We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hain Celestial (HAIN) Sells Thinsters, Eyes Focus and Growth
Read MoreHide Full Article
In a strategic maneuver, The Hain Celestial Group (HAIN - Free Report) recently concluded the sale of its Thinsters cookie business to J&J Snack Foods in an all-cash transaction completed on Apr 8, 2024. This marks another step in HAIN's ongoing commitment to refining its portfolio and strengthening its financial position.
Wendy Davidson, the president and CEO of Hain Celestial, highlighted the importance of the transaction, affirming, "Divesting Thinsters further streamlines our supply chain network and strengthens our ability to focus our efforts on driving greater reach and scale of our core better-for-you brands across our categories of focus."
The sale of Thinsters aligns with Hain Celestial's multi-year transformation plan, Hain Reimagined, introduced in September 2023. This comprehensive strategy aims to pivot the business toward growth by executing four core pillars — Focus, Grow, Build and Fuel. The divestiture of Thinsters contributes directly to the Focus pillar, refining HAIN's portfolio of better-for-you brands across five key growth categories.
Image Source: Zacks Investment Research
HAIN's portfolio now remains strategically positioned in snacks, baby & kids’ food, beverages, meal preparation and personal care segments. This consolidation allows the company to channel resources toward driving innovation and market expansion within these high-potential areas. Furthermore, proceeds from the sale will be allocated to reducing company debt, enhancing financial flexibility for future strategic initiatives.
Hain Celestial remains steadfast in its commitment to advancing the Focus pillar through operational optimization and geographical alignment. With a presence in five core geographies, the United States, Canada, the UK, Ireland and Western Europe, the company aims to capitalize on its brand strength and consumer insights to drive sustainable growth.
Wrapping Up
The completion of the sale of Thinsters to J&J Snack Foods underscores HAIN's commitment to strategic portfolio management and financial discipline. By divesting non-core assets and focusing on growth areas, Hain Celestial is positioning itself for long-term success in the evolving health and wellness market.
However, Hain Celestial faces near-term revenue challenges as it implements strategic initiatives aimed at rationalizing lower-margin SKUs, which could temporarily dampen sales. Meanwhile, its North America segment grapples with difficult market conditions in the baby & kids’ category. The company's revised guidance reflects a downgrade in organic net sales growth from 2-4% to approximately 1% or more, alongside a narrowed adjusted EBITDA range of $155-$160 million, down from the previous estimate of $155-$165 million.
Shares of this Zacks Rank #4 (Sell) company have fallen 35.5% in the past six months against the industry’s rise of 13.7%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Vital Farms (VITL - Free Report) and Grocery Outlet (GO - Free Report) .
Sprouts Farmers is engaged in the retailing of fresh, natural and organic food products. It currently sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 10%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of 6.7% and nearly 3.9%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 155.4%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings calls for growth of 18.6% and nearly 35.6%, respectively, from the year-ago reported numbers.
Grocery Outlet, the extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings implies growth of 9.6% and 10.3%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 17%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hain Celestial (HAIN) Sells Thinsters, Eyes Focus and Growth
In a strategic maneuver, The Hain Celestial Group (HAIN - Free Report) recently concluded the sale of its Thinsters cookie business to J&J Snack Foods in an all-cash transaction completed on Apr 8, 2024. This marks another step in HAIN's ongoing commitment to refining its portfolio and strengthening its financial position.
Wendy Davidson, the president and CEO of Hain Celestial, highlighted the importance of the transaction, affirming, "Divesting Thinsters further streamlines our supply chain network and strengthens our ability to focus our efforts on driving greater reach and scale of our core better-for-you brands across our categories of focus."
The sale of Thinsters aligns with Hain Celestial's multi-year transformation plan, Hain Reimagined, introduced in September 2023. This comprehensive strategy aims to pivot the business toward growth by executing four core pillars — Focus, Grow, Build and Fuel. The divestiture of Thinsters contributes directly to the Focus pillar, refining HAIN's portfolio of better-for-you brands across five key growth categories.
Image Source: Zacks Investment Research
HAIN's portfolio now remains strategically positioned in snacks, baby & kids’ food, beverages, meal preparation and personal care segments. This consolidation allows the company to channel resources toward driving innovation and market expansion within these high-potential areas. Furthermore, proceeds from the sale will be allocated to reducing company debt, enhancing financial flexibility for future strategic initiatives.
Hain Celestial remains steadfast in its commitment to advancing the Focus pillar through operational optimization and geographical alignment. With a presence in five core geographies, the United States, Canada, the UK, Ireland and Western Europe, the company aims to capitalize on its brand strength and consumer insights to drive sustainable growth.
Wrapping Up
The completion of the sale of Thinsters to J&J Snack Foods underscores HAIN's commitment to strategic portfolio management and financial discipline. By divesting non-core assets and focusing on growth areas, Hain Celestial is positioning itself for long-term success in the evolving health and wellness market.
However, Hain Celestial faces near-term revenue challenges as it implements strategic initiatives aimed at rationalizing lower-margin SKUs, which could temporarily dampen sales. Meanwhile, its North America segment grapples with difficult market conditions in the baby & kids’ category. The company's revised guidance reflects a downgrade in organic net sales growth from 2-4% to approximately 1% or more, alongside a narrowed adjusted EBITDA range of $155-$160 million, down from the previous estimate of $155-$165 million.
Shares of this Zacks Rank #4 (Sell) company have fallen 35.5% in the past six months against the industry’s rise of 13.7%.
3 Stocks Looking Red Hot
Here, we have highlighted three better-ranked stocks, namely Sprouts Farmers Market (SFM - Free Report) , Vital Farms (VITL - Free Report) and Grocery Outlet (GO - Free Report) .
Sprouts Farmers is engaged in the retailing of fresh, natural and organic food products. It currently sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 10%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings suggests growth of 6.7% and nearly 3.9%, respectively, from the year-ago reported numbers.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 155.4%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings calls for growth of 18.6% and nearly 35.6%, respectively, from the year-ago reported numbers.
Grocery Outlet, the extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings implies growth of 9.6% and 10.3%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 17%, on average.