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HOBOKEN, N.J. - The Hain Celestial Group, Inc. (NASDAQ:HAIN), known for its health and wellness products, announced today that Wendy Davidson has stepped down as President, Chief Executive Officer, and Board member effective this morning. The leadership change comes as the company’s stock has declined over 58% in the past year, trading near its 52-week low of $2.68. In response, the company’s Board has appointed Alison E. Lewis as Interim President and CEO while they proceed with a leadership succession plan.
Lewis, who joined Hain’s Board in September 2024, brings over three decades of experience from her tenure at leading consumer goods companies, including Kimberly-Clark Corporation and Johnson & Johnson. Dawn Zier, Chair of the Board, expressed confidence in Lewis’s ability to lead the company effectively during this transitional phase.
Simultaneously, Hain Celestial disclosed that it is undergoing a comprehensive strategic review of the company’s portfolio to enhance shareholder value, with Goldman Sachs & Co. as its financial advisor. The review will explore various strategic options, though the company has not set a definitive timeline for its completion and will not provide updates until a specific action is approved or further disclosure is deemed necessary.
Lewis’s extensive background includes roles as Chief Growth Officer at Kimberly-Clark and Chief Marketing Officer at Johnson & Johnson Family of Consumer Companies. Her experience is highlighted by her focus on in-market execution, profitable revenue growth, and innovation to create value.
The Hain Celestial Group has been a proponent of healthier living for over 30 years, with a product range that includes snacks, baby foods, beverages, and meal preparation items sold in over 70 countries. The company’s portfolio features brands like Garden Veggie Snacks™, Terra® chips, and Celestial Seasonings® teas.
The announcement comes as Hain Celestial continues to focus on enhancing earnings and positioning the business for long-term success. While the company reported a revenue decline of 6.7% in the last twelve months, InvestingPro analysis suggests the company is currently undervalued, with analysts forecasting a return to profitability this year. This leadership change and strategic review are part of the company’s efforts to ensure sustainable growth and value creation for its stakeholders. For deeper insights into HAIN’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The information for this article is based on a press release statement from The Hain Celestial Group, Inc.
In other recent news, Hain Celestial has reported fiscal second-quarter earnings that did not meet Wall Street expectations, with earnings per share of $0.08 falling short of the anticipated $0.12 and revenue reaching $411 million, below the consensus estimate of $432.49 million. This underperformance has led several analyst firms to adjust their outlooks. Evercore ISI reduced its price target for Hain Celestial from $9.00 to $6.00 while maintaining an "In Line" rating, citing continued challenges and a decline in organic sales. Stifel also adjusted its price target to $6.00 from $7.00, maintaining a Hold rating due to weak quarterly results and a significant drop in EBITDA.
Bernstein SocGen Group lowered its price target from $12.00 to $8.00, yet maintained an Outperform rating, expressing confidence in the company’s long-term growth potential despite short-term challenges. Jefferies took a more cautious approach, reducing its target from $7.55 to $4.50 and maintaining a Hold rating, reflecting concerns about the timeline for positive financial changes. The company has revised its fiscal year 2025 guidance, now expecting a decline in organic net sales growth between 2% and 4% and flat adjusted EBITDA year-over-year.
President and CEO Wendy Davidson highlighted strong operating cash flow and debt reduction, as well as improvements in certain categories, despite the challenges. The company is also exploring strategic options for its personal care business to focus on better-for-you food and beverages. Analysts and investors will be closely monitoring Hain Celestial’s progress in addressing its execution challenges and the impact of macroeconomic conditions on its financial results.
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