Did Hain Celestial Group’s Earnings Rise in Fiscal 3Q16?

(Continued from Prior Part)

Revenue was driven by acquisitions

The Hain Celestial Group’s (HAIN) net revenue of $750 million for fiscal 3Q16 beat estimates by 2.0%. The company also delivered year-over-year revenue growth of 13%. On a constant currency basis, net sales increased by 15% over last year’s net sales of $663 million.

The Joya brand and the Orchard House Foods business, both acquired after the third quarter of fiscal 2015, contributed to revenue growth. There was an impact of $13.9 million as a result of foreign exchange rate movements compared to 3Q15.

The 3Q16 sales increase was mainly the result of a strong performance of the US business, which saw low-single-digit growth in the third quarter. Management mentioned that it is happy with the 3Q16 performance and expects these trends to continue in the fourth quarter.

The Orchard House, Mona Group, Empire, Kosher, and Belvedere acquisitions contributed $93.5 million to net sales in fiscal 3Q16 as compared to $18 million in fiscal 3Q15.

What brands contributed to revenue?

All four of Hain Celestial’s segments had a strong performance in the third quarter of fiscal 2016. We’ll discuss the company’s segmental performance in the next part of this series.

The company showed strong sales growth in constant currency terms in some of its major brands, including Imagine, Plainville Farms, Terra, Garden of Eatin, Tilda, Yves, FreeBird, The Greek Gods, Spectrum, and Sensible Portions, along with the personal care brands such as Alba Botanica and Jason.

CEO’s remarks

Irwin D. Simon, founder, president, and chief executive officer of Hain Celestial, stated, “Our net sales reflect the strong performance across our businesses led by Hain Celestial United States, Hain Pure Protein, Hain Celestial United Kingdom and Hain Celestial Europe as well as Hain Celestial Canada.”

He added, “The diversification of our product portfolio with leading organic, natural and better-for-you brands around the world, combined with our team’s solid execution of our operational initiatives fueled our financial performance. We are extremely pleased with our US results where we returned to growth in the third quarter and expect these trends to continue.”

Peers’ revenues

Hain Celestial’s competitors in the industry include Cal-Maine Foods (CALM), TreeHouse Foods (THS), and Snyder’s-Lance (LNCE). They recorded revenues of $450 million, $865 million, and $406 million, respectively, for their last reported quarters. The SPDR S&P 600 Dow Jones Small Cap Growth ETF (SLYG) invests 05% of its portfolio in CALM.