Dive Brief:
Since taking over Hain two years ago, Davidson has focused on stabilizing the struggling parts of the company’s portfolio to prepare them for growth or a potential sale.
Dive Insight:
It’s not surprising to see Hain exploring options for its personal care business, as it makes up a small portion of its sales and differs from its main focus on food and beverage brands.
If Hain decides to sell its personal care business, it could use the proceeds to invest in its core food and beverage business or pay down debt, both of which are priorities for the company.
To stabilize the business, Hain has been reducing the number of products it offers, which has led to a decline in net sales but is helping to improve margins.
Davidson mentioned that Hain is ahead of its goals to improve margins and stabilize sales in personal care, with the remaining brands in the segment being leaders in their categories within the natural channel.
Hain expects to make a decision on its personal care business before the end of its fiscal year on June 30.