US natural and organics product group Hain Celestial posted a drop in full-year sales in what the company said today (29 August) was due to changes in foreign exchange.
Net sales declined 1.1% to US$2.8bn in the 12 months through June from a year earlier, but were up 3% on a constant currency basis. Net income for the Nasdaq-listed firm climbed 42% to US$67.4m.
Under its Project Terra initiative, the company expanded cost savings to US$350m through fiscal 2020 and established core platforms including Better-For-You-Baby, Better-For-You-Pantry and Better-For-You-Snacking.
Speaking of the results and the outlook, founder, president and CEO Irwin Simon said: “We believe our continued ability to evolve our business as we grow our organic, natural and better-for-you brands, expand relationships with new and existing customers and attract new consumers globally, paired with Project Terra, will fuel our success and create long-term value for our shareholders.”
Elsewhere in the results, full-year operating income fell to US$111m from US$150m in the corresponding period of 2016, while EBITDA decreased 34% to US$239m. On an adjusted basis, EBITDA was down at US$275m compared to $379m. Adjusted earnings per diluted share came in at US$1.22, below the US$1.85 in the prior year.
With operations in North America, Europe, Asia and the Middle East, the company is targeting 2018 total sales of almost US$3bn, which would represent a 4% to 6% increase over fiscal 2017. EBITDA is predicted at US$350-US$375m and adjusted earnings per diluted share at US$1.63-US$1.80.
In June, Hain bought The Better Bean company, which it said was the first to be made through its Cultivate Ventures unit set up in May to invest in “concepts, products and technology” that focus on health and wellness.