Audit delays Hain Celestial financial results’ release
Company postpones the release of its quarterly and annual financial results
Hain Celestial is postponing the release of its financial reports for the fourth quarter of fiscal year 2016 and the fiscal year as a whole as it has identified concessions that were granted to certain distributors in the United States.
The parent company of organic poultry company Hain Pure Protein is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its control over financial reporting. The audit committee of the company’s board of directors and an independent counselor are conducting a review of these matters.
The fourth quarter and fiscal year both ended on June 30. It announced its third quarter financial results on May 4.
According to a press release from Hain Celestial, the company previously has recognized revenue pertaining to the sale of its products to certain distributors at the time the products are shipped to such distributors. Hain Celestial is evaluating whether the revenue associated with the concessions granted to certain distributors should instead have been recognized at the time the products sell through its distributors to the end customers. 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.
Hain Celestial further stated it will not be in a position to release financial results until the completion of the independent review of the audit committee and of the audit process relating to the 2016 fiscal year. However, the company added it is working diligently on this matter and will, as soon as practicable, make another announcement regarding the updated timing of the release of financial results and a related conference call.