MELVILLE, N.Y.—The Hain Celestial Group (NASDAQ:HAIN) reported a 20-percent sales growth for its second fiscal quarter ended Dec. 31, 2007, reflecting strong demand for Hain Celestial's portfolio of natural and organic brands. On the strength of the increased net sales, which reached $276.2 million, net income for the second quarter was $15.6 million, or $0.37 per diluted share, a 10-percent increase over the same period the year prior.
Reporting on the sales growth, the company indicated strong performances from many of its brands, including strong sales this quarter from a range of our brands, including Earth's Best, Terra, Garden of Eatin', DeBoles, Arrowhead Mills, Imagine, Casbah, Spectrum, Yves, Ethnic Gourmet and Lima, as well as from its newly acquired Plainville Farms and our tofu operations. "We also achieved strong sales in Personal Care, with Jason and the Avalon brands," said Irwin D. Simon, president and CEO of Hain (Hain-Celestial.com). "Sales at Celestial Seasonings have continued to improve, with new packaging reaching near full distribution and being well-received, along with the introduction of Celestial Seasonings coffee and Saphara premium tea."
Hain management did note gross and net profit margins were affected by $2.5 million in previously announced acquisition-related integration and manufacturing start-up costs at its Fakenham, U.K., facility, into which the frozen meat-free operations of Haldane Foods have been consolidated, as well as $1.75 million for professional fees associated with the recently completed independent directors' review of the Company's stock options practices. However, tightened expenditures and operating costs, including Plainville Farms' lower than average administrative expense structure, had a positive effect on margins.
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