Hain Celestial Beats Expectations for Q2 2016

Hain Celestial beat expectations as it clocked in a record Q2 for fiscal 2016.

"Our record net sales reflect the continuing strong performance from the United Kingdom and Rest of World segments, which collectively grew 12% in constant currency and the Hain Pure Protein Corporation segment ("HPPC"), which grew 21% excluding the acquisition of Empire®,” Irwin D. Simon, Founder, President, and Chief Executive Officer of Hain Celestial, said in the financial release. “Our strong sales growth was impacted in the quarter primarily by reductions in inventories at certain customers in the United States segment. We were able to deliver these strong results, reflecting our global diversified business model across Hain Celestial's organic and natural brands, product categories, customers and geographies."

The company saw an 8% increase in its net sales, which reached $753 Million, over net sales of $696.4 million for the same quarter last year. On a constant currency basis, this is an 11% boost, according to the company.

Other highlight for the quarter included:

• Earnings per diluted share of $0.55, a 28% increase; adjusted earnings per diluted share of $0.57, a 6% increase. Foreign currencies impacted reported results by $0.01 per diluted share.
• Record operating income of $87.7 million, 11.7% of net sales; adjusted operating income of $92.9 million, 12.3% of net sales.
• Strong operating cash flow of $93.9 million, an increase of 82% over the prior year quarter.

According to the company, brands acquired after the second quarter of fiscal 2015 contributed to its sales growth, including Empire®, Kosher Valley®, Joya®, and Live Clean®.

Overall it saw strong branded sales in constant currency, led by Plainville Farms®, Tilda®, Ella's Kitchen®, Sun-Pat®, The Greek Gods®, Alba Botanica®, and Avalon Organics®.

"Hain Celestial continues to be at the forefront of the evolution around changing consumer trends in consumer packaged goods with a strong global brand portfolio in key growth categories,” Simon continued. “We are uniquely positioned to satisfy the health and wellness needs of consumers with our leading natural and organic products as we work to deliver increased shareholder value."

As for 2016 expectations, the company said that it anticipates total net sales in a range of $2.90 billion to $3.04 billion, which would be an increase of approximately 7% to 12% as compared to fiscal year 2015.

Hain Celestial added that while 42% to 46% of the its second half earnings will be in the third quarter and the balance in the fourth quarter, expectations are that net sales in the third quarter will be slightly lower compared to the fourth quarter.