Hain Celestial Announces Record First Quarter Fiscal Year 2014 Results

06 Nov 2013

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6 Nov 2013 --- The Hain Celestial Group, Inc. a leading organic and natural products company providing consumers with A Healthier Way of Life, has reported record first quarter results for its quarter ended September 30, 2013.

"We are pleased with the strong start to our fiscal year with robust growth globally from numerous brands in our portfolio," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "We continue to focus on driving sales growth and distribution gains, which, combined with margin enhancement and cost containment, will position us for sustained earnings growth."

The Company reported net sales of $477.5 million, a 33% increase, compared to net sales of $359.8 million in the first quarter of fiscal year 2013. Hain Celestial US reported record first quarter sales of $312.0 million, a 23% increase, including strong sales from Ella's Kitchen and BluePrint brands acquired after the first quarter of fiscal year 2013. In the United Kingdom, Hain Daniels net sales were $114.0 million, and the Rest of World segment reported net sales of $51.5 million. The Company had strong brand contribution across various sales channels led by double-digit growth from Earth's Best, Sensible Portions, Spectrum, The Greek Gods, Imagine, Arrowhead Mills, Hain Pure Foods, Bearitos, Lima, Danival, Natumi and Linda McCartney. The growth in net sales also resulted from sales of our Hartley's, Sun-Pat, Gale's, Robertson's and Frank Cooper's brands also acquired after the first quarter of fiscal year 2013.

For the first quarter, the Company earned income from continuing operations of $27.7 million compared to $19.8 million in the prior year first quarter, a 40% increase, and reported earnings per diluted share from continuing operations of $0.57 compared to $0.42 in the prior year first quarter. Adjusted net income was $25.3 million compared to $19.2 million in the prior year first quarter, a 32% increase and adjusted earnings per diluted share was $0.52 compared to $0.41, a 27% increase. Adjusted amounts exclude acquisition-related expenses, integration and restructuring charges, factory start-up costs, unrealized currency gains and losses and a net discrete tax benefit.

The Company reconfirmed its annual guidance for fiscal year 2014 and updated its first half of fiscal year 2014 earnings guidance:

• Total net sales range of $2.025 billion to $2.050 billion for fiscal year 2014; an increase of approximately 17% as compared to fiscal year 2013.
• Earnings range of $2.95 to $3.05 per diluted share for fiscal year 2014; an increase of 16% to 20% as compared to fiscal year 2013.
• Earnings range of $1.37 to $1.42 per diluted share for the first half of 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 currency gains or losses, reserves for litigation and non-recurring tax items that have been or may be incurred during the Company's fiscal year 2014, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions.

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