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 second quarter ended December 31, 2015. Performance highlights:
- Record net sales of 752.6 million USD, an 8 percent increase, or 11 percent on a constant currency basis, over prior year net sales of 696.4 million USD. Net sales were impacted by 18.3 million USD as a result of foreign exchange rate movements versus a year ago.
- Earnings per diluted share of 0.55 USD, a 28 percent increase; adjusted earnings per diluted share of 0.57 USD, a 6 percent increase. Foreign currencies impacted reported results by 0.01 USD per diluted share.
- Record operating income of 87.7 million USD, 11.7 percent of net sales; adjusted operating income of 92.9 million USD, 12.3 percent of net sales.
- Strong operating cash flow of 93.9 million USD, an increase of 82 percent over the prior year quarter.
«Our record net sales reflect the continuing strong performance from the United Kingdom and Rest of World segments, which collectively grew 12 percent in constant currency and the Hain Pure Protein Corporation segment (HPPC), which grew 21 percent excluding the acquisition of «Empire». Our strong sales growth was impacted in the quarter primarily by reductions in inventories at certain customers in the United States segment», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «We were able to deliver these strong results, reflecting our global diversified business model across Hain Celestial’s organic and natural brands, product categories, customers and geographies».
Second Quarter 2016
The United States segment reported second quarter net sales of 342.3 million USD. In the United Kingdom segment, net sales were 194.2 million USD. HPPC reported net sales of 141.7 million USD, and the Rest of World segment reported net sales of 74.4 million USD. The Company had strong branded sales in constant currency. Net sales of brands acquired after the second quarter of fiscal year 2015 also contributed to the sales growth.
The Company earned net income of 56.9 million USD, a 28 percent increase, and adjusted net income of 59.2 million USD, a 7 percent increase, compared to the prior year period. Earnings per diluted share for the second quarter were 0.55 USD, a 28 percent increase compared to the prior year period. On an adjusted basis earnings per diluted share for the second quarter were 0.57 USD, a 6 percent increase compared to the prior year period. Refer to Non-GAAP Financial Measures in this press release for re-conciliations.
«Hain Celestial continues to be at the forefront of the evolution around changing consumer trends in consumer packaged goods with a strong global brand portfolio in key growth categories. We are uniquely positioned to satisfy the health and wellness needs of consumers with our leading natural and organic products as we work to deliver increased shareholder value», concluded Irwin Simon.
Fiscal Year 2016 Guidance
The Company reiterated its fiscal year 2016 guidance expectations of:
- Total net sales range of 2.90 billion USD to 3.04 billion USD, an increase of approximately 7 percent to 12 percent as compared to fiscal year 2015, and
- Earnings per diluted share range of 1.95 USD to 2.10 USD, an increase of approximately 4 percent to 12 percent as compared to fiscal year 2015.
With respect to the cadence of the second half of the Company’s fiscal year financial results, the Company expects net sales to be slightly lower in the third quarter as compared to the fourth quarter, while 42 percent to 46 percent of the Company’s second half earnings will be in the third quarter and the balance in the fourth quarter.
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.
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