Hain Celestial Posts 6% Net Sales Decrease, As Cully & Sully Shows Growth In FY
Hain Celestial has posted a 6% net sales decrease in its full year, to €2.08 billion, with net sales down 4% on a constant currency basis, offset in part by growth in the Linda McCartney, Hartley's and Cully & Sully brands.
The group which also owns Linda McCartney said that this decline was mainly due to its ongoing Project Terra product rationalisation programme, which has seen the group shed itself of underperforming brands and streamline its operations.
Earlier this week, it announced the sale of its Tilda rice brand, to Ebro Foods.
In the fourth quarter specifically, net sales were down 10% to $558 million, or down 7% on a constant currency basis.
"We are pleased with our team's solid execution on our transformational strategic plan during the fourth quarter," commented Mark L. Schiller, the company's president and chief executive.
"Our financial results demonstrate the third consecutive quarter of sequential adjusted margin improvement along with key operational improvements in the United States and internationally."
Hain Celestial United Kingdom net sales in the fourth quarter were $214.4 million, a decrease of 10% over the prior year period.
When adjusted for Foreign Exchange, Acquisitions and Divestitures and certain other items net sales decreased 5% over the prior year period.
The net sales decrease compared to the prior year period was driven by 14% and 7% declines from Hain Daniels and Ella's Kitchen.
The results for the United Kingdom segment compared to the prior year period were primarily driven by declines from the New Covent Garden Soup Co., Yorkshire Provender and Johnson's Juice Co brands and private label sales.
Schiller noted that the group has been able to make "significant progress" on its development plans in a short period of time, whereby the group is seeking to evolve into a "smaller, more profitable business" in order to drive topline growth.
"For fiscal 2020, we remain confident in our ability to generate significant further improvements in overall profit across our business and in building the foundation for future accelerated growth." He concluded.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.