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Mar 28, 2021
Hawkins Q4 2021 Earnings Report
Hawkins reported record Q4 sales and EPS, driven by strong performance in the Health and Nutrition segment.
Key Takeaways
Hawkins, Inc. reported record fourth-quarter sales and diluted earnings per share, driven by increased demand for health and immunity products. The company's Industrial and Water Treatment segments also contributed to the overall growth. The company is cautious about fiscal 2022 due to the uncertainty of consumer demand for health and immunity products.
Record sales in the fourth quarter of $163.0 million, a 23% year-over-year increase.
Record fourth quarter diluted earnings per share (EPS) of $0.43 was 91% higher than the same period of the prior year.
Health and Nutrition segment sales increased 63% due to increased consumer demand for health and immunity products.
Industrial segment sales increased 11% driven largely by a product mix shift to more sales of higher-priced manufactured, blended and repackaged products.
Hawkins
Hawkins
Hawkins Revenue by Segment
Revenue by Segment
Water Treatment Revenue
CapyFin.comIndustrial Revenue
CapyFin.comHealth and Nutrition Revenue
CapyFin.com Forward Guidance
Hawkins anticipates continued execution on its long-term growth strategy in fiscal 2022. The company expects the Industrial segment to remain steady and the Water Treatment segment to rebound. However, they are cautious about the Health and Nutrition segment due to potential contraction if consumer behaviors migrate towards pre-pandemic levels.
Positive Outlook
- Continue to execute on our long-term growth strategy.
- Industrial segment remains steady.
- Water Treatment segment will rebound from the impact of the pandemic.
- Water Treatment segment will see growth in fiscal 2022.
- Increased sales of specialty products.
Challenges Ahead
- Cautious about fiscal 2022 in Health and Nutrition.
- Much of our success in this area was supported by consumer demand for health and immunity products, which was quite high in fiscal 2021, which we believe was a result of COVID-19.
- If consumer behaviors migrate towards pre-pandemic levels, we will likely see some contraction in the Health and Nutrition segment.
- Declines in sales into the ethanol industry.
- Legacy business was down due to impacts from COVID-19, particularly in the first two quarters of the fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income