The Hain Celestial Group, Inc. reported its results for the first quarter ended Sept. 30, 2012. The company reported global net sales of $359.8 million from continuing operations, a 25.4 percent increase compared to net sales of $286.8 million in the first quarter of fiscal year 2012. The company's first quarter net sales do not include $12.2 million of net sales in fiscal year 2013 and $5.5 million in fiscal year 2012 from discontinued operations. The company's growth came from continued sales momentum in the natural and organic sector across various classes of trade including natural, grocery, mass-market retailers, club stores and e-tailers along with contributions from strategic acquisitions. Strong contribution came from our Celestial Seasonings®, Earth's Best®, Sensible Portions®, Spectrum®, MaraNatha®, The Greek Gods®, Terra®, Garden of Eatin'®, Arrowhead Mills®, Linda McCartney®, Alba Botanica®, Europe's Best®, New Covent Garden Soup Co.®, Johnson's Juice Co.® and Cully & Sully® brands.
For the first quarter, the company earned $19.8 million of net income from continuing operations as compared to $12.6 million in the prior year first quarter, a 56.6 percent increase from the prior year, and reported earnings per diluted share from continuing operations of $0.42 compared to $0.28 in the prior year first quarter. Adjusted earnings per diluted share was $0.40 on adjusted net income of $18.6 million in the fiscal year 2013 first quarter as compared to $0.30 per diluted share on adjusted net income of $13.7 million over the prior year first quarter. Adjusted net income and adjusted earnings per diluted share improved 35.8 percent and 33.3 percent, respectively, over the prior year first quarter. Adjusted net income excludes acquisition-related items and restructuring charges, discrete tax items and results of discontinued operations.
"We had a strong start to our fiscal year with solid growth of our business led by Hain Celestial United States and with contributions from our expanded international operations during our first quarter. Our increased scale provided us the leverage for improved operating efficiencies across our global portfolio enabling us to deliver solid results from all of our segments. At the same time, our cash conversion cycle improved to 66 days compared 83 days during the first quarter last year," said Irwin D. Simon, founder, president and chief executive officer of Hain Celestial, in a prepared statement.
Fiscal Year 2013 Guidance
The company updated its annual guidance for fiscal year 2013 in connection with its recent acquisition of certain of the Premier Foods brands.
- Total net sales range of $1.780 billion to $1.795 billion.
- Earnings of $2.35 to $2.45 per diluted share.
Guidance is provided for continuing operations on a non-GAAP basis and therefore excludes results of discontinued operations and acquisition and integration expenses that may be incurred during the company's fiscal year 2013, which the company will continue to identify when it reports its financial results. Guidance excludes the impact of any future acquisitions. Historically, the company's sales and earnings are strongest in its second and third quarters, which is expected to continue with the acquisition of the brands from Premier Foods.