Lake Success, NY—The Hain Celestial Group, Inc. has reported financial results for the fourth quarter and fiscal year ended June 30, 2021, in a press release.
Fourth quarter results include:
- Net sales decreased 12% to $450.7 million, or 17% on a constant currency basis, compared to the prior year period.
- When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 8% compared to the prior year period.
- Adjusted gross margin of 25.7%, a 49 basis point increase from the prior year period.
- Adjusted operating income of $53.0 million compared to $47.9 million in the prior year period.
- Adjusted net income of $39.7 million compared to $32.3 million in prior year period.
- Adjusted EBITDA of $68.1 million compared to $62.2 million in the prior year period.
- Adjusted EBITDA margin of 15.1%, a 296 basis point increase compared to the prior year period.
- Adjusted EPS of $0.39 compared to $0.32 in the prior year period.
- Repurchased 0.7 million shares, or 0.7% of the outstanding common stock, at an average price of $40.41 per share.
Full year results include:
- Net sales decreased 4% to $1,970.3 million, or 7% on a constant currency basis, compared to the prior year.
- When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 1% compared to the prior year.
- Adjusted gross margin of 25.6%, a 249 basis point increase over the prior year.
- Adjusted operating income of $199.5 million compared to $140.0 million in the prior year.
- Adjusted net income of $146.5 million compared to $87.1 million in the prior year.
- Adjusted EBITDA of $258.9 million compared to $200.0 million in the prior year.
- Adjusted EBITDA margin of 13.1%, a 340 basis point increase compared to the prior year.
- Adjusted EPS of $1.45 compared to $0.84 in the prior year.
- Repurchased 3.1 million shares, or 3.0% of the outstanding common stock, at an average price of $34.87 per share.
Mark L. Schiller, President and CEO, commented in the press release: “We are very proud of our solid fourth quarter and full fiscal year 2021 results. In spite of the many challenges our industry faced this past year, we continued to successfully execute against our transformation plan, delivering robust full year margin expansion and strong adjusted EBITDA growth. Heading into 2022, we expect another strong year with adjusted net sales growth, margin expansion and adjusted EBITDA growth even in this challenging environment of high inflation and labor shortages.”
Looking to fiscal year 2022, Hain expects low-single digit adjusted net sales growth, adjusted gross margin expansion, and mid- to high-single digit adjusted EBITDA growth. In an investor call, Schiller explained: “Our Fiscal 2022 plan is built on 4 key assumptions. First, we’re forecasting inflation to stabilize and not increase nor decrease considerably from here. If it does increase, we will price accordingly using the revenue management tools at our disposal. If it drops, we’ll evaluate whether to spend some of it back or take it to the bottom line. Second, we expect our pricing and productivity to more than offset inflation, resulting in an algorithm that has both investment in marketing and robust margin growth…Our third key plan assumption is that our innovation is successful, and we’ll continue to gain space on both a relative and absolute basis in our core growth categories. And lastly, we’ve assumed minimal short-term impact from the COVID Delta variant and that society gradually gravitates back to the pre-pandemic mix of in-home and out-of-home meeting occasions by the end of the calendar year.”
Schiller concluded: “So in conclusion, in the face of significant macro challenges, we had a good year and a solid quarter. We exited Q4 with a lot of momentum and are well positioned to accelerate performance from here. On September 28, at our Investor Day, we look forward to elaborating further on the FY 2022 plan and showing you a strategic plan and algorithm that delivers robust top line and bottom line growth. We believe we have terrific momentum, the right brands in high-growth categories and an exceptional team to really unlock the potential of this company.”