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As Hoboken-based Hain Celestial continues a review of its core assets, it may look to sell off its personal care business.

According to Hain Chief Executive Officer and President Wendy Davidson, the consumer-packaged goods company is “exploring strategic options” for the category so it can concentrate further on its portfolio of better-for-you food and beverages.

In a Feb. 10 press release accompanying the latest earnings report, Davidson said, “We believe this is the best path to focus the organization, simplify our business and create long-term value for shareholders.”

She also noted it advances a multiyear transformation effort currently underway.

Hain – the parent company of brands including Celestial Seasonings tea, Garden of Eatin’ snacks, Terra Chips and Garden Veggies Snacks – embarked on the strategy in 2023 shortly after relocating from Long Island to Hudson County.

Under the plan, Hain seeks to redesign its operating model by driving growth in five core platforms (snacks, baby & kids, beverages, meal prep and personal care) across five key regions (the U.S., Canada, U.K., Ireland and Western Europe). Moving forward, the company has said it will continue to look for other opportunities for optimization, as well as to align its footprint in those geographic areas.

Davidson, who took the helm of Hain two years ago, has said she expects the business to deliver sustained revenue and profit growth by 2027.

Looking toward H2

Hain has already made moves to shed non-core assets. In September 2024, the company sold its ParmCrisps snack brand to Our Home, a Boonton-based wholesome snack maker for an undisclosed sum.

Hain also divested its Thinsters cookie business to Mount Laurel-headquartered J&J Snack Foods Corp. Financial terms of the transaction were not disclosed.

During the most recent quarter ending Dec. 31, 2024, the bulk of Hain’s business came from the categories of snacks, beverages and meal prep. Its personal care portfolio, which includes Live Clean personal care products and Alba Botanica natural sun care, generated about 3% of Hain’s $411.5 million in net sales for the period.

According to the earnings report, net sales were down 9% year over year. The company attributes the decrease to in-store performance in the snacks category, supply chain challenges, divestitures and discontinued brands. However, the company managed to improve its operating cash flow and reduce total debt from $744 million to $729 million.

For the quarter, Hain saw a net loss of $104 million compared to $13.5 million in the prior year.

Davidson said, “Despite challenges in the quarter, we generated strong operating cash flow and further reduced debt. We drove sequential improvement in baby & kids and in our largest category, meal prep. However, sales growth in the quarter was hindered by poor in-store performance in snacks, driven by marketing and promotion effectiveness, and supply chain challenges, both of which we have already taken steps to address.

“We are confident that the actions taken, combined with promotional timing shifts, confirmed distribution gains, and full infant formula supply, will drive organic net sales growth in the second half of the year.”

See also:

• Ferrero plans to acquire protein snack maker Power Crunch
• Kayco acquires Morris County-based healthy snacks wholesaler