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Hain Celestial Group Inc. Reports Operating Results (10-Q)

February 11, 2013 | About:
TraderMark

10qk

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Hain Celestial Group Inc. (HAIN) filed Quarterly Report for the period ended 2012-12-31.

Hain Celestial Group, Inc. has a market cap of $2.75 billion; its shares were traded at around $59.58 with a P/E ratio of 27.1 and P/S ratio of 1.9. Hain Celestial Group, Inc. had an annual average earning growth of 5.8% over the past 10 years. GuruFocus rated Hain Celestial Group, Inc. the business predictability rank of 2-star.

Highlight of Business Operations:

Our net sales in the United States for the three months ended December 31, 2012 were $280.4 million, an increase of $21.3 million, or 8.2%, from net sales of $259.2 million in the prior year s quarter. The sales increase was directly related to continued improved consumption and expanded distribution with strong contributions from many of our brands, including Celestial Seasonings, Earth s Best, Garden of Eatin , Imagine, MaraNatha, The Greek Gods and Alba Botanica. Operating income in the United States for the three months ended December 31, 2012 was $47.6 million, an increase of $5.8 million, or 13.9%, from operating income of $41.8 million in the prior year s second quarter. Additionally, operating income as a percentage of net sales in the United States increased to 17.0% from 16.1% during these periods. The improvement primarily resulted from the continued leverage of the Company s expense base, price increases and productivity improvements, offset partially by certain higher input costs. Additionally, sales in the United States were impacted by the shift in sales responsibilities in Canada for the Sensible Portions brand to the Company s Canadian operations in fiscal year 2013, which accounted for $2.8 million included in United States sales for the second quarter of fiscal year 2012.

Our net sales in the United Kingdom for the three months ended December 31, 2012 were $120.2 million, an increase of $63.8 million, or 113.0%, from net sales of $56.4 million in the prior year s quarter. The sales increase was primarily a result of the acquisition of the UK Ambient Grocery Brands during the current quarter, which accounted for $48.2 million of net sales, and to a lesser extent the acquisition of Daniels during the prior year s quarter. Operating income in the United Kingdom for the three months ended December 31, 2012 was $12.1 million, an increase of $8.7 million, from operating income of $3.4 million

Our loss from discontinued operations for the six months ended December 31, 2012 was $4.0 million compared to a loss of $2.0 million for the six months ended December 31, 2011. Net sales included within discontinued operations was $15.3 million and $26.2 million during the six months ended December 31, 2012 and 2011, respectively. The decrease in sales primarily relates to the disposal of the CRM business on August 20, 2012. The operating loss included within discontinued operations was $1.2 million and $2.2 million for the respective periods. In addition, during the six months ended December 31, 2012 we recorded a $3.1 million loss on disposal of the CRM business.

Our net sales in the United States for the six months ended December 31, 2012 were $533.1 million, an increase of $40.3 million, or 8.2%, from net sales of $492.8 million in the prior year s period. The sales increase was directly related to continued improved consumption and expanded distribution with strong contributions from many of our brands, including Celestial Seasonings, Earth s Best, Garden of Eatin , Imagine, MaraNatha, The Greek Gods and Alba Botanica. Operating income in the United States for the six months ended December 31, 2012 was $84.1 million, an increase of $10.6 million, or 14.4%, from operating income of $73.5 million in the prior year s period. Additionally, operating income as a percentage of net sales in the United States increased to 15.8% from 14.9% during these periods. The improvement primarily resulted from the continued leverage of the Company s expense base, price increases and productivity improvements, offset partially by certain higher input costs. Additionally, sales in the United States were impacted by the shift in sales responsibilities in Canada for the Sensible Portions brand to the Company s Canadian operations in fiscal year 2013, which accounted for $5.7 million included in United States sales for the first six months of fiscal year 2012.

Our net sales in the United Kingdom for the six months ended December 31, 2012 were $178.1 million, an increase of $110.5 million, or 163.3%, from net sales of $67.7 million in the prior year s period. The sales increase was primarily a result of the acquisitions of the UK Ambient Grocery Brands during the current year s second quarter, which accounted for $48.2 million of net sales, and Daniels during the prior year s second quarter. Operating income in the United Kingdom for the six months ended December 31, 2012 was $11.1 million, an increase of $8.8 million, from operating income of $2.2 million in the prior year s period. The increase is a result of the aforementioned acquisitions, which both generate operating income, offset partially by losses incurred for the Company s pre-existing business as integration activities in the segment are ongoing.

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