Business of Food & Beverage

Hain Celestial Shopping Personal Care Business; SEC Investigation Ends

Feb. 24, 2025

Personal care products sale would concentrate the company on foods.

In a second-quarter financial report filled with minus signs, Hain Celestial indicated it’s considering selling its personal care business, which would concentrate the company on food products.

“We are exploring strategic options for our personal care business,” said Wendy Davidson, president/CEO. “We believe this is the best path to focus the organization, simplify our business, and create long-term value for shareholders.”

In the second quarter, ended Dec. 31, overall North American sales were down 14% and international sales slipped 2% for a net shrinkage of 9%. Total sales were $411 million. Net loss was $104 million (loss was $13.5 million in 2Q2024).

“Sales growth in the quarter was hindered by poor in-store performance in snacks, driven by marketing and promotion effectiveness, and supply chain challenges, both of which we have already taken steps to address,” she said. Davidson was hired in November 2022 to pare down the sprawling company and focus it on food.

For six months, sales were down 8% to $806 million for a loss of $124 million (loss was $24 million last year).

One bit of good news: “On February 14, 2025, the SEC notified the company that it has concluded its investigation as to the company and does not intend to recommend an enforcement action by the SEC against the company,” a statement said.

Dating back to November 2023, the SEC requested documents concerning “(i) the company’s acquisition of one business and disposition of another business and certain related accounting matters and (ii) trading activity and other matters related to the company’s earnings guidance in certain previous fiscal years.” But that’s been dropped.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.