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Hain Celestial EPS in-line, misses on revenue
Nov 5 2015, 16:57 ET | About: The Hain Celestial Grou... (HAIN) | By: Niloofer Shaikh, SA News Editor
Hain Celestial (NASDAQ:HAIN): FQ1 EPS of $0.37 in-line.
Revenue of $687.19M (+6.9% Y/Y) misses by $15.89M.
Shares -0.33%.
Press Release
http://seekingalpha.com/news/2904796-hain-celestial-eps-in-line-misses-on-revenue?uprof=45#email_link
Hain Celestial Announces Record First Quarter Fiscal Year 2016 Results
Thu November 5, 2015 4:00 PM|PR Newswire | About: HAIN
LAKE SUCCESS, N.Y., Nov. 5, 2015 /PRNewswire/ -- The Hain Celestial Group, Inc. (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 first quarter ended September 30, 2015.
photos.prnewswire.com/prnvar/20130502/NY06743LOGO
First Quarter Performance Highlights
•Record first quarter net sales of $687.2 million, a 9% increase over the prior year period or, on a constant currency basis, an 11% increase over prior year adjusted net sales of $642.6 million. Net sales were negatively impacted by $24 million as a result of foreign exchange rate movements versus a year ago.
•Record first quarter earnings per diluted share of $0.30, a 67% increase; adjusted earnings per diluted share of $0.37, a 9% increase. Foreign currencies negatively impacted reported results by $0.01 per diluted share.
•Operating income of $57.5 million, 8.4% of net sales; adjusted operating income of $63.2 million, 9.2% of net sales.
"We began fiscal year 2016 with record first quarter net sales and earnings growth. Our diversified portfolio delivered strong growth with contribution from our Hain Pure Protein Corporation segment ("HPPC"), with our FreeBird® and Plainville Farms® brands growing 27%, as well as our international businesses in Canada, Continental Europe and the United Kingdom in constant currency, which collectively grew 22%," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Our United States segment growth did not fully meet our expectations, as strong performance from our snacks, yogurt, tea, and personal care brands was overshadowed by temporary disruptions from some of our distributor and retail customers as well as a decline in grocery brands associated with deceleration in the natural channel. We continued to benefit from the diversification of our business across our branded organic and natural product categories, sales channels and geographies, which fueled solid worldwide results in our typically lowest sales and profitability quarter."
First Quarter 2016
The United States segment reported first quarter net sales of $331 million. In the United Kingdom segment, net sales were $165 million. HPPC reported net sales of $124 million, and the Rest of the World segment reported net sales of $67 million. The Company had strong branded sales in constant currency led by Plainville Farms®, Linda McCartney®, Terra®, Alba Botanica®, JASON®, Tilda®, Garden of Eatin'®, Lima®, Yves Veggie Cuisine®, Celestial Seasonings®, The Greek Gods® and FreeBird®. Net sales of Empire®, Kosher Valley®, Joya® and Live Clean® brands acquired during or after the first quarter of fiscal year 2015 also contributed to the sales growth.
The Company earned net income of $31.3 million, a 67% increase, and adjusted net income of $38.2 million, a 10% increase, compared to the prior year first quarter. Earnings per diluted share for the first quarter were $0.30, a 67% increase versus the prior year period. On an adjusted basis earnings per diluted share for the first quarter were $0.37, a 9% increase. Refer to Non-GAAP Financial Measures in this press release for adjustments.
"We remain optimistic about our growth opportunities in fiscal 2016 and beyond. We expect to build momentum throughout the year across our global footprint through the strength of our diversified product portfolio and customer base while investing in our brands and gaining distribution in the important health and wellness category," concluded Irwin Simon.
Fiscal Year 2016 Guidance
The Company reiterated its annual guidance for fiscal year 2016:
•Total net sales range of $2.97 billion to $3.11 billion, an increase of approximately 10% to 15% as compared to fiscal year 2015;
•Earnings range of $2.11 to $2.26 per diluted share, an increase of 12% to 20% 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, HPPC and Rest of World (comprised of Canada and Continental Europe).
The following is a summary of results for the three months ended September 30, 2015 by reportable segment:
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http://seekingalpha.com/pr/15263706-hain-celestial-announces-record-first-quarter-fiscal-year-2016-results