Hain Celestial Group reports an increase in brand spending.
Wendy P. Davidson, the new president and chief executive officer of Hain Celestial Group, is dedicated to improving the company’s brand building effort, which has historically lagged behind the industry average.
In a conference call on February 7 to review second-quarter results, she stated, “I was a bit surprised (since) joining the company that some of our brands haven’t been on air in over a year, and we haven’t been in a position to be able to keep them top of mind with the consumer.”
She underlined that prior supply chain problems prevented investment in several of the company’s brands, but that now that those problems have largely been fixed, investment would resume. Additionally, Ms. Davidson plans to investigate the possibilities of every brand owned by Hain Celestial.
We have some amazing local and regional treasures that rank either first or second in their respective categories in their respective regions, she continued, “if you look at our business today.” They might simply remain local or regional, but we have some brands that have the potential to expand outside of its primary geographic area, and we are entitled to compete there. We are going to be investigating those sectors and positioning ourselves to pursue them.
Investing in consumer insights and innovation will be a part of setting up the brand for investment and growth.
“To make sure that we can see what’s happening in the marketplace and where we need to be, I’m looking at our capabilities around insights and analytics and consumer… category insights and analytics,” Ms. Davidson stated. “We’re focusing a lot on our innovation capabilities, but we’re also looking at things like our agency and support models and our ability to develop strong brand strategies.”
The Hain Celestial Group’s net income for the second quarter ending December 31, 2022, was $11 million, or 12¢ per share on the common stock. This is less than the $30.9 million, or 33¢ per share, the business generated during the same time the previous year.
Sales for the quarter were $454.2 million, which is less than the $476.9 million in sales for the same period last year.
The company stated that foreign exchange, purchases, sales, and discontinued brands were among the factors influencing the results.
Sales of $282.4 million were made in North America, the company’s main business area, a 3% increase over the previous year. Segment operating profit increased by 19% to $32.3 million.
The principal accounting officer and chief financial officer, Christopher J. Bellairs, stated that certain categories, such snacks, which increased by double digits during the quarter, and yogurt, which increased by high single digits, kept up their strong performance.
During the quarter, sales of the international business segment decreased by 15% to $171.8 million. To $12.5 million, operating income decreased by 56%. Foreign exchange and the European market’s weakness in plant-based product categories were factors influencing the results.
Hain Celestial’s net income for the first half of the 2023 fiscal year was $17.9 million, or 20¢ per share, as opposed to $50.3 million, or 53¢ per share, in the previous year.
Sales for the year’s first half were $893.6 million, compared to $931.8 million in the same period last year.