Organic and natural products maker Hain Celestial Group Inc. said Wednesday it found “no evidence of intentional wrongdoing” in connection with the company’s financial reporting, following a review of its accounting.
The audit committee of the Lake Success-based company’s board of directors concluded an independent review with external counsel into whether revenue from certain U.S. distributors was recorded in the correct period, the company said Wednesday.
Hain Celestial, whose brands including Celestial Seasonings tea, Earth’s Best baby food, Terra chips and Spectrum oils, had been recognizing revenue when products were shipped to distributors, rather than when the products are sold through its distributors to customers.
As a result of its review, Hain Celestial disclosed in August that it was delaying the release of its financial results for its fourth quarter and fiscal 2016, ended June 30. It also said at the time it didn’t expect to reach its previously announced revenue forecast for fiscal 2016 of $2.946 billion to $2.966 billion.
Hain Celestial said Wednesday it will not release financial results until the completion of the company’s internal accounting review and audit process.
“Hain Celestial is committed to transparency of our financial reporting, and we are taking concrete measures to remediate as well as strengthen our internal controls,” Hain Celestial founder, president and chief executive Irwin D. Simon said in a statement.
Shares of Hain Celestial rose more than 13 percent to $40.50 Wednesday after the close of regular trading, following the company’s news.