Milling & Baking News - February 24, 2004 - 26

F I N A N C I A L

Hain Celestial sees increase in net
income; debuts low-carb products
MELVILLE, N.Y. - Net income of
The Hain Celestial Group, Inc. in its
second quarter ended Dec. 31 totaled
$10,372,000, equal to 30c per share on the
common stock, up 27% from $8,186,000,
or 24c per share, in the second quarter of
ﬁscal 2003.
Net sales for the quarter were
$142,792,000, up 16% from $123,006,000
in the second quarter of 2003.
"I am very proud of our company's
achievements this quarter," said Irwin
D. Simon, chairman, president and chief
executive ofﬁcer of The Hain Celestial
Group. "Our performance demonstrates
that we continue on the right track, changing the way the world eats. Our results
this quarter are in line with our previously
stated guidance for the full ﬁscal year.
"Hain Celestial's revenue and net income both reached record levels - the
highest in our 10-year history."
Mr. Simon said Hain has experienced
strong growth in the business, including
18% improvement in its snack business.
The company also posted double-digit
growth at Earth's Best with the launch of
its Kidz and Toddler products.

"Yves was also a strong contributor,
with sustained growth at Southern California McDonald's restaurants that sell
our products," Mr. Simon said. "This success has resulted in the recent expansion
of our partnership with McDonald's to
San Francisco and central California."
Hain began shipping its new Carb Fit
brand of low-carbohydrate products in
December in anticipation of a national
launch in mid-January. The launch included four categories of Carb Fit products:
snacks, cookies, pastas and condiments,
each co-branded with Hain's ﬂagship
brands such as Hain PureSnax, Health
Valley cookies, and Deboles pasta.
"We successfully placed Carb Fit in
some key distribution channels, including super-masses and the two large
natural supermarket chains," Mr. Simon
said. "We plan to introduce a total of 80
low-carb products by the spring of this
year. The Carb Fit brand was developed entirely within our organization,
was brought to market in less than six
months, and demonstrates our ability to
innovate and meet consumer demand."
He said the company is satisﬁed with

R E S U L T S

its accomplishments, especially considering the issues related to the continued
challenges posed by the labor dispute

'We successfully placed Carb Fit
in some key distribution channels,
including super-masses and the
two large natural supermarket
chains. We plan to introduce a total
of 80 low-carb products by the
spring of this year.'
- Irwin D. Simon,
The Hain Celestial Group
affecting some retailers in California,
and the transition to a new supplier by
Wild Oats, one of the major retailers in
the natural channel.
Looking ahead, Mr. Simon conﬁrmed
the company's previously announced
guidance of 95c to $1.03 per share for
2004, reﬂecting 20% to 30% earnings
per share growth over earnings of 79c
per share in ﬁscal 2003. "As previously
announced, we expect revenues of $540
million to $565 million reﬂecting annual
growth of 16% to 21% over ﬁscal 2003's
sales of $466.5 million," he said. MBN

Ortega's owner reports
ﬂat 2003 proﬁts, plans
to issue new securities
PARSIPPANY, N.J. - B&G Foods, which purchased the Ortega taco shell line six months
ago, said that its proﬁt remained virtually
steady in 2003.
The company, which makes a variety of
shelf-stable foods and sauces, said its net earnings for the year totaled $15.2 million, down
$77,000 from the previous year. But revenue
during the year rose 12% to $328.4 million from
$293.7 million in 2002.
In the fourth quarter ended Jan. 3, sales rose
22% to $101.2 million from $78.7 million last
year. Earnings in the quarter reached $5.7 million, a 55% increase from $3.7 million last year.
B&G also ﬁled registration statements with
the Securities and Exchange Commission for
an initial public offering of "enhanced income
securities," representing shares of Class A common stock of B&G Foods Holdings and subordinated notes.
Upon completion of the offering, B&G Foods
said it will merge with its holding company,
repay all outstanding loans under its senior
credit facility and terminate that credit line,
redeem $220 million in principal of notes due
2007 and repurchase all outstanding preferred
stock, plus much of its outstanding Class B
common stock. MBN
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Milling & Baking News - February 24, 2004

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