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Print Article MELVILLE, N.Y. , Aug. 26 /PRNewswire-FirstCall/ -- The Hain Celestial
Group, Inc. (Nasdaq: HAIN), a leading natural and organic food and personal
care products company, today reported results for the fourth quarter and full
year ended June 30, 2008 . Reflecting continued strong consumer demand for the
Company's brands and products, the Company reported fourth quarter net sales
of
(Logo: http://www.newscom.com/cgi-bin/prnh/20050324/NYTH131 )
"Our fiscal year has come to a close with record fourth quarter sales, driven by the successful introduction of new products, continued contribution from our existing brands, and our continued sharp focus on improving our productivity, expense efficiency and pricing, appropriate steps for this extraordinary environment," said Irwin D. Simon , President and Chief Executive Officer of Hain Celestial. "With consumers staying at home more and the continuing expansion of our presence in grocery, mass-market and specialty retailers, along with strong performance in the natural channel, we are seeing indications that consumers have prioritized leading a healthy lifestyle, despite the challenging economy and inflationary pressures. Additionally, consumers are seeking more natural and organic foods and poultry to replace more costly meat products. We see continued expansion of our personal care products as well, as food products are not unique to the healthy lifestyle."
Net income in the current year fourth quarter was
"The strength in our fourth quarter sales and earnings was largely due to solid brand performance in various distribution channels," continued Irwin Simon . "In the United States we are pleased with the strong results from Earth's Best(R), Arrowhead Mills(R), Imagine(R) soup, Garden of Eatin'(R), FreeBird(TM), Spectrum(R), Rice Dream(R), Soy Dream(R), Avalon Organics(R) and Alba Botanica(R), with more modest contribution from Celestial Seasonings(R), where our new leadership team is beginning to make real progress; further strong sales in Canada by Yves Veggie Cuisine(R), Imagine soup, Spectrum and Terra(R); and in Europe by Lima (R), Rice Dream, Natumi(R) and Daily Bread(TM)," said Irwin Simon .
Reflecting the previously stated adjustments, gross margin for the same brands operated by the Company in each full year (other than the Company's lower margin Hain Pure Protein joint venture) was 28.6% this year versus 29.1% last year. This 50 basis point decline, during a year in which input costs increased significantly, is indicative of the Company's ability to successfully manage costs, increase prices and achieve productivity improvements. A recently announced price increase in the United States is expected to have a positive impact on margin beginning with the Company's second quarter of fiscal year 2009.
Adjusted selling, general and administrative expenses have declined as a percentage of sales by 120 basis points during the year, to 18.5% of sales, as the Company has continued to focus on expense efficiency and reduction and realize the benefit of synergies from acquisitions. The Company's poultry operations, which have increased in size with the acquisition of the New Oxford facility and are now integrated under one management team and back office platform, operate with lower selling, general and administrative expenses than the other units, thereby positively impacting expense ratios.