LAKE SUCCESS, N.Y.,
Feb. 7, 2019 /PRNewswire/
-- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain
Celestial" or the "Company"), a leading organic and natural
products company with operations in North
America, Europe,
Asia and the Middle East providing consumers with A
Healthier Way of Life™, today reported financial results for the
second quarter ended December 31,
2018. The results contained herein are presented with the
Hain Pure Protein operating segment being treated as a discontinued
operation given the Company's previously announced decision to
divest the business.
"We are creating a new strategic direction to take Hain
Celestial to the next level of performance," commented Mark L. Schiller, Hain Celestial's President and
Chief Executive Officer. "Although we are not satisfied with
our near-term performance, we are starting to see sequential
improvement in our numbers and are working diligently to restore
profitable growth in the United
States, while continuing our profit momentum in the
United Kingdom and Europe.
My team and I have been in similar situations during our previous
roles, which gives us confidence in our abilities to execute Hain
Celestial's business transformation. We believe we have a core set
of high margin brands, with mainstream potential, competing in
fast-growing categories, and we plan to simplify our business in
order to focus more resources towards these high potential
opportunities to seek to deliver attractive returns to
stockholders."
FINANCIAL HIGHLIGHTS1
Summary of Second Quarter Results from Continuing
Operations2
- Net sales decreased 5% to $584.2
million compared to the prior year period, or a 4% decrease
on a constant currency basis. When adjusted for Foreign Exchange
and Acquisitions, Divestitures and certain other items, including
the Project Terra Stock Keeping Unit ("SKU")
rationalization3, net sales would have decreased 1%
compared to the prior year period.
- Gross margin of 19.6%, a 210 basis point decrease over the
prior year period; adjusted gross margin of 20.3%, a 240 basis
point decrease over the prior year period as a result of planned
higher trade and promotional investments and increased freight and
commodity costs in the United
States.
- Operating loss of $15.4 million
compared to operating income of $31.0
million in the prior year period; adjusted operating income
of $29.9 million compared to
$49.5 million in the prior year
period.
- Net loss of $29.3 million
compared to net income of $43.1
million in the prior year period; adjusted net income of
$15.0 million compared to
$33.6 million in prior year
period.
- EBITDA of $19.2 million compared
to $53.3 million in the prior year
period; Adjusted EBITDA of $44.9
million compared to $67.7
million in the prior year period.
- Loss per diluted share of $0.28
compared to earnings per diluted share ("EPS") of $0.41 in the prior year period; adjusted EPS of
$0.14 compared to $0.32 in the prior year period.
SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
Hain Celestial United States
Hain Celestial United
States net sales in the second quarter decreased 4% over the prior
year period to $259.2 million; when
adjusted for Acquisitions, Divestitures and certain other items
including the Project Terra SKU rationalization3, net
sales would have decreased 1%. The decline in the United States segment was primarily driven
by declines in the Pantry and Better-For-You Baby platforms,
partially offset by an increase in the Better-For-You Snack
platform. United States net sales
were also impacted by the previously disclosed strategic decision
to no longer support certain lower margin SKUs. Segment operating
income in the second quarter was $7.2
million, a 67% decrease from the prior year period, and
adjusted operating income was $13.4
million, a 57% decrease over the prior year period, driven
primarily by higher planned trade investments to drive future
period growth and increased freight and commodity costs.
Hain Celestial United Kingdom
Hain Celestial United
Kingdom net sales in the second quarter decreased 5% to
$225.3 million over the prior year
period, or 1% after adjusting for Foreign Exchange, Acquisitions
and Divestitures and certain other items3. The results
for the United Kingdom segment
reflect an 8% decline in Hain
Daniels, or a decline of 4% after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3, primarily driven by declines from the New Covent
Garden Soup Co.®, Hartley's® and Cully & Sully® brands, offset
in part by growth in the Linda McCartney® and Sun-Pat®
brands. The net sales decrease in the United Kingdom segment was partially offset by
2% growth from Tilda® while Ella's Kitchen® was relatively flat, or
increased 6% and 3%, respectively, after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3. Segment operating income was $14.7 million, an 8% increase over the prior year
period, and adjusted operating income was $18.1 million, an increase of 11% over the prior
year period.
Rest of World
Rest of World net sales in the second
quarter decreased 8% to $99.7 million
over the prior year period, or 3% after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3. Net sales for Hain Celestial Canada decreased
12%, or 7% after adjusting for Foreign Exchange, Acquisitions and
Divestitures and certain other items3, primarily driven
by declines from the Europe's
Best® and Dream® brands and private label sales, offset in part by
growth from the Yves Veggie Cuisine®, Live Clean® and Tilda®
brands. Net sales for Hain Celestial Europe were relatively flat,
or increased 3% on a constant currency basis, primarily driven by
strong performance from the Joya® brand and private label sales,
offset in part by declines from the Danival®, Lima® and Dream®
brands. Net sales for Hain Ventures, formerly known as Cultivate
Ventures, decreased 17%, or 14% after adjusting for Foreign
Exchange, Acquisitions and Divestitures and certain other
items3, primarily driven by declines from the
Blueprint®, Westsoy®, SunSpire® and DeBoles® brands, offset in part
by growth from the Health Valley® and Yves Veggie Cuisine® brands.
Segment operating income in the second quarter was $8.4 million, a $2.2
million decrease over the prior year period. Adjusted
operating income was $9.3 million, an
18% decrease over the prior year period.
Hain Pure Protein Discontinued Operations
As
previously disclosed on May 5, 2018,
the results of operations, financial position and cash flows
related to the operations of the Hain Pure Protein business segment
have been moved to discontinued operations in the current and prior
periods. The Company continues to make substantial progress and
expect to complete the divestiture of the Hain Pure Protein
operating segment in the coming months. Net sales for Hain Pure
Protein in the second quarter were $147.2
million, a decrease of 7% compared to the prior year period.
Segment operating loss in the second quarter was $59.6 million and included a $54.9 million pre-tax non-cash impairment
charge.
Fiscal Year 2019 Guidance
The Company updated its
annual guidance for continuing operations for fiscal year 2019:
- Total net sales of $2.320 billion
to $2.350 billion, a decrease of
approximately 4% to 6% as compared to fiscal year 2018.
- Adjusted EBITDA of $185 million
to $200 million, a decrease of
approximately 22% to 28% as compared to fiscal year 2018.
- Adjusted EPS of $0.60 to
$0.70, a decrease of approximately
40% to 48% as compared to fiscal year 2018.
Guidance, where adjusted, is provided on a non-GAAP basis and
excludes acquisition-related expenses; integration charges;
restructuring charges, start-up costs, consulting fees and other
costs associated with Project Terra; costs associated with the CEO
Succession Agreement; unrealized net foreign currency gains or
losses, accounting review and remediation costs and other
non-recurring items that may be incurred during the Company's
fiscal year 2019, which the Company will continue to identify as it
reports its future financial results. Guidance also excludes the
impact of any future acquisitions and divestitures.
The Company cannot reconcile its expected Adjusted EBITDA to net
income or adjusted earnings per diluted share to earnings per
diluted share under "Fiscal Year 2019 Guidance" without
unreasonable effort because certain items that impact net income
and other reconciling metrics are out of the Company's control
and/or cannot be reasonably predicted at this time.
1 This press release includes certain non-GAAP
financial measures, which are intended to supplement, not
substitute for, comparable GAAP financial measures. Reconciliations
of non-GAAP financial measures to GAAP financial measures are
provided herein in the tables "Reconciliation of GAAP Results to
Non-GAAP Measures."
2 Unless otherwise noted all results included in this
press release are from continuing operations.
3 Refer to "Net Sales Growth at Constant Currency and
Adjusted for Acquisitions, Divestitures and Other" provided
herein.
QTD TABLE Q2
FY19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
Net sales - Three
months ended 12/31/18
|
$
259,155
|
$
225,338
|
$
99,663
|
$
-
|
$
584,156
|
Net sales - Three
months ended 12/31/17
|
$
270,303
|
$
238,201
|
$
107,728
|
$
-
|
$
616,232
|
% change - FY'19 net
sales vs. FY'18 net sales
|
(4.1)%
|
(5.4)%
|
(7.5)%
|
|
(5.2)%
|
OPERATING
INCOME/(LOSS)
|
|
|
|
|
|
Three months ended
12/31/18
|
|
|
|
|
|
Operating income
(loss)
|
$
7,180
|
$
14,655
|
$
8,374
|
$
(45,596)
|
$
(15,387)
|
Non-GAAP adjustments
(1)
|
6,257
|
3,429
|
953
|
34,624
|
45,263
|
Adjusted operating
income
|
$
13,437
|
$
18,084
|
$
9,327
|
$
(10,972)
|
$
29,876
|
Operating income
(loss) margin
|
2.8%
|
6.5%
|
8.4%
|
|
(2.6)%
|
Adjusted operating
income margin
|
5.2%
|
8.0%
|
9.4%
|
|
5.1%
|
Three months ended
12/31/17
|
|
|
|
|
|
Operating
income
|
$
21,861
|
$
13,598
|
$
10,535
|
$
(15,029)
|
$
30,965
|
Non-GAAP adjustments
(1)
|
9,109
|
2,740
|
866
|
5,791
|
18,506
|
Adjusted operating
income
|
$
30,970
|
$
16,338
|
$
11,401
|
$
(9,238)
|
$
49,471
|
Operating income
margin
|
8.1%
|
5.7%
|
9.8%
|
|
5.0%
|
Adjusted operating
income margin
|
11.5%
|
6.9%
|
10.6%
|
|
8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD TABLE Q2
FY19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
Net sales - Six
months ended 12/31/18
|
$
503,140
|
$
443,915
|
$
197,934
|
$
-
|
$
1,144,989
|
Net sales - Six
months ended 12/31/17
|
$
533,962
|
$
460,646
|
$
210,843
|
$
-
|
$
1,205,451
|
% change - FY'19 net
sales vs. FY'18 net sales
|
(5.8)%
|
(3.6)%
|
(6.1)%
|
|
(5.0)%
|
OPERATING
INCOME/(LOSS)
|
|
|
|
|
|
Six months ended
12/31/18
|
|
|
|
|
|
Operating income
(loss)
|
$
9,350
|
$
18,675
|
$
16,210
|
$
(83,726)
|
$
(39,491)
|
Non-GAAP adjustments
(1)
|
11,737
|
10,074
|
2,299
|
66,120
|
90,230
|
Adjusted operating
income
|
$
21,087
|
$
28,749
|
$
18,509
|
$
(17,606)
|
$
50,739
|
Operating income
(loss) margin
|
1.9%
|
4.2%
|
8.2%
|
|
(3.4)%
|
Adjusted operating
income margin
|
4.2%
|
6.5%
|
9.4%
|
|
4.4%
|
Six months ended
12/31/17
|
|
|
|
|
|
Operating
income
|
$
42,722
|
$
23,199
|
$
19,532
|
$
(25,247)
|
$
60,206
|
Non-GAAP adjustments
(1)
|
11,392
|
6,075
|
866
|
7,047
|
25,380
|
Adjusted operating
income
|
$
54,114
|
$
29,274
|
$
20,398
|
$
(18,200)
|
$
85,586
|
Operating income
margin
|
8.0%
|
5.0%
|
9.3%
|
|
5.0%
|
Adjusted operating
income margin
|
10.1%
|
6.4%
|
9.7%
|
|
7.1%
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
|
|
|
|
Webcast Presentation
Hain Celestial will host a
conference call and webcast today at 8:30 AM
Eastern Time to discuss its results and business outlook.
Additionally, the Company is scheduled to host an Investor Day on
Wednesday, February 27, 2019. These
events will be webcast, and any accompanying presentation will be
available under the Investor Relations section of the Company's
website at www.hain.com.
About The Hain Celestial Group, Inc.
The Hain
Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and
natural products company with operations in North America, Europe, Asia
and the Middle East. Hain
Celestial participates in many natural categories with well-known
brands that include Almond Dream®, Arrowhead Mills®, Bearitos®,
Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™,
Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth's
Best®, Ella's Kitchen®, Europe's Best®, Farmhouse Fare™, Frank Cooper's®, Gale's®, Garden of Eatin'®, GG
UniqueFiber™, Hain Pure Foods®, Hartley's®, Health Valley®,
Imagine™, Johnson's Juice Co.™, Joya®, Lima®, Linda
McCartney® (under license), MaraNatha®, Mary Berry (under license), Natumi®, New Covent
Garden Soup Co.®, Orchard House®, Rice Dream®, Robertson's®, Rudi's
Gluten-Free Bakery™, Rudi's Organic Bakery®, Sensible Portions®,
Spectrum® Organics, Soy Dream®, Sun-Pat®, Sunripe®, SunSpire®,
Terra®, The Greek Gods®, Tilda®, Walnut Acres®, WestSoy®, Yorkshire
Provender®, Yves Veggie Cuisine® and William's™. The Company's
personal care products are marketed under the Alba Botanica®,
Avalon Organics®, Earth's Best®, JASON®, Live Clean® and Queen
Helene® brands.
Safe Harbor Statement
Certain statements contained in
this press release constitute "forward-looking statements" within
the meaning of federal securities laws, including the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are predictions based on expectations and projections
about future events and are not statements of historical fact. You
can identify forward-looking statements by the use of
forward-looking terminology such as "plan", "continue", "expect",
"anticipate", "intend", "predict", "project", "estimate", "likely",
"believe", "might", "seek", "may", "will", "remain", "potential",
"can", "should", "could", "future" and similar expressions, or the
negative of those expressions, or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical matters. You can also identify
forward-looking statements by discussions of the Company's
strategic initiatives, including Project Terra, the Company's
potential divestiture of its Hain Pure Protein business, the
Company's Guidance for Fiscal Year 2019 and our future performance
and results of operations.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
levels of activity, performance or achievements of the Company, or
industry results, to be materially different from any future
results, levels of activity, performance or achievements expressed
or implied by such forward-looking statements, and you should not
rely on them as predictions of future events. Forward-looking
statements depend on assumptions, data or methods that may be
incorrect or imprecise and may not be able to be realized. We do
not guarantee that the transactions and events described will
happen as described (or that they will happen at all). Such
factors, include, among others, the Company's beliefs or
expectations relating to the impact of competitive products,
changes to the competitive environment, changes to consumer
preferences, our ability to manage our supply chain effectively,
changes in raw materials, freight, commodity costs and fuel,
consolidation of customers, reliance on independent distributors,
general economic and financial market conditions, risks associated
with our international sales and operations, our ability to execute
and realize cost savings initiatives, including, but not limited
to, cost reduction initiatives under Project Terra and SKU
rationalization plans, our ability to identify and complete
acquisitions or divestitures and integrate acquisitions, the
availability of organic and natural ingredients, the reputation of
our brands and the other risks detailed from time-to-time in the
Company's reports filed with the United States Securities and
Exchange Commission, including the Annual Report on Form 10-K for
the fiscal year ended June 30, 2018,
and our quarterly reports. As a result of the foregoing and other
factors, the Company cannot provide any assurance regarding future
results, levels of activity and achievements of the Company, and
neither the Company nor any person assumes responsibility for the
accuracy and completeness of these statements. All forward-looking
statements contained herein apply as of the date hereof or as of
the date they were made and, except as required by applicable law,
the Company disclaims any obligation to publicly update or revise
any forward-looking statement to reflects changes in underlying
assumptions or factors of new methods, future events or other
changes.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including
net sales adjusted for the impact of Foreign Exchange, Acquisitions
and Divestitures and certain other items, including SKU
rationalization, as applicable in each case, adjusted operating
income, adjusted gross margin, adjusted net income, adjusted
earnings per diluted share, EBITDA, Adjusted EBITDA and operating
free cash flow. The reconciliations of these non-GAAP financial
measures to the comparable GAAP financial measures are presented in
the tables "Reconciliation of GAAP Results to Non-GAAP Measures"
for the three and six months ended December
31, 2018 and 2017 and in the paragraphs below. Management
believes that the non-GAAP financial measures presented provide
useful additional information to investors about current trends in
the Company's operations and are useful for period-over-period
comparisons of operations. These non-GAAP financial measures should
not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP measures may
not be the same as similar measures provided by other companies due
to potential differences in methods of calculation and items being
excluded. They should be read only in connection with the Company's
Consolidated Statements of Operations presented in accordance with
GAAP.
The Company defines Operating Free Cash Flow as cash provided by
or used in operating activities from continuing operations (a GAAP
measure) less capital expenditures. The Company views Operating
Free Cash Flow as an important measure because it is one factor in
evaluating the amount of cash available for discretionary
investments.
For the three and six months ended December 31, 2018 and 2017, Operating Free Cash
Flow from continuing operations was calculated as follows:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
12/31/2018
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2017
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
Cash flow provided by
(used in) operating activities - continuing operations
|
$
17,240
|
|
$
29,472
|
|
$
(1,013)
|
|
$
28,390
|
Purchases of
property, plant and equipment
|
(18,992)
|
|
(13,451)
|
|
(41,539)
|
|
(24,685)
|
Operating Free Cash
Flow - continuing operations
|
$
(1,752)
|
|
$
16,021
|
|
$
(42,552)
|
|
$
3,705
|
The Company's Operating Free Cash Flow from continuing
operations was negative $1.8 million
for the three months ended December 31, 2018, a decrease of
$17.8 million from the three months
ended December 31, 2017. The Company's Operating Free
Cash Flow from continuing operations was negative $42.6 million for the six months ended
December 31, 2018, a decrease of $46.3
million from the six months ended December 31, 2017.
This decrease resulted primarily from a decrease in net loss
adjusted for non-cash charges and increased capital expenditures in
the current year, offset in part by cash provided by working
capital accounts.
The Company believes presenting net sales at constant currency
provides useful information to investors because it provides
transparency to underlying performance in the Company's
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on period-to-period
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. dollar are translated into U.S. dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
The Company provides net sales adjusted for constant currency,
acquisitions and divestitures, and certain other items including
SKU rationalization, as applicable in each case, to understand the
growth rate of net sales excluding the impact of such items. The
Company's management believes net sales adjusted for such items is
useful to investors because it enables them to better understand
the growth of our business from period-to-period.
The Company defines EBITDA as net (loss) income from continuing
operations (a GAAP measure) before income taxes, net interest
expense, depreciation and amortization, equity in net loss (income)
of equity-method investees, stock-based compensation expense in
connection with the Succession Plan, long-lived asset and
intangible impairments and unrealized currency gains and losses.
Adjusted EBITDA is defined as EBITDA before acquisition-related
expenses, including integration and restructuring charges, and
other non-recurring items. The Company's management believes that
these presentations provide useful information to management,
analysts and investors regarding certain additional financial and
business trends relating to its results of operations and financial
condition. In addition, management uses these measures for
reviewing the financial results of the Company as well as a
component of performance-based executive compensation.
For the three and six months ended December 31, 2018 and 2017, EBITDA and Adjusted
EBITDA from continuing operations was calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
12/31/2018
|
|
12/31/2017
|
|
12/31/2018
|
|
12/31/2017
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(66,501)
|
|
$
47,103
|
|
$
(103,926)
|
|
$
66,949
|
Net (loss) income
from discontinued operations
|
(37,223)
|
|
3,973
|
|
(51,547)
|
|
5,206
|
Net (loss) income
from continuing operations
|
$
(29,278)
|
|
$
43,130
|
|
$
(52,379)
|
|
$
61,743
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
4,690
|
|
(17,690)
|
|
(4,793)
|
|
(10,206)
|
Interest expense,
net
|
8,247
|
|
5,817
|
|
15,416
|
|
11,426
|
Depreciation and
amortization
|
13,722
|
|
14,919
|
|
28,106
|
|
30,066
|
Equity in net loss
(income) of equity-method investees
|
11
|
|
(194)
|
|
186
|
|
(205)
|
Stock-based
compensation expense
|
1,774
|
|
4,158
|
|
1,565
|
|
7,322
|
Stock-based
compensation expense in connection with
Chief Executive Officer Succession Agreement
|
117
|
|
-
|
|
429
|
|
-
|
Long-lived asset and
intangibles impairment
|
19,473
|
|
3,449
|
|
23,709
|
|
3,449
|
Unrealized currency
losses/(gains)
|
439
|
|
(286)
|
|
1,029
|
|
(3,705)
|
EBITDA
|
$
19,195
|
|
$
53,303
|
|
$
13,268
|
|
$
99,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
9,872
|
|
4,069
|
|
20,205
|
|
8,919
|
Chief Executive
Officer Succession Plan expense, net
|
10,031
|
|
-
|
|
29,272
|
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
920
|
|
4,451
|
|
4,334
|
|
3,093
|
Warehouse/manufacturing facility start-up
costs
|
1,708
|
|
418
|
|
6,307
|
|
1,155
|
Plant closure related
costs
|
1,490
|
|
700
|
|
3,319
|
|
700
|
SKU
rationalization
|
1,530
|
|
-
|
|
1,530
|
|
-
|
Litigation and
related expenses
|
122
|
|
-
|
|
691
|
|
-
|
Losses on terminated
chilled desserts contract
|
-
|
|
2,143
|
|
-
|
|
3,615
|
Co-packer
disruption
|
-
|
|
1,567
|
|
-
|
|
2,740
|
Regulated packaging
change
|
-
|
|
1,007
|
|
-
|
|
1,007
|
Adjusted
EBITDA
|
$
44,868
|
|
$
67,658
|
|
$
78,926
|
|
$
121,119
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
|
2018
|
|
2018
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
38,158
|
|
$
106,557
|
|
Restricted
cash
|
34,304
|
|
-
|
|
Accounts receivable,
net
|
240,520
|
|
252,708
|
|
Inventories
|
402,724
|
|
391,525
|
|
Prepaid expenses and
other current assets
|
56,393
|
|
59,946
|
|
Current assets of
discontinued operations
|
179,327
|
|
240,851
|
|
Total current
assets
|
951,426
|
|
1,051,587
|
Property, plant and
equipment, net
|
320,036
|
|
310,172
|
Goodwill
|
1,008,787
|
|
1,024,136
|
Trademarks and other
intangible assets, net
|
473,534
|
|
510,387
|
Investments and joint
ventures
|
19,318
|
|
20,725
|
Other
assets
|
30,390
|
|
29,667
|
|
Total
assets
|
$
2,803,491
|
|
$
2,946,674
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
209,869
|
|
$
229,993
|
|
Accrued expenses and
other current liabilities
|
159,588
|
|
116,001
|
|
Current portion of
long-term debt
|
35,566
|
|
26,605
|
|
Current liabilities
of discontinued operations
|
34,306
|
|
49,846
|
|
Total current
liabilities
|
439,329
|
|
422,445
|
Long-term debt, less
current portion
|
692,128
|
|
687,501
|
Deferred income
taxes
|
65,245
|
|
86,909
|
Other noncurrent
liabilities
|
15,846
|
|
12,770
|
Total
liabilities
|
1,212,548
|
|
1,209,625
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,087
|
|
1,084
|
|
Additional paid-in
capital
|
1,150,239
|
|
1,148,196
|
|
Retained
earnings
|
774,405
|
|
878,516
|
|
Accumulated other
comprehensive loss
|
(225,359)
|
|
(184,240)
|
|
|
|
1,700,372
|
|
1,843,556
|
|
Treasury
stock
|
(109,429)
|
|
(106,507)
|
|
Total stockholders'
equity
|
1,590,943
|
|
1,737,049
|
|
Total liabilities and
stockholders' equity
|
$
2,803,491
|
|
$
2,946,674
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Operations
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
584,156
|
|
$
616,232
|
|
$
1,144,989
|
|
$
1,205,451
|
Cost of
sales
|
|
469,883
|
|
482,282
|
|
931,122
|
|
948,113
|
Gross
profit
|
|
114,273
|
|
133,950
|
|
213,867
|
|
257,338
|
Selling, general and
administrative expenses
|
|
85,387
|
|
86,444
|
|
167,644
|
|
172,525
|
Amortization of
acquired intangibles
|
|
3,860
|
|
4,572
|
|
7,765
|
|
9,146
|
Project Terra costs
and other
|
|
9,872
|
|
4,069
|
|
20,205
|
|
8,919
|
Chief Executive
Officer Succession Plan expense, net
|
|
10,148
|
|
-
|
|
29,701
|
|
-
|
Accounting review and
remediation costs, net of insurance
proceeds
|
|
920
|
|
4,451
|
|
4,334
|
|
3,093
|
Long-lived asset and
intangibles impairment
|
|
19,473
|
|
3,449
|
|
23,709
|
|
3,449
|
Operating (loss)
income
|
|
(15,387)
|
|
30,965
|
|
(39,491)
|
|
60,206
|
Interest and other
financing expense, net
|
|
8,817
|
|
6,479
|
|
16,522
|
|
12,761
|
Other
expense/(income), net
|
|
373
|
|
(760)
|
|
973
|
|
(3,887)
|
(Loss) income from
continuing operations before income taxes and equity in net
loss (income) of equity-method investees
|
|
(24,577)
|
|
25,246
|
|
(56,986)
|
|
51,332
|
Provision (benefit)
for income taxes
|
|
4,690
|
|
(17,690)
|
|
(4,793)
|
|
(10,206)
|
Equity in net loss
(income) of equity-method investees
|
|
11
|
|
(194)
|
|
186
|
|
(205)
|
Net (loss)
income from continuing operations
|
|
$
(29,278)
|
|
$
43,130
|
|
$
(52,379)
|
|
$
61,743
|
Net (loss)
income from discontinued operations, net of tax
|
|
(37,223)
|
|
3,973
|
|
(51,547)
|
|
5,206
|
Net (loss)
income
|
|
$
(66,501)
|
|
$
47,103
|
|
$
(103,926)
|
|
$
66,949
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share:
|
|
|
|
|
|
|
|
|
Basic net (loss)
income per common share from continuing operations
|
|
$
(0.28)
|
|
$
0.42
|
|
$
(0.50)
|
|
$
0.59
|
Basic net (loss)
income per common share from discontinued operations
|
|
(0.36)
|
|
0.04
|
|
(0.50)
|
|
0.05
|
Basic net
(loss) income per common share
|
|
$
(0.64)
|
|
$
0.45
|
|
$
(1.00)
|
|
$
0.65
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
|
$
(0.28)
|
|
$
0.41
|
|
$
(0.50)
|
|
$
0.59
|
Diluted net (loss)
income per common share from discontinued operations
|
|
(0.36)
|
|
0.04
|
|
(0.50)
|
|
0.05
|
Diluted net
(loss) income per common share
|
|
$
(0.64)
|
|
$
0.45
|
|
$
(1.00)
|
|
$
0.64
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of net (loss) income per common share:
|
|
|
|
|
|
|
Basic
|
|
104,056
|
|
103,837
|
|
104,009
|
|
103,773
|
Diluted
|
|
104,056
|
|
104,440
|
|
104,009
|
|
104,379
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Cash Flows
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(66,501)
|
|
$
47,103
|
|
$
(103,926)
|
|
$
66,949
|
Net (loss) income
from discontinued operations
|
(37,223)
|
|
3,973
|
|
(51,547)
|
|
5,206
|
Net (loss) income
from continuing operations
|
(29,278)
|
|
43,130
|
|
(52,379)
|
|
61,743
|
Adjustments to
reconcile net (loss) income from continuing operations to net cash
provided by (used in) operating activities from continuing
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
13,722
|
|
14,919
|
|
28,106
|
|
30,065
|
Deferred income
taxes
|
(9,514)
|
|
(28,171)
|
|
(22,790)
|
|
(28,808)
|
Equity in net loss
(income) of equity-method investees
|
11
|
|
(194)
|
|
186
|
|
(205)
|
Chief Executive
Officer Succession Plan expense, net
|
10,031
|
|
-
|
|
29,272
|
|
-
|
Stock-based
compensation, net
|
1,891
|
|
4,158
|
|
1,994
|
|
7,322
|
Long-lived asset and
intangibles impairment
|
19,473
|
|
3,449
|
|
23,709
|
|
3,449
|
Other non-cash items,
net
|
444
|
|
1,299
|
|
1,285
|
|
(1,760)
|
Increase (decrease)
in cash attributable to changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
2,226
|
|
2,023
|
|
6,583
|
|
(16,077)
|
Inventories
|
6,675
|
|
(34,945)
|
|
(17,472)
|
|
(63,131)
|
Other current
assets
|
(3,123)
|
|
5,133
|
|
(1,765)
|
|
(3,889)
|
Other assets and
liabilities
|
4,635
|
|
5,312
|
|
4,616
|
|
5,259
|
Accounts payable and
accrued expenses
|
47
|
|
13,359
|
|
(2,358)
|
|
34,422
|
Net cash provided by
(used in) operating activities - continuing operations
|
17,240
|
|
29,472
|
|
(1,013)
|
|
28,390
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(18,992)
|
|
(13,451)
|
|
(41,539)
|
|
(24,685)
|
Acquisitions of
businesses, net
|
-
|
|
(13,064)
|
|
-
|
|
(13,064)
|
Other
|
4,515
|
|
-
|
|
3,863
|
|
-
|
Net cash used in
investing activities - continuing operations
|
(14,477)
|
|
(26,515)
|
|
(37,676)
|
|
(37,749)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings under bank
revolving credit facility
|
80,000
|
|
15,000
|
|
150,000
|
|
35,000
|
Repayments under bank
revolving credit facility
|
(77,647)
|
|
(20,000)
|
|
(137,646)
|
|
(35,000)
|
Repayments under term
loan
|
(3,750)
|
|
-
|
|
(7,500)
|
|
-
|
Funding of
discontinued operations entities
|
11,159
|
|
7,511
|
|
(3,996)
|
|
(12,758)
|
Borrowings of other
debt, net
|
6,918
|
|
5,675
|
|
8,627
|
|
13,912
|
Shares withheld for
payment of employee payroll taxes
|
(1,943)
|
|
(4,588)
|
|
(2,922)
|
|
(6,685)
|
Net cash provided by
(used in) financing activities - continuing operations
|
14,737
|
|
3,598
|
|
6,563
|
|
(5,531)
|
Effect of exchange
rate changes on cash
|
(909)
|
|
706
|
|
(1,969)
|
|
3,765
|
CASH FLOWS FROM
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
14,055
|
|
15,392
|
|
(1,850)
|
|
(2,964)
|
Cash used in
investing activities
|
(1,296)
|
|
(2,662)
|
|
(2,931)
|
|
(6,342)
|
Cash (used in)
provided by financing activities
|
(11,206)
|
|
(7,562)
|
|
3,901
|
|
12,655
|
Net cash flows
provided by (used in) discontinued operations
|
1,553
|
|
5,168
|
|
(880)
|
|
3,349
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
18,144
|
|
12,429
|
|
(34,975)
|
|
(7,776)
|
Cash and cash
equivalents at beginning of period
|
59,899
|
|
126,787
|
|
113,018
|
|
146,992
|
Cash and cash
equivalents and restricted cash at end of period
|
$
78,043
|
|
$
139,216
|
|
$
78,043
|
|
$
139,216
|
Less: cash and cash
equivalents of discontinued operations
|
(5,581)
|
|
(13,285)
|
|
(5,581)
|
|
(13,285)
|
Cash and cash
equivalents and restricted cash of continuing operations at end of
period
|
$
72,462
|
|
$
125,931
|
|
$
72,462
|
|
$
125,931
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
2017
GAAP
|
Adjustments
|
2017
Adjusted
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
584,156
|
-
|
$
584,156
|
|
$
616,232
|
-
|
$
616,232
|
Cost of
sales
|
|
469,883
|
(4,294)
|
465,589
|
|
482,282
|
(5,835)
|
476,447
|
Gross
profit
|
|
114,273
|
4,294
|
118,567
|
|
133,950
|
5,835
|
139,785
|
Operating expenses
(a)
|
|
108,720
|
(20,029)
|
88,691
|
|
94,465
|
(4,151)
|
90,314
|
Project Terra costs
and other
|
|
9,872
|
(9,872)
|
-
|
|
4,069
|
(4,069)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
|
10,148
|
(10,148)
|
-
|
|
-
|
-
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
920
|
(920)
|
-
|
|
4,451
|
(4,451)
|
-
|
Operating (loss)
income
|
|
(15,387)
|
45,263
|
29,876
|
|
30,965
|
18,506
|
49,471
|
Interest and other
expense (income), net (b)
|
|
9,190
|
(439)
|
8,751
|
|
5,719
|
286
|
6,005
|
Provision (benefit)
for income taxes
|
|
4,690
|
1,462
|
6,152
|
|
(17,690)
|
27,751
|
10,061
|
Net (loss)
income from continuing operations
|
|
(29,278)
|
44,240
|
14,962
|
|
43,130
|
(9,531)
|
33,599
|
Net (loss)
income from discontinued operations, net of tax
|
|
(37,223)
|
37,223
|
-
|
|
3,973
|
(3,973)
|
-
|
Net (loss)
income
|
|
(66,501)
|
81,463
|
14,962
|
|
47,103
|
(13,504)
|
33,599
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
|
(0.28)
|
0.43
|
0.14
|
|
0.41
|
(0.09)
|
0.32
|
Diluted net (loss)
income per common share from discontinued operations
|
|
(0.36)
|
0.36
|
-
|
|
0.04
|
(0.04)
|
-
|
Diluted net (loss)
income per common share
|
|
(0.64)
|
0.78
|
0.14
|
|
0.45
|
(0.13)
|
0.32
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31, 2018
|
|
|
|
Three Months
Ended
December 31, 2017
|
|
Warehouse/manufacturing facility start-up
costs
|
|
|
$
1,708
|
|
|
|
$
418
|
|
Plant closure related
costs
|
|
|
1,056
|
|
|
|
700
|
|
SKU
rationalization
|
|
|
1,530
|
|
|
|
-
|
|
Losses on terminated
chilled desserts contract
|
|
|
-
|
|
|
|
2,143
|
|
Co-packer
disruption
|
|
|
-
|
|
|
|
1,567
|
|
Regulated packaging
change
|
|
|
-
|
|
|
|
1,007
|
|
Cost of
sales
|
|
|
4,294
|
|
|
|
5,835
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
4,294
|
|
|
|
5,835
|
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
|
17,900
|
|
|
|
-
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
|
1,573
|
|
|
|
3,449
|
|
Litigation and
related expenses
|
|
|
122
|
|
|
|
-
|
|
Plant closure related
costs
|
|
|
434
|
|
|
|
-
|
|
Stock-based
compensation acceleration associated with Board of
Directors
|
|
|
-
|
|
|
|
702
|
|
Operating expenses
(a)
|
|
|
20,029
|
|
|
|
4,151
|
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
|
|
9,872
|
|
|
|
4,069
|
|
Project Terra costs
and other
|
|
|
9,872
|
|
|
|
4,069
|
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
|
10,148
|
|
|
|
-
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
|
10,148
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
|
920
|
|
|
|
4,451
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
|
920
|
|
|
|
4,451
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
45,263
|
|
|
|
18,506
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
losses/(gains)
|
|
|
439
|
|
|
|
(286)
|
|
Interest and other
expense (income), net (b)
|
|
|
439
|
|
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
|
(1,462)
|
|
|
|
(27,751)
|
|
Benefit for income
taxes
|
|
|
(1,462)
|
|
|
|
(27,751)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
|
$
44,240
|
|
|
|
$
(9,531)
|
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expenses (income),
net include interest and other financing expenses, net and other
(income)/expense, net.
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
2017
GAAP
|
Adjustments
|
2017
Adjusted
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,144,989
|
-
|
$
1,144,989
|
|
$
1,205,451
|
-
|
$
1,205,451
|
Cost of
sales
|
|
931,122
|
(11,156)
|
919,966
|
|
948,113
|
(9,217)
|
938,896
|
Gross
profit
|
|
213,867
|
11,156
|
225,023
|
|
257,338
|
9,217
|
266,555
|
Operating expenses
(a)
|
|
199,118
|
(24,834)
|
174,284
|
|
185,120
|
(4,151)
|
180,969
|
Project Terra costs
and other
|
|
20,205
|
(20,205)
|
-
|
|
8,919
|
(8,919)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
|
29,701
|
(29,701)
|
-
|
|
-
|
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
4,334
|
(4,334)
|
-
|
|
3,093
|
(3,093)
|
-
|
Operating (loss)
income
|
|
(39,491)
|
90,230
|
50,739
|
|
60,206
|
25,380
|
85,586
|
Interest and other
expense (income), net (b)
|
|
17,495
|
(1,029)
|
16,466
|
|
8,874
|
3,705
|
12,579
|
(Benefit) provision
for income taxes
|
|
(4,793)
|
14,241
|
9,448
|
|
(10,206)
|
28,442
|
18,236
|
Net (loss)
income from continuing operations
|
|
(52,379)
|
77,018
|
24,639
|
|
61,743
|
(6,767)
|
54,976
|
Net (loss)
income from discontinued operations, net of tax
|
|
(51,547)
|
51,547
|
-
|
|
5,206
|
(5,206)
|
-
|
Net (loss)
income
|
|
(103,926)
|
128,565
|
24,639
|
|
66,949
|
(11,973)
|
54,976
|
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
|
(0.50)
|
0.74
|
0.24
|
|
0.59
|
(0.06)
|
0.53
|
Diluted net (loss)
income per common share from discontinued operations
|
(0.50)
|
0.50
|
-
|
|
0.05
|
(0.05)
|
-
|
Diluted net (loss)
income per common share
|
|
(1.00)
|
1.24
|
0.24
|
|
0.64
|
(0.11)
|
0.53
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
December 31, 2018
|
|
|
|
Six Months
Ended
December 31, 2017
|
|
Warehouse/manufacturing facility start-up
costs
|
|
|
$
6,307
|
|
|
|
$
1,155
|
|
Plant closure related
costs
|
|
|
3,319
|
|
|
|
700
|
|
SKU
rationalization
|
|
|
1,530
|
|
|
|
-
|
|
Losses on terminated
chilled desserts contract
|
|
|
-
|
|
|
|
3,615
|
|
Co-packer
disruption
|
|
|
-
|
|
|
|
2,740
|
|
Regulated packaging
change
|
|
|
-
|
|
|
|
1,007
|
|
Cost of
sales
|
|
|
11,156
|
|
|
|
9,217
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
11,156
|
|
|
|
9,217
|
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
|
17,900
|
|
|
|
-
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
|
5,809
|
|
|
|
3,449
|
|
Litigation and
related expenses
|
|
|
691
|
|
|
|
-
|
|
Plant closure related
costs
|
|
|
434
|
|
|
|
-
|
|
Stock-based
compensation acceleration associated with Board of
Directors
|
|
|
-
|
|
|
|
702
|
|
Operating expenses
(a)
|
|
|
24,834
|
|
|
|
4,151
|
|
|
|
|
|
|
|
|
|
|
Project Terra costs
and other
|
|
|
20,205
|
|
|
|
8,919
|
|
Project Terra costs
and other
|
|
|
20,205
|
|
|
|
8,919
|
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
|
29,701
|
|
|
|
-
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
|
29,701
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
|
4,334
|
|
|
|
3,093
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
|
4,334
|
|
|
|
3,093
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
90,230
|
|
|
|
25,380
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
losses/(gains)
|
|
|
1,029
|
|
|
|
(3,705)
|
|
Interest and other
expense (income), net (b)
|
|
|
1,029
|
|
|
|
(3,705)
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
|
(14,241)
|
|
|
|
(28,442)
|
|
Benefit for income
taxes
|
|
|
(14,241)
|
|
|
|
(28,442)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
|
$
77,018
|
|
|
|
$
(6,767)
|
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expenses (income),
net include interest and other financing expenses, net and other
(income)/expense, net.
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
|
|
|
Net Sales Growth
at Constant Currency
|
|
|
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
|
|
Net sales -
Three months ended 12/31/18
|
$
584,156
|
|
$
225,338
|
|
$
99,663
|
|
|
|
|
|
|
Impact of
foreign currency exchange
|
10,193
|
|
7,141
|
|
3,052
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 12/31/18
|
$
594,349
|
|
$
232,479
|
|
$
102,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 12/31/17
|
$
616,232
|
|
$
238,201
|
|
$
107,728
|
|
|
|
|
|
|
Net sales growth on a
constant currency basis
|
(3.6)%
|
|
(2.4)%
|
|
(4.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/18
|
$
1,144,989
|
|
$
443,915
|
|
$
197,934
|
|
|
|
|
|
|
Impact of
foreign currency exchange
|
13,793
|
|
8,519
|
|
5,275
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Six months ended 12/31/18
|
$
1,158,782
|
|
$
452,434
|
|
$
203,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/17
|
$
1,205,451
|
|
$
460,646
|
|
$
210,843
|
|
|
|
|
|
|
Net sales growth on a
constant currency basis
|
(3.9)%
|
|
(1.8)%
|
|
(3.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Growth
at Constant Currency and Adjusted for Acquisitions, Divestitures
and Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 12/31/18
|
$
594,349
|
|
$
259,155
|
|
$
232,479
|
|
$
102,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 12/31/17
|
$
616,232
|
|
$
270,303
|
|
$
238,201
|
|
$
107,728
|
|
|
|
|
Acquisitions
|
1,774
|
|
-
|
|
1,774
|
|
-
|
|
|
|
|
Castle contract
termination
|
(4,381)
|
|
-
|
|
(4,381)
|
|
-
|
|
|
|
|
Project Terra SKU
rationalization
|
(11,051)
|
|
(9,708)
|
|
-
|
|
(1,343)
|
|
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Three
months
ended 12/31/17
|
$
602,574
|
|
$
260,595
|
|
$
235,594
|
|
$
106,385
|
|
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures and
other
|
(1.4)%
|
|
(0.6)%
|
|
(1.3)%
|
|
(3.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
|
Hain
Ventures
|
Net sales growth -
Three months ended 12/31/18
|
2.1%
|
|
(8.1)%
|
|
(0.2)%
|
|
(0.4)%
|
|
(12.3)%
|
|
(16.8)%
|
Impact
of foreign currency exchange
|
3.6%
|
|
2.8%
|
|
3.1%
|
|
3.2%
|
|
3.5%
|
|
0.0%
|
Impact of
acquisitions
|
0.0%
|
|
(1.0)%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of
castle contract termination
|
0.0%
|
|
2.5%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of
Project Terra SKU rationalization
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
1.8%
|
|
2.8%
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Three
months
ended 12/31/18
|
5.7%
|
|
(3.8)%
|
|
2.9%
|
|
2.8%
|
|
(7.0)%
|
|
(14.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
|
|
|
Net sales on a
constant currency basis -
Six months ended 12/31/18
|
$
1,158,782
|
|
$
503,140
|
|
$
452,434
|
|
$
203,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/17
|
$
1,205,451
|
|
$
533,962
|
|
$
460,646
|
|
$
210,843
|
|
|
|
|
Acquisitions
|
4,335
|
|
-
|
|
4,335
|
|
-
|
|
|
|
|
Castle contract
termination
|
(10,323)
|
|
-
|
|
(10,323)
|
|
-
|
|
|
|
|
Project Terra SKU
rationalization
|
(21,889)
|
|
(19,414)
|
|
-
|
|
(2,475)
|
|
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Six months
ended 12/31/17
|
$
1,177,574
|
|
$
514,548
|
|
$
454,658
|
|
$
208,368
|
|
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions, divestitures and
other
|
(1.6)%
|
|
(2.2)%
|
|
(0.5)%
|
|
(2.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tilda
|
|
Hain
Daniels
|
|
Ella's
Kitchen
|
|
Hain Celestial
Europe
|
|
Hain Celestial
Canada
|
|
Hain
Ventures
|
Net sales growth -
Six months ended 12/31/18
|
2.8%
|
|
(6.3)%
|
|
4.0%
|
|
(0.2)%
|
|
(8.9)%
|
|
(17.2)%
|
Impact of foreign currency exchange
|
2.5%
|
|
1.7%
|
|
1.8%
|
|
2.2%
|
|
3.8%
|
|
0.0%
|
Impact of
acquisitions
|
0.0%
|
|
(1.2)%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of
castle contract termination
|
0.0%
|
|
3.1%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
Impact of
Project Terra SKU rationalization
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
1.5%
|
|
2.9%
|
Net sales on a
constant currency basis adjusted for
acquisitions, divestitures and other - Six months
ended 12/31/18
|
5.3%
|
|
(2.7)%
|
|
5.8%
|
|
2.0%
|
|
(3.6)%
|
|
(14.3)%
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/hain-celestial-reports-second-quarter-fiscal-year-2019-financial-results-300791381.html
SOURCE The Hain Celestial Group, Inc.