Hain Celestial has reported global net sales of $359.8 million from continuing operations, a 25.4% increase compared to net sales of $286.8 million in the first quarter of fiscal year 2012. The Company's first quarter net sales do not include $12.2 million of net sales in fiscal year 2013 and $5.5 million in fiscal year 2012 from discontinued operations.
The Company's growth came from continued sales momentum in the natural and organic sector across various classes of trade including natural, grocery, mass-market retailers, club stores and e-tailers along with contributions from strategic acquisitions. Strong contribution came from our Celestial Seasonings, Earth's Best, Sensible Portions, Spectrum, MaraNatha, The Greek Gods, Terra, Garden of Eatin', Arrowhead Mills, Linda McCartney, Alba Botanica, Europe's Best, New Covent Garden Soup Co., Johnson's Juice Co. and Cully & Sully brands.
For the first quarter, the Company earned $19.8 million of net income from continuing operations as compared to $12.6 million in the prior year first quarter, a 56.6% increase from the prior year, and reported earnings per diluted share from continuing operations of $0.42 compared to $0.28 in the prior year first quarter. Adjusted earnings per diluted share was $0.40 on adjusted net income of $18.6 million in the fiscal year 2013 first quarter as compared to $0.30 per diluted share on adjusted net income of $13.7 million over the prior year first quarter. Adjusted net income and adjusted earnings per diluted share improved 35.8% and 33.3%, respectively, over the prior year first quarter. Adjusted net income excludes acquisition-related items and restructuring charges, discrete tax items and results of discontinued operations.
"We had a strong start to our fiscal year with solid growth of our business led by Hain Celestial United States and with contributions from our expanded international operations during our first quarter. Our increased scale provided us the leverage for improved operating efficiencies across our global portfolio enabling us to deliver solid results from all of our segments. At the same time, our cash conversion cycle improved to 66 days compared 83 days during the first quarter last year," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial.
The Company also announced it had entered into a letter of intent to acquire BluePrint™, a recognized leader in juice cleanses and single-serve raw juices based in New York City. The acquisition, which is expected to close by the end of calendar year 2012, is expected to be accretive to Hain Celestial's earnings in fiscal year 2013. Details of the transaction were not disclosed.
In an October 29, 2012 press release, the Company also announced it had completed the strategic acquisition of Premier Foods' market-leading grocery brands including Hartley's, Sun-Pat, Gale's, Robertson's and Frank Cooper's in the United Kingdom. The Company estimates that net sales during the eight month period from closing to June 30, 2013 will approximate $180 million with accretion in earnings per diluted share during that period of approximately $0.25 before acquisition related charges. These estimates are included in the Company's updated guidance below.
The Company also announced that its Daily Bread sandwich business, which had been classified as a discontinued operation effective in the fourth quarter of fiscal year 2012, is expected to close tomorrow on its sale to Adelie Foods Group. Under the terms of the transaction the Company will acquire the prepared fruit products business of Adelie, which will be housed at Hain Daniels High Care, Fresh Innovation Center, specializing in healthy fruit and vegetable meal solutions.
The Company updated its annual guidance for fiscal year 2013 in connection with its recent acquisition of certain of the Premier Foods brands.
• Total net sales range of $1.780 billion to $1.795 billion.
• Earnings of $2.35 to $2.45 per diluted share.
