The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q2 2016 Earnings Conference Call - Final Transcript

Feb 01, 2016 • 04:30 pm ET


The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q2 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q2 2016 The Hain Celestial Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Ms. Mary Anthes. Ma'am, you may begin.

Mary Anthes

Thank you, Chanel. Good afternoon and thank you for joining us all today. Welcome to Hain Celestial's second quarter fiscal year 2016 earnings call. Irwin Simon, our Founder, Chairman, President and Chief Operating Officer, John Carroll, Executive Vice President and Chief Executive Officer, Hain Celestial North America, and Pat Conte, Executive Vice President and Chief Financial Officer, as well as several members of Hain Celestial's management team are with us today.

Our discussion today will include forward-looking statements, which are current as of today's date. We do not undertake any obligation to update forward-looking statements, either as a result of new information, future events or otherwise. Our actual results may differ materially from what is described in these forward-looking statements. And some of the factors which may cause results to differ are listed in our publicly filed documents, including our 2015 Form 10-K filed with the SEC.

A reconciliation of GAAP results to non-GAAP financial measures is available in our earnings release, which is posted on our website at under Investor Relations. This conference call is being webcast, and an archive of the webcast will be available on our website under Investor Relations. Our call will be brief, so please limit yourself to one question. If time allows, we'll take additional questions and management will be available after the call for further discussion.

Now, let me turn the call over to Irwin Simon. Irwin?

Irwin Simon

Thank you, Mary, and good afternoon, everyone. I hope everybody had an opportunity to review our second quarter 2016 earnings release. We are pleased to report worldwide record net sales up 8% or 11% in constant currency in this quarter as compared to prior year. This has been our largest quarter of sales and profit in the history of Hain Celestial. Our GAAP earnings for the second quarter were up 28% compared to prior year quarter. Our adjusted earnings were up 6% compared to the prior year quarter. It is also, as I said before, the largest in terms of operating income.

Organic growth for all our businesses, excluding the US, was up high single-digits. Organic growth for all our businesses, including the US, was up low single-digits. Our global diversified business model drove these strong results. Hain is a disruptor. For more than 20 years, we have led the way with a relentless focus on health and wellness, providing consumers a healthier way of life. The food industry, like so many other industries, is changing faster than ever.

Health and wellness's transparency and sustainability are driving consumers' choice. At Hain Celestial, we've been ahead