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.
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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.
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