Hain Celestial, the US natural and organic group, has issued the set of annual financial results that had been delayed for almost a year by a review into its accounting.
The Earth’s Best baby food maker said today (22 June) it had completed its review, which it started last summer after finding “concessions” made to a number of distributors in the US earlier in the year.
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At the time, Hain Celestial said it was looking into whether the revenue associated with the concessions was accounted for in the correct period and was reviewing “its internal control over financial reporting”. The discovery of the concessions meant Hain Celestial halted the publication of its results for the year to the end of June 2016, numbers that were announced today.
Alongside the figures, Hain Celestial said it had expanded the review beyond looking at the concessions to study its previously-reported financial statements. The company said the review had found there would be no need to make any “material changes” to the statements, as some in the investment community had feared. Shares in Hain Celestial rose in pre-market trading in New York.
However, Hain Celestial said its previous financial statements had contained “immaterial errors”, which meant it had to file some adjustments to those figures.
Hain Celestial booked net sales of US$2.89bn for the 12 months to 30 June 2016, compared to $2.61bn in the previous financial year, although that figure came after an adjustment of $78.9m.
The company’s operating income stood at $150.4m, against a now revised figure for the previous year of $233.4m.
Hain Celestial generated a net income of $47.4m. In the previous financial year, Hain Celestial’s now revised net income was $165m.
The group also reported results for the first nine months of its current financial year. The company made net sales of $2.1bn, which it said were “relatively flat” year-on-year. At constant exchange rates, Hain Celestial’s net sales were up 4%.
Hain Celestial’s nine-month operating profit was $102.2m, against $215.5m a year ago. It booked an adjusted operating income of $134.8m.
The group’s net income reached $67.1m, versus $136m the previous year.
Hain Celestial also released forecasts for the full financial year. It expects to earn $1.19 to $1.22 a share, on an adjusted basis, below consensus analyst estimates of $1.94, according to Thomson Reuters. Hain Celestial has forecast annual net sales of $2.84-2.86bn, compared to the analyst forecast of $2.91bn.
