The Hain Celestial Group, Inc.

Thank you.

Good morning, and thank you for joining us on Hain Celestial's third quarter fiscal year 2020 earnings conference call. On the call today are Mark Schiller, President and Chief Executive Officer, and Javier Adrobo, 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 security's laws. These include expectations and assumptions regarding the company's future operations and financial performance, including expectations and assumptions related to the impact of the COVID-19 pandemic. 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. These refer to Hain Celestial's annual report on Form 10-K, and quarterly reports on Form 10-Q and other reports filed from time to time with the Securities and Exchange Commission. An express release issued this morning for a detailed discussion of the risks that could cause actual results to differ maturely from those expressed or implied in any forward-looking statements made today. Please note, management's remarks today will focus on non-GAAP or adjusted financial measures. A reconciliation of GAAP results and non-GAAP financial measures is available in the earnings release. As a reminder, beginning in Q1 of this year, the company changed its segment reporting to focus on North America, international, and corporate, which is the U.S., U.K., and rest of the world segments. The company has also prepared a few presentation slides and additional supplemental financial information, which are posted on Hain Celestial's website under the Investor Relations heading. This call is being web-tapped, and an archive of it will also be available on the website. I'd also like to note that we're conducting our call today from our respective remote locations. A special maybe brief delay, cross-off, or other minor technical issues during this call. We thank you in advance for your patience and understanding, and with that, I'd like to turn the call over to Mark Schiller.

Thank you, Katie, and good morning, everyone. Let me start by saying these are very difficult and unprecedented times as we all learn to adapt to the coronavirus. My thoughts and prayers go out to those who have been negatively impacted by this pandemic, and I wish everyone safety and good health as we move toward a new normal. I appreciate that we're working in an essential industry and providing people around the world with much needed healthy products that they rely on to navigate this crisis. And I want to thank all our employees who have continued to come to work every day during this turbulent time. They've overcome numerous obstacles to produce and ship these products to stores every day and they're doing a fantastic job. On today's call, as I talk about our performance in Q3 and guidance raised for the full year, I'll give you details on the COVID pandemic, including how it's impacted our business, how we prepared for it, how we created new opportunities, and how we're setting ourselves up for the future. Let me start with our results and outlook. I'm proud to announce that after two strong quarters with significant profit growth, we did it again in the third quarter with 24% year-over-year growth in adjusted EBITDA and an EBITDA margin which was the highest since fiscal 2018. Thank you for joining us. but it's important to note that we were on track to deliver promised improvements based on our performance in the first two and a half months of the quarter before the pandemic really changed behavior. This is further evidence that our strategy is working and we continue to deliver against our goals and guidance. Further, we exited the third quarter with significant momentum and as we have forecasted all year, we continue to expect growth versus a year ago in gross margin dollars and percentage and adjusted EBITDA margin in dollars in the fourth quarter as well. As a result, I'm pleased to inform you that we have raised our earnings and EPS guidance for the year considerably. Now let me provide some color on both the North American and international businesses. Starting with North America, you'll recall we had embarked on a transformational journey to turn around our performance and have made significant progress to improve our margins and restore profits. The virus continued in Q3 with gross margin improving over 18% and adjusted EBITDA margin improving over 36% compared with last year. Importantly, for the first time in the last 10 quarters, our top line in North America also grew. You're probably wondering what the impact of the virus is on these results. As I stated earlier, while our performance benefited late in March from COVID-19, we were delivering all the improved metrics on top line gross margin and adjusted EBITDA Thank you for joining us. On the negative side, we incurred increased costs to keep our employees safe in our supply chain running, like frontline crisis pay, extra sanitation, and expedited freight. In terms of categories and brands, we saw similar improvement in both the Get Bigger and Get Better groupings of brands, but within them, individual categories varied significantly. Of our Get Bigger portfolio, T and the Celestial brand saw the biggest improvements. T is often used when one is sick for a relaxing me moment on a hectic day or for winding down at night, so it's well positioned for growth in these turbulent times. Right now, the category and brand continue to grow about 40% year over year every week. Hand sanitizers, which is a relatively small part of our personal care portfolio, also benefited greatly in this environment. With sales doubling, we've added capacity to keep up with growing demand. Outside of soaps and sanitizers, personal care categories have seen a small decrease in sales overall. As we discussed at our last earnings call, we ran a big hair care program early in the quarter that created significant growth. We were also poised to have a record sun care season, but it's off to a slow start, given that consumers are isolating and not yet traveling. The snacks category did well in March and April, but has stabilized with low single-digit growth. as many snacking occasions like parties and lunch boxes have gone away temporarily. In the Get Better portfolio, baby food saw immediate significant stock up in March, but baby food consumption is not expandable, and as a result, orders have dropped considerably in April as consumers used up what they bought. The remainder of the Get Better brands, which include things like canned goods, almond butter, soup, and salt, have benefited from pantry loading and increased cooking from home. In almost every category, we've seen our buying rate improve. Household penetration has also increased most significantly in tea, snacks, hand sanitizer, and some center of store categories like oils and canned goods. In terms of customers, we saw a significant increase in big box retailers during the initial surge, and our business at large grocery chains continues to show strong mid-single-digit growth in April. As consumers began isolating, we experienced a significant increase in e-commerce, Thank you for joining us. So our sales have mostly benefited from the pandemic and are expected to continue to grow modestly in Q4 when factoring out the businesses that we've exited this year. Let me give a little more color on how the Get Bigger and Get Better segments performed within the quarter. On the Get Bigger brands, we had guided that Q3 would start to show improvement in top-line trajectory in North America where we were focused on restoring growth. For the quarter, our Get Bigger brands grew more than 10%. Again, it's important to note that our Get Bigger brands were growing high single digits before the demand surge in March, which should give you confidence that the improvement expected had in fact materialized before the crisis. Adjusted EBITDA margins for the Get Bigger brands were over 14%, something we've accomplished in five of the last six quarters. Those results are even more impressive given we increased our marketing investment by 120 basis points versus a year ago. On the Get Better brands, we continue to focus on improved profitability. I'm pleased to report that our EBITDA dollars and margin more than doubled versus a year ago in the quarter, despite the anticipated shrinking top line. These profitability improvements and corresponding sales declines are the result of aggressive productivity initiatives, skew rationalization, reduction in low ROI spending, and a product redesign that we've been working on since Investor Day last year. In our continued simplification journey, we were also able to sell two low-margin, non-strategic businesses within the quarter, Europe's Best and CASPA. And late last week, after the quarter ended, we also sold our Rudy's business. These businesses collectively had about $30 million in sales and EBITDA of only about $1 million, but they consumed a disproportionate share of management time and added supply chain complexity. In addition, we've also started shutting down several brands that lack scale and profitability. These brands, including DuBose, Little Bear, and Gluten-Free Grocery, had approximately collective annual revenue of $4 million and adjusted EBITDA of zero. Between the divested and discontinued brands, we've eliminated approximately 200 SKUs, 10 co-manufacturers, our only direct store delivery system, and one manufacturing site. This fits with our continuing plan to simplify the business and improve our margins and growth potential going forward. Turning to international, we had a solid quarter with flat sales, expanding gross margin and double-digit EBITDA growth and constant currency. While most of the trends we saw in North America are similar here, there are two important differences. One, we have a scaled fruit business that makes up approximately 20% of the international sales. It has a large food service component and those sales have dropped to almost zero in late March and the trend continues in Q4. In addition, while still supplying the grocery side of the business, we have significant stranded overhead and input costs that are further impacting profit. Excluding the fruit business, about 30% of our international sales are private label. These businesses have done quite well as consumers who are concerned about their personal finances trade down to lower priced items. Given those two factors somewhat balancing out, we're pleased that we delivered flat sales overall and strong margin expansion. It's further evidence that we have solid businesses and strong management teams behind them. One other important point that I want to draw your attention to is how we manage excess capital in the quarter. On previous calls, you'll recall that we paid down debt to lower our interest expense for the year. In March, when the stock market dropped markedly, We believe that our shares were significantly undervalued and consistent with our strategy, we utilized capital to buy back shares. We deployed approximately $60 million to acquire 2.4% of our outstanding shares at a price of about $23.60. While that purchase had minimal impact on the average share count in the quarter, you will see its impact on EPS in Q4 and beyond. Given our strong results and outlook, let me spend a couple minutes explaining how we prepared for COVID-19 with the goal of giving you confidence that we are also well prepared for the future as this pandemic continues. From the beginning, our leadership team had a focused agenda that one, take care of our employees, and two, ensure business continuity and continued success. With regard to our employees, we ensured that they were safe and could provide for their families. We were early adopters of all recommended actions to prevent the spread of the disease and in many cases adapted them before the government directed us to do so. We've also consistently met or exceeded all government guidelines for addressing those employees who contract the virus. In addition to crisis pay for all frontline workers, we also recently established a program to help employees who suffered severe economic hardship during this crisis with free financial grants from the company to help ensure that they and their families are safe and have food on the table. Our second priority was to ensure that we kept the company on track to deliver the plan and meet consumer and customer needs. Thank you for joining us. To meet surging demand, we consolidated shipping orders to get more product on fewer trucks, resulting in service levels in the mid-90s and significantly reduced distribution costs. In short, we were well prepared to meet the rapid increase in demand and help ensure continued strong performance as the crisis progresses. As the situation unfolded, we also created new opportunities to drive growth and set up the future. For example, we have a small Canadian hand sanitizer business that grew exponentially. We quickly added capacity to meet demand and expand into the United States, further strengthening our relationship with key retailers. While others have been cutting their marketing, we have been increasing ours in Q3 with new advertising on some brands, impact coupons to encourage repeat purchases from new tryers, and increased market research to set ourselves up for future success. We also quickly developed scrappy innovation on some cooking brands to complement the strong pipeline on our Get Bigger brand. We are also partnering with customers in new ways to solve their issues and help them grow, resulting in stronger relationships for the future. As we look forward, our focus has shifted to the reopening of the economy and a quest for a new normal. While we anticipate some eating occasions will migrate back out of home as economies open, we are focusing on several important trends that will help us continue to grow. These include e-commerce growth, where we have tremendous strength in relationships, New Triers for many of our new products, cash-strapped consumers seeking better value, increased cooking at home, and new consumer sentiment and values. As discussed on Investor Day, we'll also continue to assess our portfolio and recategorize brands as appropriate. While the current environment has impacted our original plans on some projects requiring some adjustments, our overall strategy and its four pillars – simplification, capability building, Cost Control and Top Line Acceleration remains intact now more than ever. We know we have much work left to do, but even more new opportunities in front of us. Our future continues to be very bright. With that, let me turn it over to Javier, who will give you more details on our financial performance.