Hain Celestial: Reports Record Earnings in Q2/2012

Melville / NY. (hc) The Hain Celestial Group Inc., a leading natural and organic products company providing consumers with «A Healthy Way of Life», reported record results in the second quarter ended December 31, 2011 as net sales, net income and earnings per diluted share reached the highest levels in the Company´s history. Performance highlights:

  • Record net sales, up 32,1 percent over the comparable period in fiscal year 2011
  • Record GAAP net income, up 23,2 percent; adjusted net income, up 34,5 percent
  • GAAP operating income increased 17,6 percent, adjusted operating income increased 30,9 percent
  • Record Diluted GAAP EPS of 0,44 USD; diluted adjusted EPS of 0,52 USD
  • Adjusted Ebitda increased 29,4 percent to 49,8 million USD compared to 38,5 million USD in the prior year second quarter.
  • Operating free cash flow improved by 21,3 percent, reaching 72,3 million USD for the twelve months ended December 31, 2011 compared to 59,6 million USD in the twelve months ended December 31, 2010.

«At a time when many consumer packaged goods companies are experiencing one to two percent consumption growth in the grocery channel, we are achieving consumption growth at more than three times that rate. In the United States, we continue to drive sales growth in our core distribution channels. We are pleased and delighted to see that consumers continue to be attracted to our more healthful food and personal care products», said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. «Based on our experience during the last few months, we are even more excited today about working with the Daniels Group management team, and we can see the high potential they have to contribute to the future overall growth of Hain Celestial».

Net sales in the second quarter of fiscal year 2012 increased 32,1 percent to a record of 385,6 million USD as compared to net sales of 291,9 million USD in the second quarter of fiscal year 2011. The Company´s growth was driven by increased consumption in core categories and expanded distribution principally in the grocery and mass channels. The acquisitions of the Daniels Group and Europe´s Best brand, which were completed in October, also contributed to the Company´s growth.

The Company earned a record 20,0 million USD of net income as compared to 16,3 million USD in the second quarter of the prior year and reported earnings per diluted share of 0,44 USD as compared to 0,37 USD in the second quarter of the prior year. Adjusted earnings per diluted share were 0,52 USD on adjusted net income of 23,5 million USD in the fiscal 2012 second quarter as compared to 0,39 USD per share on adjusted net income of 17,5 million USD in the prior year second quarter. Adjusted net income and adjusted earnings per diluted share improved 34,5 percent and 33,3 percent, respectively, over the prior year second quarter. Adjusted net income and adjusted earnings per diluted share for these periods exclude acquisition-related fees, expenses and integration costs of 5,5 million USD before taxes, or 0,08 USD per diluted share.

As expected with the acquisition of the Daniels Group, changes in the Company´s gross profit and selling, general and administrative expenses as percentages of net sales resulted in virtually no change to operating margin. Input cost inflation amounted to 6,1 percent in the second quarter this year measured against the second quarter of the prior year.

Fiscal Year 2012 Company Estimates

The Company reconfirmed its annual guidance for fiscal year 2012:

  • Total net sales of 1,455 billion USD to 1,480 billion USD
  • Earnings of 1,63 USD to 1,73 USD per diluted share

    Guidance is provided on a non-GAAP basis and therefore excludes acquisition and integration expenses that may be incurred, which the Company will identify when it reports its financial results. Historically, the Company´s sales and earnings have been strongest in its second and third quarters.