The Hain Celestial Group, known for its natural and organic foods, has reported fourth quarter sales growth of 25%. Still, profits are down 46% for that same period. Analysts expected sales figures to come in around $264 million, but Hain was able to exceed that goal with $278 million in sales for the quarter.
CEO Irwin D. Simon attributes the growth to shoppers spending more money at the grocery store instead of eating out and Hain’s expansion in the mass and specialty retail markets. The profit decline is attributed to start-up costs associated with a new production line in England and the continual phasing out of unprofitable SKUs. The company’s bestselling brands include Boulder-based Celestial Seasonings, Earth’s Best and Garden of Eatin’.
Sales for the full fiscal year reached $1.06 billion, on growth of 17%, topping the previous fiscal year’s total of $900.4 million. Company advisors expect stock profits of $1.50-$1.60 per share during the new fiscal year that began on July 1. Hain’s stock closed at $26.55 per share on Tuesday.