Hain outlook strong for 2003

Natural foods supplier the Hain Celestial Group reported a 57 per cent rise in net income for the second quarter of 2003, and record revenues of $123 million for the period ended December 31, 2003. Revenues were up by 17 per cent, thanks to good performances at all the group's units.

Organic growth at the group was 9 per cent in addition to 8 per cent growth from acquired businesses. Hain bought the non-dairy beverage firm Imagine Foods in December last year, and the Belgian organic company Lima in last year's quarter. With Imagine, Hain will gain presence in the rice milk category, the frozen non-dairy category, and the aseptic soup business. It has also gained the well-known Soy Dream brand.

Hain Celestial chairman and CEO Irwin D. Simon said that integration of the Imagine business is "going more quickly than planned. As a result, we are extremely confident we will accomplish $2-$3 million in cost synergies in the next fiscal year."​

The Celestial Seasonings unit grew over 9 per cent in the quarter, while the Canadian business, which includes Yves' Veggie Cuisine, grew almost 19 per cent, according to the company.

Sales at Terra improved, but still declined by 5 per cent in the quarter. After a 16 per cent decline in the first quarter, Simon said the firm is expecting sales to start to increase in the third quarter.

The Melville brands grew 8 per cent in the quarter and Europe also grew by 8 per cent over the prior year, according to the company.

Simon also pointed to increased profitability during the quarter, which had EBITDA of $16 million. This has allowed further resources for brand marketing, and the second quarter saw consumer marketing expenditures up by $3 million, particularly in print campaigns.

The Hain CEO added that the group estimates sales of $123 to $128 million for the third quarter, and sales of $113 to $117 million for the fourth quarter.