v3.26.1
Segment Information
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
18.
SEGMENT INFORMATION

The Company’s organizational structure consists of two geographic based reportable segments: North America and International, which are also the operating segments. This structure is in line with how the Company’s Chief Operating Decision Maker (“CODM”) assesses the Company’s performance and allocates resources. The President and Chief Executive Officer is the CODM of the Company. The Company’s measure of segment profitability is Adjusted EBITDA and the CODM also uses net sales in order to analyze segment results and trends to allocate resources. On a monthly basis, the CODM reviews how actual results compare to forecasts and prior periods when making decisions regarding strategic initiatives and capital investments to segments.

Segment Adjusted EBITDA excludes: net interest expense, income taxes, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, net, unrealized currency losses, proceeds from insurance claim, certain litigation and related costs, plant closure related costs, net, productivity and transformation costs, warehouse/manufacturing consolidation and other costs, net, costs associated with acquisitions, divestitures and other transactions, loss (gain) on sale of assets, impairment of goodwill, long-lived asset and intangibles impairments and other adjustments. In addition, Segment Adjusted EBITDA does not include Corporate and Other expenses related to the Company’s centralized administrative functions, which do not specifically relate to a reportable segment. Such Corporate and Other expenses are comprised mainly of compensation and related expenses of certain of the Company’s senior executive officers and other employees who perform duties related to the entire enterprise, litigation expense and expenses for certain professional fees, facilities, and other items which benefit the Company as a whole.

The following tables set forth financial information about each of the Company’s reportable segment’s revenue, significant segment expenses and measure of segment profit or loss for the three and nine months ended March 31, 2026 and 2025. Information about total assets by segment is not disclosed because such information is not reported to or used by the Company’s CODM for purposes of assessing segment performance or allocating resources. Transactions between reportable segments were insignificant for all periods presented.

 

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

171,495

 

 

$

222,407

 

 

$

573,236

 

 

$

682,836

 

International

 

 

166,862

 

 

 

167,944

 

 

 

517,124

 

 

 

513,596

 

 

 

338,357

 

 

 

390,351

 

 

 

1,090,360

 

 

 

1,196,432

 

Cost of sales, adjusted to exclude restructuring activities:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

(131,330

)

 

 

(172,637

)

 

 

(445,700

)

 

 

(527,669

)

International

 

 

(136,041

)

 

 

(132,472

)

 

 

(426,949

)

 

 

(407,272

)

 

 

 

(267,371

)

 

 

(305,109

)

 

 

(872,649

)

 

 

(934,941

)

Marketing expense:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

(9,884

)

 

 

(11,360

)

 

 

(27,599

)

 

 

(30,949

)

International

 

 

(2,275

)

 

 

(4,908

)

 

 

(11,416

)

 

 

(13,913

)

 

 

 

(12,159

)

 

 

(16,268

)

 

 

(39,015

)

 

 

(44,862

)

Other selling, general and administrative expenses, adjusted to exclude restructuring activities and depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

(16,614

)

 

 

(24,742

)

 

 

(63,907

)

 

 

(81,732

)

International

 

 

(17,597

)

 

 

(14,982

)

 

 

(49,367

)

 

 

(48,542

)

 

 

 

(34,211

)

 

 

(39,724

)

 

 

(113,274

)

 

 

(130,274

)

Depreciation and amortization and other adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

3,504

 

 

 

3,638

 

 

 

9,061

 

 

 

12,586

 

International

 

 

8,631

 

 

 

6,584

 

 

 

21,741

 

 

 

21,193

 

 

 

 

12,135

 

 

 

10,222

 

 

 

30,802

 

 

 

33,779

 

Segment Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

17,171

 

 

 

17,306

 

 

 

45,091

 

 

 

55,072

 

International

 

 

19,580

 

 

 

22,166

 

 

 

51,133

 

 

 

65,062

 

Total Reportable Segments Adjusted EBITDA

 

 

36,751

 

 

 

39,472

 

 

 

96,224

 

 

 

120,134

 

Corporate and Other

 

 

(10,499

)

 

 

(5,857

)

 

 

(25,958

)

 

 

(26,251

)

 

 

26,252

 

 

 

33,615

 

 

 

70,266

 

 

 

93,883

 

Depreciation and amortization

 

 

(12,484

)

 

 

(10,455

)

 

 

(39,044

)

 

 

(32,902

)

Equity in net loss of equity-method investees

 

 

(21

)

 

 

(966

)

 

 

(327

)

 

 

(1,709

)

Interest expense, net

 

 

(12,515

)

 

 

(11,096

)

 

 

(39,723

)

 

 

(36,084

)

(Provision) benefit for income taxes

 

 

(759

)

 

 

505

 

 

 

(1,889

)

 

 

(5,746

)

Stock-based compensation, net

 

 

(1,138

)

 

 

(2,973

)

 

 

(4,192

)

 

 

(9,422

)

Unrealized currency losses

 

 

(219

)

 

 

(1,137

)

 

 

(623

)

 

 

(707

)

Proceeds from insurance claim(a)

 

 

—

 

 

 

—

 

 

 

25,900

 

 

 

—

 

Certain litigation expenses, net(b)

 

 

(2,519

)

 

 

(407

)

 

 

(3,164

)

 

 

(2,254

)

Restructuring activities

 

 

 

 

 

 

 

 

 

 

 

 

Productivity and transformation costs

 

 

(4,066

)

 

 

(7,289

)

 

 

(17,519

)

 

 

(16,497

)

Plant closure related costs, net

 

 

(727

)

 

 

5

 

 

 

(1,533

)

 

 

(1,229

)

Warehouse/manufacturing consolidation and other costs, net

 

 

—

 

 

 

(384

)

 

 

—

 

 

 

(384

)

Acquisitions, divestitures and other

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) gain on sale of assets

 

 

(50,529

)

 

 

106

 

 

 

(48,501

)

 

 

(2,202

)

Transaction and integration costs, net

 

 

(1,553

)

 

 

151

 

 

 

(4,735

)

 

 

574

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill impairment

 

 

(31,018

)

 

 

(110,251

)

 

 

(150,926

)

 

 

(201,518

)

Long-lived asset and intangibles impairment

 

 

(15,047

)

 

 

(24,012

)

 

 

(26,964

)

 

 

(42,029

)

Net loss

 

$

(106,343

)

 

$

(134,588

)

 

$

(242,974

)

 

$

(258,226

)
(a)
Represents a receivable under the Company’s R&W insurance related to one of our prior acquisitions, which was collected on January 2, 2026.
(b)
Expenses and items relating to securities class action, baby food litigation and SEC investigation.

 

The Company’s net sales by product category are as follows:

 

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Snacks

 

$

52,827

 

 

$

88,506

 

 

$

204,693

 

 

$

277,688

 

Baby & Kids

 

 

53,133

 

 

 

59,896

 

 

 

162,515

 

 

 

182,225

 

Beverages

 

 

66,502

 

 

 

62,874

 

 

 

200,609

 

 

 

189,364

 

Meal Preparation

 

 

153,231

 

 

 

162,266

 

 

 

485,117

 

 

 

499,311

 

Personal Care

 

 

12,664

 

 

 

16,809

 

 

 

37,426

 

 

 

47,844

 

 

 

$

338,357

 

 

$

390,351

 

 

$

1,090,360

 

 

$

1,196,432

 

 

The Company’s net sales by geographic region, which are generally based on the location of the Company’s subsidiaries, are as follows:

 

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

United States

 

$

154,585

 

 

$

195,725

 

 

$

509,690

 

 

$

601,825

 

United Kingdom

 

 

120,066

 

 

 

123,256

 

 

 

373,794

 

 

 

380,615

 

Western Europe

 

 

46,796

 

 

 

44,688

 

 

 

143,330

 

 

 

132,981

 

Canada

 

 

16,910

 

 

 

26,682

 

 

 

63,546

 

 

 

81,011

 

 

$

338,357

 

 

$

390,351

 

 

$

1,090,360

 

 

$

1,196,432

 

 

The Company’s long-lived assets, which represent net property, plant and equipment and operating lease right-of-use assets by geographic area, were as follows:

 

March 31, 2026

 

 

June 30, 2025

 

United States(a)

 

$

57,779

 

 

$

129,558

 

United Kingdom

 

 

116,123

 

 

 

129,799

 

Western Europe

 

 

61,864

 

 

 

65,491

 

Canada

 

 

3,678

 

 

 

11,053

 

 

 

$

239,444

 

 

$

335,901

 

 

(a)
During the three months ended March 31, 2026, the Company completed the divestiture of its North American Snacks Business and deconsolidated its net assets. See Note 5, Dispositions, for details.