The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q2 2019 Earnings Conference Call Transcript
Feb 07, 2019 • 08:30 am ET
Greetings and welcome to The Hain Celestial Group Second Quarter Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I will now turn the call over to Katie Turner for opening remarks.
Katie M. Turner
Thank you. Good morning. We appreciate you joining us on Hain Celestial's second quarter fiscal year 2019 earnings conference call. On the call today are Mark Schiller, President and Chief Executive Officer and James Langrock, Executive Vice President and Chief Financial Officer.
During the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and involve risks and uncertainties that could differ materially from actual events and those described in these forward-looking statements. Please refer to Hain Celestial's annual report on Form 10-K and other reports filed from time to time with the Securities and Exchange Commission and its press release issued this morning for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.
A reconciliation of GAAP results to non-GAAP financial measures is available in the earnings release which is posted on Hain Celestial's website at www.hain.com under Investor Relations. This conference call is being webcast and an archive will be available on the website.
It's now my pleasure to turn the call over to Mark Schiller.
Mark L. Schiller
Thank you, Katie, and good morning everyone. You'll recall that my first earnings call in November was my third day as CEO. At that time, I committed to provide all our stakeholders with a clear and credible view of our current situation and future direction and to deliver consistent operational and financial results. To that end, as we report earnings today, my goal is to level set expectations on the reality of where we really are. This will deliver on my promise of clarity and credibility. In late November at Investor Day, I'll share with you the detailed go-forward plan to deliver the goal of consistency.
Today's news on our current performance is truly disappointing. It's where we are, starting our transformational journey. We have issues that need fixing, we have decisions that need unwinding. For example, we have a long tail of unprofitable and low velocity SKUs resulting from launching too many new line extensions that really didn't add growth to the specific brands or categories. As a result, they didn't earn their space on the shelf and we lost considerable distribution and faced more distribution losses going forward.
We made some uneconomic investments and pricing decisions in pursuit of volume at any cost. We've also introduced complexity into our supply chain without understanding its full cost. As a result, we've lost meaningful profit in the United States and are lowering our outlook for fiscal '19. The good news is that these issues