Hain Celestial board launches business review, announces leadership change

USA – The board of directors of The Hain Celestial Group, Inc. has initiated a strategic review of the business and announced a leadership transition, with Chief Executive Officer Wendy Davidson departing and Alison E. Lewis stepping in as interim president and CEO.

“In light of recent performance, the board has decided that a thorough evaluation of the company’s strategy and portfolio is warranted to determine the best approach to maximize shareholder value,” said Dawn Zier, chair of the board.

Zier added that Alison has a track record of driving superior in-market execution, delivering disciplined and profitable revenue growth, and leveraging innovation to create value.

Lewis, who has been a member of Hain Celestial’s board of directors since September 2024, has extensive experience in the consumer-packaged goods industry, having most recently served as chief growth officer for Kimberly-Clark Corp. from 2019 to 2024.

The strategic review and leadership change coincided with the release of Hain Celestial’s third-quarter financial results, which were disappointing.

For the quarter ending March 31, the company reported a loss of US$135M, significantly greater than the US$48M loss recorded during the same period of fiscal 2024. Quarterly sales fell to US$390M, down from US$438M the previous year.

“We are disappointed with our third-quarter results, which fell far short of our expectations, primarily due to worse-than-expected performance in North America,” Lewis stated.

She emphasized that the company is now focused on key initiatives to improve value, which include simplifying operations, reducing overhead costs, and accelerating brand renovation and innovation.

Additionally, the company plans to implement strategic revenue growth management and pricing actions, enhance operational productivity, reduce working capital, and strengthen its digital capabilities.

In North America, the company’s largest business unit, sales declined by 17% to US$222M, while organic sales fell by 10%.

The drop in sales was attributed to lower demand for snacks and baby and children’s food products.

Specifically, organic snack sales decreased by 13% for the quarter, driven by reduced promotional effectiveness and category softness.

Organic sales of baby and children’s products also fell by 6%, impacted by lost business and stock-keeping unit rationalization.

“We are adjusting our outlook for the year due to the slower-than-anticipated volume recovery, the ongoing volatile macroeconomic environment, and increased investment in promotional activities to support our brands and drive incremental distribution,” said Chief Financial Officer Lee Boyce.

The company now expects organic sales growth to decrease by approximately 5% to 6%.

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