Hain Celestial Group Inc. (ticker: HAIN) has unveiled a comprehensive plan to revamp its business operations with the goal of driving growth and achieving substantial cost savings. The company, known for its snacks and beverages, aims to generate annualized savings of $130 million to $150 million by fiscal 2027.
Focus on Key Geographies and Product Categories
In its strategy, Hain Celestial Group plans to prioritize growth in five core geographies: the U.S., Canada, UK, Ireland, and Europe. The company will also concentrate on enhancing its offerings in key product categories, including better-for-you (BFY) options in snacks, baby & kids, beverages, meal prep, and personal care.
Financial Targets for Margin Improvement and Cash Flow
Hain Celestial Group has set ambitious financial targets as part of its business overhaul. The company expects to achieve a gross margin improvement of 400 to 500 basis points, resulting in enhanced profitability. Additionally, it aims to deliver $400 million in cumulative cash flow by fiscal 2027.
Long-Term Growth Outlook
The company's long-term objective is to achieve an organic net sales compound annual growth rate of 3% or higher. This reflects its commitment to sustainable growth and continued market success.
Restructuring Costs and Market Performance
Hain Celestial Group anticipates incurring charges of $115 million to $125 million in fiscal 2024 and fiscal 2025 to cover the expenses associated with the restructuring efforts. Despite these challenges, the company remains focused on its strategic plans for future growth.
It is worth noting that Hain Celestial Group's stock has experienced a decline of 40% year-to-date, while the S&P 500 has achieved a 16% gain over the same period.
By implementing this comprehensive business overhaul, Hain Celestial Group aims to position itself as a leader in the industry, driving growth, and delivering value to its shareholders.
Our Latest News
Disney CEO Bob Iger faces challenges in navigating concerning trends and executing a succession plan. The company's free cash flow and potential constraints are...
Endeavour Mining reports a significant increase in Q2 production, with a boost from Hounde and Sabodala-Massawa mines. All-in sustaining costs also rise.