US food company Hain Celestial has hailed “record” first-half profits, boosted by expanded distribution and the acquisition of UK firm Daniels Group last year.
For the six months to the end of December, net profit climbed by 24.8% to US$31.7m, while operating profits grew by 20% to reach $57.8m, the firm reported yesterday (1 February). The acquisitions of New Covent Garden soup maker Daniels Group and the Europe’s Best brand from JM Smucker, which was sealed in October, contributed to growth, the company said.
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Sales in the period amounted to $677.9m, a 23.3% improvement on the comparable period last year. Hain attributed the increase to “strong contributions” from core brands including Earth’s Best, Celestial Seasonings, MaraNatha, Garden of Eatin’, and Linda McCartney.
In the second quarter, net profit climbed by 32.6% to $20m, while operating profits grew by 17.5% to $34.9m. Sales amounted to $385.5m, a 32% increase on the prior-year.
Hain Celestial president and CEO Irwin Simon said profits and sales had reached “the highest levels in the company’s history”.
“At a time when many consumer packaged goods companies are experiencing one to two percent consumption growth in the grocery channel, we are achieving consumption growth at more than three times that rate,” Simon said.
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By GlobalData“In the US, we continue to drive sales growth in our core distribution channels. We are pleased and delighted to see that consumers continue to be attracted to our more healthful food and personal care products.”
For the fiscal year, the company confirmed guidance of net income of $1.63 to $1.73 per share on revenue of $1.46bn to $1.48bn.
