After an investigation that stretched more than a year, Hain Celestial completed its accounting review and audit and found it didn’t have to make any material changes to its previously reported financial statements, the company said Thursday.
Hain shares surged more than 4 percent ahead of the market’s open.
As the company moves beyond this issue, and adds more internal controls and oversight of its financial reporting, it said Thursday James Langrock was promoted to executive vice president and chief financial officer. He has been with the company since 2015.
The company, which saw its U.S. sales decline more than 6 percent in the first nine months of the year, also discussed plans to cut costs by $350 million through fiscal 2020, and said it will buy back $250 million of its own stock.
Total sales over the past nine months were relatively flat with the same period a year ago. On a constant currency basis, sales were up 4 percent.
Net income for the nine-month period was $67.1 million, or 64 cents a share. On an adjusted basis, it earned $82.7 million, or 79 cents a share.
Hain attributed its U.S. sales decline to the impact of inventory realignment at certain customers’ stores and product rationalization of $55 million.
The maker of Celestial Seasonings, Terra Chips and Garden of Eatin has been reducing the number of products it sells in order to put more support behind successful items and reduce costs. This plan will help it to achieve its cost savings target. It also plans to improve its productivity.