The Hain Celestial Group, known for its popular brands like Terra vegetable chips, has experienced a decline in sales for the fiscal fourth quarter. Europeans have been scaling back their demand for plant-based foods, and sales have also softened in North America.
Financial Performance
The organic foodmaker reported a loss of $18.7 million, or 21 cents a share, for the three-month period ending on June 30. This is in stark contrast to the profit of $3.0 million, or 3 cents a share, during the same period last year. Adjusted earnings came out to 11 cents a share, slightly surpassing the analysts' expectations of 10 cents a share.
Sales Decline
Hain Celestial Group's sales dropped by 2%, amounting to $447.8 million. However, this figure still exceeded analysts' projections of $442.4 million.
North American Market
Sales in North America witnessed a decline of 4.3%, after adjusting for divestitures and discontinued brands. This decrease was primarily driven by lower sales in personal care products and their ParmCrisps brand. The drop in sales can be attributed to promotions and reduced distribution by retailers. On the bright side, there was an increase in sales of yogurt, baby products, and tea.
International Market
Despite the overall decrease in sales, the company experienced a nearly 4% rise in international sales. This growth was mainly fueled by a strong performance in the U.K. However, demand for plant-based foods declined in the rest of Europe.
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