The Hain Celestial Group, Inc., a natural and organic products company providing consumers with A Healthy Way of Life™, reported record results for the third quarter ended March 31, 2012. Highlights are:
- Record net sales up 31.5 percent over the comparable period in fiscal year 2011;
- Record GAAP net income up 43.7 percent; adjusted net income up 53.6 percent;
- Record GAAP operating income increased 31.7 percent; adjusted operating income increased 42.0 percent;
- Record GAAP diluted EPS of $0.52; adjusted diluted EPS of $0.54;
- Record adjusted EBITDA increased 32.8 percent to $51.6 million compared to $38.8 million in the prior year third quarter
Operating free cash flow improved by 30.1 percent, reaching $79.3 million for the 12 months ended March 31, 2012 compared to $61.0 million for the 12 months ended March 31, 2011.
"Our natural and organic products continue to resonate with consumers both domestically and internationally, outpacing the trends of conventional consumer packaged goods companies. Our focused execution drove robust top line sales and profitability across various classes of trade, led by natural and organic food retailers and followed by other retailers as consumers continue to seek out our natural and organic products," said Irwin D. Simon, founder, president and chief executive officer of Hain Celestial in a prepared statement. "We are delivering on our core strategies of profitable growth, expanding net income margin, leveraging our acquisitions with improved efficiencies and increasing operating free cash flow—all providing a solid foundation for sustainable long-term growth for the company."
Net sales in the third quarter of fiscal year 2012 increased 31.5 percent to $379.4 million as compared to net sales of $288.4 million in the third quarter of fiscal year 2011. This year's third quarter net sales of $379.4 million does not include $21.0 million of net sales from private label chilled ready meals, which was acquired as part of the Daniels Group and is now classified as discontinued operations as further detailed below. The company's growth was driven by increased consumption in core categories and expanded distribution across various classes of trade in all key channels with strong contributions from its Earth's Best®, Celestial Seasonings®, Imagine®, MaraNatha®, Garden of Eatin'®, Sensible Portions®, The Greek Gods®, and JASON® brands.
The company earned a record $24.1 million of net income as compared to $16.8 million in the third quarter of the prior year and reported record earnings per diluted share of $0.52 as compared to $0.38 in the third quarter of the prior year. Record adjusted earnings per diluted share were $0.54 on record adjusted net income of $24.9 million in the fiscal 2012 third quarter as compared to $0.36 per share on adjusted net income of $16.2 million in the prior year third quarter.
Adjusted net income and adjusted earnings per diluted share improved 53.6 percent and 50.0 percent, respectively, over the prior year third quarter. Adjusted net income and adjusted earnings per diluted share for the third quarter of fiscal year 2012 excludes $1.7 million after tax, or $0.04 per diluted share, related to acquisition fees, expenses and integration costs, which was partially offset by a decrease in unrecognized tax benefits of $0.8 million, or $0.02 per diluted share.
"As an innovation leader in the natural and organic industry, we introduced over 60 new products at the Natural Products Expo in March. The third quarter was also our first full quarter with the results of the Daniels Group, and I'm excited to see the focus on building our brands in the United Kingdom and integrating our existing business while we continue to take out costs. We also saw great distribution growth from our Europe's Best® brand in Canada, which we owned for the full quarter," concluded Irwin Simon.