Hain Celestial plans to cut around 30% of its SKUs in North America, the US-based better-for-you food and drink maker’s largest market. Reporting first-quarter results last week, interim president and CEO Alison Lewis outlined more detail on the priorities set out in September, when she said Hain Celestial would “aggressively” trim the portfolio as part of a turnaround strategy to “stabilise” the business. “We remain committed to building a winning, simpler portfolio by exiting unprofitable or low-margin ...

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].