Hain Celestial has booked a 17.6% rise in first-quarter earnings and reaffirmed its full-year outlook, despite declining sales.
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The organic and natural products company said that net income for the quarter rose to US$8.1m, from $7m last year. The group attributed the gain to a “robust” performance from its operations in the US and Continental Europe.
Sales declined to $230.5m, from $248.4m a year earlier, after deducting $38.4m of sales for poultry venture Hain Pure Protein.
In July, Hain ceded control of the venture to partner Pegasus Capital Advisors.
Hain said sales for the quarter were affected by a total of about $22m from destocking, its Celestial Seasonings SKU rationalisation, the phasing out of fresh sandwich supply to a major retail customer in the UK and currency exchange.
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By GlobalData“The company realized more favorable fuel and commodity input pricing, cost containment and productivity initiatives,” Irwin Simon, Hain’s president and CEO, said.
Gross margins increased to 26.8% from 24% in the corresponding period.
