Hain Celestial has announced plans to sell off non-core brands and set up a new investment unit, even as it reported strong results for its fiscal third-quarter.
The group said it has identified “certain brands … which no longer fit into its core strategy for future growth”. It said it plans to sell these brands, which generated sales of around $30m, as a group.
Hain also said it will form ‘Cultivate Ventures’, a venture unit that will – invest in “smaller brands in high potential categories” (such as Sunspire and DeBoles); incubate small acquisitions until they reach a scale for its core platforms; and invest in health & wellness “concepts, products and technology”.
Meanwhile, the group said its third-quarter sales were up 13% to $750m (+15% constant-currency basis), while net profit jumped up 47% to $49m (+9% adjusted). The group recorded a good performance in all markets, and was helped by its diversification into healthier brands.
It said it now expects full-year growth of 9% to 10%, and earnings per diluted share growth of 6% to 9%.