Actionable news
0
All posts from Actionable news
Actionable news in HAIN: The Hain Celestial Group, Inc.,

Hain Celestial Announces Third Quarter Fiscal Year 2016 Results

LAKE SUCCESS, N.Y., May 4, 2016 /PRNewswire/ -- The Hain Celestial Group, Inc. HAIN, -1.65% 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, 2016.

Third Quarter Performance Highlights

  • Net sales of $750.0 million, a 13% increase, or 15% on a constant currency basis, over prior year period net sales of $662.7 million. Net sales were impacted by $13.9 million of foreign exchange rate movements versus a year ago.
  • Hain Celestial US net sales increased by 2.7% on a constant currency basis over the prior year period.
  • Earnings per diluted share of $0.47, a 47% increase over the prior year period, or on an adjusted basis $0.49, a 9% increase over the prior year period. Foreign currencies impacted reported results by $0.01 per diluted share.
  • Operating income of $69.0 million, or 9.2% of net sales; adjusted operating income of $80.4 million, or 10.7% of net sales.
  • Strong nine month operating cash flow of $131 million, an increase of 87% over the prior year period.

"Our net sales reflect the strong performance across our businesses led by Hain Celestial United States, Hain Pure Protein, Hain Celestial United Kingdom and Hain Celestial Europe as well as Hain Celestial Canada," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "The diversification of our product portfolio with leading organic, natural and better-for-you brands around the world, combined with our team's solid execution of our operational initiatives fueled our financial performance. We are extremely pleased with our US results where we returned to growth in the third quarter and expect these trends to continue."

Third Quarter 2016 The United States segment reported third quarter net sales of $351.9 million. In the United Kingdom segment, net sales were $208.4 million. Hain Pure Protein reported net sales of $113.6 million, and the Rest of World segment reported net sales of $75.9 million. The Company had strong branded sales in constant currency led by Imagine®, Plainville Farms®, Terra®, Garden of Eatin'®, Tilda®, Yves®, FreeBird®, The Greek Gods®, Spectrum® and Sensible Portions® brands as well as its personal care brands, Alba Botanica® and Jason®. Net sales of Joya® brand and the Orchard House Foods business, both acquired after the third quarter of fiscal year 2015 also contributed to the net sales growth.

The Company earned net income of $49.0 million, a 47% increase, and adjusted net income of $50.6 million, a 9% increase, compared to the prior year period. Earnings per diluted share for the third quarter were $0.47, a 47% increase compared to the prior year period. On an adjusted basis earnings per diluted share for the third quarter were $0.49, a 9% increase compared to the prior year period. Refer to "Non-GAAP Financial Measures" section in this press release for reconciliations.

Project Terra As previously communicated, the Company commenced a strategic review under Project Terra and has identified approximately $100 million in global cost savings, which it expects to achieve during fiscal years 2017 through 2019. These initiatives are expected to include optimizing plants, co-packers and procurement and rationalizing the Company's product portfolio, and reinvesting these incremental savings into the business to further brand building efforts and household penetration. Effective immediately, James R. Meiers has been appointed to the newly-created position of Chief Operations Officer for Hain Celestial reporting to Irwin Simon, with responsibility for achieving the cost savings across the Company's worldwide operations.

The strategic review has also resulted in the Company redefining its core platforms for future growth based upon consumer trends to create and inspire A Healthier Way of Life™. The core platforms are now defined by common consumer need, route-to-market or internal advantage and are aligned with the Company's strategic roadmap to continue its leadership position in the organic and natural, better-for-you industry.

Beginning in fiscal year 2017, the Company plans to establish five strategic platforms within Hain Celestial US with the purpose to drive accelerated net sales and margin growth. The platforms will be:

  • Fresh Living—includes poultry, yogurt, plant-based proteins and other refrigerated products;
  • Better-for-You Baby—includes infant foods, infant formula, diapers and wipe products that nurture and care for babies and toddlers;
  • Better-for-You Snacking—wholesome products for in-between meals;
  • Better-for-You Pantry—core consumer staples; and
  • Pure Personal Care—personal care products focused on providing consumers with cleaner and gentler ingredients.

In addition, the Company will launch Cultivate Ventures ("Cultivate"), a venture unit whose purpose is threefold: (i) to strategically invest in the Company's smaller brands in high potential categories such as SunSpire® chocolates and DeBoles® pasta by giving them a dedicated, creative focus for refresh and relaunch; (ii) to incubate small acquisitions until they reach the scale for the Company's core platforms; and (iii) to invest in concepts, products and technology, which focus on health and wellness.

The Company has also identified certain brands representing approximately $30 million in sales, which no longer fit into its core strategy for future growth, and it intends to sell these as a group.

"We are excited about the launch of our new platforms in fiscal year 2017, which are uniquely aligned with consumer eating habits and usage needs," commented Irwin Simon. "We believe our platforms represent distinct opportunities for incremental growth and margin improvement. We expect this new approach will enable us to define more distinct channel strategies for our branded product offerings, and ensure that we continue to extend our organic and natural industry leadership position."

Fiscal Year 2016 Guidance The Company updated its fiscal year 2016 guidance expectations:

  • Total net sales range of $2.946 billion to $2.966 billion, an increase of approximately 9% to 10% as compared to fiscal year 2015, and
  • Earnings per diluted share range of $2.00 to $2.04, an increase of approximately 6% to 9% as compared to fiscal year 2015.

Guidance is provided 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 matters 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 2016, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions.

Segment Results The Company's operations are managed into the following segments: United States, United Kingdom, Hain Pure Protein and Rest of World (comprised of Canada and Continental Europe).

The following is a summary of results for the three and nine months ended March 31, 2016 by reportable segment:

(dollars in thousands)

United States

United Kingdom

Hain Pure Protein

Rest of World

Corporate/Other

Total

NET SALES







Net sales - Three months ended 03/31/16

$ 351,887

$ 208,391

$ 113,643

$ 75,941

$ -

$ 749,862








Net sales - Three months ended 03/31/15

$ 343,728

$ 178,068

$ 83,192

$ 57,751

$ -

$ 662,739








% change - FY'16 net sales vs. FY'15 net sales

2.4%

17.0%

36.6%

31.5%


13.1%








OPERATING INCOME







Three months ended 03/31/16







Operating income

$ 54,546

$ 16,217

$ 4,613

$ 6,198

$ (12,567)

$ 69,007

Non-GAAP Adjustments (1)

$ 2,700

$ -

$ 3,054

$ -

$ 5,701

$ 11,455

Adjusted operating income

$ 57,246

$ 16,217

$ 7,667

$ 6,198

$ (6,866)

$ 80,462

Adjusted operating income margin

16.3%

7.8%

6.7%

8.2%


10.7%








Three months ended 03/31/15







Operating income

$ 55,851

$ 11,760

$ 4,970

$ 4,412

$ (16,799)

$ 60,194

Non-GAAP Adjustments (1)

$ 3,188

$ 3,838

$ -

$ -

$ 10,326

$ 17,352

Adjusted operating income

$ 59,039

$ 15,598

$ 4,970

$ 4,412

$ (6,473)

$ 77,546

Adjusted operating income margin

17.2%

8.8%

6.0%

7.6%


11.7%








(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"



















(dollars in thousands)

United States

United Kingdom

Hain Pure Protein

Rest of World

Corporate/Other

Total

NET SALES







Net sales - Nine months ended 03/31/16(1)

$ 1,025,398

$ 567,971

$ 379,336

$ 216,934

$ -

$ 2,189,639








Net sales - Nine months ended 03/31/15

$ 1,034,612

$ 551,144

$ 240,078

$ 164,545

$ -

$ 1,990,379

Non-GAAP Adjustments (2)

$ 15,773

$ -

$ -

$ 928

$ -

$ 16,701

Adjusted net sales - Nine months ended 03/31/15

$ 1,050,385

$ 551,144

$ 240,078

$ 165,473

$ -

$ 2,007,080








% change - FY'16 net sales vs. FY'15 adjusted net sales

-2.4%

3.1%

58.0%

31.1%


9.1%








OPERATING INCOME







Nine months ended 03/31/16







Operating income

$ 149,233

$ 45,189

$ 33,009

$ 12,981

$ (26,216)

$ 214,196

Non-GAAP Adjustments (2)

$ 6,597

$ 1,020

$ 3,940

$ 515

$ 10,293

$ 22,365

Adjusted operating income

$ 155,830

$ 46,209

$ 36,949

$ 13,496

$ (15,923)

$ 236,561

Adjusted operating income margin

15.2%

8.1%

9.7%

6.2%


10.8%








Nine months ended 03/31/15







Operating income

$ 141,031

$ 29,618

$ 16,505

$ 10,660

$ (34,781)

$ 163,033

Non-GAAP Adjustments (2)

$ 33,546

$ 12,002

$ 140

$ 2,187

$ 12,822

$ 60,697

Adjusted operating income

$ 174,577

$ 41,620

$ 16,645

$ 12,847

$ (21,959)

$ 223,730

Adjusted operating income margin

16.6%

7.6%

6.9%

7.8%


11.1%








(1) There were no Non-GAAP...


More