Hain Celestial to “aggressively” cut portfolio as shares slide on $531m loss

Mon, Sep 15, 2025, 12:06 PM 4 min read

Hain Celestial plans to “aggressively” trim the US food and drink major’s portfolio under interim president and CEO Alison Lewis.

Lewis took on those roles at the Linda McCartney’s plant-based meats and Earth’s Best baby food brands owner in May following the departure of Wendy Davidson. Today (15 September), she issued a set of eye-catching but negative annual results, including a net loss of $531m.

The loss has blown out from $75m in fiscal 2024 and was accompanied in the 2025 results by a pre-tax non-cash impairment charge of $496m. Revenue dropped 10% on a reported basis to $1.56bn and fell 7% in organic terms. Volume/mix was down five percentage points even with negative pricing of two percentage points.

There were also losses and declines in the reporting metrics elsewhere in the year to 30 June, sending the shares of the Terra snacks and Natumi milk alternatives maker down more than 20% today. Hain Celestial's shares were trading at just $1.64 as of 16:42 BST, with the decrease for the calendar year now exceeding 70%.

The company has been struggling for some time, prompting John Baumgartner, a managing director at Mizuho Securities, to note the results reflect “widespread pressures”, particularly relating to earnings per share for the fourth quarter.

Diluted EPS came in at a $3.06 loss for the three months, widening substantially from a $0.03 loss a year earlier.

Lewis outlined some of the fixes she plans to take for a for Hain Celestial portfolio that is spread across snacks, meal preparation, baby foods, beverages and personal-care products.

All of those categories saw sales decline in the fourth quarter, with the exception of beverages, which only eked out a flat performance.

Lewis said: “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.

“We are swiftly taking action to stabilise our business while delivering cash and repaying debt, strengthening our financial health.”

Adjusted EBITDA was the standout metric on the positive side, coming in at $114m for the year compared to $155m in the corresponding period.

The gross margin dropped 50 basis points to 21.4% and was down 90 basis points in adjusted terms at 21.5%.

Losses per diluted share were $5.89 versus a $0.84 loss a year earlier.

Hain Celestial said the $496m impairment charge was “related to goodwill and certain intangible assets, as well as assets held for sale”.