Hain Celestial Group, a leading health and baby food company, has reported a second-quarter loss, which has resulted in a 13% decrease in its shares. This is contrary to analysts’ expectations who had forecasted a quarterly gain.
In the second quarter, the company experienced a loss of $13.5 million, or 15 cents per share. This is a notable decline compared to the earnings of $11 million, or 12 cents per share, during the same period last year. Analysts polled by FactSet were anticipating earnings of $9.7 million, or 12 cents per share.
The sales figures for the quarter amounted to $454.1 million, slightly lower than the previous year’s revenue of $454.2 million. It also fell short of the analysts’ expectation of $462.1 million.
On an adjusted basis, earnings were reported at 12 cents per share, which aligns with analysts’ forecasts.
Looking ahead to fiscal 2024, Hain Celestial has revised down its organic sales growth projection from 2%-to-4% to 1% or higher. Similarly, the company now expects free cashflow to be in the range of $40 to $45 million, compared to the previous guidance of $50 to $55 million.
This update on Hain Celestial’s financial performance is a cause for concern among investors and industry observers. The company will need to reassess its strategies and make necessary adjustments to regain growth momentum.