Hain gets boost from organic products

Melville-based Hain Celestial Group Inc. Wednesday reported record sales and profits for the quarter ended Dec. 31, and said that more consumers are willing to pay up for natural and organic products despite a sluggish economy.

"We are taking share away from conventional products and conventional brands," said Irwin D. Simon, president and chief executive of Hain Celestial, during a conference call with analysts. He added, "I think the consumer is trading up and wanting more natural organic."

The natural and organic packaged goods company said it had strong sales increases in a number of its core brands, including Earth's Best, a line of organic infant foods; Celestial Seasonings natural and specialty teas; Garden of Eatin', its organic tortilla brand, and Linda McCartney vegetarian products.

Net income rose to $20 million or 44 cents per share in the period -- its second fiscal quarter -- compared with $16.3 million or 37 cents per share for the same period in the prior year.

Sales for the quarter rose 32.1 percent to $385.6 million from $291.9 million in the same period the year before.

While many consumer packaged goods companies are experiencing 1- to 2-percent increases in consumption in grocery stores, Hain Celestial's brands have grown at more than three times that rate, the company said. Domestic consumption of Hain Celestial products grew 7 percent, executives said.

Sales for many products increased despite a number of factors. Earth's Best grew by double digit percentage rates, while birthrates went down domestically, company officials said.

Despite warmer weather in the second quarter, the company also experienced strong sales growth in its line of teas.

The company's acquisition of the Daniels Group, a marketer and manufacturer of natural chilled foods in the United Kingdom, also contributed to the company's growth, executives said.

Hain reported earnings after the close of regular trading; its shares fell 75 cents to $38.01 in after-hours trading.