Shares of Hain Celestial (NASDAQ: HAIN) were jumping today after the packaged-food company posted better-than-expected results in its fiscal fourth-quarter earnings report.

As of 2:57 p.m. EDT, the stock was up 21.2% on the news.

Hain's profitability initiatives are paying off

The maker of Celestial Seasonings tea and other products actually missed revenue estimates in the quarter, reporting a revenue decline of 6% to $418.8 million, which missed estimates at $421.2 million.

Organic revenue, which excludes divestitures, acquisitions, and currency exchange, was down 4% in the quarter.

While the retreat on the top line was disappointing, investors were impressed with the company's improvements on the cost side. Adjusted-gross margin increased 70 basis points to 23.4%, and adjusted-net income rose slightly from $10 million to $11 million. On a per-share basis, earnings were up from $0.11 to $0.13, which was better than the consensus at $0.08.

Management talked up the progress it's made in its Hain Reimagined strategy in fiscal 2024 with CEO Wendy Davidson saying, "We transitioned to a global operating model, reducing geographic complexity and driving scale."

The company has also lowered its debt balance with net debt down from $775 million to $690 million, and it's aiming to bring its leverage ratio down to two-to-three times adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ).

Can Hain keep climbing?

Hain stock has been struggling for years, as shares are down sharply over the last decade, but investors are still hopeful for a turnaround.

For fiscal 2025, the company expects organic-sales growth to be flat or better, and it called for adjusted EBITDA growth in the mid-single digits.

While that shows the company moving in the right direction, it's going to take better than at least flat growth to pull off a turnaround.

For now, investors are probably better off watching from the sidelines.

Before you buy stock in Hain Celestial Group, consider this: