Hain Celestial Announces First Quarter Fiscal Year 2015 Record Net Sales

07 Nov 2014 --- The Hain Celestial Group, Inc., a leading organic and natural products company with operations in North America, Europe and India providing consumers with A Healthier Way of Life, reported record results for its first quarter ended September 30, 2014.

First Quarter Performance Highlights
- Record first quarter net sales of $631.3 million; adjusted net sales of $642.6 million, a 35% increase over the prior year period net sales
- Earnings per diluted share of $0.37, which includes an after-tax charge of $14.2 million for the nut butter recall; record first quarter adjusted earnings per diluted share of $0.68, a 31% increase over the prior year period adjusted earnings per diluted share
- Operating income $28.8 million; adjusted operating income $58.8 million, a 37% increase over the prior year period adjusted operating income

"We are pleased with another strong start to our fiscal year across all of our segments on a worldwide basis with the highest quarterly net sales in the Company's history," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Our diverse portfolio of brands and products across multiple categories and our customer base across various channels of distribution enabled us to deliver double digit sales growth even with the impact of the nut butter recall initiated in August."  Irwin Simon continued, "Consumers tastes are shifting and views on health and wellness are evolving.  Our business continues to benefit from strong growth trends in the organic and natural, better-for-you segment of consumer packaged goods."

First Quarter Fiscal Year 2015
The Company reported record net sales of $631.3 million and adjusted net sales of $642.6 million, a 35% increase, as adjusted for the nut butter voluntary recall.  Hain Celestial US reported record first quarter net sales of $336.9 million and record first quarter adjusted net sales of $347.4 million, an increase of 11% over the prior year first quarter, which includes a $10.4 million sales adjustment for the nut butter recall. In the United Kingdom, net sales were $172.3 million, a 51% increase, and the Rest of the World segment reported net sales of $51.4 million and adjusted net sales of $52.3 million.  Hain Pure Protein Corporation (HPPC), acquired in July 2014, reported net sales of $70.7 million.  The Company had strong brand contribution led by double digit growth from Earth's Best, Sensible Portions, Spectrum, Ella's Kitchen, Garden of Eatin', New Covent Garden Soup Co., Linda McCartney, Sun-Pat, Johnson's Juice Co., Danival, Europe's Best, Imagine, Westbrae, Gale's, Frank Cooper's, Sunripe, Walnut Acres, Avalon Organics and Queen Helene.  The growth in net sales also resulted from sales of Tilda, Rudi's Organic Bakery, Plainville Farms and FreeBird, brands acquired after the first quarter of fiscal year 2014.

The Company earned net income of $18.9 million and adjusted net income of $34.7 million for the first quarter.  Earnings per diluted share was $0.37 and on an adjusted basis was $0.68, a 31% increase from the prior year first quarter.  Refer to Non-GAAP Financial Measures for adjustments.  

Stock Dividend

The Company's Board of Directors has approved a 2 for 1 stock split in the form of a 100% dividend, subject to approval by stockholders of an increase in the Company's authorized common stock from 100 million shares to 150 million shares.  Stockholders will have the opportunity to approve the proposed increase in authorized shares at the Company's Annual Meeting of Stockholders to be held on November 20, 2014.  Upon stockholder approval of the proposed increase in the authorized number of shares, the stock dividend is expected to be implemented as soon as practicable following the annual meeting.

"We are extremely pleased to be able to enhance shareholder value through our stock split. We believe we are well-positioned for another record year and future long-term growth as we expand distribution of our organic and natural products with existing and new customers across multiple channels worldwide including mass market, food service, convenience, grocery store chains and e-commerce. Our executive team remains committed to increasing long-term shareholder returns," concluded Irwin Simon.

Fiscal Year 2015 Guidance

The Company reiterated its annual guidance for fiscal year 2015:
- Total net sales range of $2.725 billion to $2.80 billion; an increase of approximately 27% to 30% as compared to fiscal year 2014.
- Earnings range of $3.72 to $3.90 per diluted share; an increase of 17% to 23% 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 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.  Sales in the Company's second quarter are historically the highest, and the Company's earnings is expected to be the lowest in the first quarter and relatively consistent in the second, third and fourth quarters.

Segment Results

The Company's operations are managed into the following segments:  United States, United Kingdom, HPPC and Rest of World (comprised of Canada and Continental Europe).