After a yearlong audit and accounting review, Hain Celestial Group Inc., an organic and natural products company, announced on Thursday that the company did not need to make any material changes to its previously reported financial statements from May 2016.
The company reports, for the first 9 months of the 2017 fiscal year a $2.1 billion net sale, which is a 0.8% decrease from 2016. And while sales in the U.S. decreased by 6%, sales grew in Canada by 8%, in Europe by 15% and in the United Kingdom by 3%.
“The accounting review is complete, and we are pleased to report our financial results, which reflect no material changes to any prior reported periods,” said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial, in a press release. “We have also implemented greater and more effective internal controls and enhanced oversight for our financial reporting and business units. The changes we are announcing today strengthen Hain Celestial globally on a go-forward basis. We appreciate the efforts of our employees and the support of our customers, lenders and stockholders throughout this process.”
The company projects, for the 4thquarter of fiscal 2017, a “1 percent year-over-year decline in U.S. dollars and a 4 percent year-over-year growth on a constant currency basis.” For the fiscal year of 2018, Hain Celestial projects a total net sales growth of 4 – 6%.
After filing these results, the company states they are now current with all obligations with the SEC.
In addition to the financial results, a strategic plan to expand on Project Terra, a “drive for long-term growth and profitability,” was also announced.
“We have made significant progress to build upon our strategic plan, Project Terra, identifying substantial cost-savings, enhancing customer-centric, go-to market initiatives and fueling innovation to improve our performance," Simon said in the release. "Our team is energized and focused on the continued execution of our strategic initiatives as we position our business for long-term growth, success and enhanced shareholder value.”
The plan also includes “building a global management team with deep sector and operating expertise, investing in top brands and capabilities to grow globally and expanding Project Terra cost-saving programs, which are expected to deliver $350 million in total cost savings through fiscal 2020.”
Announced on the same day in a separate press release, James Langrock was appointed as Executive Vice President and Chief Financial Officer, beginning June 23. Effective May 23,Andrew R. Heyer, a director since 2012 and Chairperson of the Audit Committee, was appointed as Lead Independent Director.
Posted on WholeFoods Magazine Online, 6/23/2017