(RTTNews) - Thursday, The Hain Celestial Group, Inc. (HAIN: News ), a natural and organic products company, reported a 17.6% rise in earnings for the first quarter, helped by robust performance at its he U.S. and Continental European operations. The company also reaffirmed its fiscal 2010 earnings forecast and revised its sales outlook.

The Melville, New York-based company said net income for the quarter rose to $8.1 million from $7 million in the corresponding period last year. Earnings grew 17.6% to $0.20 per share from $0.17 per share in the same period last year. The company attributed the rise to robust profit contributions from its United States and Continental European operations.

Results for the quarter include charges of $1.8 million, or $0.03 per share, for the planned and previously disclosed consolidation of the company's two United Kingdom-based fresh food-to-go production facilities, and a $1.0 million or $0.02 per share, net loss representing minority interest in the quarterly results of Hain Pure Protein or HPP.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

The company said in the United Kingdom, it has consolidated into fewer production locations and expects to incur additional consolidation costs in its second quarter.

Sales declined to $230.5 million from $248.4 million a year earlier, after deducting $38.4 million of sales for HPP. Eight Street analysts expected the company to report sales of $249.38 million for the quarter.
Hain said sales for the quarter were affected by a total of about $22 million from destocking at a major distributor, the Celestial Seasonings SKU rationalization, reductions of personal care product sales into the chain drug channel, the phasing out of the supply of fresh sandwiches to a major retail customer in the United Kingdom and changes in foreign currencies.

Gross margins increased to 26.8% from 24% in the corresponding period last year reflecting deconsolidation of HPP offset by higher promotional spending.

Irwin Simon, president and chief executive officer said "The Company realized more favorable fuel and commodity input pricing, cost containment and productivity initiatives."

With the benefit of new commodity contracts, the company plans to maintain a higher level of promotional spending toward the consumer in the upcoming quarters and expect this to further its sales momentum.

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