Net income fell to $6.2 million, or 17 cents per share, from $6.5 million, or 19 cents per share a year ago. Excluding compensation charges of 1 cent per share, the company earned 18 cents per share in the latest quarter.
Sales, however, said the company, rose to $137.6 million from $127.1 million, but this increase was largely off-set by the higher costs of ingredients and freight at a cost of around $2.5 million, as well as a reduction in inventories at two major distributors. Hain noted that these expenses should be offset in the future by the price increase that was implemented during the quarter and, acccording to the firm, contributed approximately $1 million this quarter.
Irwin Simon, CEO of the group said he was pleased that despite external challenges, the company had seen good growth.
"All of our US-based businesses were impacted by the inventory reductions, with sales of our grocery brands most affected. Despite the challenges of the quarter, we refused to make short-term decisions at the end of the quarter that would have otherwise impacted our strategy for the year."
Hain reaffirmed its full year earnings guidance of 92 cents to $1.01 per share on revenues of $650 million to $670 million. Analysts are looking for earnings of 95 cents per share on revenue of $640.2 million
The group had in September announced a healthy 17 percent increase in sales over the year, growing to $544.1 million, a 17 percent increase over prior year sales of $466.5 million. Net income, though, was down on 2003 at $27.0 million, or $0.74 per share, for the full year - a slight dip compared to the $27.5 million, or $0.79 per share, reported in the previous year.
Again high commodity costs were blamed by the company, plus the effect of last year's strike by grocery workers on the West Coast.