LAKE SUCCESS, N.Y. — The Hain Celestial Group, Inc. has delayed the release of its fourth-quarter and full-year financial results. Separately, the company stated it does not expect to achieve its previously announced guidance for fiscal 2016.
Company shares plunged 26% to $39.60 in overnight trading after the news was released.
During the fourth quarter, management identified concessions that were granted to certain distributors in the U.S. The company is evaluating whether the revenue associated with the concessions should have been recognized at the time the products sell through its distributors to the end customers. Previously, the company has recognized revenue pertaining to the sale of its products to certain distributors at the time the products are shipped to the distributors.
The company said it is currently evaluating whether the revenue associated with the concessions was accounted for in the correct period and is also evaluating its internal control over financial reporting. The audit committee of the company’s board of directors is conducting an independent review of the matters and has retained independent counsel to assist in the review, according to the company.
“The company expects that any potential changes in the timing of the recognition of revenue with respect to these transactions should not impact the total amount of revenue ultimately recognized by the company with respect to such distributors and does not reflect on the validity of the underlying transactions with respect to such distributors,” the company said in a statement.
The company also said it does not expect to achieve its guidance for fiscal 2016 of total net sales in the range of $2.946 billion to $2.966 billion, an increase of approximately 9% to 10% as compared to fiscal year 2015, or earnings per diluted share in the range of $2 to $2.04, an increase of approximately 6% to 9% as compared to fiscal year 2015.
