The Hain Celestial Group reported Q4 2024 results that reflect a modest decline in revenue versus prior-year periods and a narrow quarterly loss, but with meaningful cash-flow generation and a still-levered balance sheet. Revenue of $418.8 million declined 6.5% year-over-year and 4.5% quarter-over-quarter, while gross margin stood at 23.4% and operating margin at 2.87%, signaling a low-to-mid-single-digit margin profile in a highly competitive organic/natural foods landscape. Despite a negative net income of $2.94 million for the quarter, the company generated $39.4 million in operating cash flow and $30.7 million of free cash flow, supported by disciplined working capital management and manageable capital expenditures of $8.69 million.
The balance sheet remains leveraging-intensive, with total debt of $835.7 million and net debt of $781.4 million. Interest coverage was subpar at 0.88x, underscoring sensitivity to interest costs and the need for deleveraging over time. Nonetheless, the business delivered positive EBITDA of $17.99 million and a cash conversion cycle of approximately 62.6 days, indicating functional working capital efficiency even as channel mix and international exposure pose risks and opportunities.
Looking forward, there is no explicit quarterly guidance provided in the data set. Investors should monitor management commentary for indications on margin restoration, price realization, and deleveraging trajectory, particularly given the elevated debt load and sensitive interest coverage. The long-term growth thesis remains anchored in expanding the organic/natural product portfolio, expanding international reach, and investing in higher-margin SKUs and categories, while remaining mindful of macroeconomic headwinds, raw material costs, and currency volatility.