Hain Celestial has raised its full-year sales and earnings forecast despite missing market expectations in the first half of its financial year.
The US food group now anticipates full-year earnings in the range of US$3.07-3.15 per share on sales of $2.12-2.15bn. The forecast compares to a consensus analyst estimate for earnings per share of $3.11 on sales of $2.14bn.
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Previously, Hain forecast earnings of $2.95-3.05 per share and sales of $2.03-2.05bn. The company said gains will be driven by its recent acquisition of UK rice brand Tilda.
During the first six months to 31 December, Hain said net income rose 43.5% to $68.9m. Operating income rose 24.6%, climbing to $104m, the company revealed after the markets closed yesterday (4 February).
First-half sales rose to $1.01bn, driven by Hain’s recent spate of M&A which has seen it pick up UK brands including Hartley’s and Ella’s Kitchen.
However, commenting on the result Janney Montgomery Scott analyst Jonathan Feeney said the group had reported “softer-than-expected” sales and operating profit “due to capacity constraints and subpar UK execution”.
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By GlobalDataShares in Hain were down 9.07% at $82.70 at 09:38 ET today.
