environment.

偉大的。非常感謝。溫迪，在過去的幾個季度裡，您談了很多關於各個部門的執行問題。當然，我很欣賞你們在分銷方面取得的一些勝利，並且已經將一些供應問題拋在了腦後。我想我很好奇，您是否在後半段指導中建立了一些靈活性，以應對可能出現的任何其他潛在的不可預見的挑戰。 ——特別是考慮到——正如您所說，包裝食品環境仍然非常活躍。

Yeah. To be quite honest, and as we said in the prepared remarks, we've built in some caution in the back half, both given the history we have on some of the execution challenges but also in the broader marketplace. And I think we've appropriately guided for that in the back half. What I would also say, though, is that each one of the challenges we faced really since we launched Hain Reimagined, the team have addressed those with pace. And we were ahead in our commercial execution turnaround in international.

是的。說實話，正如我們在準備好的發言中所說的那樣，我們在後半段採取了一些謹慎態度，這既考慮到我們在一些執行挑戰方面的歷史，也考慮到更廣泛的市場。我認為我們在後半部分已經對此進行了適當的指導。不過，我還想說的是，自從我們推出 Hain Reimagined 以來，我們面臨的每一個挑戰，團隊都已經迅速解決了。我們在國際商業執行轉型方面處於領先地位。

You saw that reflected in the international numbers up until this last quarter. The impact in international in quarter two were all about service challenges, and those have since been addressed. North America was about a year later in some of the commercial go-to-market shifts but given the results that we've seen in international go-to-market changes, gives me a lot of confidence that the (inaudible) a very different commercial execution.

您可以在截至上個季度的國際數據中看到這一點。第二季國際上的影響力全部來自服務挑戰，這些問題目前都已解決。北美在一些商業上市轉變中晚了大約一年，但鑑於我們在國際上市變化中看到的結果，我非常有信心（聽不清楚）商業執行會非常不同。

Got it. And then, Lee, you talked about the cadence in the back half of the year on gross margin and adjusted EBITDA. I was hoping you could put some perspective around the cadence when it comes to organic sales growth. Thanks so much.

知道了。然後，李，您談到了下半年毛利率和調整後 EBITDA 的節奏。我希望您能對有機銷售成長的節奏提出一些看法。非常感謝。

Yeah. So I mean, as we look through the second half versus the first half, I mean, we did say we'd actually pivot to growth. From an EBITDA perspective, I think that was the first part of the question, EBITDA perspective, I mean, we expect to see that sequentially improve as we go through the balance of the year. We'll see that also just from a margin perspective, I think is consistent with prior calls, we said that we'd have a step up our productivity steps up as we go through the balance of the year. So -- what you'll see is sequential improvement step-up and particularly as we get into the fourth quarter.

是的。所以我的意思是，當我們回顧下半年和上半年時，我們確實說過我們實際上會轉向成長。從 EBITDA 的角度來看，我認為這是問題的第一部分，從 EBITDA 的角度來看，我的意思是，我們預計隨著我們度過今年的剩餘時間，這種情況會逐漸改善。我們也會看到，僅從利潤率的角度來看，我認為這與先前的預測一致，我們說過，隨著我們度過今年的剩餘時間，我們的生產力將會逐步提高。因此，您會看到情況不斷改善，特別是當我們進入第四季度時。

Got it. So it sounds like organic though, should pivot to growth -- it sounds like your expectation there would be even starting in the third quarter, if I'm hearing you right.

知道了。因此，這聽起來像是有機的，應該轉向增長 - 聽起來你的預期甚至會在第三季度開始，如果我沒聽錯的話。

Yeah, we should be pivoting to growth.

是的，我們應該轉向成長。

Thanks so much.

非常感謝。

Kamal Gajrawala, Jefferies.

傑富瑞的卡馬爾·加杰拉瓦拉 (Kamal Gajrawala)。

Hey, guys. Good morning. I guess a couple of things on snacks, and I guess, this pivot to more on the conversion side. How much flexibility do you have in managing the P&L and the margins with the shift in promo activity. It looks like when you go top of funnel funnel, we can certainly understand how you would get an increase in volume. But at the same time, you're managing a balance sheet and margins. So can you maybe just talk about the calculus there?

嘿，大家好。早安.我想，零食方面有幾件事值得注意，我想，這更多地取決於轉化方面。隨著促銷活動的變化，您在管理損益和利潤方面有多大的彈性。看起來，當您進入漏斗頂部時，我們當然可以了解您如何獲得音量的增加。但同時，您還要管理資產負債表和利潤。那你能不能只談那裡的微積分呢？

Yeah. We've said before that we felt good about the amount of money that we have allocated for marketing spend that we needed to shift to more effectiveness. So working versus nonworking and to spend it better with better effectiveness before we simply increase that spend. So what you're seeing us do is actually shift from what I would say were more awareness driving activities to more conversion type activities, but inside the envelope of our normal spend within marketing. So just driving effectiveness first and foremost.

是的。我們之前曾說過，我們對分配給行銷支出的金額感到滿意，我們需要將這些資金轉向更有效的領域。因此，在我們簡單地增加支出之前，我們應該先工作，然後再不工作，以更好的效率來花錢。因此，您看到我們所做的實際上是從更具意識驅動力的活動轉向更具轉換類型的活動，但這是在我們正常的行銷支出範圍內。因此，首先要提高效率。

Okay. Understood. And is this -- when we think about some of the, I guess, some of that slowdown or some of that is it Sort of what was maybe the logic on having sort of the pendulum more on the awareness side and now moving it to the conversion side, maybe the logic for the awareness piece initially?

好的。明白了。這是——當我們考慮一些，我想，一些放緩或一些，也許是將鐘擺更多地放在意識方面，現在將其移到轉換方面的邏輯，也許最初是意識部分的邏輯？

Yeah. I would say that a year ago, the belief was that we needed to drive greater brand awareness around our three primary snack brands. And that was the biggest challenge that we had driving both distribution and awareness. We've had a really good run on picking up distribution. In quarter two, we picked up distribution mid-single digits.

是的。我想說，一年前，我們相信我們需要提高我們三個主要零食品牌的品牌知名度。這是我們在推動分銷和提高知名度方面面臨的最大挑戰。我們在分銷方面取得了非常好的成績。在第二季度，我們的分佈達到了中等個位數。

And as I mentioned earlier, we have substantial distribution gains coming in the back half that were either known distribution gains, shifts in promotional activity, known innovation launches or incremental distribution gains, especially in the value channel and in convenience stores.

正如我之前提到的，我們在下半年獲得了可觀的分銷收益，這些收益要么是已知的分銷收益，要么是促銷活動的變化，要么是已知的創新發布或增量分銷收益，尤其是在價值渠道和便利店。

What we learned, though, last summer when we did -- remember, that was the first multi-brand promotion that we did the Sabre summer promotion. What we found from that was that we were driving awareness where we already had high brand awareness. And in Garden Veggie, we actually have the top household penetration of better-for-you snack brands.

然而，我們在去年夏天做這件事時學到了什麼——記住，那是我們第一次進行多品牌促銷，即 Sabre 夏季促銷。由此我們發現，我們正在提升品牌知名度，而我們的品牌知名度已經很高。在 Garden Veggie，我們實際上擁有家庭滲透率最高的健康零食品牌。

So our issue isn't that consumers know the brand. It isn't that consumers are regularly buying the brand. It's the frequency they're buying it, and are they buying it for whole family? Or are they buying it just for their kids.

所以我們的問題不在於消費者是否了解這個品牌。這並不意味著消費者會定期購買該品牌。他們購買的頻率不同，他們是否為全家人購買？或者他們只是為了孩子而購買。

So we needed to drive more occasion-based marketing and more conversion marketing and really lean into social, especially in better-for-you brands and in more nimble social activation is much more effective than traditional media, and we really needed to pivot more quickly. So what you're seeing is, I think, the team leaning into that kind of strategic agility.

因此，我們需要推動更多基於場合的營銷和轉換行銷，真正依靠社交，特別是在對您更有利的品牌中，更靈活的社交激活比傳統媒體更有效，我們確實需要更快地轉變。所以我認為，你看到的是團隊傾向於這種策略敏捷性。

Got it. Thank you.

知道了。謝謝。

Matt Smith, Stifel.

馬特史密斯（Matt Smith），Stifel。

Hi. Good morning, Wendy and Lee. Thanks for taking the question. When it comes to the second half organic sales pivot, you called out initiatives across the major product categories. If we look at just the US business, would you expect growth, organic top line growth in the second half to be broad-based as you benefit from formula distribution, snacks distribution and the promotion shift and you have the recovery in the beverage supply chain. Are there categories or some of those categories where you call out more confidence in that pivot to growth or more risk around them?

你好。早上好，溫迪和李。感謝您回答這個問題。當談到下半年有機銷售的重點時，您呼籲在主要產品類別中採取舉措。如果我們只看美國業務，您是否預計下半年的成長、有機營收成長將是廣泛的，因為您受益於配方奶粉分銷、零食分銷和促銷轉變，並且飲料供應鏈也在復蘇。是否存在一些類別，或者其中一些類別讓您對轉向成長更有信心，或面臨更多風險？

I think there is -- I'll start, and I'll let Lee add a little bit of color behind it. But we've talked before about full recovery in infant formula as (inaudible) December. And we've actually had a really nice pickup in distribution, and we've said before that our velocities are back where they were prior to the supply disruption. So a very meaningful pivot in Earth’s Best in the back half from the front half.

我認為有——我先開始，然後讓李在後面添加一點色彩。但我們之前已經討論過嬰兒配方奶粉將在 12 月全面復甦（聽不清楚）。我們的分銷實際上已經有了很好的回升，我們之前也說過，我們的速度已經恢復到供應中斷之前的水平。因此，Earth's Best 從前半部向後半部轉變意義重大。

In snacks, we've talked before about the promotional activity that shifted from quarter one into quarter three and quarter four. So that is also a very meaningful shift in just the objects of the year. I think with beverage in both international and in the US business, there's incremental activity, promotional activity, innovation and then the branding work that you'll see drive some growth. And then we have the continued success in our soup category across all three brands in international and then our US brands that continue to grow. So I would say those are probably the biggest drivers.

在零食方面，我們之前討論過從第一季轉移到第三季和第四季的促銷活動。所以，這也是年度目標中非常有意義的轉變。我認為，無論是國際業務還是美國業務，飲料業都會有增量活動、促銷活動、創新以及品牌推廣工作來推動成長。我們的湯類產品在國際上的所有三個品牌中都取得了持續的成功，而我們的美國品牌也持續保持成長。所以我想說這些可能是最大的驅動力。

And then the last I would say is Greek Gods Yogurt, we had a shift in customer distribution earlier last year, and we've lapped that now. So now the increased distribution we've seen in other customers, you now start to see that play out and the velocities are very strong in that brand.

最後我想說的是希臘眾神酸奶，去年年初，我們的客戶分佈發生了變化，現在我們已經克服了這個困難。因此，現在我們看到其他客戶的分銷量有所增加，您現在開始看到這種現象，並且該品牌的速度非常快。

Yeah. And I guess just supporting that. So despite the challenges in Garden Veggie and Terra brands, we did see mid-single-digit distribution growth, so as we look forward, we've got accelerated performance driven by the expanded distribution, innovation launches and then increased promotional activity. in Baby & Kids, and we talked about Baby & Kids repeatedly on prior calls, though, we have seen the supply fully recovered and we expect to see the second half continued distribution gains and an increased marketing environment.

是的。我想這只是支持這一點。因此，儘管 Garden Veggie 和 Terra 品牌面臨挑戰，但我們確實看到了中等個位數的分銷成長，因此展望未來，我們將透過擴大分銷、創新推出以及增加促銷活動來加速業績。在嬰兒和兒童領域，我們在之前的電話會議上多次談到嬰兒和兒童，但我們已經看到供應完全恢復，我們預計下半年分銷將繼續增長，營銷環境也將改善。

On beverages, we did actually have some short-term challenges there. We resolved them. Companies leaning into the marketing on taste and wellness through the new master brand campaign and then as Wendy mentioned on Meal Prep, I mean, we're seeing really good trends, increased household penetration on Greek Gods, good momentum on the international side as well.

在飲料方面，我們確實面臨一些短期挑戰。我們解決了這些問題。公司透過新的主品牌活動傾向於口味和健康行銷，然後正如溫蒂在 Meal Prep 中提到的那樣，我的意思是，我們看到了非常好的趨勢，希臘眾神在家庭中的滲透率不斷提高，國際方面也呈現出良好的勢頭。

Thank you. And as a follow-up, the initiatives you've taken on the Personal Care business have gotten that to -- that business to a place where you're now able to undergo a strategic review there. I'm curious if the learnings through that process, if you're at a point where you can look across your portfolio and see opportunities for similar actions across other product categories or geographies and if that's part of the shift in the Hain Reimagined organic sales target where you're now moving to more of an exit rate rather than a sales growth rate across the period.

謝謝。作為後續行動，您在個人護理業務方面採取的舉措已經使該業務達到了您現在可以進行策略審查的水平。我很好奇，透過這個過程，您是否可以審視自己的產品組合，發現其他產品類別或地區採取類似行動的機會，這是否是 Hain Reimagined 有機銷售目標轉變的一部分，現在您更關注的是退出率，而不是整個期間的銷售增長率。

I would say from day one of Hain Reimagined, we and the focus pillar, had identified that we needed to appropriately drive an intense focus on stabilization of particular parts of the portfolio. And once those businesses were stabilized, we would then determine where in the portfolio they fit or if they fit somewhere else outside of the company would be a better place for that.

我想說，從 Hain Reimagined 成立的第一天起，我們和重點支柱就已經確定，我們需要適當地集中精力穩定投資組合中的特定部分。一旦這些業務穩定下來，我們就會確定它們適合放在投資組合的哪個位置，或者它們是否適合放在公司外部的其他地方，這將是一個更好的選擇。

And you've seen us do that. Over the last 1.5 years, we moved nondairy beverage from stabilization into our maintained categories, infant formula up until this quarter, we had in stabilized because we needed to get the supply and the overall recovery of that. We've moved that back into grow in Earth's Best.

你已經看到我們這樣做了。在過去的一年半里，我們將非乳製飲料從穩定類別轉移到維持類別，嬰兒配方奶粉直到本季度才穩定下來，因為我們需要獲得供應和整體恢復。我們已將其重新移回 Earth's Best 的種植範圍。

We have some of our snack brands and some of our personal care brands that we divested. They were in stabilized and then we divested of those -- and now the Personal Care portfolio, margin expansion is actually ahead of where we expected to be and significant work, as you would see in the earnings slides, that the team have done to tighten up the footprint, tighten up the SKU mix and portfolio and really improve the overall shape of that business.

我們剝離了一些零食品牌和一些個人護理品牌。它們已經穩定下來，然後我們剝離了這些產品——現在個人護理產品組合的利潤率擴張實際上超出了我們的預期，並且正如您在收益幻燈片中看到的那樣，團隊已經開展了大量工作來縮小足跡，收緊 SKU 組合和產品組合，並真正改善了該業務的整體狀況。

The divestiture of that will allow us to be a pure play food and beverage company in better-for-you. And so I think we will always evaluate parts of the portfolio that are below our algorithm either in top line or in margin and decide what is the best way for us to improve the overall shape of those businesses whether that's in our portfolio or somewhere else.

此次剝離將使我們成為一家專注於為您創造更好價值的純粹食品和飲料公司。因此，我認為我們將始終評估投資組合中低於我們演算法的部分，無論是在營收還是利潤率方面，並決定什麼是改善這些業務整體狀況的最佳方式，無論是在我們的投資組合中還是在其他地方。

And I guess just as a tiny piece, I mean -- and we've said this before, I mean, we believe we're in the right geographies and the right category platform. So I guess, to Wendy's point, we will continue just to look just to continue to optimize. And then in terms of stabilized right now, I mean, it's about 10% of our portfolio is still sitting and stabilize. So we continue to assess it.

我想這只是一小部分，我的意思是——我們之前說過，我們相信我們處於正確的地理位置和正確的類別平台。所以我想，正如溫迪所說，我們將繼續尋找並繼續優化。就目前的穩定而言，我的意思是，我們投資組合中約有 10% 仍然保持穩定。因此我們繼續評估它。

Thank you. I'll pass it on.

謝謝。我會傳達的。

Michael Lavery, Piper Sandler.

麥可拉弗里、派珀桑德勒。

Thank you. Good morning. You've touched a lot on distribution gains and how important that is. But then in Snacks in the second quarter, you already had mid-single-digit gains. And so maybe can you just help us understand a little more clearly what's different about the expected gains versus what you already had in hand because obviously, the sales declines accelerated despite that in the quarter.

謝謝。早安.您已經多次談到分銷收益及其重要性。但在第二季的零食業務中，你們已經實現了中等個位數的成長。因此，也許您能幫助我們更清楚地了解預期收益與您現有的收益有何不同，因為儘管如此，本季的銷售額下降速度顯然加快了。

Yeah. The issues we had in snacks in quarter two we're less about distribution, absolute points of distribution because we continue to grow those. It was the velocity on shelf where the real driver was -- and that's where marketing activation and effectiveness and promotional activity plays such a key role. So that's why in the back half, the continued growth in distribution is a good thing. But even more important is the promotion, display, shift in marketing activation and driving purchase activity will be that much more important in driving the turnaround in snacks.

是的。我們在第二季遇到的零食問題與分銷無關，而是與分銷的絕對點有關，因為我們正在繼續增加這些分銷點。貨架上的速度才是真正的驅動力——這也是行銷活化和有效性以及促銷活動發揮關鍵作用的地方。所以這就是為什麼在下半年，分銷的持續成長是一件好事。但更重要的是，促銷、展示、行銷活化的轉變和推動購買活動對於推動零食銷售的轉變將更為重要。

And then just to maybe unpack that a tiny bit further. Obviously, the promotional activity usually has a pretty quick consumer response where some of the marketing execution can build more over time. How should we think about, as you mentioned some of the ways you want to kind of pivot the marketing approach, how quickly do you expect to get to see results there? Does social media have a quicker response time than kind of historically other marketing approaches or -- is that really kind of a little bit of a longer-term build too so that we shouldn't expect anything too quickly.

然後也許再進一步解釋一下。顯然，促銷活動通常會很快引起消費者的反應，而一些行銷執行可以隨著時間的推移而產生更多的效果。正如您提到的一些想要改變行銷方式的方法，我們應該如何思考，您預計多快能看到結果？社群媒體的回應時間是否比歷史上其他行銷方法更快，或者——這是否真的是一種長期建設，所以我們不應該對任何事情期待太快。

You will see some improvement in absolute growth of snacks in quarter three. The distribution gains will be a benefit, and the promotional activity will be a benefit. To your point around social, we will see that continue to build, especially as we have an always-on social activation rather than always on traditional media, but you'll see that build over time. But I think the absolute distribution gains and the absolute promotional activity will be a bigger driver for us in quarter three and quarter four.

你會看到第三季零食的絕對成長有所改善。分銷收益會是一種收益，促銷活動也會是一種收益。關於社交，您提到了這一點，我們將看到社交繼續發展，特別是因為我們擁有始終在線的社交活動，而不是始終依賴傳統媒體，但您會看到這種發展是隨著時間的推移而進行的。但我認為絕對分銷收益和絕對促銷活動將成為我們第三季和第四季更大的推動力。

And maybe just lastly, a quick follow-up on the distribution center. You had the press release on, I think, a week or so ago. Any sense of the magnitude of savings that might generate for you?

最後，我們來快速跟進一下配送中心的狀況。我想，你們大約一週前就發布了新聞稿。您知道這可能為您帶來多少節省嗎？

I don't think we've quantified it. I would say it falls within the overall margin expansion goals that we outlined in Hain Reimagined. Remember, we said we had about an 800-basis point disadvantage to industry peer benchmark. We established a 400 to 500 basis points around cost reductions through the Hain Reimagined plan. And that's part of what will be included in that sort of overall.

我認為我們還沒有量化它。我想說它符合我們在 Hain Reimagined 中概述的整體利潤擴張目標。請記住，我們說過，我們與行業同行基準相比有大約 800 個基點的劣勢。我們透過 Hain Reimagined 計畫將成本削減幅度定為 400 到 500 個基點。這就是整體中將包含的內容的一部分。

I would tell you, I think the bigger benefit is the fact that it allows us to be a better partner to our customers by putting our products closer to the market. so we can have speed to shelf. So as volumes peak, as we have peak promotional period, we were, in some cases, three or four days from resupply to some of our or key markets. So now having distribution nodes in all the various parts of the country allows us to be a better partner to our customers.

我想告訴你，我認為更大的好處是，透過讓我們的產品更貼近市場，我們可以成為客戶更好的合作夥伴。這樣我們就可以快速上架。因此，當銷售量達到高峰時，當我們進入促銷高峰期時，在某些情況下，我們需要三到四天的時間才能向某些或主要市場補貨。因此，現在全國各地都有分銷節點，使我們能夠成為客戶更好的合作夥伴。

Okay. Thank you so much.

好的。太感謝了。

Alexia Howard, Bernstein.

亞歷克西亞·霍華德，伯恩斯坦。

Good morning, everyone. So the first question is really about what indications you're perhaps already seeing in the marketplace to show that this pivot in promotional and marketing spending in snacks is working. We're already about five or six weeks into the third quarter. Are you seeing evidence that the new pivot is actually working on the top line?

大家早安。因此，第一個問題實際上是關於您可能已經在市場上看到哪些跡象表明零食促銷和行銷支出的轉變正在發揮作用。我們已經進入第三季大約五到六週了。您是否看到證據表明新的轉型確實對營收產生了作用？

We are seeing improved consumption trends in market.

我們看到市場消費趨勢正在改善。

Okay. And then secondly, on the distribution announcement that you put out a few days ago, that sounds like a fairly significant reduction in delivery route mileage of 66%. And it seems as though it's opening fairly quickly. Is that going to have a material impact on productivity improvement, cost savings in the back half? And are there other benefits in terms of service levels and so on that new distribution center could bring. Thank you and I'll pass it on.

好的。其次，根據您幾天前發布的分發公告，這聽起來像是配送路線里程大幅減少了 66%。而且看起來好像它打開得相當快。這會對下半年的生產力提高和成本節約產生實質影響嗎？新的配送中心在服務水準等方面還能帶來其他好處嗎？謝謝，我會傳達的。

Thanks. It absolutely has a twofold impact. It is a part of our productivity outlook. And as we've said before, the back half margin expansion is largely driven by both the pivot to growth, but also by our productivity pipeline. The team have a very good track record in delivering the productivity pipeline, and we're in a good place as we go into the back half of this year.

謝謝。它絕對具有雙重影響。這是我們生產力展望的一部分。正如我們之前所說，下半年利潤率的擴大很大程度上是由成長樞紐以及我們的生產力管道所推動的。該團隊在交付生產力管道方面有著非常良好的記錄，並且我們在今年下半年處於良好的狀態。

This distribution expansion is a key part of that as well. So it ties into that pipeline. More importantly, it will improve our speed to shelf and our fill rate on shelf with our customers. And as we lean into really trying to be our customers' preferred partner in better-for-you brands, this is a great opportunity for us to be better positioned by having product resupply within one or two days of our customers rather than three or four days.

分銷擴張也是其中的關鍵部分。因此它與該管道相關。更重要的是，它將提高我們的上架速度和客戶的貨架填充率。當我們真正致力於成為客戶在更適合您品牌方面的首選合作夥伴時，這對我們來說是一個絕佳的機會，我們可以在一兩天內而不是三四天內為客戶補給產品，從而獲得更好的定位。

Great. Thank you. I'll pass it on.

偉大的。謝謝。我會傳達的。

(Operator Instructions)

（操作員指示）

Andrew Wolf, CLK.

安德魯沃爾夫，CLK。

Thanks. Good morning. Continue on the North American snacks' weakness in the quarter. Could you discuss like to what extent if any, the category captain issues that you discussed that occurred last quarter, I'm not sure if they're resolved yet impacted the sales there. I think that was at your largest customer, has the category been reset? And -- or when would that be reset?

謝謝。早安.本季北美零食持續保持疲軟態勢。您能否討論一下，如果有的話，您所討論的上個季度發生的類別隊長問題在多大程度上影響了那裡的銷售，我不確定它們是否已經解決。我認為那是您最大的客戶，類別被重置了嗎？並且——或者什麼時候會重置？

It absolutely had a material impact on that particular -- at that particular account because of shelf placement but also assortment, it impacted the velocities in that large retail partner. Those will be resolved in the resets that happen inside this quarter, but we did have some incremental promotional activity with them for New Year, New You as a potential ramp-up into those store resets. But you should see those resets as we hit the latter part of this quarter that give us confidence as we go into quarter four.

它絕對對那個特定帳戶產生了實質影響——由於貨架擺放和分類，它影響了那個大型零售合作夥伴的速度。這些問題將在本季度的重置中得到解決，但我們確實與他們一起為“新年新氣象”進行了一些增量促銷活動，以潛在地增加這些商店重置的可能性。但是，當我們進入本季後半段時，您應該會看到這些重置，這給了我們進入第四季度的信心。

Okay. Now the vendor who ran the camp who was responsible for the category [capancy]. Has that vendor or anyone else kind of done a copycat type of product to the Flavor Burst? Just out of curiosity.

好的。現在，負責該類別的營地經營商販[容量]。該供應商或其他任何人是否生產過與 Flavor Burst 類似的山寨產品？只是出於好奇。

We have not actually seen anyone try to replicate Flavor Burst. We actually have new flavors. One is an exclusive with one customer that launches this quarter. We have another variant that actually launches in this quarter as well. So stay tuned for now four flavor varieties of Flavor Burst. And I think I mentioned in the prepared remarks, that it was named the top new product in the tortilla category by Newsweek.

我們實際上還沒有看到有人嘗試複製 Flavor Burst。我們確實有新口味。其中一款是本季推出的針對某位客戶的獨家產品。我們還有另一個版本實際上也將在本季推出。因此，請繼續關注 Flavor Burst 的四種口味。我想我在準備好的演講中提到過，它被《新聞周刊》評為玉米餅類別的頂級新產品。

Okay. And just last thing is on Celestial ingredient shortage. Could you give a little more background on that? And why it's fixing, -- was that in the market? Or did you maybe go to single source there? And you -- just sort of what occurred and why that's -- is there any prophylactic issue with it? Do you have to go to double source or something? Or is it more just something happened in the market with a certain ingredient?

好的。最後一件事是關於天體原料短缺的問題。您能否提供一些有關該事件的背景資訊？為什麼要修復它——是在市場上嗎？或者你可能去過那裡的單一來源？您知道發生了什麼事以及為什麼會發生這種情況嗎？這其中是否有任何預防問題？你必須去雙源或其他地方嗎？或者這只是市場上某種成分發生了一些事情？

It actually wasn't in market. I would tell you that it was actually an internal execution mistake. It's a long lead time ingredient that enough wasn't purchased to have on hand. And as demand picked up at the start of a season, we were unable to source the ingredients fast enough to be able to resupply. I would say that as of the end of December, we were back in supply of that ingredient, and we're able to then re-pipe into the marketplace on celestial seasoning tea. So it was a short-term lift, it impacted quarter two, but it is an ongoing concern.

它實際上並不在市場上。我會告訴你，這實際上是一個內部執行錯誤。這是一種需要較長準備時間的原料，因此購買的數量不足以滿足需求。隨著季節開始時需求的增加，我們無法足夠快地採購原料來進行補給。我想說，截至 12 月底，我們已恢復了該原料的供應，並且能夠將天賜調味茶重新投放到市場。所以這只是一個短期的提升，它影響了第二季度，但這是一個持續存在的問題。

Yeah, we have put additional steps in to mitigate the risk in the future.

是的，我們已經採取了額外措施來降低未來的風險。

Got it. Thank you. Appreciate it.

知道了。謝謝。非常感謝。

Jon Andersen, William Blair.

喬恩安德森、威廉布萊爾。

Good morning, everybody. Wendy, when you talked during your -- at the top of your prepared comments about better-for-you as a tailwind overall in food and referenced the kind of ingredient profile of your products. And I think for the first time, really called out also GLP-1. I'm just wondering if you could tell us a little bit more how you view -- how you're defining kind of better-for-you within the context of your portfolio? And what that's doing or not doing perhaps to shape your perspectives on innovation and messaging importantly to the consumer, also throwing the GLP-1 angle in there as well. Thanks.

大家早安。溫迪，在您準備好的評論中，您談到了“對您更有利”作為食品整體的順風，並提到了您產品的成分概況。我認為這是第一次真正呼籲 GLP-1。我只是想知道您是否可以告訴我們更多關於您的看法——您如何在您的投資組合中定義對您更有利的東西？而這樣做或不這樣做可能會影響您對創新的看法，並向消費者傳達重要的訊息，同時也將 GLP-1 角度考慮進去。謝謝。

Yeah, absolutely. This is one that I think we've mentioned before that we started a piece of work about a year ago with consumer research to really understand what consumers are looking for in better-for-you. Because we continue to say that we're a leader in better-for-you, we believe in healthier living, but we wanted to make sure that we had real science and real consumer insight to back that up. We learned from that very clear attributes the consumer was looking for. They don't want to sacrifice taste.

是的，絕對是如此。我想我們之前提到過這一點，大約一年前我們開始了一項消費者研究工作，以真正了解消費者在「更適合你」的產品中尋找什麼。因為我們一直說我們是「為您更好」領域的領導者，我們相信更健康的生活，但我們希望確保我們有真正的科學和真正的消費者洞察力來支持這一點。我們從中了解到消費者所尋求的非常明確的屬性。他們不想犧牲口味。

They don't want to sacrifice convenience. They don't want to sacrifice availability and affordability. They don't want pure health, but they do want healthy nudges. So it is a presence of positive and a little bit of a nudge down of the negatives.

他們不想犧牲便利。他們不想犧牲可用性和可負擔性。他們想要的不是純粹的健康，而是健康的推動。因此，它既有積極的一面，也有消極的一面。

And so we will be really relooking at our portfolio through that lens to ensure that our products are providing a better than what option to items that consumers would want in their pantry and regular part of their diet routine. So we think that we have products that actually taste as good, they are as convenient. They are available for consumers without having them have to sacrifice good health and good ingredient profile.

因此，我們將透過這個視角重新審視我們的產品組合，以確保我們的產品能夠提供比消費者在食品儲藏室和日常飲食中想要的更好的選擇。所以我們認為我們的產品確實味道很好，而且很方便。消費者可以享受這些產品，而無需犧牲他們的健康和良好的成分。

We -- 100% of our North American portfolio has an absence of any artificial flavors or colors and our international portfolio is 95%. We have a few artificial sweeteners in some products, which will actually be removed over a period of time. So we really are going to lean in to better-for-you and positive for the consumer without sacrifice.

我們－我們的北美產品組合 100% 不含任何人工香料或色素，我們的國際產品組合 95% 不含任何人工香料或色素。我們的一些產品中含有少量人工甜味劑，這些甜味劑實際上會在一段時間內被去除。因此，我們確實會在不做出任何犧牲的情況下，致力於為您帶來更好的服務，為消費者帶來正面的影響。

As it relates to GLP-1, it's almost like every other diet. Kito, high protein, gluten-free, dairy-free, et cetera, consumers have particular needs, and we want to make sure that it is easier to shop our portfolio to make it easier for them to eat without sacrifice for whatever diet they're on.

就 GLP-1 而言，它幾乎與其他飲食一樣。Kito、高蛋白、無麩質、無乳製品等等，消費者有特殊需求，我們希望確保更容易購買我們的產品組合，讓他們更容易進食，而無需犧牲他們所追求的任何飲食。

As we've worked with our experts to look at our portfolio through the lens of a GLP-1 diet, what products do we have that are ideal for that first three months of GLP-1, what are products we have that are really good for in the middle and then what are those products that are ideal for maintaining and we will message openly to the marketplace to make it, again, easier for consumers to be able to be on whatever diet they're on, and Hain will be there to help support their healthier living.

我們與專家合作，從 GLP-1 飲食的角度審視我們的產品組合，我們有哪些產品最適合 GLP-1 的前三個月，我們有哪些產品真正適合中期，然後哪些產品最適合維持，我們將向市場公開信息，再次讓消費者更容易地進行他們正在進行的任何飲食，而 Hain 將幫助他們支持更健康的生活。

Great. Thanks. I guess, I think you've done a good job of explaining a lot of the execution-related matters, both external and internal that are leading you to kind of revise your outlook on the top line for the current fiscal. But what are we to make of the revision to kind of the long-term algo on the top line. What are you maybe trying baking in there? And what are you trying to kind of maybe communicate from an expectation standpoint that we may not get that kind of 3%-plus run rate until we're exiting fiscal '27.

偉大的。謝謝。我想，我認為您已經很好地解釋了很多與執行相關的問題，包括外部和內部的問題，這些問題導致您修改了對當前財政年度營收的展望。但是，我們如何看待頂線長期演算法的修改呢？您可能想在那裡烘烤什麼？從預期角度來看，您想表達的是，我們可能要到 27 財年末才能獲得 3% 以上的運行率。

Yes. I would say -- and you've been really good as well as investors and asking me the question of, so as you go along in Hain Reimagined, what have you learned? What's working, what's not working, how is that adapting as you go?

是的。我想說——你和投資者一樣優秀，並向我提問，那麼，隨著你在 Hain Reimagined 的發展，你學到了什麼？什麼有效，什麼無效，如何進行調整？

And as we've looked at both the changes we've made in the portfolio, but also execution challenges, and then importantly, the macro environment, we have tweaked some expectations around parts of the portfolio based on that. We still believe very strongly in our fuel delivery, we feel very strongly in the focus initiatives we've announced to date and the focus initiatives that we are exploring. We also feel very good about the margin expansion in the future. I would say we are ahead in productivity pipeline in supply chain, particularly in procurement and in our operations.

我們不僅審視了投資組合所做的改變，也審視了執行方面的挑戰，更重要的是宏觀環境，因此，我們基於此調整了投資組合部分內容的預期。我們仍然堅信我們的燃料輸送，我們堅信我們迄今為止宣布的重點舉措以及我們正在探索的重點舉措。我們對未來的利潤率擴張也感到非常樂觀。我想說我們在供應鏈生產力管道方面處於領先地位，特別是在採購和營運方面。

We are behind where I would have expected us to be in revenue growth management, and you'll see us aggressively leaning into that around price pack architecture, pricing, trade effectiveness and trade promotion. We're doing well in overall marketing awareness of our -- what we call our hero brands, I would say we're doing improvements based on learnings to drive real execution of marketing into conversion and purchase -- and we are doing a fantastic job on the commercial side and building an improved relationship with our top customers that I feel confident will lead to better outcomes as we go forward.

在營收成長管理方面，我們落後於我的預期，你會看到我們在價格包架構、定價、貿易效率和貿易促進方面積極努力。我們在整體行銷意識方面做得很好——我們稱之為我們的英雄品牌，我想說我們正在根據經驗教訓進行改進，以推動行銷的實際執行轉化為轉換和購買——我們在商業方面做得非常出色，並與我們的頂級客戶建立了更好的關係，我相信這將在我們前進的過程中帶來更好的結果。

But I think we've tried to then build an outlook that is acknowledging the areas that are taking longer-term, while at the same time, the areas that are continuing to deliver while, as Lee said, our exit rate at 3%-plus doesn't mean that we won't get there before then. It's just us trying to set an expectation at a rate basis on an annualized number rather than a CAGR over the life of Hain Reimagined. So I would view it through that lens.

但我認為，我們已經嘗試建立一種觀點，承認有些領域需要較長時間才能實現目標，同時，也承認有些領域正在繼續取得成果，正如李先生所說，我們的退出率為 3% 以上，並不意味著我們不會在此之前實現目標。我們只是想根據年化數字而不是 Hain Reimagined 生命週期內的複合年增長率來設定預期。所以我會透過這個視角來看它。

Okay. That's helpful. I know you asked for two questions. I'm going to try and squeeze in a third, if I could. I'm just back of the envelope math, it looks like, again, we may be off on this, but the guidance for fiscal '25 on the top line almost calls for flattish kind of organic in the second half of the fiscal, I guess, depending on where you come out in the range.

好的。這很有幫助。我知道你問了兩個問題。如果可以的話，我會嘗試再寫第三個。我只是粗略地計算了一下，看起來，我們可能再次偏離了這一點，但 25 財年的指導方針幾乎要求在下半年實現平穩的有機增長，我想，這取決於你在這個範圍內的位置。

So I guess my just question is on the pivot to growth in the second half, what that really means, does that mean on a full second half basis, does it mean you pivot somewhere in the quarter or in the second half, meaning maybe the third quarter is flat or down and the fourth quarter is up. Just some more help with the cadence of this, I think, from a modeling perspective is really important at this point? .

所以我想我唯一的問題是下半年轉向成長，這到底意味著什麼，這是否意味著整個下半年，是否意味著在本季度或下半年的某個時候轉向成長，這意味著第三季可能持平或下降，而第四季上升。我認為，從建模的角度來看，對此節奏提供更多幫助在這一點上真的很重要嗎？。

Yeah. I'll let Lee answer the specifics, but I would say we're looking at it -- and the range is pretty wide, as you can tell, because we're acknowledging the challenges in the front half and the macro environment, we're not assuming that we will cover all of the challenges in the front half, but we will pivot to growth in the back half on a full back half basis, and I'll let Lee talk to --

是的。我會讓李來回答具體細節，但我想說我們正在考慮這個問題——範圍很廣，正如你所看到的，因為我們承認上半年和宏觀環境的挑戰，我們並不假設我們會涵蓋上半年的所有挑戰，但我們將在整個下半年轉向增長，我會讓李談談--

Yeah. And I mean we're looking to pivot, as I said earlier, in Q3. So you can kind of -- we wanted to give guidance again on the overall back half, but we are looking to pivot to the growth in the Q3 time frame.

是的。正如我之前所說，我們正在尋求在第三季實現轉型。因此，您可以 - 我們想再次對整個下半年的情況提供指導，但我們希望轉向第三季的成長。

Great. Okay. Thanks, everyone.

偉大的。好的。謝謝大家。

John Baumgartner, Mizuho Securities.

瑞穗證券的約翰·鮑姆加特納。

Good morning. Thanks for the question. I wanted to come back Wendy to the macro environment and some clarification there. It sounds as though better-for-you continues to outperform. And one of Hain's merits is to skew towards high income households. So are you seeing some incremental headwinds for this higher income group at the shopper level? Or is the macro commentary directed more at sort of like the retail category competition at the shelf?

早安.謝謝你的提問。我想讓溫迪回到宏觀環境並進行一些澄清。聽起來，對你更有利的產品繼續表現優異。而海恩的優點之一就是偏向高收入家庭。那麼，您是否看到購物者層面上這個高收入群體面臨一些逐漸增加的阻力？或者宏觀評論更多針對貨架上的零售類別競爭？

I think it's more acknowledging that in general, there's a lot of volatility right now in consumer sentiment in general and in the marketplace. And so we're trying to be fairly cautious related to that. What we are seeing and probably the same thing you are, is this real bifurcation at the consumer that at the high end, we're seeing premium and super premium continue to grow.

我認為，更重要的是承認，整體而言，目前消費者情緒和市場都存在著很大的波動。因此，我們正努力對此保持相當謹慎的態度。我們看到的，可能和您看到的一樣，是消費者的真正分歧，在高端，我們看到優質和超優質產品持續成長。

And then we're seeing on the low-end value and value channels and discounters as well as value products continue to grow. It's that middle that's really gotten squeezed in general, and that's more of a general comment, not just specific to the Hain portfolio.

然後我們看到低端價值和價值管道以及折扣店以及價值產品持續成長。總體而言，中間部分確實受到了擠壓，這更像是一種普遍的評論，而不僅僅是針對 Hain 投資組合。

And so as we look at our portfolio, we tend to play at that entry price point to premium, which we think is an ideal position. We think the consumer tailwinds as it relates to better-for-you and health concerns are a real tailwind for Hain. And as we've leaned into making our products more accessible and available to more people, you'll see our distribution gains in the discount channel and in the value channel as well as driving distribution and growth online will continue to help us meet the needs of both consumers at Ella value price points.

因此，當我們審視我們的投資組合時，我們傾向於以入門價位到溢價位進行投資，我們認為這是一個理想的位置。我們認為，與「對您更有利」和「健康」問題相關的消費者順風對 Hain 來說是真正的順風。隨著我們致力於讓更多人更容易獲得我們的產品，您會看到我們在折扣通路和價值通路的分銷收益以及推動線上分銷和成長將繼續幫助我們滿足 Ella 價值價位的消費者的需求。

Okay. And for my follow-up, I wanted to come back to the comments on ingredients. And I understand Hain point of differentiation for clean ingredients, the Red No. 3 and so on. But in an environment where the regulatory backdrop, let's say, [titans], and you have larger companies you acquired to eliminate more of these artificials, either by government directly or by consumers indirectly, I think that would sort of narrow the playing field a bit and dilute Hain differentiation on the shelf for quality. How do you think about the playing field potentially changing on the ingredient side? And how would it maybe require Hain to pivot or adjust in terms of how to differentiate in the future?

好的。作為我的後續行動，我想回到對成分的評論。我理解 Hain 對於清潔原料的區分點，紅色 3 號等等。但在監管背景下，比如說，[巨頭]，你收購了更大的公司，以消除更多這些人為因素，無論是政府直接幹預還是消費者間接幹預，我認為這會縮小競爭環境，削弱 Hain 在貨架質量上的差異化。您如何看待原料方面的競爭環境可能發生的變化？那麼，未來如何實現差異化，Hain 可能需要做出哪些轉變或調整呢？

Well, I would hope that more companies are leaning into those ingredient claims. So I'm not viewing free from as a moat that we want to maintain. I'd like everybody to move in that direction, especially as a company that believes in inspiring healthier living. But we are ahead and we think that we have brands that deliver on great taste and convenience. And our goal is to drive greater availability of those as the consumers are leaning in. But I think a focus against an improved ingredient profile for all makes it easier for all.

好吧，我希望更多的公司能夠傾向於這些成分聲明。所以我並不認為免費是我們想要維護的護城河。我希望每個人都朝著這個方向努力，特別是對於一家致力於激發更健康生活的公司。但我們處於領先地位，我們認為我們的品牌能夠提供絕佳的口味和便利性。我們的目標是隨著消費者的青睞，提高這些產品的可用性。但我認為，專注於改善所有人的成分概況會讓所有人更容易接受。

Okay. Thanks, Wendy.

好的。謝謝，溫迪。

Anthony Vendetti, Maxim Group.

安東尼·文德蒂（Anthony Vendetti），馬克西姆集團（Maxim Group）。

Thank you. I know it's been like a little over an hour. So just a very high-level question. I guess related to an earlier question, Wendy, I just -- as you move into the second half, and I know we've talked about that a little bit, but if you had to talk about, and there's lots of variables, your level of confidence, are you highly confident that with these reduced expectations, you can hit sort of the guidance you have out there for the second half?

謝謝。我知道已經過去一個多小時了。所以這只是一個非常高階的問題。我想與之前的問題相關，溫迪，當你進入下半年時，我知道我們已經討論過這個問題了，但如果你必須談論，並且有很多變量，你的信心水平，你是否非常有信心在降低這些預期的情況下，你可以達到你對下半年的指導？

And if you are highly confident what are the, I guess, if you could foresee or sort of look at the second half challenges. What would be the one thing or a couple of things that could make the second half not as strong as you think it could be?

如果您非常有信心，我想，如果您能預見或了解下半年的挑戰是什麼。有哪些因素或因素可能導致下半年表現不如您想像的那麼強勁？

I believe that we have set the right guidance for the things that could go well and the things that could be a risk in the back half. So I think we've given the appropriate range. I feel very confident about our Earth's Best and Ella's Kitchen.

我相信，我們已經為下半年可能進展順利的事情和可能有風險的事情設定了正確的指導。所以我認為我們給了適當的範圍。我對我們的 Earth's Best 和 Ella's Kitchen 非常有信心。

So the baby category, I feel very confident in the beverage category as we go in the back half and I feel good about the momentum that we have in Greek Gods yogurt and the meal prep category, in particular, soups in the international business.

因此，對於嬰兒用品類別，我對飲料類別非常有信心，因為我們正處於後半段，我對希臘神酸奶和餐食準備類別，特別是國際業務中的湯類的勢頭感到滿意。

I would say where I am cautious is in snacks. We have very good distribution gains and assortment gains in the back half, but we definitely need to see the improvement in the productivity of our margin actions play out. And I think we've built that into our outlook for the back half to appropriately account for that.

我想說，我對零食很謹慎。我們在下半年獲得了非常好的分銷收益和分類收益，但我們絕對需要看到利潤率行動的生產力提高。我認為我們已經將其納入了下半年的展望中，以適當地考慮到這一點。

And then just a quick question on Personal Care. Obviously, that was very weak this quarter. When did you decide or make decisions looking for strategic alternatives? And how far along is that process just starting? And do you think that will take six months, a year? Or are you aggressively trying to figure out what to do with that segment. Thank you.

然後我簡單問一個關於個人護理的問題。顯然，本季的表現非常疲軟。您何時決定或做出尋找策略替代方案的決定？這個過程目前進展到什麼程度了？您認為這需要六個月還是一年的時間？或者您正在積極嘗試弄清楚如何處理該部分。謝謝。

Yeah. The -- well, first, I would want to say, remember in quarter two, some of the impacts in Personal Care relate to the SKU simplification, but for SKUs that don't get organic treatment. So there is a disproportionate impact on the personal care portfolio optics because of some of that SKU cleanup that doesn't get reversed out for organic treatment.

是的。首先，我想說，記住在第二季度，個人護理中的一些影響與 SKU 簡化有關，但對於未進行有機處理的 SKU 而言。因此，由於部分 SKU 清理工作沒有透過有機處理進行逆轉，因此對個人護理產品組合的光學性能產生了不成比例的影響。

That said, we feel really good that we've stabilized the top line that we've done a nice job in expanding the margins in that business is in a better shape for us to be able to explore optionality -- we began the process actually in quarter two. We have engaged the bank to begin moving forward with that we would hope to be able to execute that inside this fiscal year, but you know how those things go. So we'll see how that plays out. In the meantime, we are 100% focused on continuing to run that business well. to execute well with our customers and take care of those brands.

話雖如此，我們感到非常高興，我們已經穩定了營收，我們在擴大利潤率方面做得很好，業務狀況更好，我們能夠探索可選性——我們實際上在第二季度就開始了這個過程。我們已經與銀行接洽，開始推進這項工作，我們希望能夠在本財政年度內完成這項工作，但你知道事情進展如何。我們將拭目以待事情將如何發展。同時，我們將全力以赴繼續做好該業務。與我們的客戶合作良好並照顧好這些品牌。

Okay. Thanks so much. I appreciate it.

好的。非常感謝。我很感激。

We have no further questions at this time. I will now turn the conference back over to Wendy Davidson^ , CEO, for closing remarks.

目前我們沒有其他問題。現在，我將會議交還給執行長溫蒂戴維森 (Wendy Davidson)，請她致閉幕詞。

Yeah. I really want to reiterate my thanks and appreciation to our Hain team, to our supply partners and to our customers. As we've said, we don't believe that better-for-you means you have to sacrifice flavor, convenience, availability or affordability, and we look forward to working together to inspire healthier living. Thanks for this morning.

是的。我真的想再次向我們的 Hain 團隊、我們的供應合作夥伴和我們的客戶表示感謝和讚賞。正如我們所說，我們不認為對您更好意味著您必須犧牲口味、便利性、可用性或可負擔性，我們期待共同努力，激發更健康的生活。謝謝你今天早上的陪伴。

Ladies and gentlemen, that does conclude today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。