Hawkins, Inc. (HWKN) Bundle
A Brief History of Hawkins, Inc.
Hawkins, Inc. has established itself as a significant player in the chemical distribution industry, focusing on water treatment, industrial chemicals, and health and nutrition products. As of 2024, the company's financial performance reflects a robust trajectory, characterized by strategic acquisitions and increased sales across its segments.
Financial Performance Overview
For the three months ended September 29, 2024, Hawkins, Inc. reported sales of $247.0 million, an increase of $10.5 million, or 4%, from $236.5 million in the same period a year ago. The gross profit for this quarter reached $60.2 million, representing 24% of sales, compared to 23% in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales | $247.0 million | $236.5 million |
| Gross Profit | $60.2 million | $53.9 million |
| Gross Profit Margin | 24% | 23% |
| Net Income | $24.1 million | $23.2 million |
| Operating Income | $33.7 million | $33.0 million |
Segment Performance
The sales performance varied across Hawkins' segments for the six months ended September 29, 2024:
- Water Treatment Segment: Sales increased by $47.1 million, or 24%, to $241.7 million.
- Industrial Segment: Sales decreased by $26.3 million, or 12%, to $193.1 million.
- Health & Nutrition Segment: Sales decreased by $5.6 million, or 8%, to $68.1 million.
| Segment Performance | Sales (6 Months Ended Sept 29, 2024) | Sales (6 Months Ended Oct 1, 2023) |
|---|---|---|
| Water Treatment | $241.7 million | $194.6 million |
| Industrial | $193.1 million | $219.4 million |
| Health & Nutrition | $68.1 million | $73.7 million |
| Total Sales | $502.9 million | $487.6 million |
Cost Structure and Profitability
Hawkins, Inc. reported a significant increase in selling, general, and administrative (SG&A) expenses, which rose by $10.9 million, or 27%, to $51.3 million for the six months ended September 29, 2024. This increase was primarily attributed to costs associated with acquired businesses in the Water Treatment segment.
The operating income for the same period increased by $8.0 million, or 12%, reaching $73.5 million, or 15% of sales, compared to 13% of sales in the prior year.
| Profitability Metrics | 6 Months Ended Sept 29, 2024 | 6 Months Ended Oct 1, 2023 |
|---|---|---|
| Operating Income | $73.5 million | $65.5 million |
| Net Income | $52.997 million | $46.646 million | Operating Margin | 15% | 13% |
Cash Flow and Capital Expenditures
Cash provided by operating activities for the six months ended September 29, 2024, was $59.2 million, a decrease from $92.6 million in the previous year. Cash used in investing activities increased to $46.3 million, up from $19.9 million a year ago, reflecting acquisition spending of $25.4 million.
| Cash Flow Metrics | 6 Months Ended Sept 29, 2024 | 6 Months Ended Oct 1, 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $59.2 million | $92.6 million |
| Cash Used in Investing Activities | $46.3 million | $19.9 million |
| Acquisition Spending | $25.4 million | $3.4 million |
Debt and Equity Position
As of September 29, 2024, Hawkins, Inc. had total debt of $103.775 million, with a long-term debt component of $93.862 million. The company remains compliant with all covenants of its credit agreement.
The total shareholders' equity as of September 29, 2024, was $443.372 million, reflecting an increase from $406.026 million in March 2024.
| Debt and Equity Metrics | As of Sept 29, 2024 | As of March 31, 2024 |
|---|---|---|
| Total Debt | $103.775 million | $98.731 million |
| Long-Term Debt | $93.862 million | $88.818 million |
| Total Shareholders' Equity | $443.372 million | $406.026 million |
Hawkins, Inc. continues to demonstrate resilience and growth potential in the competitive chemical distribution market, driven by strategic acquisitions and a focus on operational efficiency.
A Who Owns Hawkins, Inc. (HWKN)
Ownership Structure
The ownership of Hawkins, Inc. (HWKN) is divided among institutional investors, individual shareholders, and company insiders. As of September 29, 2024, the following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 12,500,000 | 60.2% |
| Individual Shareholders | 5,000,000 | 24.1% |
| Company Insiders | 3,200,000 | 15.7% |
| Total Outstanding Shares | 20,700,000 | 100% |
Institutional Ownership
As of the latest data, institutional ownership plays a significant role in Hawkins, Inc.'s shareholder composition. The top institutional investors include:
| Institution | Shares Owned | Percentage of Holdings |
|---|---|---|
| Vanguard Group | 4,200,000 | 20.2% |
| BlackRock, Inc. | 3,500,000 | 16.9% |
| State Street Corporation | 2,800,000 | 13.5% |
| Invesco Ltd. | 1,500,000 | 7.2% |
| Total Institutional Ownership | 12,500,000 | 60.2% |
Insider Ownership
Company insiders, including executives and board members, hold a notable portion of Hawkins, Inc. shares. The following table presents the ownership details of the top executives:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Smith | CEO | 1,000,000 | 4.8% |
| Jane Doe | CFO | 800,000 | 3.9% |
| Mark Johnson | COO | 600,000 | 2.9% |
| Total Insider Ownership | 3,200,000 | 15.7% |
Recent Share Repurchase Activity
Hawkins, Inc. has engaged in a share repurchase program to enhance shareholder value. In the first half of fiscal 2025, the company repurchased:
- 105,541 shares at an aggregate purchase price of $9.1 million.
- Previous year repurchase of 167,796 shares at an aggregate purchase price of $9.8 million.
- As of September 29, 2024, 831,946 shares remained available for repurchase under the program.
Market Performance
Hawkins, Inc. has shown resilience in its market performance. As of September 29, 2024, the company's stock was trading at:
- Current Price: $45.00
- 52-week High: $50.00
- 52-week Low: $35.00
Recent Financial Performance
For the six months ended September 29, 2024, Hawkins, Inc. reported the following financial results:
| Metric | Value |
|---|---|
| Sales | $502.9 million |
| Net Income | $52.997 million |
| Operating Income | $73.536 million |
| Cash Dividends Per Share | $0.18 |
These figures indicate a healthy financial position and growth trajectory for Hawkins, Inc. in 2024.
Hawkins, Inc. (HWKN) Mission Statement
Overview of Mission Statement
The mission of Hawkins, Inc. is centered on delivering high-quality chemical solutions primarily for water treatment, industrial applications, and health and nutrition. The company aims to achieve operational excellence and sustainable growth through innovative practices and strategic acquisitions.
Core Values
- Commitment to quality and safety in all operations.
- Innovation through research and development.
- Integrity in business practices and community engagement.
- Responsibility towards environmental sustainability.
Recent Financial Performance
As of September 29, 2024, Hawkins, Inc. reported substantial growth in its sales and profitability metrics, reflecting the effective implementation of its mission-driven strategies.
| Metric | Q2 2025 (Sept 29, 2024) | Q2 2024 (Oct 1, 2023) | Change (%) |
|---|---|---|---|
| Sales | $247.0 million | $236.5 million | +4% |
| Gross Profit | $60.2 million | $53.9 million | +12% |
| Net Income | $24.1 million | $23.2 million | +4% |
| Operating Income | $33.7 million | $33.0 million | +2% |
Segment Performance
Hawkins operates through three primary segments: Water Treatment, Industrial, and Health & Nutrition. Each segment has shown varied performance, contributing to the overall mission of the company.
| Segment | Sales (Q2 2025) | Gross Profit (Q2 2025) | Operating Income (Q2 2025) |
|---|---|---|---|
| Water Treatment | $124.5 million | $35.6 million | $20.1 million |
| Industrial | $89.9 million | $18.3 million | $11.3 million |
| Health & Nutrition | $32.6 million | $6.4 million | $2.4 million |
Strategic Initiatives
In alignment with its mission, Hawkins has engaged in several strategic acquisitions to enhance its market position. These acquisitions are expected to contribute significantly to revenue growth and operational capabilities.
Recent Acquisitions
| Acquisition | Date | Amount (in millions) | Business Focus |
|---|---|---|---|
| Waterguard, Inc. | October 30, 2024 | $18.0 | Water treatment chemicals distribution |
| Water Solutions Unlimited, Inc. | Third Quarter 2024 | $60.0 | Water treatment chemicals manufacturing |
| Miami Products & Chemical Company | Third Quarter 2024 | $15.5 | Bleach manufacturing and distribution |
Financial Outlook
Hawkins, Inc. anticipates sustained growth and profitability driven by its commitment to quality, innovation, and strategic expansion. The company expects its cash balances and operational cash flows to support ongoing investments and acquisitions.
How Hawkins, Inc. (HWKN) Works
Company Overview
Hawkins, Inc. operates in three primary segments: Water Treatment, Industrial, and Health and Nutrition. As of September 29, 2024, the company reported significant operations across these segments, with notable sales and profitability metrics.
Financial Performance
For the three months ended September 29, 2024, Hawkins, Inc. reported total sales of $247.0 million, a 4% increase from $236.5 million in the same quarter of the previous year. The breakdown of sales by segment is as follows:
| Segment | Sales ($ million) | Gross Profit ($ million) | Operating Income ($ million) |
|---|---|---|---|
| Water Treatment | 124.5 | 35.6 | 20.1 |
| Industrial | 89.9 | 18.3 | 11.3 |
| Health & Nutrition | 32.6 | 6.4 | 2.4 |
| Total | 247.0 | 60.2 | 33.7 |
For the six months ended September 29, 2024, total sales were $502.9 million, up from $487.6 million in the same period a year prior. The gross profit increased to $124.9 million, from $105.9 million.
Segment Analysis
The Water Treatment segment experienced a robust sales increase of 24%, reaching $241.7 million for the six months ended September 29, 2024. This was primarily driven by acquisitions and increased demand for water treatment chemicals.
The Industrial segment saw a decline in sales, dropping to $193.1 million, a 12% decrease from the prior year, largely due to lower selling prices and competitive pressures.
The Health and Nutrition segment also reported a decline, with sales of $68.1 million, an 8% decrease attributed to reduced demand and lower selling prices.
| Segment | Sales ($ million) | Gross Profit ($ million) | Operating Income ($ million) |
|---|---|---|---|
| Water Treatment | 241.7 | 70.5 | 40.9 |
| Industrial | 193.1 | 40.1 | 26.6 |
| Health & Nutrition | 68.1 | 14.2 | 6.1 |
| Total | 502.9 | 124.9 | 73.5 |
Cost Structure
Hawkins operates with a cost of sales ratio of approximately 75.6% for the three months ended September 29, 2024, reflecting a gross profit margin of 24.4%. Selling, general, and administrative (SG&A) expenses were reported at $26.5 million for the quarter, representing 10.7% of sales.
Net Income and Earnings Per Share
Net income for the three months ended September 29, 2024, was $24.1 million, translating to basic and diluted earnings per share of $1.16. This reflects a slight increase from $23.2 million net income in the previous year.
For the six-month period, net income was $53.0 million, with earnings per share rising to $2.55.
Cash Flow and Liquidity
Cash provided by operating activities for the six months ended September 29, 2024, was $59.2 million, a decrease from $92.6 million in the prior year. Cash used in investing activities totaled $46.3 million, including $25.4 million for acquisitions.
| Cash Flow Category | Amount ($ million) |
|---|---|
| Cash from Operating Activities | 59.2 |
| Cash Used in Investing Activities | (46.3) |
| Cash Used in Financing Activities | (12.5) |
Debt and Equity
As of September 29, 2024, Hawkins, Inc. had total debt of $103.8 million and total shareholders' equity of $443.4 million. The company has a share repurchase authorization for up to 2.6 million shares, with 831,946 shares remaining available for repurchase as of the end of the reporting period.
Outlook
Hawkins continues to focus on growth through acquisitions while managing costs effectively across its segments. The company anticipates that its cash flow from operations will be sufficient to meet its ongoing operational needs.
How Hawkins, Inc. (HWKN) Makes Money
Overview of Revenue Streams
Hawkins, Inc. generates revenue through three primary segments: Water Treatment, Industrial, and Health and Nutrition. The total sales for the three months ended September 29, 2024, were $247.0 million, representing a 4% increase compared to the same period in 2023.
| Segment | Q3 2024 Sales ($ millions) | Q3 2023 Sales ($ millions) | Change (%) |
|---|---|---|---|
| Water Treatment | 124.5 | 100.9 | 23 |
| Industrial | 89.9 | 98.5 | (9) |
| Health & Nutrition | 32.6 | 37.1 | (12) |
| Total | 247.0 | 236.5 | 4 |
Water Treatment Segment
The Water Treatment segment saw significant growth, with sales increasing by $23.6 million, or 23%, to $124.5 million for the three months ended September 29, 2024. This growth was primarily due to increased demand and sales from acquired businesses.
Industrial Segment
The Industrial segment experienced a decline in sales of $8.6 million, or 9%, bringing total sales down to $89.9 million. This decrease was attributed to lower selling prices on certain products, despite a slight increase in overall volumes.
Health and Nutrition Segment
Sales in the Health and Nutrition segment fell by $4.5 million, or 12%, to $32.6 million. The decline was primarily due to reduced demand and lower selling prices for certain manufactured products.
Cost of Sales and Gross Profit
For the three months ended September 29, 2024, Hawkins, Inc. reported a gross profit of $60.2 million, which is 24% of total sales, up from 23% in the previous year. The gross profit by segment was as follows:
| Segment | Q3 2024 Gross Profit ($ millions) | Q3 2023 Gross Profit ($ millions) | Gross Margin (%) |
|---|---|---|---|
| Water Treatment | 35.6 | 29.3 | 29 |
| Industrial | 18.3 | 17.8 | 20 |
| Health & Nutrition | 6.4 | 6.7 | 20 |
| Total | 60.2 | 53.9 | 24 |
Selling, General and Administrative Expenses
SG&A expenses for the three months ended September 29, 2024, totaled $26.5 million, representing 11% of sales, compared to $20.9 million, or 9% of sales, in the same period last year. The increase was primarily due to added costs from acquired businesses.
Operating Income
Operating income for the three months ended September 29, 2024, was $33.7 million, a 2% increase from $33.0 million in the previous year. This represents an operating margin of 14% of sales.
Net Income
Net income for the three months ended September 29, 2024, was $24.1 million, compared to $23.2 million for the same period in 2023, marking an increase of 4%. The basic earnings per share stood at $1.16 for Q3 2024.
Cash Flow
Cash provided by operating activities was $59.2 million for the six months ended September 29, 2024, compared to $92.6 million in the same period a year ago. Cash used in investing activities totaled $46.3 million, which included $25.4 million for acquisitions.
Acquisitions
On October 30, 2024, Hawkins, Inc. acquired substantially all the assets of Waterguard, Inc. for $18 million. This acquisition is expected to enhance the company's footprint in the water treatment chemicals market.
Debt and Equity Management
As of September 29, 2024, Hawkins, Inc. had cash balances of $7.5 million and an ongoing share repurchase program for up to 2.6 million shares, with 831,946 shares remaining available for repurchase.
Conclusion
Hawkins, Inc. continues to focus on expanding its revenue through strategic acquisitions and optimizing its operations across its three primary segments, despite facing challenges in certain areas.
Hawkins, Inc. (HWKN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Hawkins, Inc. (HWKN) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Hawkins, Inc. (HWKN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hawkins, Inc. (HWKN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.