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The Hain Celestial Group F1Q08 (Qtr End 9/30/07) Earnings Call Transcript

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2007-11-01 19:08:46.0

Tags: Hain Celestial Group Inc.

Question-and-Answer Session

Operator

Sorry about that folks. Thank you very much. (Operator Instructions). And our first question comes from the line of Greg Badishkanian of Citigroup. Please proceed.

Greg Badishkanian - Citigroup

Great, thank you. Hey guys, just a few quick questions here. I am looking at organic sales growth kind of in the high single-digit range organically, am I kind of in the ballpark?

Irwin Simon

You are doing the numbers Greg.

Greg Badishkanian - Citigroup

Yeah.

Irwin Simon

Listen, I've said before. We would like to be at the high single low double-digit, and I think you heard John talk about the great growth and good growth in Europe, growth among Celestial. So, with that we feel we are on our targets.

Greg Badishkanian - Citigroup

Great, excellent. And just drilling in a little bit on October, it sounds like growth was very strong, any categories or brands that did particularly well in October?

Irwin Simon

Actually right across the board

Greg Badishkanian - Citigroup

Yes.

Irwin Simon

Business was extremely strong in October. And the grocery frozen snack business is strong, we are seeing personal care, good stuff happening there, good stuff out of Europe. Okay on tea. So yeah, there is nothing that's surprising me. But October, which is normally a strong month was even stronger than we expected it.

Greg Badishkanian - Citigroup

Okay, great. And with respect to coffee, it sounds like a pretty good opportunity for incremental growth. Is that something that if you get some okay size, can that be fairly profitable?

Irwin Simon

It can. Saphara is something, also we are pretty excited about, its organic fair trade, fully biodegradable. So number one, that is something that's a good margin, good growth. And some of you have seen the coffee, the packaging, the product, the quality is exception here. It's organic fair trade, not a lot of flavored coffee out there.

So we've got some pretty good listing so far, and don't forget, we went out a little late selling this, a lot of coffee sets. But those that we showed it are inviting us back but we didn't get it for January-February. So some good stuff could happen on coffee too.

And I know I haven't talked about it, but the ready-to-drink thing is something we are still working on and got those things moving there. And also Greg hearing some real good feedback on our packaging and everybody on the call asking, go look at it on the shelf and I love your input back, but some good stuff on our new Celestial for packaging also.

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