Hain Celestial(US:HAIN)2021-02-09 22:03Financial Performance - Total net sales for the three months ended December 31, 2020, increased to $528,418 thousand, up from $506,784 thousand in the same period of 2019, representing a growth of 4.1%[20] - Gross profit for the six months ended December 31, 2020, was $249,129 thousand, compared to $203,438 thousand for the same period in 2019, reflecting a year-over-year increase of 22.5%[20] - Operating income for the three months ended December 31, 2020, was $12,957 thousand, an increase of 41.5% from $9,191 thousand in the prior year[20] - Net income for the three months ended December 31, 2020, was $2,140 thousand, compared to a net loss of $964 thousand in the same period of 2019[20] - Net income for the six months ended December 31, 2020, was $2,625,000, a significant recovery from a net loss of $107,985,000 in the same period of 2019[26] - Net income from continuing operations for the three months ended December 31, 2020, was $2,151,000, compared to $1,852,000 for the same period in 2019, reflecting an increase of 16.2%[52] - Adjusted EBITDA for the three months ended December 31, 2020 was $62.2 million, up from $45.0 million, representing a 38.1% increase[201] - Adjusted EBITDA for the six months ended December 31, 2020, was $117.1 million, an increase of $39.9 million, or 51.8%, from $77.1 million in the prior year[209] Assets and Liabilities - Total assets as of December 31, 2020, amounted to $2,265,599 thousand, an increase from $2,188,452 thousand as of June 30, 2020[19] - Current liabilities increased to $365,705 thousand as of December 31, 2020, from $300,277 thousand as of June 30, 2020, indicating a rise of 21.8%[19] - Total stockholders' equity increased to $1,454,649 thousand as of December 31, 2020, from $1,443,554 thousand as of June 30, 2020[19] - Cash and cash equivalents rose to $46,813 thousand as of December 31, 2020, compared to $37,771 thousand as of June 30, 2020, marking a growth of 23.5%[19] - The company had borrowings under the bank revolving credit facility of $150,000,000, with repayments of $137,000,000 during the same period[26] - As of December 31, 2020, total borrowings under the revolving credit facility amounted to $293,000, an increase from $280,000 as of June 30, 2020[86] Impairments and Losses - The company reported a long-lived asset and intangibles impairment of $25,179 thousand for the three months ended December 31, 2020, compared to $1,889 thousand in the same period of 2019[20] - The company reported a net loss from continuing operations of $8,630,000 for the six months ended December 31, 2020, compared to a loss of $3,101,000 in 2019[26] - The company recognized a net loss from discontinued operations of $11,245,000 for the six months ended December 31, 2020, compared to a loss of $103,853,000 for the same period in 2019[63] - The company reported a loss of $523 million from foreign currency forward contracts for the three months ended December 31, 2020[136] - For the six months ended December 31, 2020, the loss from foreign currency forward contracts was $399 million[136] - The company experienced a loss of $1,209 million from cross-currency swaps for the three months ended December 31, 2020[134] Strategic Initiatives - The Hain Celestial Group is focused on health and wellness, aiming to be a leading marketer of organic and natural products, with operations in over 75 countries[30] - The company has implemented a strategy to simplify its portfolio, strengthen capabilities, expand profit margins, and reinvigorate profitable topline growth[30] - The company divested several less profitable businesses and brands, including the Tilda business and Hain Pure Protein segment, to reduce complexity and focus on core growth areas[31][35] - The company initiated cost reduction programs for its international businesses in the UK and Europe to enhance operational efficiency[32] - The company aims to optimize its product assortment and increase distribution share through concentrated investment in marketing and innovation for its key brands[32] - The company continues to evaluate opportunities for growth and innovation in its more profitable and faster-growing core businesses[35] Market Performance - North America net sales for the three months ended December 31, 2020, were $282.612 million, a slight increase from $280.693 million in the same period of 2019[153] - International net sales for the three months ended December 31, 2020, were $245.806 million, up from $226.091 million in the same period of 2019, representing an increase of approximately 8.7%[153] - Grocery product category net sales for the three months ended December 31, 2020, were $364.689 million, compared to $357.972 million in the same period of 2019, showing a growth of about 1.9%[155] - The United States accounted for $244.344 million in net sales for the three months ended December 31, 2020, slightly up from $242.891 million in the same period of 2019[155] Expenses and Costs - Selling, general and administrative expenses rose to $83.6 million, a 5.7% increase from $79.1 million, primarily due to marketing and advertising costs[185] - Interest and other financing expense, net, totaled $4.8 million for the six months ended December 31, 2020, a decrease of $6.2 million, or 56.6%, from $11.0 million in the prior year[217] - Productivity and transformation costs decreased to $7.8 million for the six months ended December 31, 2020, down $18.6 million from $26.4 million in the prior year[213] Taxation - The effective income tax rate from continuing operations for the three months ended December 31, 2020, was an expense of 72.3%, significantly higher than 31.8% for the same period in 2019[94] - The provision for income taxes was $8.4 million, significantly higher than $1.0 million in the prior year, influenced by the impairment of the U.K. Fruit business[193] Share Repurchase and Stock Compensation - The company repurchased common stock amounting to $71,736,000 during the six months ended December 31, 2020[26] - The company repurchased 2,204 shares under its share repurchase program for a total of $71,693, at an average price of $32.53 per share during the six months ended December 31, 2020[56][57] - Total compensation cost recognized for stock-based compensation plans for the six months ended December 31, 2020, was $8,190, compared to $6,364 for the same period in 2019, reflecting a 28.7% increase[103]