Hain Celestial launches strategic review amid CEO exit, declining sales
US-based Hain Celestial begins leadership transition and business review following underperformance and mounting operating losses.
USA -Hain Celestial, the US-based food and personal-care company, has announced a strategic portfolio review alongside the departure of its CEO Wendy Davidson.
The company, known for its natural and organic product offerings, made the announcement amid ongoing operational and financial challenges.
Davidson, who took over as president and CEO in 2023, officially stepped down effective immediately. Her tenure focused on strengthening the company’s presence in the better-for-you category, narrowing its brand focus, and eliminating lower-margin SKUs.
During her leadership, Hain Celestial divested brands such as ParmCrisps and Thinsters to streamline operations.
The company’s board has appointed Alison Lewis as interim CEO. Lewis, who joined Hain Celestial’s board in September, brings decades of experience from leadership roles at Kimberly-Clark and The Coca-Cola Company.
Chairperson Dawn Zier expressed confidence in Lewis, citing her experience in driving profitable growth, market execution, and innovation.
“The board believes this is the right time to transition to new leadership,” Zier stated. “Alison has a proven track record of leveraging innovation and execution to create shareholder value.”
The board of directors has also initiated a “comprehensive review” of Hain Celestial’s strategy and portfolio. The company said the evaluation will explore a range of strategic options aimed at enhancing value and positioning the business for sustainable growth.
“In light of recent performance, the board has decided that a thorough evaluation of the company’s strategy and portfolio is warranted,” Zier added. “We remain focused on operating our business effectively while identifying the best path forward.”
The review follows a difficult financial period for Hain Celestial. In its fiscal year ending June 30, the company reported a net loss of US$75 million, an improvement from the US$116.5 million loss the prior year.
However, its third-quarter results for the period ending in March showed a sharper downturn. Net sales declined 11% to US$390 million, while organic net sales dropped 5%. Nine-month revenue fell 9.2% to US$1.20 billion.
The company also posted an operating loss of US$121.1 million in Q3, compared to US$27.9 million the previous year.
The quarterly net loss included US$133 million in pre-tax, non-cash impairment charges related to its US and Canadian operations.
Lewis emphasized that the company will now focus on five key improvement areas: simplifying operations, accelerating brand innovation, enhancing pricing strategies, improving productivity and working capital, and investing in digital capabilities.
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