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The Hain Celestial Group Reports Third Quarter Results.

- Sales Grow to $136.9 Million -

The Hain Celestial Group The Hain Celestial Group is a food company whose main focus is natural and organic foods and personal care products. Their products range from herbal teas, offered through their Celestial Seasonings brand to organic free range chickens from the FreeBird brand.  , the leading natural and organic food company, today announced that net sales Net Sales

The amount a seller receives from the buyer after costs associated with the sale are deducted.

This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight
 for the third quarter ended March 31, 2004 totaled $136.9 million, an increase of almost 6% over the same quarter of the prior year. Gross sales Gross Sales

A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge.
 before deducting trade and other sales incentives increased 9% in the same period. Net income in the third quarter this year was $5.0 million, or $0.14 per share on a diluted di·lute  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 basis, as compared with $7.9 million, or $0.23 per share in the third quarter of the prior year.

Irwin D. Simon, Chairman, President and Chief Executive Officer of The Hain Celestial Group, said, "In the quarter, we had higher costs, a soup supply issue, and we took advantage of our investment opportunities behind the launch of CarbFit(R). These events, which impacted earnings, do not obscure the underlying health of our brands and business. The performance of our key brands and business this quarter demonstrates that we maintain and continue to improve our ability to meet the demand for natural and organic products. Importantly, most of our key brands posted positive sales gains. In the third quarter of this year we saw 21% growth in our Snacks business, 6% growth at Celestial Seasonings Celestial Seasonings is a tea company based in Boulder, Colorado, United States that specializes in herbal tea but also sells green and black tea (as well as white and oolong blends). They account for over $100,000,000 in Herbal Tea Blends Sales in the United States annually. , and 24% growth at Earth's Best. Our Canadian Business Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933.  grew 24% while our European Business grew 36%. We have laid a strong foundation for CarbFit, a well-received brand that has quickly become one of America's leading brands serving the needs of today's carb-conscious consumer."

Mr. Simon concluded, "With the continuing increases in costs, the time it will take to rebuild our soup position despite having our co-packer issues resolved -- including securing opportunities to strategically invest in our soup business to ensure it is well positioned for next soup season -- and with our recently announced price adjustments not effective until July, we anticipate that our fourth quarter earnings this year will be in the range of $0.13 to $0.15 per share on revenues of $127 million to $130 million."

Hain Celestial's balance sheet continues to be strong. At the end of the third quarter, working capital totaled approximately $108.4 million with a current ratio of 2.4:1; debt to equity was 13.5%; and total equity reached $484.8 million.

Management will host a conference call to discuss its second quarter results at 9:00 a.m. EDT EDT
Eastern Daylight Time

EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

 today, May 7, 2004. The call may be accessed through the Investor Relations Investor relations

The process by which the corporation communicates with its investors.
 section of the Hain Celestial ce·les·tial  
1. Of or relating to the sky or the heavens: Planets are celestial bodies.

2. Of or relating to heaven; divine: celestial beings.

 website at Please log in to the call at least fifteen minutes ahead of time to allow time for registration. A replay of the call will be available on the same section of the Hain Celestial website until June 7, 2004.

About The Hain Celestial Group

The Hain Celestial Group, headquartered in Melville, NY, is a natural, specialty and snack food company. The Company is a leader in 13 of the top 15 natural food categories, with such well-known natural food brands as Celestial Seasonings (R) teas, Walnut walnut, common name for some members of the Juglandaceae, a family of chiefly deciduous, resinous trees characterized by large and aromatic compound leaves. Species of the walnut family are indigenous mostly to the north temperate zone, but also range from Central  Acres(R), Hain Pure Foods(R), Westbrae(R), Westsoy(R), Rice Dream(R), Soy Dream(R), Imagine(R), Arrowhead Mills(R), Health Valley(R), Breadshop's(R), Casbah(R), Garden of Eatin(R), Terra Chips(R), Yves Veggie Cuisine Cuisine (from French cuisine, "cooking; culinary art; kitchen"; ultimately from Latin coquere, "to cook") is a specific set of cooking traditions and practices, often associated with a specific culture. (R), The Good Dog(R), The Good Slice(R), DeBoles(R), Lima(R), Biomarche(R), Grains Noirs(R), Natumi(R), Milkfree(R), Earth's Best(R), and Nile Spice(R). The Company's principal specialty product lines include Hollywood(R) cooking oils, Estee(R) sugar-free products, Kineret(R) kosher foods

Main article: Kashrut

Kosher foods are those that conform to Jewish law. Invalidating characteristics may range from the presence of a mixture of meat and milk, to the use of produce from Israel that has not been tithed properly, or
, Boston Better Snacks(R), and Alba alba /al·ba/ (al´bah) [L.] white.

See white matter.


[L.] white.
 Foods(R). The Hain Celestial Group's website can be found at

Statements made in this Press Release that are estimates of past or future performance are based on a number of factors, some of which are outside of the Company's control. Statements made in this Press Release that state the intentions, beliefs, expectations or predictions of The Hain Celestial Group and its management for the future are forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in forward- looking statements is contained from time to time in filings of The Hain Celestial Group with the U.S. Securities and Exchange Commission. Copies of these filings may be obtained by contacting The Hain Celestial Group or the SEC.
                      THE HAIN CELESTIAL GROUP, INC.
                       Consolidated Balance Sheets
                              (In thousands)

                                                March 31,          June 30,
                                                   2004              2003
  Current assets:
      Cash and cash equivalents                  $21,101           $10,984
      Trade receivables, net                      70,731            61,215
      Inventories                                 76,597            66,444
      Recoverable income taxes                     1,018               223
      Deferred income taxes                        3,171             3,171
      Other current assets                        10,422             7,671
           Total current assets                  183,040           149,708

  Property, plant and equipment, net              73,992            68,665
  Goodwill, net                                  309,288           296,508
  Trademarks and other intangible assets, net     55,909            55,975
  Other assets                                     9,022            10,692
           Total assets                         $631,251          $581,548

  Current liabilities:
      Accounts payable and accrued expenses      $53,921           $55,710
      Income taxes payable                        12,072             1,867
      Current portion of long-term debt            8,648             8,807
           Total current liabilities              74,641            66,384

  Deferred income taxes                           14,912            14,912
  Long-term debt, less current portion            56,871            59,455
           Total liabilities                     146,424           140,751

  Stockholders' equity:
      Common stock                                   369               348
      Additional paid-in capital                 385,632           364,877
      Deferred compensation                       (3,043)                -
      Retained earnings                          101,017            79,089
      Treasury stock                              (8,435)           (8,156)
      Foreign currency translation adjustment      9,287             4,639
           Total stockholders' equity            484,827           440,797

           Total liabilities and
            stockholders' equity                $631,251          $581,548

                      THE HAIN CELESTIAL GROUP, INC.
                  Consolidated Statements of Operations
                 (in thousands, except per share amounts)

                                     Three Months Ended  Nine Months Ended
                                         March 31,           March 31,
                                       2004      2003      2004      2003
                                        (Unaudited)         (Unaudited)

  Net sales                          $136,862  $129,224  $406,707  $348,650
  Cost of Sales                        98,316    89,519   283,900   240,376
  Gross profit                         38,546    39,705   122,807   108,274

  SG&A expenses                        29,527    25,901    85,393    72,971
  Restructuring charges                   -         -         -         440

  Operating income                      9,019    13,804    37,414    34,863

  Interest expense and other expenses     932     1,184     2,073     1,560
  Income before income taxes            8,087    12,620    35,341    33,303
  Income tax provision                  3,073     4,764    13,413    12,572
  Net income                           $5,014    $7,856   $21,928   $20,731

  Basic per share amounts               $0.14     $0.23     $0.63     $0.61

  Diluted per share amounts             $0.14     $0.23     $0.61     $0.60

  Weighted average common shares
  Basic                                35,694    34,081    34,943    33,853
  Diluted                              36,804    34,887    36,098    34,579

   Contact:    Ira Lamel, CFO                    Jeremy Fielding/David Lilly
               The Hain Celestial Group, Inc.    Kekst and Company
               631-730-2200                      212-521-4800

CONTACT: Ira Lamel, CFO See Chief Financial Officer.  of The Hain Celestial Group, Inc., +1-631-730-2200; Jeremy Fielding or David Lilly of Kekst and Company, +1-212-521-4800, both for The Hain Celestial Group, Inc.
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Publication:PR Newswire
Geographic Code:1USA
Date:May 7, 2004
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