Hain Celestial, the parent company of the Linda McCartney, Sun-Pat and Cully & Sully brands, among others, has posted a 5% decrease in net sales at constant currency levels, to $482.1 million (€437.1 million) in the first quarter of its financial year, to September 30.
The group, which is in the midst of a streamlining process that recent saw it sell the Tilda rice brand to Ebro Foods, said that if adjusted for acquisitions, divestures and SKU rationalisation, it posted a 1% decrease in net sales compared to the same period last year.
Hain Celestial posted a net loss of $5 million fr the period, compared to a net loss of $23.1 million in the same period the previous year. Gross margin was 20.3%, a 320 basis point increase on the previous year period.
'Strong Results'
"We are pleased to report strong first quarter results that are consistent with both our fiscal year 2020 guidance and the long-term strategy we announced at our Investor Day last February," commented Mark L. Schiller, Hain Celestial's president and chief executive.
"Our transformational strategic plan to simplify the portfolio and strengthen capabilities, while expanding margins and cash flow is on track and we are confident in our ability to reinvigorate top-line growth over time. We are reiterating our fiscal year 2020 guidance and look forward to creating shareholder value as we continue to execute on our initiatives."
Sales Performance
In its North America division, sales were down 7% in the period to $271.7 million, or down 1% when adjusted for acquisitions, divestures and SKU rationalisation.
Profits in this division were 26% higher, at $62.4 million, the company said.
Its International division, meanwhile, saw a 7% decrease in net sales, to $210.4 million (adjusted sales were flat), while gross profit for the segment was down 10% to $35.5 million.
Looking ahead to the full year, the group anticipates anywhere between 5% and 20% EBITDA growth, driven by the sale of the Tilda brand, while adjusted EPS is expected to be up between 3% and 25%.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
