The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q4 2020 Earnings Conference Call - Final Transcript

Aug 25, 2020 • 08:30 am ET

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The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q4 2020 Earnings Conference Call - Final Transcript

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Executive
Javier H. Idrovo

company used $60 million to repurchase 2.6 million shares or 2.4% of our outstanding common stock. This leaves us with $190 million of additional repurchases authorized under our 2017 share repurchase authorization.

Now let's turn to our final key aspect of our financial results, our outlook for the business. As Mark mentioned, we have tremendous confidence in our team's ability to manage the controllable aspects of our business. But given the ongoing uncertainty related to COVID-19, including the magnitude and duration of the pandemic and its impact on consumer shopping behaviors, we have decided not to provide specific guidance for fiscal '21. Also since Mark already covered the company's perspective for the first quarter and first half of '21, I would like to discuss the full year in more detail. Because of the divestments and brand discontinuations $60 million have been removed from the fiscal year 2021 base.

For the full year compared to prior year, we anticipate the following: gross profit dollar and margin expansion, strong double-digit growth in adjusted EBITDA with continued margin expansion and strong double-digit growth in operating free cash flow. In addition, for 2021 we expect capital expenditures to be around 4% of net sales. This is an increase from fiscal 2020 which will be used to accelerate several large productivity projects across our supply chain. Our cash conversion cycle is expected to be consistent with our target of 60 days.

In summary, we made a tremendous amount of progress in fiscal 2020. We delivered top line growth versus prior year in two consecutive quarters. We delivered profit margin expansion versus prior year every quarter. We improved our cash flow generation and we have built a healthy balance sheet. We believe, Hain Celestial remains well positioned for long-term growth even as we continue to navigate through the pandemic. We remain confident in our transformational strategic plan and ability to make further improvements in fiscal '21 and beyond.

I will now turn the call back to Mark.

Executive
Mark L. Schiller

As you can see we had a tremendous year. Hopefully you got a good understanding of our results, momentum and expectations for fiscal 2021 this morning. We will provide more detail around the fiscal 2021 plan, key drivers and outlook in the coming months starting at the Barclays Conference in two weeks. And behalf of our Board of Directors and management team, I'd like to thank our global team in Hain Celestial for how well they have embraced our transformation journey and executed against our goals, particularly in this evolving and dynamic environment. But we've collectively achieved in fiscal '20, it is just the beginning of the success that we believe lies ahead for the company.

With that let me turn it over to the operator for questions.