Hain Celestial Forced to Delay Fourth Quarter Results Due to Accounting Problem

16 Aug 2016 --- Hain Celestial has issued a double dose of bad news, saying that an accounting mishap is forcing it to delay the publication of its financial results and that it doesn't expect to hit its anticipated profits levels for the year.

The organic food maker had been expected to report its fourth quarter financial figures this week, but has been forced to delay the announcement due to uncertainty about when certain revenues should be accounted for.

The uncertainly has prompted Hain, the maker of Earth’s Best baby food, to check whether it has the appropriate internal financial controls in place by carrying out an independent review.
Hain said: "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."

Hain said it will delay the announcement of its results until it has completed an independent review of its procedures.

Hain said the news, which sent shares down by 25 percent, would not impact its overall revenue but said it did not expect to reach its profit targets for the year ending June 30.