Hain Celestial has adjusted its organic growth forecast following recent portfolio simplification measures.
The company anticipates negative organic growth of 3-4% for the 2024 fiscal year, a decline from the initial projection of 1% or more, attributed to challenges in baby foods, snacks, and personal care segments.
Financial officer Lee Boyce revealed that third-quarter results fell below expectations, leading to a reduction in the adjusted EBITDA range to $150-155m for the year.
Factors such as issues with infant formula supply, snack business performance, and delayed stabilization of personal-care operations contributed to the less optimistic outlook. The North America segment reported a 6.5% decline in both reported and organic growth to $268.1m, primarily driven by lower sales in baby foods and personal care products.
This decline marks an improvement over previous quarters, indicating efforts to strengthen the business focus and drive growth in the region. CEO Wendy Davidson’s Hain Reimagined 2027 strategy involves core product areas such as baby food, snacks, meal-prep, and beverages, highlighting a commitment to brand development and simplification.
Despite recent portfolio streamlining, Hain Celestial continues to enhance its offerings, with a focus on accelerating growth through strategic initiatives and operational excellence. The company reported positive results in adjusted EBITDA and net losses, showcasing progress in its transformation efforts as part of the Hain Reimagined strategy.
Looking ahead, Hain Celestial remains confident in its ability to achieve its strategic objectives and drive sustainable growth in the food and beverage industry.
