Melville / NY. (hc) The Hain Celestial Group Inc., a leading natural and organic products company providing consumers with A Healthy Way of Life, reported its results for the second quarter ended December 31, 2012.
Performance Highlights Q2/2013 Compared to Q2/2012
- Record net sales of 455,3 million USD, an increase of 24,8 percent
- GAAP net income of 31,6 million USD, an increase of 57,8 percent
- GAAP earnings per diluted share from continuing operations of 0,68 USD, an increase of 47,8 percent
- Adjusted earnings per diluted share of 0,72 USD, an increase of 35,8 percent
- Operating free cash flow of 106,8 million USD for the trailing twelve months ended December 31, 2012, an increase of 47,6 percent
- Adjusted Ebitda of 205,9 million USD for the trailing twelve months ended December 31, 2012, an increase of 31,8 percent
«I am extremely pleased with our results as Hain Celestial US delivered 9,4 percent top-line growth on a comparable basis as well as increased profitability during the second quarter. In the UK, Hain Daniels, with the addition of the ambient grocery brands for two months of the quarter, focused on higher margin brand growth while evaluating and establishing a program to eliminate certain unprofitable private label sales. At the same time our businesses in Canada and Europe delivered profitable growth», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «As we have previously discussed, a major investment in our Fakenham facility is underway, where we are repositioning our meat-free frozen foods plant to be ready for the commencement of a long-term program with a major retailer later this year. Brands acquired during the quarter also contributed to our results, including Hartley´s jam and Sun-Pat peanut butter, each of which are No. one in their respective categories in the United Kingdom», concluded Irwin Simon.
Worldwide net sales for the second quarter of fiscal year 2013 were a record 455,3 million USD, an increase of 24,8 percent compared to net sales of 364,8 million USD in the prior year period. Hain Celestial US reported net sales of 280,4 million USD. In the United Kingdom, Hain Daniels´ net sales were 120,2 million USD. For the Company´s Rest of World segment, consisting of the operations of Hain Celestial Canada and Hain Celestial Europe, net sales were 54,7 million USD. The Company had strong brand contribution across various sales channels led by Celestial Seasonings, Earth´s Best, Garden of Eatin, Imagine, MaraNatha, The Greek Gods, Alba Botanica, Lima, Danival and Linda McCartney. Also, the Company has entered the raw juice category with the acquisition of the BluePrint brand in late December.
The Company earned income from continuing operations of 32,2 million USD in the second quarter of fiscal year 2013 compared to 21,1 million USD in the prior year period, a 53,0 percent increase and reported earnings per diluted share from continuing operations of 0,68 USD compared to 0,46 USD in the prior year second quarter. Adjusted income from continuing operations was 34,2 million USD compared to 24,4 million USD in the prior year, a 40,3 percent increase and adjusted earnings per diluted share from continuing operations was 0,72 USD compared to 0,53 USD in the prior year second quarter. Adjusted amounts exclude acquisition-related expenses, integration and restructuring charges as well as an acquisition-related currency gain. Adjusted Ebitda reached a new high of 205,9 million USD during the 12-trailing month period ended December 31, 2012.
Fiscal Year 2013 Guidance
The Company updated its annual guidance for fiscal year 2013.
- Total net sales range of 1,740 billion USD to 1,755 billion USD; an increase of 26 percent to 27 percent as compared to fiscal year 2012.
- Earnings range of 2,40 USD to 2,47 USD per diluted share; an increase of 29 percent to 33 percent as compared to fiscal year 2012.
Guidance is provided for continuing operations on a non-GAAP basis and excludes acquisition and integration expenses that may be incurred during the Company´s fiscal year 2013, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions. Historically, the Company´s sales and earnings are strongest in its second and third quarters.
The Company´s operations are organized into geographic segments: United States, United Kingdom, Canada and Europe. Sales in the United States segment were 280,4 million USD for the three months ended December 31, 2012, up 9,4 percent from the prior year period on a comparable basis, after adjusting the reported 8,2 percent growth for the transfer of sales responsibilities for a particular brand to the Company´s Canadian operations in fiscal year 2013, which accounted for 2,8 million USD included in United States sales in fiscal year 2012. For the six months ended December 31, 2012, the increase was 9,4 percent after adjusting for the transfer of 5,7 million USD of sales in fiscal year 2012.