Hain Celestial, the renowned natural foods and personal-care products company, has recently unveiled a comprehensive restructuring plan aimed at generating substantial cost savings of $130 million to $150 million annually by fiscal 2027. The primary objective of this initiative is to enhance operating margins through the optimization of Hain’s brand portfolio, supply chain, and working capital.
The company aims to convert $165 million of working capital cash by fiscal 2027, with anticipated one-time restructuring expenses of $115 million to $125 million spread across fiscal years 2024 and 2025.
To drive growth, Hain will place a strong emphasis on the development and promotion of better-for-you products such as snacks, beverages, and baby food. Additionally, the company intends to streamline its operations by prioritizing its five key markets: the U.S., U.K., Canada, Ireland, and Europe. This approach will not only simplify Hain’s geographical footprint but also align its global operating model across various businesses.
Looking ahead, Hain expects to achieve a projected 3% annual organic net sales growth and a robust 10% annual increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company remains committed to funding investments that generate profit growth throughout the designated period.
This strategic restructuring initiative marks an important step for Hain Celestial as it further solidifies its position as a leader in the natural foods and personal-care products industry.
