The Hain Celestial Group, Inc. F4Q09 (Qtr. End 6/30/09) Earnings Call Transcript

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2009-08-25 17:36:28.0

Tags: Rationalization, Call Transcript, U.K., Earnings, Citigroup Inc., Hain Celestial Group Inc., Sales Strategy, Sales Force Management, Retail, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question is from the Greg Badishkanian from Citigroup.

Greg Badishkanian - Citigroup

On the sales front, excluding currency sales were down sort of low single digit. I am wondering are there any adjustments there, no acquisition, is there anything we should consider for that?

Irwin Simon

Well in that the number besides currency, there is some private label business that we didn't do this year versus last year in the UK and then there were SKU rationalization and personal care rationalization. The big thing is the major SKU rationalization of product lines and a major co-pack agreement we had in the UK that we didn't have this year Greg.

Greg Badishkanian - Citigroup

So I am assuming you will probably positive excluding that?

Irwin Simon

I'll let you say it.

Greg Badishkanian - Citigroup

Then moving to POS. Obviously, we have seen a lot of destocking, particularly at the retail and distributor level. So how much of that went on during your fourth fiscal quarter and would you say that retail sales were higher than your sales to retailers and distributors?

Irwin Simon

Greg, I think in the fourth quarter we didn't see like we saw in the second and third. Actually, we did see a couple of major mass markets take out about half a week. I have John and Adam here nodding their heads. So it was more direct customers not distributors. So I would say about a half a week came out as major retailers. The significant came out in the second and third quarter for us. Again in some of the statistics we are seeing is consumers going to the super market a lot more often and pantry deloading, but we are seeing not consumption [max] in some of our shipments here.

Operator

Our next question is from the line of Edward Aaron from RBC Capital Markets.

Edward Aaron - RBC Capital Markets

I guess my question is for John, looking out to 2010. John when I think you said that Europe and the UK were going to be breakeven and that protein is going to make money. John wouldn't that imply your business will be lower in 2010 than 2009?

John Carroll

No. In a word, no.

Irwin Simon

So you got it. You're not his boss Ed.

John Carroll

If there is an opportunity to sign up for that I might, but ?

 

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