Hain Celestial has written half a billion dollars off the value of its assets, as its Hain Reimagined turnaround plan falters.
It plunged the group to a $531m net loss in the 12 months to 30 June 2025, significantly larger than the $75m loss in the prior year.
Sales and margins fell at the US-headquartered CPG giant, with the company registering a particularly tough final quarter of the year.
Despite having significantly lowered its FY25 sales and EBITDA guidance twice in the year, Hain fell below expectations with a 7% drop in organic sales and adjusted EBITDA of $114m.
Net sales for the year declined by 10% to $1.6bn.
In Q1, the business had predicted flat or growing organic sales, and a mid-single digit growth in EBITDA – rather than the $41m drop it registered.
The poor performance of the company’s brands – including a 19% drop in organic sales at its snacks division – has led the company to write $496m off its asset value, including a $429m goodwill impairment.
International sales, largely from the company’s UK business, fell 3% organically in the year.
Interim CEO Alison Lewis promised “decisive action to optimise cash, deleverage [Hain’s] balance sheet, stabilise sales and improve profitability”.
“By rapidly resetting our cost structure to better align with the current business, we are creating greater financial flexibility. With this reset, we are implementing a leaner, more nimble regional operating model that prioritises speed, simplicity, and impact over global infrastructure,” she said.
The business’ share price cratered following the results’ announcement, falling 32.5% to $1.48 before climbing back to $1.66.
Hain’s turnaround programme was established in mid-2023. Intended to simplify the company’s footprint and improve supply synergies, as well as generate annualised pretax savings of $130m-$150m, the programme is due for completion by the end of FY27.
However, in July, Hain got rid of CEO Wendy Davidson as signs of progress with the turnaround failed to materialise. It also announced the appointment of investment bank Goldman Sachs to conduct a comprehensive review of the group’s portfolio.
The business incurred $21.5m of productivity and transformation costs in 2024.
While Hain managed to cut net debt by $40m to $650m, cost efficiencies have yet to make an impact on its operations.
The company’s fall into negative $3m in free cashflow was accompanied by a 90 basis points bp squeeze on adjusted gross profit margin. Hain did not issue guidance for the year ahead.
“Our turnaround strategy is anchored on five actions to win: aggressively streamlining our portfolio, accelerating innovation, implementing pricing along with revenue growth management, driving productivity and working capital efficiency, and enhancing digital capabilities,” Lewis said.
“We are swiftly taking action to stabilise our business while delivering cash and repaying debt, strengthening our financial health.”
Hain employs about 2,800 employees globally, and operates 501,000 sq ft of factory space over its four UK sites.
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