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The Hain Celestial Group
wrapped up fiscal 2014 with healthy growth, reporting Q4 and
fiscal-year results Wednesday morning. Net sales climbed 26% to
$583.8 million in its fiscal fourth quarter, fueled by 7.5%
organic growth, expanding international distribution, and the
addition of recent acquisitions. Adjusted operating income grew
45% to $46 million, resulting in $0.90 a share in earnings.
Analysts were only holding out for a profit of $0.89 a share
on $578.3 million in sales. The bottom-line beat isn't a
surprise. Hain Celestial has now beaten Wall Street's profit
targets in four of the past five quarters.
Hain Celestial has carved out a cozy living consolidating the
highly fragmented industry of organic and natural foods. Two of
its brands -- Rudi's Organic Bakery and Tilda -- were acquired
earlier this year, padding its top-line results. Hain Celestial
is pretty efficient in getting the synergies to kick in fairly
quickly. As it explained during Wednesday morning's earnings
call, it may have closed on the Rudi's purchase just three months
ago but it's already benefiting from the cost savings of moving
its operations into its Celestial Seasonings unit and expanding
its distribution through its deep Rolodex of stores stocking
Hain Celestial singled out the number of stores that
Whole Foods Market
Sprouts Farmers Market
will be opening in the coming year as a way for it to expand its
distribution, but it's also selling its products through grocery
stores and other mainstream retailers that are devoting more
selling space to organic and natural foods. Another interesting
tidbit from this morning's call:
is now one of Hain's 10 largest customers.
Hain Celestial pointed out during its call that 19 of its
brands have posted double-digit growth over the past year, and
that it now has a presence in 65 different countries. However,
its reach has been largely limited to the U.S. and the United
Kingdom, accounting for 55% and 34% of its fourth-quarter sales,
Looking ahead to fiscal 2015, which kicked off last month,
Hain sees $2.725 billion to $2.8 billion in net sales for the
fiscal year. That translates into robust sales growth of as much
as 30%, but investors know that Hain Celestial's top-line growth
(even as it specializes in organic foodstuffs). It closed on the
acquisition of Hain Pure Protein last month, a transaction that
will pad net sales as it clocked in with $230 million in net
sales in fiscal 2014.
Hain Celestial is targeting earnings of $3.72 a share to $3.90
a share for FY 2015, an increase of 17% to 23% relative to fiscal
2014. Wall Street is currently forecasting a profit of $3.73 a
share on $2.51 billion in net sales, so those projections should
inch higher in the coming days.
Hain shares were up more than 10% as of 10:40 a.m.
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Hain Celestial Keeps Growing in Q4
originally appeared on Fool.com.
John Mackey, co-CEO of Whole Foods Market, is a member of The
Motley Fool's board of directors.
has no position in any stocks mentioned. The Motley Fool
recommends Amazon.com, Hain Celestial, and Whole Foods Market.
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