Hain Celestial to “aggressively” cut portfolio as shares slide on $531m loss

Core Insights - Hain Celestial is undergoing significant restructuring under interim president and CEO Alison Lewis, who aims to aggressively trim the company's portfolio following disappointing annual results, including a net loss of $531 million [1][2]. Financial Performance - The company's net loss has increased from $75 million in fiscal 2024 to $531 million in fiscal 2025, which includes a pre-tax non-cash impairment charge of $496 million [2][4]. - Revenue decreased by 10% to $1.56 billion, with a 7% decline in organic terms, and a volume/mix drop of five percentage points, despite negative pricing of two percentage points [2][5]. - Hain Celestial's diluted EPS reported a loss of $5.89, widening from a loss of $0.84 a year earlier [7]. Market Reaction - Following the release of the annual results, Hain Celestial's shares fell over 20%, trading at $1.64, with a calendar year decline exceeding 70% [3][4]. Strategic Initiatives - Lewis outlined a turnaround strategy focused on five key actions: streamlining the portfolio, accelerating innovation, implementing pricing and revenue growth management, enhancing productivity and working capital efficiency, and improving digital capabilities [6]. - The company aims to stabilize its business while delivering cash and repaying debt to strengthen financial health [6]. Operational Challenges - All product categories, except beverages, experienced sales declines in the fourth quarter, indicating widespread pressures on the company's performance [5][6]. - The gross margin decreased by 50 basis points to 21.4%, with adjusted terms showing a 90 basis point drop to 21.5% [7][8].