Hain Celestial’s Hain Pure Protein segment experienced a rough start to its 2019 fiscal year, as the organic and antibiotic-free poultry producer experienced an operating loss of $19.5 million for the first quarter, which ended on September 30.
The poultry business also reported net sales of $113.5 million, which was a 5 percent decrease when compared to the first quarter of fiscal year 2018.
Hain Pure Protein’s key brand for chicken is FreeBird, while its key brand for turkey is Plainville Farms.
It was struggles with the turkey side of the business to which Hain Celestial attributes the poor financial picture. In a press release issued on November 8, Hain said those losses primarily resulted from “the continued pricing pressure resulting from excess turkey inventory for the Plainville Farms business.”
Other turkey companies feeling pinch
Hain Pure Protein isn’t the only company in the U.S. turkey industry to feel the pinch of the current market conditions.
On October 31, Zacky Farms, announced that it would discontinue operations by January 19, 2019, stating that amid the current state of industry conditions, it had been “diligently engaged in seeking business and capital,” but “those exhaustive efforts have been unsuccessful.”
Butterball, the largest turkey company in the United States, also has had troubles. Seaboard Foods, on the same day Zacky Farms announced its plans to go out of business, reported a $19 million loss on its investment in Butterball during the third quarter of fiscal year 2018.
Hormel Foods, parent company of Jennie-O Turkey Store, the second-largest turkey business in the United States, will release its latest financial results on November 20.
Hain Pure Protein divestiture to conclude soon
In the same press release in which Hain Celestial’s first-quarter financial results were announced, the company stated that its plans to divest of Hain Pure Protein continue “to make substantial progress,” and that the divestiture is expected to close by the third quarter of fiscal year 2019. The second quarter of Hain Celestial’s fiscal year concludes at the end of December.
Hain Celestial initially announced its plans to sell Hain Pure Protein in February.