US: Hain profits rise on sales, margins
- Net income up to US$48m
- Gross profit up 39.1%
- Sales up 25.1%
Hain H1 profits up
Hain Celestial has booked an increase in first-half profits, which benefited from higher sales and improved margins.
The company revealed yesterday (6 February) that net income for the first six months of the year rose to US$48m from $31.7m in the comprable period of last year. Operating income was up 39.1% to $83.5m, with operating margin improving from 9.2% of sales last year to 10.2% of sales this year.
The natural and organic food maker said net sales were up 25.1% to US$6.5bn. Gains were driven by a 163.3% increase in UK sales, where the group has expanded through M&A, including last year's acquisition of the spreads business from Premier foods.
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|Hain Celestial Announces Record Results for Second Quarter Fiscal Year 2013 and Raises Earnings Guidance|
|GAAP Net Income of $31.6 Million; Up 58%
GAAP EPS of $0.68 per Diluted Share from Continuing Operations; Up 48%
Adjusted Net Income of $34.2 Million; Up 40%
Adjusted EPS of $0.72 per Diluted Share; Up 36%
MELVILLE, N.Y., Feb. 5, 2013 /PRNewswire/ -- The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading natural and organic products company providing consumers with A Healthy Way of Life™, today reported its results for the second quarter ended December 31, 2012.
Performance Highlights 2QFY13 Compared to 2QFY12
"I am extremely pleased with our results as Hain Celestial US delivered 9.4% top-line growth on a comparable basis as well as increased profitability during the second quarter. In the UK, Hain Daniels, with the addition of the ambient grocery brands for two months of the quarter, focused on higher margin brand growth while evaluating and establishing a program to eliminate certain unprofitable private label sales. At the same time our businesses in Canada and Europe delivered profitable growth," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "As we have previously discussed, a major investment in our Fakenham facility is underway, where we are repositioning our meat-free frozen foods plant to be ready for the commencement of a long-term program with a major retailer later this year. Brands acquired during the quarter also contributed to our results, including Hartley's® jam and Sun-Pat® peanut butter, each of which are No. 1 in their respective categories in the United Kingdom," concluded Irwin Simon.
Worldwide net sales for the second quarter of fiscal year 2013 were a record $455.3 million, an increase of 24.8% compared to net sales of $364.8 million in the prior year period. Hain Celestial US reported net sales of $280.4 million. In the United Kingdom, Hain Daniels' net sales were $120.2 million. For the Company's Rest of World segment, consisting of the operations of Hain Celestial Canada and Hain Celestial Europe, net sales were $54.7 million. The Company had strong brand contribution across various sales channels led by Celestial Seasonings®, Earth's Best®, Garden of Eatin®, Imagine®, MaraNatha®, The Greek Gods®, Alba Botanica®, Lima®, Danival® and Linda McCartney®. Also, the Company has entered the raw juice category with the acquisition of the BluePrint® brand in late December.
The Company earned income from continuing operations of $32.2 million in the second quarter of fiscal year 2013 compared to $21.1 million in the prior year period, a 53.0% increase, and reported earnings per diluted share from continuing operations of $0.68 compared to $0.46 in the prior year second quarter. Adjusted income from continuing operations was $34.2 million compared to $24.4 million in the prior year, a 40.3% increase, and adjusted earnings per diluted share from continuing operations was $0.72 compared to $0.53 in the prior year second quarter. Adjusted amounts exclude acquisition-related expenses, integration and restructuring charges as well as an acquisition-related currency gain. Adjusted EBITDA reached a new high of $205.9 million during the 12-trailing month period ended December 31, 2012.
Fiscal Year 2013 Guidance
The Company updated its annual guidance for fiscal year 2013.
Guidance is provided for continuing operations on a non-GAAP basis and excludes acquisition and integration expenses that may be incurred during the Company's fiscal year 2013, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions. Historically, the Company's sales and earnings are strongest in its second and third quarters.
The Company's operations are organized into geographic segments: United States, United Kingdom, Canada and Europe.
Sales in the United States segment were $280.4 million for the three months ended December 31, 2012, up 9.4% from the prior year period on a comparable basis, after adjusting the reported 8.2% growth for the transfer of sales responsibilities for a particular brand to the Company's Canadian operations in fiscal year 2013, which accounted for $2.8 millionincluded in United States sales in fiscal year 2012. For the six months ended December 31, 2012, the increase was 9.4% after adjusting for the transfer of $5.7 million of sales in fiscal year 2012.
Original source: Hain Celestial
Companies: Hain Celestial
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