Lake Success, NY—Hain Celestial is reporting its fourth consecutive quarter of net sales growth, according to a press release.
Financial highlights for the second quarter of fiscal year 2021 include:
- Net sales increased 4% to $528 million, compared to the prior year period
- Gross margin of 24.6%, a 376 basis point increase from the prior year period
- Operating income of $13 million, compared to $9.2 million in the prior year period
- Earnings per share of $0.02, flat compared to the prior year period
- Operating free cash flow from continuing operations of $46.3 million compared to $4.6 million in the prior year period
Mark L. Schiller, Hain Celestial’s President and Chief Executive Officer, commented in the press release, “We are very pleased with our second quarter results, delivering mid-single digit topline growth, several hundred basis points of gross margin improvement and strong adjusted EBITDA growth. Although the macro operating environment remains challenging, our team continues to execute well against our transformational agenda. As a result, I am confident we will continue to see solid margin expansion and profit growth as we progress through the second half of fiscal year 2021.”
Hain has decided not to provide specific financial guidance for fiscal year 2021, due to continuing uncertainty surrounding the COVID-19 pandemic, the press release says. HAIN expects strong gross margin and EBITDA margin improvement in the third quarter 2021.
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North America net sales were $282.6 million, an increase of 1% compared to the prior year period. When adjusted for foreign exchange, divestitures, and discontinued brands, net sales increased 6% compared to the prior year period. Segment gross profit was $78.3 million, a 21% increase from the prior year period.
International net sales saw an increase of 9% compared to the prior year period, reaching $245.8 million. Segment gross profit was $51.7 million, a 27% increase from the prior year period. The segment did see an operating loss of $2.7 million, compared to an operating income of $12.9 million in the prior year period—this includes an impairment charge of $23.6 million related to the reserve recorded against the assets of Hain’s United Kingdom fruit business, resulting from its held for sale classification. The fruit business, including Orchard House Foods and associated brands, have been sold to Elaghmore, a U.K.-based private equity firm, effective January 13, 2021.