Hain Celestial shares crash on concession irregularities
The share price of Hain Celestial, the parent company of Celestial Seasonings tea, has dropped precipitously in recent days due to a delay in publishing quarterly and annual results. The move was caused by information that some of its US distributors may have received concessions, triggering an accounting review. The company wants to check whether revenue associated with these concessions is accounted correctly. This sent the share price crashing by about 30% and has wiped out about $2 billion in market capitalization. Hain Celestial claims the issue will not affect the overall revenue for the year, which, having risen by 25% to $2.7 billion in 2015, is expected to rise by 10% this year.