Food giant Hain Celestial crashes after disclosing an internal accounting probe
The organic-food company announced on Monday that it will delay its fourth-quarter and full-year results after finding that some of its US distributors got concessions.
Hain shares fell by as much as 27% in trading on Tuesday, on pace for its worst one-day decline ever. This drop erased nearly $2 billion of its market cap.
"The Company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting," Hain said in a statement.
An independent audit committee is reviewing the situation with lawyers. Hain will only be able to release results once this audit is complete, and will update investors on the timing of the announcement, it said.
Hain also announced that it does not expect to achieve its sales guidance for 2016, which it had provided in a range of $2.95 billion to $2.97 billion.
