Hawkins Inc appoints Deloitte as new auditor for FY26

Hawkins Inc (NASDAQ:HWKN), a wholesale distributor of chemicals and allied products with a market capitalization of $2.24 billion and annual revenue of $952 million, has announced a change in its independent accounting firm. According to InvestingPro data, the company maintains a "GREAT" financial health score, supported by strong profitability and robust cash flows.

The Audit Committee of the company’s Board of Directors concluded a competitive process, resulting in the engagement of Deloitte & Touche LLP (Deloitte) as the new auditor for the fiscal year ending March 29, 2026. This decision was made on January 29, 2025, and is subject to the execution of an engagement letter.

The appointment of Deloitte follows the committee’s decision to dismiss Grant Thornton LLP (Grant Thornton), which was previously responsible for auditing the company’s consolidated financial statements for the year ending March 30, 2025. The change does not affect Grant Thornton’s current engagement, which will continue through the end of the fiscal year. With a current ratio of 2.5 and moderate debt levels, Hawkins demonstrates strong financial stability heading into this transition.

According to the company’s SEC filing, Grant Thornton’s reports for the fiscal years ending March 31, 2024, and April 2, 2023, did not contain any adverse opinion or disclaimer of opinion. Furthermore, there were no disagreements or reportable events between Hawkins Inc and Grant Thornton that would have impacted their reports on the company’s financial statements.

During the past fiscal years and the interim periods leading up to January 29, 2025, Hawkins Inc did not consult with Deloitte on any accounting principles or transactions that would have influenced their decision-making process regarding accounting, auditing, or financial reporting issues.

In compliance with regulatory requirements, Hawkins Inc provided Grant Thornton with the details of this transition and requested a letter from them to the Securities and Exchange Commission confirming their agreement with the statements made. Grant Thornton’s response, dated February 3, 2025, has been filed with the SEC and included as Exhibit 16.1 in the company’s Form 8-K.

The change in auditors comes as part of the company’s regular review of its accounting needs and is a strategic decision for the upcoming fiscal year. The information disclosed is based on the company’s recent SEC filing. Based on InvestingPro analysis, Hawkins currently trades at a P/E ratio of 27.35, suggesting a premium valuation relative to near-term earnings growth. Investors seeking deeper insights into Hawkins’ financial metrics and 10+ additional ProTips can access comprehensive analysis through InvestingPro’s advanced platform.

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