CEO Irwin Simon
Hain Celestial announced today that it’s looking for a new CEO. Current CEO Irwin D. Simon is to shift to the position of non-executive chairman of the board to assist in the smooth transition to new leadership. In 1993, Simon founded Hain Celestial. Simon is also the president and chairman of the board for Hain Celestial.
The stock was up 1% in the pre-market hours at 9:28 AM EDT. However, on a year-to-date or YTD basis, the stock has lost 29.8% of its value as of June 22.
What ails Hain Celestial?
Lately, Hain Celestial has been marred by several problems. Rising costs (includes freight and labor costs) and stiff competition are weighing down its performance. The company’s US segment, which is the biggest contributor to overall sales, has been negatively impacted by SKU (stock-keeping unit) rationalization and weakness in some of its brands.
The company is simplifying its operations and stated that it’s on track to sell its Hain Pure Protein business in the first half of fiscal 2019. The simplification is widely viewed as an effort at attracting a suitable buyer.
On the brighter side, demand for organic food continues to gain traction, and this bodes well for Hain Celestial. Also, Millennials prefer organic food and are comfortable with online shopping. The blend of these two trends is expected to boost Hain’s top line growth.
Hain Celestial reaffirmed its guidance for fiscal 2018. It expects sales in the range of $2.43 billion–$2.50 billion. Hain expects fiscal 2018 adjusted EBITDA in the range of $250.0 million–$260.0 million. The company’s adjusted EPS are now expected to be in the range of $1.11–$1.18.