Hain Celestial Group saw its share price slump by 26% yesterday, after the manufacturer said it had launched an internal probe into its accounting practices.
In a statement, Hain noted: “During the fourth quarter, the company identified concessions that were granted to certain distributors in the United States. The company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting.”
The group also pushed back the reporting of its fourth-quarter results till the probe is completed. It added that it now does not expect to meet its forecasts for the full year – 9%-10% growth in revenue, on earnings of $2.00 to $2.04 per share.