Strong sales performance led
The Hain Celestial Group, Inc
) to come up with better-than-expected fourth-quarter fiscal 2013
results. The company's adjusted quarterly earnings of 65 cents a
share surpassed the Zacks Consensus Estimate of 62 cents and
surged 38.3% year over year. On a reported basis, earnings
increased 6% to 53 cents.
Management stated that a healthy industry trend, consumer
demand and new products facilitated the company to come up with
highest quarterly sales. The top line jumped 32.1% to $463.5
million and surpassed the Zacks Consensus Estimate of $452
Net sales in the United States increased 17.6% year over year
to $285.2 million during the quarter, while net sales in the
United Kingdom more than doubled to $121.1 million. Operations in
Canada and Europe, witnessed a 10.8% increase in net sales to
The company registered increased consumption in core
categories with robust contribution from Earth's Best, MaraNatha,
Spectrum, The Greek Gods, Jason, Danival, Alba Botanica and Linda
McCartney. Hain Celestial also experienced solid sales across
recently acquired brands including Hartley's, BluePrint, Sun-Pat
and Ella's Kitchen.
Adjusted gross profit surged 33.9% year over year to $125.1
million during the quarter, whereas adjusted gross margin
expanded 40 basis points to 27%, reflecting increased sales and
improved product mix. Adjusted operating income jumped 37.2% to
$49.7 million in the quarter, while adjusted operating margin
expanded approximately 40 basis points to 10.7%.
Other Financial Details
This Zacks Rank #3 (Hold) company ended the quarter with cash
and cash equivalents of $41.3 million, total long-term debt of
$665.9 million and shareholders' equity of $1,201.6 million,
reflecting a debt-to-capitalization of 35.7%. Cash flow
from operating activities for the trailing 12 months was $121
million and capital expenditures were $72.9 million, resulting in
free cash flow of $48.1 million.
We believe that the company will sustain the strong momentum
across entire business segments as it remains well positioned to
capitalize on the growing global demand for organic products.
Alongside, Hain Celestial anticipates sales in the range of
$2,025 million to $2,050 million in fiscal 2014, reflecting a
year-over-year increase of 17%. Earnings are projected in the
range of $2.95 to $3.05 per share, up 16% to 20% year over
Other Stocks to Consider
Until any further upward revision in the Zacks Rank of Hain
Celestial, other stocks that look promising in the food industry
Pinnacle Foods Inc
) that carries a Zacks Rank #1 (Strong Buy).
The Chefs' Warehouse, Inc
Kraft Foods Group, Inc
), both carrying a Zacks Rank #2 (Buy) are also worth
CHEFS WAREHOUSE (CHEF): Free Stock Analysis
HAIN CELESTIAL (HAIN): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
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