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Yahoo
08-05-2025
- Business
- Yahoo
Why the skies are grey at Hain Celestial
When a company's share price tumbles more than 50% in the wake of a stock-exchange filing, it's fair to say investor sentiment is less than positive. And there are a lot of questions hanging over US food and drinks group Hain Celestial. The maker of Terra snacks and Celestial Seasonings teas saw its share price slide yesterday (it ended the day down more than 47%) after making a multifaceted announcement that, in some ways, may not have a been too much of a surprise but would have left Wall Street wondering what comes next. Hain Celestial, which has seen sales and profits come under pressure in recent quarters, said it would start a 'comprehensive review' of its portfolio 'in light of recent performance'. The company, which is also home to brands including Earth Best's baby food, Linda McCartney vegetarian foods and Natumi plant-based drinks, is working with Goldman Sachs to 'consider a broad range of strategic options to enhance value'. However, the announcement didn't end there. Hain Celestial said president and CEO Wendy Davidson was leaving the business 'effective this morning'. Davidson took the helm in 2023, setting about to make Hain Celestial a 'bigger player' in the better-for-you category and centre resources on areas including snacks, kids'-focused products, meal prep and beverages. Under Davidson, the company also sought to cut 'lower margin' SKUs and sold brands including ParmCrisps and Thinsters. However, so far, Hain Celestial's efforts to focus its investment on fewer areas haven't paid off. The news of the review and Davidson's departure came alongside the publication of the group's third-quarter and nine-month financial results, a set of numbers that included lower sales and worsening profitability. Third-quarter net sales, covering the period to the end of March, fell 11% to $390m. Organic net sales, excluding M&A, assets held for sale, categories exited and foreign exchange, decreased 5%. Nine-month sales were down 9.2% at $1.20bn. Hain Celestial booked a third-quarter operating loss of $121.1m, versus one of $27.9m a year earlier. Over the first nine months of the financial year, that meant an operating loss of $209.9m, against one of $31m in the corresponding period of the previous financial year. The group posted a third-quarter net loss of $134.6m. A year earlier, it reported a net loss of $48.2m. Nine-month net losses were $258.2m, compared to $72.1m a year ago. Hain Celestial said the third-quarter net loss included pre-tax, non-cash, impairment charges of $133m related to its US and Canada reporting units and assets held for sale. Those figures follow a challenging 12 months up to the end of last June. In Hain Celestial's last full financial year, net sales were down and the company ran up a net loss of $75m, albeit lower than the $116.5m loss filed a year earlier. As well as another set of less-than-impressive results, the company changed its forecasts for its full-year net sales (on an organic basis) and for 'adjusted' EBITDA. Hain Celestial now sees its organic net sales falling 5-6% year-on-year (versus its previous forecast of a 2-4% decline) and an adjusted EBITDA of around $125m (it had projected it would be 'flat' on the $155m booked a year earlier). The company, meanwhile, announced a change to its credit agreement 'to provide for increased operational flexibility'. This embedded content is not available in your region. '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,' interim president and CEO Alison Lewis said yesterday. Lewis, who has been on the Hain Celestial board since September, has been in the FMCG sector for three decades, with roles at Kimberly-Clark, Johnson & Johnson and The Coca-Cola Company. Board chair Dawn Zier said Hain Celestial's directors believed it was 'the right time to transition to new leadership' Zier added Lewis – who she described as 'a seasoned executive with vast industry and leadership experience' – would lead the business 'while we execute our succession plan', although no further details were given. In a statement, Lewis set out 'five key drivers for improving value: simplifying our business and reducing overhead spending; accelerating renovation and innovation in our brands; implementing strategic revenue growth management and pricing actions; driving operational productivity and working capital reduction; and strengthening our digital capabilities'. While Lewis and Hain Celestial's management team try to get the company's sales – and profitability – moving in the right direction (no mean task), the group's leadership team and board will be weighing up the future of the various parts of its business. There's plenty on their plate. Under Davidson, product ranges were trimmed and a couple of brands sold but industry watchers say the Hain Celestial business is still complicated – and there are suggestions the company should think about focusing on North America. 'Hain's portfolio remains complex in part due to the diversity of categories and geographies the company operates in and we believe the company would benefit from further portfolio simplification,' Stifel analyst Matthew Smith says. 'The personal care business is likely to be divested, currently accounted for as held for sale. We also believe the International business should be considered for divestiture to reduce complexity and provide greater focus on the core North America business where we believe growth opportunity exists.' Hain Celestial, set up in 1993, has been operating in Europe since 2001 and entered the UK five years later. Outside North America, the company's principal market is the UK, where it sells brands including Ella's Kitchen, New Covent Garden soup and Hartley's jam. On the European continent, Hain Celestial's business centres around three brands: Natumi, dairy-alt brand Joya and Lima, which markets products from soy sauce and pasta to plant-based drinks. The Hain Reimagined strategy set out by Davidson included plans to 'simplify' the company's 'footprint' and maintain a 'direct presence in five key markets' – the US, Canada, the UK, Ireland and western Europe. The company's sales also reach into the Middle East and Africa. The third-quarter numbers Hain Celestial issued yesterday underlined the troubles the company is having in North America but the company did manage to eke out sales growth from its other reporting unit, the International division. This embedded content is not available in your region. Nonetheless, the variety of products in Hain Celestial's basket outside North America – from jam and soup to baby food and veggie burgers – means it's easy to understand why some would call on the company to pull back and try to divert more management time and resources to its home market. The question is how many willing buyers there might be for brands in stagnant categories like meat alternatives and jam. Moreover, challenges abound for Hain Celestial in North America. It's been clear for a while the company has been suffering domestically. Yesterday's cuts to forecasts weren't the first time the group had revised its expectations. It was in February when Hain Celestial first projected its organic net sales this year would decline after a set of second-quarter numbers – which included a 9% fall in sales in North America – that missed expectations. 'We had previously believed that the return of growth in profitable organic baby formula following ingredient shortages, combined with the lapping of SKU rationalisation in personal care, the timing shift of a major promotion, plus better shelf positioning and efforts to improve the effectiveness of marketing and promotions in snacks would lead to a sustained recovery in the top and bottom lines,' Bernstein analyst Alexia Howard says. 'Instead, we are seeing an ongoing low teen level decline in snacks, which seems to be linked to ongoing issues with promotional effectiveness plus perhaps the general weakness in salty snacks as GLP-1 weight loss drug uptake increases. We also wonder whether the health and wellness credentials of the Garden Veggies brand is being questioned by consumers since it is essentially a potato chip with some vegetable extracts.' For now, a cloud of uncertainty hangs over Hain Celestial, with an interim CEO in place, the start of a wide-ranging business review, weak growth outside North America and competitive dynamics in the company's domestic market it seems to be struggling to meet. 'Despite management change and the portfolio review, it is difficult to see a path for organic revenue recovery for Hain,' Mizuho Securities analyst John Baumgartner says. 'Internal expectations are high that regulatory shifts favouring health and wellness are positive but we view any changes as a negative. More stringent ingredients guidelines for non-natural-and-organic peers are only likely to narrow the quality advantages that Hain has held.' Bernstein's Howard adds: 'It will be some time before the company is on a firmer footing.' "Why the skies are grey at Hain Celestial" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Scottish Sun
22-04-2025
- Lifestyle
- Scottish Sun
I escaped the miserable UK rental market to spend just £650-a-month living in a converted Ford Transit van with my dog
Having not felt able to afford a social life, she is now freer than ever and can even afford a gym membership YES YOU VAN I escaped the miserable UK rental market to spend just £650-a-month living in a converted Ford Transit van with my dog Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) FED up with sky-high rents and an endless game of house hopscotch, a young Brit has embraced van life, living off just £650 a month with her dog. Fashion photographer Nicole Keefe, 27, had lived in 18 homes by 2023, leaving her feeling 'trapped' and 'miserable', and losing hope that she would ever get on the property ladder. Sign up for Scottish Sun newsletter Sign up 7 The fashion photographer perched a top of her signature leopard print blanket Credit: Collect/PA Real Life 7 Nicole and her pooch, Linda McCartney, are both happier loving van life Credit: Collect/PA Real Life Having been frequently moved as a child, this trend continued into her adulthood due to 'things not going right' with partners. But she has now hit the road with her beagle-petit griffon Vendeen Mix, Linda McCartney, named in honour of her idol the designer, in a converted Ford Transit. Having joined a growing number of young people embracing van life, she feels she has become her "favourite version of herself." Newcastle-born Nicole now lives off less than £650 a month- less than she has ever spent on rent, and can even afford a gym membership, having before felt she couldn't even 'afford a social life.' According to Right Move, the majority of properties sold in Washington, Durham, last year were terraced properties going for an average of £126,930- far out of her price range. Following the writing off of her old car and following others on social media who had embraced the nomadic van life, she moved into the vehicle in September 2023. She snapped up the van for just £8.5k on Facebook Marketplace, she has kitted it out with her signature leopard print flair and even added an air fryer to the bed, kitchen, sink and solar panels. She told PA Real Life: 'It was all very minimalist …. I kept the base the same. There's a kitchen area, sink, bed, solar panels, and I added in a fridge, gas camping hob and air fryer and got a new mattress. 'I made it a bit more me, adding in some leopard print and just decorating it over time.' For the first nine months, she continued her 9-5 fashion photography job, parking near the office in a car park and whizzing off around the country on the weekends with her pooch at her side. 7 One of the beautiful views from Nicole's van Credit: © 2025 PA Media, All Rights Reserved 7 Wandering through a picturesque British town Credit: © 2025 PA Media, All Rights Reserved 7 Nicole used the cleaning job to explore the South Coast Credit: © 2025 PA Media, All Rights Reserved 7 Perched in her mobile home Credit: © 2025 PA Media, All Rights Reserved 7 Nicole perched atop her signature leopard print decor Credit: © 2025 PA Media, All Rights Reserved The turning point came when she landed a cleaning gig at a Dorset campsite via a nomad Facebook Group, and from there, she built her freelance social media career, snapping pics and managing social media for businesses, gaining thousands of followers. She was offered the cleaning gig, an hour after a virtual interview and immediately quit her 9-5 job and sped off to Dorset. Nicole spent three months working there with her pooch, exploring the South Coast on her days off. While she found the freedom 'really lovely', at first she struggled with limited human interaction, as she 'hated her own company.' But gradually she got used to going to coffee shops on her own, and 'enjoying being alone.' The companionship of her furry friend, Linda, is key, and she makes a point of FaceTiming her family, friends and long-distance partner. She said: 'When I was moving home, I used to all the time, and it would always take McCartney a month or two to get settled. 'He would cry and bark if he were left alone in the house, but he got used to the van in two days, and I think he loves his routine.' Having swapped the cleaning job for a barista job in Winchester, she has now managed to become a full-time content creator for businesses. Her social media presence is ballooning with her TikTok account @thevanclub hitting 4.5k and her Instagram followers reaching 1.8k. This has allowed her complete nomadic freedom and so far, she has travelled up and down the country, ping ponging from Snowdonia to Cornwall, popping by Warwickshire, exploring Scotland and travelling throughout the North East. She said: 'Since then I've gone wherever I want to go – it's quite a weird thing to adjust to because I don't have anywhere I need to be unless I've got a photography job.'Long-term, she plans to continue her motoring adventure for four years, and even if she eventually buys a house, will continue to whizz around the country on the weekends.
