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 third quarter ended March 31, 2015. Highlights:
- Record third quarter net sales of 662.7 million USD, a 19 percent increase over the prior year period. Foreign exchange rate changes on a year-over-year basis impacted sales by 26 million USD. Excluding the effect of these exchange rate changes, sales would have been 688.7 million USD, or a 24 percent increase over the prior year period.
- Earnings per diluted share of 0.32 USD; adjusted earnings per diluted share of 0.45 USD. Unfavorable foreign currencies impacted reported results by 0.04 USD per diluted share and by 0.01 USD per adjusted diluted share.
- Operating income of 60.2 million USD; adjusted operating income of 77.5 million USD.
«I am pleased with our third quarter results. We had record third quarter net sales, as the strength of our core brands and contributions from acquisitions helped us to overcome foreign currency impacts to deliver our 18th consecutive year-over-year double digit net sales growth», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «Our team managed our expenses and focused on productivity improvements to deliver profitable worldwide expansion in the quarter, while we also experienced greater contribution from our Hain Pure Protein Corporation business as consumers today increasingly seek fresh, antibiotic-free and organic proteins to complement their healthy lifestyles».
Third Quarter Fiscal Year 2015
Hain Celestial US reported record third quarter net sales of 343.7 million USD, an increase of eight percent, over the prior year third quarter. In the United Kingdom, net sales were 178.1 million USD, and the Rest of the World segment reported net sales of 57.8 million USD.
The Company earned net income of 33.4 million USD and adjusted net income of 46.5 million USD for the third quarter. Earnings per diluted share for the third quarter were 0.32 USD and on an adjusted basis were 0.45 USD. Included in reported results for the third quarter is a non-cash partial impairment charge of 5.5 million USD (4.4 million USD after-tax or 0.04 USD per diluted share) for an intangible asset related to the United Kingdom segment. Refer to Non-GAAP Financial Measures in this press release for adjustments.
Fiscal Year 2015 Guidance
The Company updated its annual net sales guidance for the acquisitions of Belvedere International with its «Live Clean» personal care brand and «Empire» brands during the third quarter and updated its earnings guidance.
- Total net sales range of 2.692 billion USD to 2.700 billion USD; an increase of approximately 25 percent as compared to fiscal year 2014.
- Earnings range of 1.86 USD to 1.90 USD per diluted share; an increase of 17 percent to 20 percent as compared to fiscal year 2014.
Guidance is provided for continuing operations 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 settlements 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 2015, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions.