Strong sales and productivity savings facilitated
The Hain Celestial Group Inc
) to post second-quarter 2013 adjusted earnings of 72 cents a
share, up 35.8% from the prior-year quarter earnings of 53 cents.
Moreover, earnings of this Zacks Rank #2 (Buy) company came ahead
of the Zacks Consensus Estimate of 69 cents.
Including one-time items, earnings came in at 67 cents
compared with 44 cents a share earned in the year-ago
Net sales from continuing operations rose 24.8% year over year
to $455.3 million, reflecting rise in demand for natural organic
products. However, reported revenues missed the Zacks Consensus
Estimate of $474 million.
Net sales in United States increased 9.4% year over year on a
comparable basis to $280.4 million during the quarter, while net
sales at United Kingdom more than doubled to $120.2 million. Rest
of the World witnessed an 11.1% increase in net sales to $54.7
The company registered elevated consumption in core categories
with robust contribution from Garden of Eatin, MaraNatha,
Celestial Seasonings, Earth's Best, Imagine, The Greek Gods,
Lima, Alba Botanica, Danival and Linda McCartney. Hain Celestial
also experienced solid sales across recently-acquired brands.
Gross profit ascended 25% year over year to $130.8 million
during the quarter. However, gross margin remained flat at 28.7%
as rise in sales were offset by increased input and commodity
Adjusted operating profit jumped 33.8% to $55 million in the
quarter, while adjusted operating margin expanded approximately
80 basis points to 12.1%, indicating productivity savings and
improved sales mix.
Other Financial Details
The company ended the quarter with cash and cash equivalents
of $42.6 million, long-term debt of $635.1 million and
shareholders' equity of $1,105.5 million.
The company hopes to sustain strong momentum across entire
business segments as it remains well positioned to capitalize on
the growing global demand for organic products.
Alongside, the company anticipates sales to be in the range of
$1,740 million - $1,755 million in fiscal 2013, reflecting an
increase of 26% to 27%. Earnings are expected to be in the range
of $2.40 - $2.47 a share, up 29% - 33% year over year.
Other Stocks to Consider
Besides Hain, other stocks in the processed & packaged
goods industry worth considering include,
Flowers Foods, Inc
Inventure Foods, Inc
) all holding a Zacks Rank #1 (Strong Buy).
FLOWERS FOODS (FLO): Free Stock Analysis
HAIN CELESTIAL (HAIN): Free Stock Analysis
INGREDION INC (INGR): Free Stock Analysis
INVENTURE FOODS (SNAK): Free Stock Analysis
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