Hain Celestial Reports Sales Up 31% in the Fourth Quarter
Hain Celestial reports strong fourth quarter and fiscal year 2011 results driven by solid execution and consumer demand for natural and organic products.
Aug 25 2011 --- The Hain Celestial Group, Inc., a leading natural and organic products company providing consumers with A Healthy Way of Life, reported its results for the fourth quarter and fiscal year ended June 30, 2011.
Performance Highlights
Fourth Quarter Fiscal Year 2011
* Net sales up 31% over the same period in fiscal year 2010
* GAAP net income up 92%; adjusted net income up 48%
* GAAP gross profit up 186 basis points; adjusted gross profit up 168 basis points
* GAAP operating margin up 373 basis points; adjusted operating margin up 153 basis points
* Diluted GAAP EPS of $0.28; diluted adjusted EPS of $0.35
Fiscal Year 2011
* Net sales up 23% over fiscal year 2010
* GAAP net income up 92%; adjusted net income up 43%
* GAAP gross profit up 89 basis points; adjusted gross profit up 91 basis points
* GAAP operating margin up 168 basis points; adjusted operating margin up 75 basis points
* Diluted GAAP EPS of $1.23; diluted adjusted EPS of $1.35
Fourth Quarter Fiscal Year 2011 Results
Net sales in the 2011 fourth quarter increased 31.1% to a record $292.0 million as compared to net sales of $222.8 million in the fourth quarter of fiscal year 2010. The Company's growth momentum continued across its worldwide portfolio of brands in various classes of trade including natural, grocery, club, mass and dot-com channels coupled with contributions from strategic acquisitions. The Company earned $12.8 million in net income as compared to $6.7 million in the fourth quarter of the prior year and reported diluted earnings per share of $0.28 as compared to $0.16 in the fourth quarter of the prior year. Adjusted earnings per diluted share was $0.35 on adjusted net income of $15.7 million in the 2011 fourth quarter as compared to $0.25 per share on adjusted net income of $10.6 million in the prior year fourth quarter. Adjusted net income and diluted earnings per share improved 48% and 40%, respectively, over the prior year fourth quarter. The Company's 2011 fourth quarter adjusted net income excludes acquisition related items, a discrete tax item and the impact of an impairment charge on properties related to discontinued operations at the Company's unconsolidated Hain Pure Protein investment.
Gross profit in the fourth quarter improved 186 basis points to 27.9% of net sales, as compared to the prior year fourth quarter, on the strength of a favorable mix of product sales worldwide and productivity savings, which helped offset increased input costs. In the 2011 fourth quarter, selling, general and administrative expenses were flat on a GAAP basis at 18.4% of net sales when compared to the prior year fourth quarter. Operating margin was 9.5%, an improvement of 373 basis points on a GAAP basis and 153 basis points on an adjusted basis, as compared to the prior year fourth quarter.
"Our fourth quarter results complete a strong year across our business with solid top- and bottom-line performance by the Company," said Irwin D. Simon, President and Chief Executive Officer of Hain Celestial. "Indications are that despite ongoing challenges in the economy, consumers continue to seek out healthful products from our natural and organic brands."
Fiscal Year 2011 Results
For the 2011 fiscal year the Company reported record net sales of $1.13 billion, an increase of 23.2% from the prior year net sales of $917.3 million, reflecting growth across its worldwide portfolio including acquisitions. The Company earned $55.0 million in net income as compared to $28.6 million in the prior year and reported earnings of $1.23 per diluted share as compared to earnings of $0.69 per diluted share in the prior year. Adjusted earnings per diluted share were $1.35 on adjusted net income of $60.2 million for the year as compared to $1.01 earnings per diluted share on adjusted net income of $42.0 in the prior year. On an adjusted basis, net income and diluted earnings improved 43% and 34%, respectively, over the prior year.
Gross profit in the fiscal year improved 89 basis points to 28.3% of net sales compared to 27.4% of net sales in the prior year. The higher gross profit performance resulted from the favorable mix of product sales along with productivity savings, which partially offset increased input costs. Operating margin was 9.4% on a GAAP basis this year, a 168 basis point improvement from 7.8% in the prior year. Selling, general and administrative expenses were flat at 18.8% of net sales for the year. On an adjusted basis, operating margin was 9.5% this year, a 75 basis point improvement from 8.8% in the prior year.
