Hain Celestial reports profitable Q4

  • 26 August 2020
The natural and organic food giant has reported net income of $3.2 million in the fiscal four-quarter
Product display of Hain Celestial brands
Photo as seen on Hain Celestial’s UK website

The Hain Celestial Group has released its financial results for the fourth quarter and fiscal year ended on 30 June. The company reported net income of $3.2 million in quarter-four, up from the net loss of $7.3 million in the same period a year ago.

For Hain, the fiscal year ended with net income of $25.6 million, up from the net loss of $53.4 million reported last year. Adjusted net income was $87.1 million, a 40% increase compared with last year.

“We are pleased to report profitability at the high-end of our expectations for the fiscal year,” said chief executive Mark Schiller. Our results were strong because our team executed our transformational strategic plan, which resulted in strong margin improvement and operating cash flow generation.”

Schiller noted that in the current dynamic operating environment, Hain believes the business will maintain the positive momentum. “[We] remain committed to sustainable long-term growth as we deliver on our four key pillars for growth – portfolio simplification, capability building, cost control and sales acceleration.”

The company saw net sales increase 1% to $511.7 million in quarter-four, or 3% on a constant currency basis, compared with the same period a year ago.

However, Hain’s fiscal year saw net sales decreased 2% to $2.05 billion, but adjusted net sales increased 3%.

The company pointed at foreign exchange market, the divestitures of some brands and the ending of others as the adjusting factors.

Hain hinted that more SKU rationalisation is under way, as the business is set to focus on highly profitable and fast-growing products and eliminate others.

In May, Hain completed the divestiture of its Rudi’s Bakery business, a component of the US reporting unit, to an affiliate of Promise Gluten Free.

Two months later, the company completed the divestiture of Danival to a subsidiary of Royal Wessanen. Details of these transactions were not disclosed.