Hain Celestial fiscal 3Q revenue and profit up

Hain Celestial posts revenue and profit gains in fiscal 3Q, plans to buy Ella's Kitchen

Associated Press

LAKE SUCCESS, N.Y. (AP) -- The Hain Celestial Group Inc. reported major profit gains in its fiscal third quarter on stronger sales, but the company issued a weak full-year forecast.

Shares fell in after-hours trading Thursday.

Hain Celestial earned $40.7 million, or 85 cents per share, for the quarter that ended March 31. That compares with $24.1 million, or 52 cents per share, earned last year. It made 72 cents per share on an adjusted basis, excluding one-time items.

Total revenue increased 21 percent to $456.1 million.

Analysts expected 72 cents per share on revenue of $480.2 million, according to FactSet.

Hain Celestial benefited from recent acquisitions in the United Kingdom but also saw revenue gains around the world.

The Lake Success, N.Y.-based company expects to earn $2.43 to $2.47 per share for the year on revenue around $1.73 billion. Analysts forecast $2.46 per share on revenue of $1.74 billion.

The company also announced that it is buying organic baby food maker Ella's Kitchen Group Ltd. for an undisclosed amount and creating a global infant, toddler and kids division in the U.S. Paul Lindley, founder of Ella's Kitchen, will be CEO of the division.

Ella's Kitchen, which sells baby food in flexible pouches, generated approximately $70 million revenue last year. The deal is expected to add 5 to 8 cents per share to the company's earnings in 2014.

Hain Celestial shares fell $2, about 3 percent, to $63.50 in after-hours trading.

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