Lake Success-based Hain Celestial Group Inc. Tuesday reported record fourth-quarter and fiscal-year sales driven by international acquisitions, despite the largest voluntary recall in the company's history and a manufacturing facility fire that limited production of one of its core brands.
The organic and natural products company, with brands including Celestial Seasonings, Earth's Best, Terra and Spectrum, posted net sales for the fourth quarter of $698.1 million, an increase of 20 percent from $583.83 million in the same quarter a year ago.
Net sales for fiscal 2015 ended June 30 were $2.69 billion, an increase of 25 percent from $2.15 billion in the prior fiscal year. Earnings per share grew 16 percent to $1.62.
"Our global team did a tremendous job in both the fourth quarter and fiscal year with product innovation, controlling expenses, improving productivity and successfully integrating acquisitions by leveraging our infrastructure," Hain Celestial founder and CEO Irwin Simon said in a statement.
Net income for the fourth quarter was $71.1 million, a 99 percent increase. Diluted earnings per share were 68 cents.
In August 2014, Hain's nSpired Natural Foods subsidiary recalled peanut and almond butters under the brand names of MaraNatha and Arrowhead Mills because of possible salmonella contamination. In October 2014, there was a fire at Hain's Tilda rice manufacturing facility in Britain.
During the fiscal year, Hain completed acquisitions of Hain Pure Protein Corp., a New Oxford, Pennsylvania-based organic and antibiotic-free poultry producer; EK Holdings Inc., a Mifflintown, Pennsylvania-based antibiotic-free, kosher poultry producer; and Belvedere International Inc., a Canada-based health and beauty care products company.
Hain also introduced more than 200 products worldwide. It employs about 6,400 people.
"We'll continue to do strategic acquisitions," Simon said during a conference call Tuesday. "There are lots out there, but we will be disciplined."
Hain forecast that its revenue in fiscal 2016 would be in the range of $2.97 billion to $3.11 billion, an increase of about 10 percent to 15 percent.
"Why am I so optimistic about 2016? Our geographic footprint will get bigger,"Simon said. "Today international sales are 40 percent while the U.S. is at 60, and I would like to see it at 45 and 55, or even 50-50."
Hain announced its earnings before the stock market's opening. Its shares fell almost 7 percent to close at $63.65. The stock has risen more than 9 percent year to date.