Executive Summary
Hawkins Inc (HWKN) reported revenue of $247.0 million for Q2 2025, marking a 3.46% decrease quarter-over-quarter (QoQ) but a 4.44% increase year-over-year (YoY). Despite the revenue dip, the company maintained robust profitability with a net income of $24.1 million, reflecting a net profit margin of 9.76%. Key operational highlights included a marginal increase in gross profit margins, driven by strategic cost management efforts rather than revenue growth. Management expressed confidence in the company's long-term strategy focused on expanding the Health and Nutrition segment and enhancing operational efficiencies.
The decrease in revenue compared to the previous quarter mirrored industry challenges such as increased raw material costs and competitive pricing pressures. However, Hawkins' strong cost structure allowed it to uphold margins better than some competitors, positioning the firm favorably going into the next quarter and the broader market landscape.
Key Performance Indicators
Revenue
247.03M
QoQ: -3.46% | YoY:4.44%
Gross Profit
60.22M
24.38% margin
QoQ: -6.86% | YoY:11.76%
Operating Income
33.75M
QoQ: -15.19% | YoY:2.29%
Net Income
24.12M
QoQ: -16.49% | YoY:3.89%
EPS
1.16
QoQ: -16.55% | YoY:4.50%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue:** $247.0 million, a decrease of 3.46% QoQ but an increase of 4.44% YoY.
- **Gross Profit:** $60.2 million (24.38% gross profit margin), reflecting an increase of 11.76% YoY.
- **Operating Income:** $33.7 million, achieving a 16.36% operating margin, down 15.19% QoQ but up 2.29% YoY.
- **Net Income:** $24.1 million, representing a net margin of 9.76% (up 3.89% YoY).
- **Earnings per Share (EPS):** $1.16, an increase of 4.50% YoY.