The Hain Celestial Group, Inc., an organic and natural products company providing consumers with A Healthier Way of Life™, reported results for the fourth quarter and fiscal year ended June 30, 2014. 

PERFORMANCE HIGHLIGHTS

Fourth Quarter Fiscal Year 2014

Record net sales of $583.8 million, a 26% increase
GAAP earnings per diluted share from continuing operations of $0.70, a 32% increase
Adjusted earnings per diluted share from continuing operations of $0.90, a 39% increase
Adjusted operating income of $73.9 million, 12.7% of net sales
Record adjusted EBITDA of $79.4 million, a 27% increase

Fiscal Year 2014

Record net sales of $2.154 billion, a 24% increase
GAAP earnings per diluted share from continuing operations of $2.83, a 12% increase
Adjusted earnings per diluted share from continuing operations of $3.17, a 25% increase
Adjusted operating income of $256.0 million, 11.9% of net sales
Record adjusted EBITDA of $300.0 million, a 27% increase
Operating free cash flow reached $143.2 million for the 12-months ended June 30, 2014

"We completed our fiscal year with record net sales by delivering solid performance across brands and geographies, and I am pleased with the results," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Our US business continued to generate strong results as momentum for organic and natural products builds across various channels of distribution. Our UK business posted record sales with increased profit contribution and our Rest of World segment delivered high single digit sales growth."

Fourth Quarter 2014 Worldwide net sales for the fourth quarter of fiscal year 2014 were a record $583.8 million, an increase of 26.0% compared to net sales of $463.5 million in the prior year fourth quarter. Hain Celestial US reported record net sales of $323.0 million, a 13.2% increase. In the United Kingdom net sales were a record $200.5 million. The Rest of World segment reported net sales of $60.4 million. The Company had strong brand contribution across various sales channels including Ella's Kitchen®, Garden of Eatin®, Imagine®, The Greek Gods®, Sensible Portions®, Terra®, Westbrae®, Spectrum® and Alba Botanica® in North America and Gale's®, Natumi®, Frank Cooper's®, SunRipe®, Hartley's®, Sun-Pat®, Linda McCartney®, and Cully & Sully® internationally. The growth in net sales also resulted from sales of the Tilda® and Rudi's Organic Bakery® brands acquired earlier this year.

The Company earned income from continuing operations of $35.7 million compared to $25.9 million in the prior year fourth quarter and reported earnings per diluted share from continuing operations of $0.70 compared to $0.53 in the prior year fourth quarter, a 32.1% increase. Adjusted income from continuing operations was $46.0 million compared to $31.7 million, a 45.3% increase, and adjusted earnings per diluted share from continuing operations was $0.90 compared to $0.65, a 38.5% increase, from the prior year fourth quarter. Adjusted EBITDA reached a record $79.4 million during the fourth quarter. Refer to Non-GAAP Financial Measures for adjustments.

Fiscal Year 2014

Worldwide net sales for fiscal year 2014 were a record $2.154 billion, an increase of 24.2% compared to net sales of $1.735 billion in the prior year. Hain Celestial US reported record net sales of $1.282 billion, a 17.0% increase. In the United Kingdom, net sales were a record $637.5 million. The Rest of World segment net sales were a record $234.0 million. The Company had strong brand contribution across various sales channels led by Ella's Kitchen, BluePrint®, Garden of Eatin', The Greek Gods, Spectrum, Bearitos®, Sensible Portions, Imagine, Hain Pure Foods®, Earth's Best®, MaraNatha®, Arrowhead Mills® and Alba Botanica in North America and Frank Cooper's, Sun-Pat, Natumi, Danival®, Cully & Sully, Linda McCartney and Lima® internationally. The growth in net sales also resulted from sales of the Tilda and Rudi's Organic Bakery brands acquired earlier this year and the full year contribution of Ella's Kitchen, BluePrint and UK grocery brands acquired in fiscal year 2013.

The Company earned income from continuing operations of $141.5 million compared to $119.8 million in the prior year and reported earnings per diluted share from continuing operations of $2.83 compared to $2.52 in the prior year, a 12.3% increase. Adjusted income from continuing operations was $158.6 million compared to $120.2 million, a 32.0% increase, and adjusted earnings per diluted share from continuing operations was $3.17 compared to $2.53 in the prior year, a 25.3% increase. Adjusted EBITDA reached a new high of $300.0 million for the fiscal year ended June 30, 2014. Operating free cash flow reached a record $143.2 million for the 12 months ended June 30, 2014. Refer to Non-GAAP Financial Measures for adjustments.

Fiscal Year 2014 Highlights

The Company highlighted several of its accomplishments during fiscal year 2014:

Completed two strategic acquisitions:

• Tilda, a leading premium 100% branded Basmati and specialty rice products company, which offers a range of over 60 dry rice and ready-to-heat branded products principally in the United Kingdom, the Middle East and North Africa, Continental Europe, North America and India

• Rudi's Organic Bakery, a leading organic and gluten-free company, which offers a range of USDA-certified organic and gluten-free bread and baked goods in the United States and Canada

• Worldwide net sales surpassed $2 billion

• Introduced over 200 new innovative products worldwide

• Hain Celestial AOC US consumption as measured by AC Nielsen was 10.8% for the 52-weeks ended July 5, 2014

• Delivered in excess of $50 million in worldwide productivity savings

• Achieved record adjusted EBITDA of $300.0 million

• Generated record operating free cash flow of $143.2 million

• Divested non-core Grains Noirs foodservice business in Belgium