Lake Success / NY. (hc) The Hain Celestial Group Inc., a leading natural and organic products company with operations in North America, Europe and India providing consumers with A Healthier Way of Life, reported results for its first quarter ended September 30, 2015.
First Quarter Performance Highlights
- Record first quarter net sales of 687.2 million USD, a nine percent increase over the prior year period or, on a constant currency basis, an eleven percent increase over prior year adjusted net sales of 642.6 million USD. Net sales were negatively impacted by 24 million USD as a result of foreign exchange rate movements versus a year ago.
- Record first quarter earnings per diluted share of 0.30 USD, a 67 percent increase; adjusted earnings per diluted share of 0.37 USD, a nine percent increase. Foreign currencies negatively impacted reported results by 0.01 USD per diluted share.
- Operating income of 57.5 million USD, 8.4 percent of net sales; adjusted operating income of 63.2 million USD, 9.2 percent of net sales.
«We began fiscal year 2016 with record first quarter net sales and earnings growth. Our diversified portfolio delivered strong growth with contribution from our Hain Pure Protein Corporation segment (HPPC), with our FreeBird® and Plainville Farms® brands growing 27 percent, as well as our international businesses in Canada, Continental Europe and the United Kingdom in constant currency, which collectively grew 22 percent», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «Our United States segment growth did not fully meet our expectations, as strong performance from our snacks, yoghurt, tea, and personal care brands was overshadowed by temporary disruptions from some of our distributor and retail customers as well as a decline in grocery brands associated with deceleration in the natural channel. We continued to benefit from the diversification of our business across our branded organic and natural product categories, sales channels and geographies, which fuelled solid worldwide results in our typically lowest sales and profitability quarter».
First Quarter 2016
The United States segment reported first quarter net sales of 331 million USD. In the United Kingdom segment, net sales were 165 million USD. HPPC reported net sales of 124 million USD, and the Rest of the World segment reported net sales of 67 million USD. The Company had strong branded sales in constant currency.
The Company earned net income of 31.3 million USD, a 67 percent increase, and adjusted net income of 38.2 million USD, a ten percent increase, compared to the prior year first quarter. Earnings per diluted share for the first quarter were 0.30 USD, a 67 percent increase versus the prior year period. On an adjusted basis earnings per diluted share for the first quarter were 0.37 USD, a nine percent increase. Refer to Non-GAAP Financial Measures in this press release for adjustments.
«We remain optimistic about our growth opportunities in fiscal 2016 and beyond. We expect to build momentum throughout the year across our global footprint through the strength of our diversified product portfolio and customer base while investing in our brands and gaining distribution in the important health and wellness category», concluded Irwin Simon.
Fiscal Year 2016 Guidance
The Company reiterated its annual guidance for fiscal year 2016: Total net sales range of 2.97 billion USD to 3.11 billion USD, an increase of approximately ten percent to 15 percent as compared to fiscal year 2015; Earnings range of 2.11 USD to 2.26 USD per diluted share, an increase of twelve percent to 20 percent as compared to fiscal year 2015.
Guidance is provided on a non-GAAP basis and excludes acquisition-related expenses, integration and restructuring charges, start-up costs, unrealized net foreign currency gains or losses, reserves for litigation matters and other non-recurring items, including any product recalls or market withdrawals, that have been or may be incurred during the Company’s fiscal year 2016, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions (Image: pixabay.com).