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5/7/2025
Celestial Group Incorporated fiscal third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Alexis Tessier, VP of Investor Relations. Please go ahead.
Good morning and thank you for joining us for a review of our third quarter results. I am joined this morning by Don Deere, chair of the Hain Board of Directors, Allison Lewis, our interim 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. 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. We have also prepared a presentation inclusive of additional supplemental financial information, which is posted on our website at haine.com under the investor's 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 the call. The call is being webcast and an archive will be made available on the website. And now I'd like to turn it over to Don.
Thank you, Alexis. Good morning, everyone. I'm Dawn Zier, Chair of the Hain Board of Directors, and I'd like to thank everyone who has dialed in this morning. Before we get into the results for the quarter, I wanted to share a couple of updates from the Board of Directors. The Board of Directors has been evaluating the company's performance and leadership to ensure that Hain is positioned to maximize long-term value. As part of this effort, as you may have seen in the press release we issued this morning, we've announced two important actions. One, a leadership transition, and two, the launch of a formal process to review the company's portfolio. Let me begin with the leadership transition. In September 2023, we launched our new strategy, Hain Reimagined, aimed at streamlining our operations, simplifying our product portfolio, and reinvesting in our core Better For You category initiatives. As a result of these efforts, the company has improved its financial health through disciplined cash management and strategic debt reduction. Today, we have a stronger balance sheet and significantly more financial flexibility. Notwithstanding these accomplishments, we are disappointed with the overall performance of our business. After much thought and discussion, the board determined that it would be in the best interest of the company and its shareholders to transition to a new CEO. Accordingly, Wendy Davidson will no longer serve in that role effective this morning. On behalf of the company, I want to thank Wendy for her leadership and the contribution she has made to help advance Haynes' transformation and position the company for long-term success. We wish her the best in her future endeavors. The board has a leadership succession plan in place. We're executing that plan, which aims to seamlessly identify the company's next CEO. In the meantime, one of our board directors, Allison Lewis, will step into the role of interim president and CEO. We are fortunate to be able to benefit from Allison's vast industry and leadership experience. Allison has a track record of driving superior in-market execution, delivering disciplined and profitable revenue growth, and leveraging innovation to create value. She joined the Hain board in September 2024 and has spent the last 30 years working with some of the world's most respected consumer product companies. including Kimberly Clark, Johnson & Johnson Consumer Health, Coca-Cola, and Kraft Heinz. Allison is committed to making further progress on our efforts to improve performance, and the Board has full confidence in her ability to lead the organization during this transition. In addition to the leadership transition, we also announced that the Board has formally initiated a strategic review of the company's portfolio aimed at maximizing shareholder value. The Board has retained Goldman Sachs as its financial advisor, and we will consider a broad range of potential options to enhance value. There is no set timetable for the completion of this evaluation. The company does not intend to provide further updates on this effort unless and until the Board has approved a specific course of action or determines that additional disclosure is appropriate or necessary. With that, I will turn the call over to Allison to say a few remarks and then to Lee to walk through the highlights from the quarter.
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