We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 to Divest North American Snacks Business to Focus on Core Areas
Read MoreHide Full Article
Key Takeaways
Hain agreed to sell brands including Garden Veggie, Terra and Garden of Eatin', for $115M cash.
Hain's snacks delivered 22% of FY25 sales but minimal EBITDA, as Q1 FY26 net sales fell 12%.
Hain plans to refocus on higher-margin tea, yogurt, baby and meal prep brands after divestiture.
The Hain Celestial Group, Inc. (HAIN - Free Report) has taken a decisive step to refine its business strategy by entering into a definitive agreement to sell its North American Snacks business, including the Garden Veggie Snack, Terra, and Garden of Eatin’ brands, to Snackruptors Inc. for $115 million in cash. This divestment marks a key milestone in Hain Celestial's ongoing portfolio optimization strategy, enabling the company to simplify its North American operations and refocus on categories with higher margins and cash flow potential.
The North American segment faced significant challenges in the first quarter of fiscal 2026, with net sales declining 12% and organic net sales decreasing 7%, primarily due to weaker snack volumes. Hain Celestial's North American snacks business accounted for 22% of fiscal 2025 consolidated net sales and 38% of North America segment revenue, yet it generated minimal EBITDA over the past 12 months, highlighting its limited profitability contribution.
Conversely, Hain Celestial's remaining North American portfolio demonstrates significantly stronger financial performance, with low double-digit EBITDA margins supported by gross margins above 30%. After the divestiture, Hain Celestial will focus on core categories such as tea, yogurt, baby and kids nutrition and meal preparation platforms, anchored by brands including Celestial Seasonings, The Greek Gods, Earth's Best Organic and Spectrum Organic.
CEO Alison Lewis described the transaction as a decisive step toward sharpening Hain Celestial's strategic focus on areas where it can best utilize its capabilities. Lewis stated that the proceeds will be used to reduce debt, strengthening the company's leverage profile and enhancing financial flexibility, which is expected to support further investment and sustainable growth.
The divestment marks a pivotal milestone for Hain Celestial. By sharpening its strategic focus and reinforcing its financial foundation, the company is positioning itself to enhance shareholder value and pursue long-term growth in categories where it holds clear competitive strengths. The transaction is expected to close by Feb. 28, 2026.
Zacks Rundown for HAIN
HAIN’s shares have plunged 19.1% in the past six months against the industry's growth of 10.4%. HAIN presently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
From a valuation standpoint, HAIN trades at a forward price-to-earnings ratio of 17.66, higher than the industry’s average of 15.02.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HAIN’s current fiscal-year sales & earnings implies a year-over-year decline of 3.9% and 122.2%, respectively.
Image Source: Zacks Investment Research
Better-Ranked Stocks to Consider
The Simply Good Foods Company (SMPL - Free Report) , a consumer-packaged food and beverage company, engages in the development, marketing, and sale of snacks and meal replacements, and other products in North America and internationally. SMPL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Simply Good Foods' current fiscal-year sales implies a decline of 0.3%, and the same for current fiscal-year earnings implies growth of 1.6% from the year-ago reported figures. SMPL delivered a trailing four-quarter earnings surprise of 5.53%, on average.
Kimberly-Clark Corporation (KMB - Free Report) , together with its subsidiaries, manufactures and markets personal care products in the United States. KMB currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Kimberly-Clark's current fiscal-year sales and earnings implies a decline of 2.1% and 6.2%, respectively, from the year-ago actuals. KMB delivered a trailing four-quarter earnings surprise of 18.9%, on average.
Medifast, Inc. (MED - Free Report) , through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for McCormick's current fiscal-year sales and earnings implies a decline of 36.7% and 156.5%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 640%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
HAIN to Divest North American Snacks Business to Focus on Core Areas
Key Takeaways
The Hain Celestial Group, Inc. (HAIN - Free Report) has taken a decisive step to refine its business strategy by entering into a definitive agreement to sell its North American Snacks business, including the Garden Veggie Snack, Terra, and Garden of Eatin’ brands, to Snackruptors Inc. for $115 million in cash. This divestment marks a key milestone in Hain Celestial's ongoing portfolio optimization strategy, enabling the company to simplify its North American operations and refocus on categories with higher margins and cash flow potential.
The North American segment faced significant challenges in the first quarter of fiscal 2026, with net sales declining 12% and organic net sales decreasing 7%, primarily due to weaker snack volumes. Hain Celestial's North American snacks business accounted for 22% of fiscal 2025 consolidated net sales and 38% of North America segment revenue, yet it generated minimal EBITDA over the past 12 months, highlighting its limited profitability contribution.
Conversely, Hain Celestial's remaining North American portfolio demonstrates significantly stronger financial performance, with low double-digit EBITDA margins supported by gross margins above 30%. After the divestiture, Hain Celestial will focus on core categories such as tea, yogurt, baby and kids nutrition and meal preparation platforms, anchored by brands including Celestial Seasonings, The Greek Gods, Earth's Best Organic and Spectrum Organic.
CEO Alison Lewis described the transaction as a decisive step toward sharpening Hain Celestial's strategic focus on areas where it can best utilize its capabilities. Lewis stated that the proceeds will be used to reduce debt, strengthening the company's leverage profile and enhancing financial flexibility, which is expected to support further investment and sustainable growth.
The divestment marks a pivotal milestone for Hain Celestial. By sharpening its strategic focus and reinforcing its financial foundation, the company is positioning itself to enhance shareholder value and pursue long-term growth in categories where it holds clear competitive strengths. The transaction is expected to close by Feb. 28, 2026.
Zacks Rundown for HAIN
HAIN’s shares have plunged 19.1% in the past six months against the industry's growth of 10.4%. HAIN presently carries a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
From a valuation standpoint, HAIN trades at a forward price-to-earnings ratio of 17.66, higher than the industry’s average of 15.02.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HAIN’s current fiscal-year sales & earnings implies a year-over-year decline of 3.9% and 122.2%, respectively.
Image Source: Zacks Investment Research
Better-Ranked Stocks to Consider
The Simply Good Foods Company (SMPL - Free Report) , a consumer-packaged food and beverage company, engages in the development, marketing, and sale of snacks and meal replacements, and other products in North America and internationally. SMPL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Simply Good Foods' current fiscal-year sales implies a decline of 0.3%, and the same for current fiscal-year earnings implies growth of 1.6% from the year-ago reported figures. SMPL delivered a trailing four-quarter earnings surprise of 5.53%, on average.
Kimberly-Clark Corporation (KMB - Free Report) , together with its subsidiaries, manufactures and markets personal care products in the United States. KMB currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Kimberly-Clark's current fiscal-year sales and earnings implies a decline of 2.1% and 6.2%, respectively, from the year-ago actuals. KMB delivered a trailing four-quarter earnings surprise of 18.9%, on average.
Medifast, Inc. (MED - Free Report) , through its subsidiaries, operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for McCormick's current fiscal-year sales and earnings implies a decline of 36.7% and 156.5%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 640%, on average.