Industry News - PM

Natural/organic poultry maker under SEC scrutiny


By Tom Johnston on 2/13/2017

The Hain Celestial Group said Friday that the Securities and Exchange Commission (SEC) is investigating the company’s accounting practices after it failed to report quarterly earnings on time.

The company’s shares fell by more than 13 percent on Monday on the news.

Hain Celestial, the parent of Freebird and Empire Kosher poultry brands, said in an SEC filing that it is in the process of responding to the SEC and is cooperating fully with the probe.

Hain said it notified the SEC on Aug. 15 that there would be a delay in reporting earnings after the company found concessions that were granted to some U.S. distributors. The company then launched an internal audit to determine if the related revenues were accounted for in the correct period.

Hain completed the independent review of the concessions issue on Nov. 16, finding no evidence of intentional wrongdoing in connection with its financial statements. The company also announced at the time that it would not be able to release financial results until it completed further analysis of its financial information. 

That process is ongoing, and the company is yet unable to report earnings.

Hain last reported quarterly earnings on May 4, 2016.


 
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