Hain Celestial Group has reported a net income of $34.3 million in the third quarter of its financial year, up from $25.0 million in the same period last year.
The company's adjusted EBITDA margin increased by 400 basis points to 15%, while adjusted EBITDA amounted to $73.8 million, from $60.7 million in the same period last year.
The company's operating income amounted to $49.6 million, up from $19.1 million in the third quarter of 2019.
However, net sales for the quarter declined 11% to $492.6 million compared to the same period last year.
Divisional Performance
The company's North American division saw a 10% decline in net sales to $287.5 million in the third quarter, while gross profit dropped 5% to $78.5 million.
Adjusted EBITDA for the division amounted to $48.5 million, up 13% year-on-year, while the adjusted EBITDA margin increased by 348 basis points to 16.9%.
Net sales in its international unit amounted to $205.1 million, down 3% on an adjusted basis.
The company attributed this decline to customer inventory reductions in the United Kingdom, which were elevated in the second quarter in anticipation of potential Brexit supply disruptions and stockpiling in 2020 during the onset of the COVID-19 pandemic.
Adjusted EBITDA increased 19% year-on-year to $36.7 million, while the EBITDA margin was 17.9%, up 463 basis points.
'Strong' Results
The Cully & Sully parent said it was pleased with its 'strong' third-quarter results.
President and chief executive officer of Hain Celestial, Mark L Schiller, said, "I am extremely proud of our team which continues to execute more than a full year into this challenging macro operating environment.
"As a result, I remain confident we will continue to see growth in our get bigger businesses, solid margin expansion and profit growth as we progress through the remainder of the fiscal year 2021."
Its product portfolio includes, among others, Ella's Kitchen, Rose's cordial, and Hartley's jam.
The company recently completed the divestiture of its North American non-dairy beverage brands Dream and Westsoy to SunOpta Inc. for $33 million.
© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
