The Hain Celestial Group, Inc., a natural and organic products company providing consumers with A Healthy Way of Life™, reported record results in the second quarter ended Dec. 31, 2011 as net sales, net income and earnings per diluted share reached the highest levels in the company's history.
"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 in a prepared statement. "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 as compared to net sales of $291.9 million in the second quarter of fiscal year 2011. The company's growth was driven by increased consumption in core categories with strong contributions from its Earth's Best®, Celestial Seasonings®, MaraNatha®, Garden of Eatin'®, Sensible Portions®, The Greek Gods®, Imagine®, Linda McCartney® and JASON® brands 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 of net income as compared to $16.3 million in the second quarter of the prior year and reported earnings per diluted share of $0.44 as compared to $0.37 in the second quarter of the prior year. Adjusted earnings per diluted share were $0.52 on adjusted net income of $23.5 million in the fiscal 2012 second quarter as compared to $0.39 per share on adjusted net income of $17.5 million 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 before taxes, or $0.08 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.