LAKE SUCCESS, N.Y., May 6, 2015 /PRNewswire/ -- The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural products company with operations in North America, Europe and India providing consumers with A Healthier Way of Life™, today reported results for its third quarter ended March 31, 2015.
The Hain Celestial Group, Inc. Third Quarter Performance Highlights
Record third quarter net sales of $662.7 million, a 19% increase over the prior year period. Foreign exchange rate changes on a year-over-year basis impacted sales by $26 million. Excluding the effect of these exchange rate changes, sales would have been $688.7 million, or a 24% increase over the prior year period.
Earnings per diluted share of $0.32; adjusted earnings per diluted share of $0.45. Unfavorable foreign currencies impacted reported results by $0.04 per diluted share and by $0.01 per adjusted diluted share.
Operating income of $60.2 million; adjusted operating income of $77.5 million.
"I am pleased with our third quarter results. We had record third quarter net sales, as the strength of our core brands and contributions from acquisitions helped us to overcome foreign currency impacts to deliver our 18th consecutive year-over-year double digit net sales growth," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Our team managed our expenses and focused on productivity improvements to deliver profitable worldwide expansion in the quarter, while we also experienced greater contribution from our Hain Pure Protein Corporation business as consumers today increasingly seek fresh, antibiotic-free and organic proteins to complement their healthy lifestyles."
Third Quarter Fiscal Year 2015
Hain Celestial US reported record third quarter net sales of $343.7 million, an increase of 8%, over the prior year third quarter. In the United Kingdom, net sales were $178.1 million, and the Rest of the World segment reported net sales of $57.8 million, which includes the recently acquired Belvedere International with its Live Clean® brand. The Hain Pure Protein segment (HPPC), which includes the recently acquired Empire® brand of kosher foods, reported net sales of $83.2 million. The Company had strong brand contribution led by double digit growth in constant currency from Sensible Portions®, Tilda®, Ella's Kitchen®, The Greek Gods®, Terra®, Hain Pure Foods®, DeBoles®, Natumi®, Jason® and Avalon Organics®. Net sales of Rudi's Organic Bakery®, Plainville Farms®, FreeBird®, Empire®, Kosher Valley® and Live Clean® brands acquired after the third quarter of fiscal year 2014 also contributed to the growth.
The Company earned net income of $33.4 million and adjusted net income of $46.5 million for the third quarter. Earnings per diluted share for the third quarter were $0.32 and on an adjusted basis were $0.45. Included in reported results for the third quarter is a non-cash partial impairment charge of $5.5 million ($4.4 million after-tax or $0.04 per diluted share) for an intangible asset related to the United Kingdom segment. Refer to Non-GAAP Financial Measures in this press release for adjustments.
Fiscal Year 2015 Guidance
The Company updated its annual net sales guidance for the acquisitions of Belvedere International with its Live Clean® personal care brand and Empire® brands during the third quarter and updated its earnings guidance.
Total net sales range of $2.692 billion to $2.700 billion; an increase of approximately 25% as compared to fiscal year 2014.
Earnings range of $1.86 to $1.90 per diluted share; an increase of 17% to 20% as compared to fiscal year 2014.
Guidance is provided for continuing operations on a non-GAAP basis and excludes acquisition-related expenses, integration and restructuring charges, start-up costs, unrealized net foreign currency gains or losses, reserves for litigation settlements and other non-recurring items including any product recalls or market withdrawals that have been or may be incurred during the Company's fiscal year 2015, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions.
The Company's operations are managed into the following segments: United States, United Kingdom, HPPC and Rest of World (comprised of Canada and Continental Europe). Full report.