Hain Celestial Group posted a narrower fourth-quarter loss despite lower sales.
The food and personal-care company also disclosed an agreement to sell its international business for an estimated $323 million in cash as part of an ongoing strategic review.
The stock gained 19% to 74 cents in premarket trading Monday. As of Friday's market close, shares were down 42% year to date.
Hain Celestial recorded a fourth-quarter loss of $61.9 million, or 68 cents a share, compared with a loss of $272.6 million, or $3.06 a share, a year earlier.
On an adjusted basis, loss per share was 5 cents, compared with analyst estimates for a loss of 3 cents a share, according to FactSet.
Sales declined 28% to $263.1 million, compared with analyst estimates of $261.2 million.
The decline was driven primarily by the divestiture of the company's North American snacks business. Organic net sales fell 2%, as a decline in the company's international segment more than offset growth in North America.
Chief Executive Alison Lewis said the results mark sequential improvement as the company continues to make progress on efforts to boost productivity and keep a lid on costs.
In a separate statement on Monday, Hain Celestial said it has agreed to sell its international business to private equity firm Aurelius. The sale would include the majority of the company's international business operations, including brands like Ella's Kitchen baby and kids foods, Joya and Natumi plant-based beverages, and Hartley's jelly, among others.
Lewis said the deal would help simplify the company's portfolio while further reducing its debt. The company expects net proceeds from the transaction of $305 million to $310 million, which it plans to use to reduce its debt.
"The resulting North American business would feature leading brands in attractive categories with a more streamlined operating model and greater focus on core growth opportunities," Lewis said.
The deal remains subject to Hain Celestial securing an amendment to its credit agreement to extend the maturity date beyond Dec. 22. The company said it remains in discussions with its lenders.