Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome you to The Hain Celestial Group First Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Alexis Tessier, Head of Investor Relations. Alexis, you may begin.

Good morning, and thank you for joining us for a review of our fiscal first quarter 2026 results. I am joined this morning by Alison 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 hain.com under the Investors 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. This call is being webcast, and an archive will be made available on the website. And now, I'd like to turn the call over to Alison.

Good morning, everyone, and thank you for joining today's call. I will start by providing commentary on Q1 results and will then discuss the progress we are making on our turnaround journey. Then Lee will provide a more detailed review of our quarterly results along with our outlook. First quarter results were in line with our expectations on the top and bottom line, and we have building blocks in place to drive improved trends in the back half. In the quarter, we demonstrated sequential improvement in organic net sales trends in both of our segments. In North America, Beverages, Baby and Kids and Meal Prep all turned to growth, partially offsetting the continued year-over-year decline in Snacks. The Snacks relaunch entered its execution phase in the quarter, which included the first launch of our revamped Garden Veggie platform with upgrades to oil ingredients and taste profiles, which I'll discuss more in a minute. And in International, growth in the Meal Prep category partially offset the impact from continued industry-wide softness in wet baby food following recent media coverage, which created temporary noise across the category. Ella's Kitchen remains the #1 baby food brand in the U.K. market, reinforcing the importance of our continued leadership in transparency, trust and nutritional quality through accelerated marketing and innovation. Throughout the quarter, we made tangible progress laying the operational and financial foundations necessary to drive improved performance. Our near-term priorities remain clear: stabilizing sales, improving profitability, optimizing cash and deleveraging our balance sheet. Cost discipline and the decisive actions we have taken to streamline our cost structure drove a reduction in SG&A in the quarter, and we are seeing early results from the execution against our '5 actions to win', including benefits from pricing initiatives beginning to build. As we discussed last quarter, we…

Thank you, Alison, and good morning, everyone. As Alison mentioned earlier, our first quarter net sales of $368 million and adjusted EBITDA of $20 million were consistent with our expectations of a quarter that would be similar in absolute dollars to Q4 2025, as discussed on our last earnings call. For the first quarter, we saw an organic net sales decline of 6% year-over-year, driven by lower sales in both the North America and International segments. While not yet where we want to be, results were in line with our expectations and represented a sequential improvement from the 11% decline in Q4. The decline in organic net sales growth reflects a 7-point decrease in volume mix and a 1-point increase in price. Adjusted gross margin was 19.5% in the first quarter, a decrease of approximately 120 basis points year-over-year. The decrease was driven by lower volume mix and cost inflation, partially offset by productivity and pricing and trade efficiencies. SG&A decreased 8% year-over-year to $66 million in the first quarter, driven by a reduction in employee-related and nonpeople cost discipline as we began to implement overhead reduction actions. SG&A represented 17.8% of net sales for the quarter as compared to 18.1% in the year ago period. During the quarter, we took charges totaling $14 million associated with actions under the restructuring program, including employee-related costs, contract termination costs, asset write-downs and other transformation-related expenses. To date, we have taken $103 million in charges associated with the transformation program, which is comprised of $100 million of restructuring charges and $3 million of expenses associated with inventory write-downs. Of these charges, $35 million were noncash. Restructuring charges, excluding inventory write-downs, are expected to be $100 million to $110 million by fiscal 2027. These charges are excluded from adjusted operating results. Interest expense…

Thanks, Lee. Our first quarter results were consistent with our prior indication that Q1 performance would be broadly comparable to Q4 in absolute dollars. In North America, we delivered margin and profit growth despite top line headwinds in our largest category in the region, Snacks, which we are relaunching to restore both growth and profitability over time. Internationally, the baby food category remained soft industry-wide. However, as category leader, we have accelerated marketing and innovation to drive category momentum over the balance of the year. Across the portfolio, we are seeing encouraging contribution to revenue and margin as we take disciplined RGM and pricing actions. And we continue to execute strongly on productivity, delivering consistent savings that will build as the year progresses. In addition, we have implemented a step change in our overhead cost reduction, ensuring our organization is rightsized for the current business. We are moving with speed and determination to strengthen our financial flexibility and lay the groundwork for improved performance as we move from the first half of the fiscal year to the second half. We remain focused on executing our '5 actions to win'. Streamlining our portfolio; accelerating brand renovation and innovation; implementing strategic revenue growth management and pricing; driving productivity and working capital efficiency; and strengthening our digital capabilities. We are executing with focus and discipline, placing Hain firmly on the path towards sustainable growth. Before I close, I want to thank the entire Hain team for their commitment to our mission, our brands, our consumers and our customers and for driving meaningful progress against our five actions to win. That concludes our prepared remarks, and we are now happy to take your questions. Operator, please open the line.

[Operator Instructions] And your first question comes from the line of Andrew Lazar with Barclays.

I think, Lee, you laid out some discrete dynamics to keep in mind that impact EBITDA for the most part in 2Q. As you think about organic sales in 2Q, would you anticipate, just given the incremental investment and such that the year-over-year, rate of -- the year-over-year rate of decline in organic sales can continue to moderate sequentially in 2Q versus what you saw in the first quarter, even though I realize there are some discrete issues around EBITDA?

Yes. I mean I think you can see some moderation. I would say the biggest focus is on the second half versus the first half, and we kind of outlined that. But you would see, especially as you go into the second half, an improvement in areas such as in snacks, or a moderation of declines there. The other thing we kind of outlined in the call is in Baby and Kids, particularly in Ella's. So we would -- based on the programming we put in, we would expect to see an improvement in Baby and Kids, moderation in Earth's Best. And then also looking at Beverages, we would expect an improvement in tea and then private label, nondairy beverage. I'd say Meal Prep overall has been stable. So our big focus is really on the second half versus the first half. That's where you'll see that improvement.

Okay. And then, Alison, you talked about elasticities so far with the pricing you've taken in International being, again, broadly on average, sort of in line with your expectations. I know it's still early around some of the pricing actions you're taking in North America, but where you've gotten some of the pricing in? What are you seeing around elasticity as a starting point? I think you mentioned last quarter, you would anticipate elasticities in North America being around 1% and around, I think, 0.5% in international. So I guess, what are you seeing in North America so far? And maybe how have those announced price increases gone over with respect to your key retail partners?

Yes, I mean the pricing on tea and baby flowed through in North America in the quarter. And on tea, we're pretty much flowed through with all retailers and the price points that are on the shelf are in line with what we expected. Baby has been a little bit slower to roll through only because we have multiple categories. But again, pricing that we've seen so far flow through on baby is in line with the category. You're right, it's early days on elasticity, but we are able to get an early read. On tea, we're seeing that it's generally in line with the 1% elasticity expectation that we set. I mean, obviously, you know that elasticity is a dynamic thing because it depends a lot on sort of the overall competitive dynamic, the marketing and innovation that you do, et cetera. So we'll continue to monitor, but so far in line with what we expected. On baby, it's a little harder to read right now, again, because it hasn't flowed through quite as quickly. But what we are seeing, again, early data is it looks like it is in line. We are seeing more competitive dynamics in the baby category. So again, we're going to be monitoring both closely. And as you know, you need to sort of be dynamic in the marketplace, and we'll be dynamic as we need to in order to protect what we have in terms of our expectations on the growth of those businesses.

Your next question comes from the line of Kaumil Gajrawala with Jefferies.

If we could just talk a little bit about the consumer seems to be getting increasingly challenged period to period to period. And because so many -- because the bulk of your portfolio is in health and wellness, it often can also have a price premium to maybe the non-health and wellness items. So how do you think through that calculus in today's consumer environment, especially in the context of what you just talked about related to taking additional pricing?

Yes. So I would say, overall, you're right, the consumer dynamic is one where we have more value-seeking behavior as consumer pocket books are a little tighter than usual. I think what we're seeing in the market is broadly what we've always seen when we hit these kind of speed bumps where we see a movement in terms of shopping patterns, so fewer -- more trips, less dollars per trip. We see a shift to some of the more value channels, whether that is club, mass, dollar. We see a shift in terms of the packages that they're buying, again, looking at kind of lower overall price point. But the thing that I would say about our portfolio is that it brings value to the consumer in terms of those better-for-you credentials. So the other thing that we're seeing in terms of the behavior is that when a consumer is putting a $1 down, they want to make sure that they're getting something that has value to them. And because our better-for-you brands have value to them because they taste great, they've got better nutritional profile, they're willing to stay in those brands. And so that's probably why we see sort of relatively low private label development across our categories. And then as you look at the private label where there is private label, there is some growth in private label, but it's not -- you're not seeing substantial shifts in private label. It's small increases or in some categories, actually, you're seeing decreases. So again, I think the most important thing that we can do is continue to deliver value to the consumer, value that consumers are willing to pay for and then ensure that our price pack architecture has price points across various sizing that allows for everyone to participate no matter what the disposable income level is.

[Operator Instructions] We have no further questions in our queue at this time. I will now turn the conference back over to Alison Lewis for closing comments.

So thank you for joining us today. I'll just reiterate a few things we said in our overall messages. But overall, as an organization and company, we're moving with speed and determination to strengthen our financial flexibility and lay the groundwork for improved performance as we move from the first half to the second half. We remain focused on our '5 actions to win', and we're executing with focus and discipline to put Hain firmly on the path to sustainable growth. So thank you, everyone, for joining today.

And ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.