All They’re Trying to Do is Act Naturally: The Hain Celestial Group, Inc. (HAIN), General Mills, Inc. (GIS), Kellogg Company (K)

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Bottom Line Strength

The company’s GAAP net income was $31.6 million, representing an increase of 57.8%. Of note to investors is that Hain Celestial is efficiently managing their costs, which is one component that manifests itself in bottom line strength.

Of course, other companies are aggressively marketing natural and organic products. Kellogg Company (NYSE:K) and General Mills, Inc. (NYSE:GIS) are entering the natural and organic fields as well.

Kellogg’s U.S.Morning Foods/Kashi segment had internal net sales growth of 2.7 percent in 2012. This segment had 6.3 percent internal net sales growth in the fourth quarter of 2012. Morning Foods provides whole grain oats to the food ingredient and manufacturing sectors. Kashi is the company’s natural, nutritious food product line. The Kashi line is building their reputation with their innovation in natural cereals and bars.

General Mills, Inc. (NYSE:GIS) has their Cascadian Farm certified organic foods and Muir Glen organic tomatoes, sauces and soups. The company also has their Lärabar natural fruit and nut food bars. All of these products are part of General Mills’ “Small Planet Foods” division. Within this U.S. retail segment, the Small Planet Foods division (along with the Snacks and Meals divisions) experienced net sales gains in 2Q Fiscal 2013.

General Mills, Inc. (NYSE:GIS) Chairman and CEO, Mr. Ken Powell, stated, “Our U.S. Retail segment posted gains in pound volume, net sales and operating profit.”

Consumers today are demanding healthier eating choices. Processed & packaged goods companies focused on gaining more supermarket shelf space and market share cannot ignore this movement. Therefore, they’re trying to act naturally as they innovate to stay on trend with consumers’ wishes.

The article All They’re Trying to Do is Act Naturally originally appeared on Fool.com and is written by Michael Ugulini.

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