Lake Success / NY. (hc) The Hain Celestial Group Inc., a leading natural and organic products company providing consumers with A Healthy Way of Life, reported results for the fourth quarter and fiscal year ended June 30, 2014. Highlights:
Fourth Quarter Fiscal Year 2014
- Record net sales of 583,8 million USD, a 26 percent increase
- GAAP earnings per diluted share from continuing operations of 0,70 USD, a 32 percent increase
- Adjusted earnings per diluted share from continuing operations of 0,90 USD, a 39 percent increase
- Adjusted operating income of 73,9 USD, 12,7 percent of net sales
- Record adjusted Ebitda of 79,4 million USD, a 27 percent increase
Fiscal Year 2014
- Record net sales of 2,154 billion USD, a 24 percent increase
- GAAP earnings per diluted share from continuing operations of 2,83 USD, a twelve percent increase
- Adjusted earnings per diluted share from continuing operations of 3,17 USD, a 25 percent increase
- Adjusted operating income of 256,0 million USD, 11,9 percent of net sales
- Record adjusted Ebitda of 300,0 million USD, a 27 percent increase
- Operating free cash flow reached 143,2 million USD for the twelve-months ended June 30, 2014
«We completed our fiscal year with record net sales by delivering solid performance across brands and geographies, and I am pleased with the results», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «Our US business continued to generate strong results as momentum for organic and natural products builds across various channels of distribution. Our UK business posted record sales with increased profit contribution and our Rest of World segment delivered high single digit sales growth».
Fourth Quarter 2014
Worldwide net sales for the fourth quarter of fiscal year 2014 were a record 583,8 million USD, an increase of 26,0 percent compared to net sales of 463,5 million USD in the prior year fourth quarter. Hain Celestial US reported record net sales of 323,0 million USD, a 13,2 percent increase. In the United Kingdom net sales were a record 200,5 million USD. The Rest of World segment reported net sales of 60,4 million USD. The Company had strong brand contribution across various sales channels. The growth in net sales also resulted from sales of some brands acquired earlier this year.
The Company earned income from continuing operations of 35,7 million USD compared to 25,9 million USD in the prior year fourth quarter and reported earnings per diluted share from continuing operations of 0,70 USD compared to 0,53 USD in the prior year fourth quarter, a 32,1 percent increase. Adjusted income from continuing operations was 46,0 USD compared to 31,7 million USD, a 45,3 percent increase, and adjusted earnings per diluted share from continuing operations was 0,90 USD compared to 0,65 USD, a 38,5 percent increase, from the prior year fourth quarter. Adjusted Ebitda reached a record 79,4 million USD during the fourth quarter.
Fiscal Year 2014
Worldwide net sales for fiscal year 2014 were a record 2,154 billion USD, an increase of 24,2 percent compared to net sales of 1,735 billion USD in the prior year. Hain Celestial US reported record net sales of 1,282 billion USD, a 17,0 percent increase. In the United Kingdom, net sales were a record 637,5 million USD. The Rest of World segment net sales were a record 234,0 million USD. The Company had strong brand contribution across various sales channels. The growth in net sales also resulted from sales of some brands acquired earlier this year and the full year contribution of some brands acquired in fiscal year 2013.
The Company earned income from continuing operations of 141,5 million USD compared to 119,8 million USD in the prior year and reported earnings per diluted share from continuing operations of 2,83 USD compared to 2,52 USD in the prior year, a 12,3 percent increase. Adjusted income from continuing operations was 158,6 million USD compared to 120,2 million USD, a 32,0 percent increase, and adjusted earnings per diluted share from continuing operations was 3,17 USD compared to 2,53 USD in the prior year, a 25,3 percent increase. Adjusted Ebitda reached a new high of 300,0 million USD for the fiscal year ended June 30, 2014. Operating free cash flow reached a record 143,2 million USD for the twelve months ended June 30, 2014.
Fiscal Year 2014 Highlights
The Company highlighted several of its accomplishments during fiscal year 2014:
- Completed two strategic acquisitions:
- Tilda, a leading premium 100 percent branded Basmati and specialty rice products company, which offers a range of products principally in the United Kingdom, the Middle East and North Africa, Continental Europe, North America and India;
- Rudi´s Organic Bakery, a leading organic and gluten-free company, which offers a range of USDA-certified organic and gluten-free bread and baked goods in the United States and Canada;
- Worldwide net sales surpassed two billion USD;
- Introduced over 200 new innovative products worldwide;
- Hain Celestial AOC US consumption as measured by AC Nielsen was 10,8 percent for the 52-weeks ended July 05, 2014;
- Delivered in excess of 50 million USD in worldwide productivity savings;
- Achieved record adjusted Ebitda of 300,0 million USD;
- Generated record operating free cash flow of 143,2 million USD; and
- Divested non-core Grains Noirs foodservice business in Belgium.
The Company, through one of its subsidiaries, nSpired Natural Foods Inc., initiated a voluntary recall on August 19, 2014 of certain lots of «MaraNatha» almond butters and peanut butters, «Arrowhead Mills» peanut butters and specific private label nut butters. As a result of this voluntary recall, the Company has accrued costs of 6,0 million USD as of June 30, 2014.
«Our business continues to benefit from strong growth trends in the organic and natural, better-for-you segment of consumer packaged goods as more consumers and retailers seek out our products. The success of our initiatives to drive profitable sales growth through distribution gains, strategic brand investments, new product innovation and accretive strategic acquisitions in complementary growth categories and geographies has positioned the Company with a solid foundation to capitalize on the tremendous opportunities in front of us. I am also proud to once again have Hain Celestial ranked as one of Fortune´s 100 Fastest Growing Companies, moving up to No. 61 in 2014, in recognition of the tremendous growth in the Company´s revenues and earnings over the last three years», concluded Irwin Simon.
Fiscal Year 2015 Guidance
The Company provided annual guidance for fiscal year 2015 including the July 2014 acquisition of Hain Pure Protein Corporation (HPP) with approximately 230 million USD in net sales in fiscal year 2014, which is expected to be accretive by 0,03 USD to 0,05 USD per diluted share:
- Total net sales range of 2,725 billion USD to 2,80 billion USD; an increase of approximately 27 percent to 30 percent as compared to fiscal year 2014.
- Earnings range of 3,72 USD to 3,90 USD per diluted share; an increase of 17 percent to 23 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, factory start-up costs, unrealized net foreign currency gains or losses, reserves for litigation settlements and other non-recurring items 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. Sales in the Company´s second quarter are historically the highest, and the Company´s earnings growth is expected to be the lowest in the first quarter and relatively consistent in the second, third and fourth quarters.