US – American food company Hain Celestial has reported a 14% year-on-year to US$457.01 million rise in revenue in the fourth-quarter Full Year 2022 results amid macroeconomic challenges being faced.

The company’s net sales from North America increased 17% Year-on-Year, driven by stronger sales in the snacks, baby, and personal care categories.

Household penetration of snacks, tea, baby, yogurt, plant-based and personal care, the six categories that make up 80% of Hain’s sales and profits, had an impact of a 5% rise in the quarter compared to last year, the company said.

A major reason for the growth is attributed to consumers who have adopted a better eating lifestyle with natural and organic foods tend to remain committed to it.

When adjusted for foreign exchange, acquisitions, divestitures (such as its UK-based fruit business Orchard House), and discontinued brands, net sales decreased by 0.6% compared to the prior year period.

Hain Celestial previously announced the loss of a “significant” co-manufacturing contract for the alternative milk segment in Europe but has since recovered 65% of the lost sales from business wins, most of which will not come on stream until the second half of the new fiscal year.

International business unit sales fell 16% to US$729 million while adjusted segment operating income was US$81.7 million, down 21% from the year before.

The decrease was due to lower gross profit resulting from a decline in sales, as well as higher energy and supply chain costs when compared to the prior year.

European net sales also declined 25%, driven by the lost contract and overall softness in the non-dairy beverage category.


To offset the economic challenges such as inflation, ingredient shortages, and supply chain disruptions that have prevented it from fully transitioning to the Hain 3.0 strategy that was introduced in September 2021, the company has come up with a strategy already in play in the UK.

Hain Celestial is gearing up to offset again an expected price increase, the US food group anticipates greater retailer resistance to further hikes in the new fiscal year.

The New York-based company thinks retailers have accepted the fact that inflation is here to stay and that everyone has got to collectively pass some of that on to the consumer.

President and CEO Mark Schiller predicted that input-cost inflation will quicken to the “mid-teens” area, from low-double digits in the year ended 30 June, leading to “modestly higher elasticity”.

Advantages Hain has is that even though it operates in the premium category, it tends to be “the opening price point,” Schiller said, giving people brands to turn to even if they decide to trade down while remaining active consumers of these items.

Schiller also said Hain hasn’t seen private label offerings taking shares away from its brands since most of the categories the company is in “don’t have a meaningful private label presence”, which serves as the second advantage to enable it to be profitable in the next fiscal year.

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