Hawkins, Inc. Reports 3% Revenue Growth, Net Income Increase in Latest Quarter

Hawkins, Inc. reported significant financial developments in its 10-Q filing for the period ending September 29, 2024. The company experienced an increase in total assets, rising to $689.7 million from $657.9 million as of March 31, 2024. Current assets also grew, reaching $209.9 million compared to $202.8 million in the previous period. Cash and cash equivalents saw a slight increase to $7.5 million, up from $7.2 million.

The company’s revenue for the three months ended September 29, 2024, was $247.0 million, a rise from $236.5 million for the same period in the previous year. For the six months, revenue increased to $502.9 million from $487.6 million, marking a 3% growth. The Water Treatment segment was a key driver, with sales increasing by 24% to $241.7 million, while the Industrial and Health & Nutrition segments saw declines of 12% and 8%, respectively.

Gross profit for the three months ended September 29, 2024, was $60.2 million, compared to $53.9 million in the prior year. For the six-month period, gross profit rose to $124.9 million, an 18% increase from $105.9 million. Operating income also improved, reaching $33.7 million for the three months and $73.5 million for the six months, reflecting increases of 2% and 12%, respectively.

Net income for the three months ended September 29, 2024, was $24.1 million, up from $23.2 million a year earlier. For the six months, net income increased to $53.0 million from $46.6 million. Basic and diluted earnings per share for the three months were both $1.16, compared to $1.11 and $1.10 in the previous year.

Strategically, Hawkins, Inc. has been active in acquisitions, completing several transactions in fiscal 2024. Notable acquisitions include Wofford Water Service, Inc. for $3.4 million, Intercoastal Trading, Inc. for $22.0 million, and Water Solutions Unlimited, Inc. for $60 million. These acquisitions contributed to the increase in goodwill, which rose to $111.6 million as of September 29, 2024.

The company also reported a rise in selling, general, and administrative (SG&A) expenses, which increased by 27% to $51.3 million, primarily due to costs associated with acquired businesses. Interest expense rose to $2.7 million, reflecting higher borrowings and interest rates.

Overall, Hawkins, Inc. demonstrated solid revenue growth and profitability improvements, supported by strategic acquisitions, despite facing challenges in certain market segments.