U.S. operations lead growth at Hain Celestial
May 6, 2010
by Eric Schroeder
MELVILLE, N.Y. — Strength across its U.S. business units helped propel the Hain Celestial Group, Inc. to net income of $2,656,000, equal to 7c per share on the common stock, in the third quarter ended March 31. The net income compared with a loss of $41,150,000 in the third quarter of fiscal 2009. The year-ago results included an after-tax non-cash impairment charge of $48.4 million related to the company’s European and Hain Pure Protein’s reporting basis.
Net revenue for the quarter was $222,098,000, down 17% from $264,928,000 during the same quarter of 2009.
“Our consumption trends improved across our branded business during the third quarter led by our operations in the United States and followed by Canada and Europe, as consumers continue to see healthy eating and living as a way of life,” said Irwin D. Simon, president and chief executive officer. “I’m pleased with the top-line growth in Europe at 9% and the U.K. at 21%. Despite inventory reductions at key distributors, our sales momentum gained in the natural, mass market and specialty channels while the grocery channel showed signs of improving trends.
“Our productivity and efficiencies continued to positively impact our margins, where we believe there is more room to improve, and the strength of our operations enabled us to generate healthy cash flow to maintain a strong balance sheet and reduce our debt.”
John Carroll, c.e.o. of Hain Celestial U.S., said all of the company’s U.S. business units experienced consumption growth led by double-digit increases from the company’s Imagine, Terra, DeBoles, Spectrum Naturals and MaraNatha brands as well as single-digit increases from Celestial Seasonings, Dream non-dairy beverages, and Earth’s Best baby food.”