Acquisitions Mark Hains Record 2007 Results

October 23, 2007

3 Min Read
Acquisitions Mark Hains Record 2007 Results

MELVILLE, N.Y.The Hain Celestial Group (NASDAQ:HAIN) reported record results for its fourth quarter (4Q) and fiscal year 2007, including a 22-percent jump in annual sales, which hit $900.4 million. Sales in 4Q climbed 14 percent to $222.3 million, while earnings rose 40 percent to $12.3 million or $0.30 per diluted share. For FY07, earnings jumped 29 percent to $47.9 million, representing a record $1.17 per diluted share.

Irwin Simon, president and CEO, said management was particularly pleased with the contribution in North America from many of its leading brands including Rice Dream®, Terra®, Earths Best®, Arrowhead Mills®, Health Valley®, Avalon® and Jason®, as well as Hain Pure Protein; he further noted, as expected, Celestial Seasonings® remained challenged during 4Q in a very competitive category. We are doing the right things for the long-term health of the brand, with a restaging that includes new packaging, which is now entering distribution, he said. The steps we have taken impacted the brands performance and our overall results in the fourth quarter. Internationally, our European operations, including the United Kingdom, also had a positive fourth quarter.

During fiscal year 2008, Hain ( plans to maintain its focus on margin enhancement and operating efficiencies to strengthen our business and offset higher input costs. Specifically, management expects to achieve greater economies as the company further consolidates its recently acquired operations in the United Kingdom and in personal care.

Simon further noted the ongoing growth of the company through acquisitions. The pending acquisition of TenderCare International later this year positions Earths Best to roll out diapers and wipes, he said. Our alliance with Yeo Hiap Seng Ltd. expands our product offerings in the Asian markets with the soon-to-be-introduced Yeos Soy Dream®. And we are excited about the restaging of Celestial Seasonings specialty teas and the introduction of Saphara, our new premium organic tea in a pyramid bag and Celestial Seasonings organic, fair-trade certified coffees.

Hain also announced it is acquiring Plainville Turkey Farm Inc. through its Hain Pure Protein Corp. joint venture, of which Hain controls 50.1 percent, with the remaining minority share owned by Pegasus Capital Advisors. Syracuse, N.Y.-based Plainville has been growing and processing turkey since 1923, and is a leading supplier of natural and antibiotic-free whole turkeys and deli turkey products primarily serving the natural and grocery channels in the Northeast and Mid-Atlantic regions. Plainville Turkey Farm generated approximately $30 million in sales in its last fiscal year; Hain expects the transaction to be slightly accretive to earnings in fiscal year 2008.

Simon stated: Were excited to expand our specialty poultry business with a well-recognized industry leader in Plainville Turkey Farm. Mark Bitz, a sixth generation member of the family, will be joined by James Reed, an industry veteran from ConAgra Foods Inc., Empire Kosher Inc. and, most recently, Cameco Inc., in the day-to-day operations of the Plainville business. As a company with headquarters in New York, we also look forward to adding to our operations in the state.

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