The Hain Celestial Group completes Asian alliance with Yeo Hiap Seng Limited
The companies are currently pursuing joint interests in marketing and distribution of food and beverages and product development.
09/09/05 The Hain Celestial Group, Inc. (The Company), a leading natural and organic food and personal care products company, has announced the completion of its Asian alliance with Yeo Hiap Seng Limited ("YHS"). Pursuant to the August 2005 investment agreements between Hain Celestial and YHS, the companies exchanged $2 million in equity investments in each other on September 6, 2005, resulting in the issuance of 100,482 shares of Hain Celestial common stock to YHS and the issuance of 1,326,938 ordinary shares of YHS to Hain Celestial. These investments represent the completion of the first stage of the alliance established between Hain Celestial and YHS, a Singapore based natural food and beverage company listed on the Singapore Stock Exchange. The companies are currently pursuing joint interests in marketing and distribution of food and beverages and product development.
The Company also announced that it generated Operating Free Cash Flow of $25.1 million for fiscal year 2005 achieving a 20% improvement over the prior year's $20.9 million. The Company computes its Operating Free Cash Flow by deducting Capital Expenditures from its Cash Flow from Operations. During fiscal year 2005, Capital Expenditures amounted to $9.9 million, which when deducted from cash flow from operations of $35.0 million resulted in Operating Free Cash Flow of $25.1 million for the fiscal year compared with $20.9 million in the prior year period.
The Company's Cash Conversion Cycle was reduced to 69 days, a 17-day reduction from the prior year period. At June 30, 2005, there were 42 days sales in the Company's accounts receivable, 62 days in the Company's inventories, and 35 days in the Company's accounts payable. The improvement in these measurements resulted from the Company's increased focus on its balance sheet introduced earlier in fiscal year 2005.
The Company released its Statement of Cash Flows for the fiscal year 2005 and its final balance sheet reflecting minor reclassifications when compared with the balance sheet released earlier.
On September 1st, the Company announced its fiscal year 2006 guidance of $650 million to $670 million in sales and earnings of $0.98 to $1.05 per share.
The Hain Celestial Group (Nasdaq: HAIN - News), headquartered in Melville, NY, is a leading natural and organic food and personal care products company in North America and Europe. Hain Celestial participates in almost all natural food categories with well-known brands that include Celestial Seasonings®, Terra Chips®, Garden of Eatin'®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, Hain Pure Foods®, Raised Right®, Hollywood®, Walnut Acres Organic®, Imagine Foods®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Lima®, Biomarche®, Grains Noirs®, Natumi®, JASON® and Zia® Natural Skincare.
