US-based organics group Hain Celestial lowered its full-year guidance yesterday (4 February) as it saw its second-quarter profits tumble.
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For the period ended 31 December, net income declined 48% to US$8.1m, hurt by inventory reductions, grain costs and a lag in realising price increases.
Sales rose 14% to $315.6m from $276.2m in the comparable period of the previous year.
Hain said inventory reductions, grain costs at Hain Pure Protein and the lag in fully realising an August price increase impacted earnings by almost $0.11 per share this quarter.
“Despite a strong start in the quarter, sales moderated toward the end of the quarter with the acceleration of the economic downturn. Although there is evidence that some customers are reducing their inventories and some consumers are destocking their pantries, we continue to see growth in key categories, supported by our innovative new products,” said president and CEO Irwin Simon.
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By GlobalDataFor fiscal 2009, the company now expects sales to be in the range of $1.175-1.2bn and earnings of $1.38-1.42 per share.
Earlier, the company expected its fiscal year 2009 guidance of $1.2-1.3bn in sales and $1.54 to $1.61 in earnings per share.
