Hain Celestial Reports Record Results For Second Quarter Fiscal Year 2013

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 second quarter ended Dec. 31, 2012.

Worldwide net sales for the second quarter of fiscal year 2013 were a record $455.3 million, an increase of 24.8 percent compared to net sales of $364.8 million in the prior year period. Hain Celestial U.S. reported net sales of $280.4 million. In the United Kingdom, Hain Daniels' net sales were $120.2 million. For the company's Rest of World segment, consisting of the operations of Hain Celestial Canada and Hain Celestial Europe, net sales were $54.7 million. The company had strong brand contribution across various sales channels led by Celestial Seasonings®, Earth's Best®, Garden of Eatin®, Imagine®, MaraNatha®, The Greek Gods®, Alba Botanica®, Lima®, Danival® and Linda McCartney®. Also, the company has entered the raw juice category with the acquisition of the BluePrint® brand in late December.

The company earned income from continuing operations of $32.2 million in the second quarter of fiscal year 2013 compared to $21.1 million in the prior year period, a 53.0 percent increase, and reported earnings per diluted share from continuing operations of $0.68 compared to $0.46 in the prior year second quarter. Adjusted income from continuing operations was $34.2 million compared to $24.4 million in the prior year, a 40.3 percent increase, and adjusted earnings per diluted share from continuing operations was $0.72 compared to $0.53 in the prior year second quarter. Adjusted amounts exclude acquisition-related expenses, integration and restructuring charges as well as an acquisition-related currency gain. Adjusted earnings before interest, taxes, depreciation, and amortization(EBITDA) reached a new high of $205.9 million during the 12-trailing month period ended Dec. 31, 2012.

"I am extremely pleased with our results as Hain Celestial U.S. delivered 9.4 percent top-line growth on a comparable basis as well as increased profitability during the second quarter. In the UK, Hain Daniels, with the addition of the ambient grocery brands for two months of the quarter, focused on higher margin brand growth while evaluating and establishing a program to eliminate certain unprofitable private label sales. At the same time our businesses in Canada and Europe delivered profitable growth," said Irwin D. Simon, founder, president and chief executive officer of Hain Celestial, in prepared statement. "As we have previously discussed, a major investment in our Fakenham facility is underway, where we are repositioning our meat-free frozen foods plant to be ready for the commencement of a long-term program with a major retailer later this year. Brands acquired during the quarter also contributed to our results, including Hartley's® jam and Sun-Pat® peanut butter, each of which are no. 1 in their respective categories in the United Kingdom," concluded Simon.


Fiscal Year 2013 Guidance

The company updated its annual guidance for fiscal year 2013. The total net sales range of $1.740 billion increased to $1.755 billion an jump of 26 percent to 27 percent as compared to fiscal year 2012. The earnings range of $2.40 went to $2.47 per diluted share, an increase of 29 percent to 33 percent as compared to fiscal year 2012.

Guidance is provided for continuing operations on a non-GAAP (generally accepted accounting principles) basis and excludes acquisition and integration expenses that may be incurred during the company's fiscal year 2013, which the company will continue to identify as it reports its future 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.

Segment Results

Sales in the U.S. segment were $280.4 million for the three months ended Dec. 31, 2012, up 9.4 percent from the prior year period on a comparable basis, after adjusting the reported 8.2 percent growth for the transfer of sales responsibilities for a particular brand to the company's Canadian operations in fiscal year 2013, which accounted for $2.8 million included in U.S. sales in fiscal year 2012. For the six months ended Dec. 31, 2012, the increase was 9.4 percent after adjusting for the transfer of $5.7 million of sales in fiscal year 2012.