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The Hain Celestial Group, Inc. Message Board

  • dew_diligence dew_diligence Nov 15, 1999 11:34 AM Flag

    Record Sales/Operating Income

    Thursday November 11, 4:02 pm Eastern
    Company Press Release
    SOURCE: The Hain Food Group,
    Hain Food Group Announces Fiscal 2000 First-Quarter
    Results; Reports Record Sales
    UNIONDALE, N.Y., Nov. 11
    /PRNewswire/ -- The Hain Food Group, Inc. (Nasdaq: HAIN -
    news) reported record sales for its fiscal 2000 first
    quarter ended September 30, 1999 of $68.1 million, an
    increase of 56% over sales of $43.5 million in the
    comparable quarter of the prior year. Income before a
    cumulative change in an accounting principle was $2,721,000,
    or $.19 per share basic and $.17 per share diluted,
    an increase of 55% over net income of $1,755,000, or
    $.13 per share basic and $.12 per share diluted, in
    the first quarter of fiscal 1999, according to Irwin
    D. Simon, president and chief executive

    ``We are extremely pleased with the operating results
    for the current quarter, which historically has been
    our weakest quarter. During the quarter, we made
    significant progress with the integration of Natural
    Nutrition Group, Inc., closed a second facility located in
    Fife, Washington, and began production of the Nile
    Spice line of cup of soups in our Irwindale, California
    facility. In the relatively short period of time that we
    have owned the Health Valley� business, we have
    eliminated approximately $5.0 million of costs, on an annual
    basis, and believe there are additional efficiencies and
    cost savings to be achieved.''

    ``During the
    quarter, the gross profit margin improved from 39% to 41%
    as a result of the continued integration of our
    manufacturing facilities, along with changes in the product mix
    to higher margin items. Selling, general and
    administrative (SG&A) expenses increased as a result of higher
    trade and consumer spending, due to aggressive
    promotion of our newly acquired brands and products. We
    plan to invest in consumer marketing to enhance our
    brand equity while closely monitoring our trade
    spending. We have recently launched our first-ever consumer
    advertising campaign for Terra Chips� and Westsoy� non-dairy
    beverages. These campaigns are targeted to increase consumer
    awareness; the Terra brand is experiencing significant
    dollar sales growth, up 26% in the current

    ``On October 25, 1999, the Food and Drug
    Administration (FDA) concluded that foods containing soy
    protein, including a diet low in saturated fat and
    cholesterol, may help reduce the risk of coronary heart
    disease by lowering blood cholesterol levels. Products
    that contain at least 6.25 grams of soy protein per
    serving, and are low in fat, saturated fat, and
    cholesterol will be eligible to carry the claim. The FDA has
    granted an exemption to the 'low fat' requirement for
    foods derived from whole soybeans such as soymilk.
    Consumer interest and sales of soy foods, already at
    record levels, are expected to increase their
    significant upward trend as a result of this health claim.
    Industry sales of soy beverages alone are up over 80% in
    grocery distribution channels for the latest quarter
    ending September and Westsoy, which currently has 12
    products that meet the FDA requirements, continues to post
    strong growth that is in line with the

    Simon concluded, ``We are continuing to build our
    strategic alliance with H.J. Heinz Company. We have
    appointed a head of our European venture and are in the
    process of exploring ways to leverage the distribution,
    warehousing, manufacturing and procurement opportunities for
    both companies. We believe that many of these projects
    and opportunities will begin to materialize in the
    third and fourth fiscal quarters of this

    SOURCE: The Hain Food Group, Inc.

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