HAWKINS INCHWKN
HAWKINS INC Segments Disclosure
Segment Information
* Unallocated assets not included, consisting primarily of cash and cash equivalents, prepaid expenses, and non-qualified deferred compensation plan assets of $27.4 million at March 30, 2025, $28.2 million at March 31, 2024 and $26.0 million at April 2, 2023
We organize and manage our business by the following three segments, which meet the definition of reportable segments under ASC 280-10, Segment Reporting: Water Treatment, Industrial and Health and Nutrition. These segments are defined primarily by product and type of customer.
Our chief operating decision-maker (CODM), who is our President and Chief Executive Officer, regularly reviews the consolidated financial statements in their entirety and financial information at the reportable segment level. The CODM uses operating income and considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment operating income for evaluating pricing strategy, to assess the performance of each segment by comparing the results of each segment with one another, and in determining the compensation of certain employees. The CODM has ultimate responsibility for enterprise decisions and making resource allocation decisions for the company and the segments.
•Our Water Treatment segment specializes in providing chemicals, products, equipment, services and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water and agricultural water. This segment has the resources and flexibility to treat systems ranging in size from a single small well to a multi-million-gallon-per-day facility.
•Our Industrial segment specializes in providing industrial chemicals, products and services to industries such as agriculture, chemical processing, electronics, energy, food, pharmaceutical and plating. This segment's principal products are acids, alkalis and food-grade and pharmaceutical salts and ingredients.
•Our Health and Nutrition segment specializes in providing ingredient distribution, processing and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, health and wellness products. This segment offers a diverse product portfolio including minerals, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners and enzymes.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Product costs and expenses for each segment are based on actual costs incurred along with cost allocations of shared and centralized functions.
Segments are responsible for the sales, marketing and development of their products and services. Other than our Health and Nutrition segment, the segments do not have separate customer service or purchasing functions. There are no intersegment sales, and no operating segments have been aggregated.
In fiscal 2025, 2024 and 2023, none of our customers accounted for 10% or more of our total sales.
Summarized financial information for the Company’s reportable segments is presented and reconciled to consolidated financial information in the following tables:
| Reportable Segments | Water Treatment | Industrial | Health and Nutrition | Total | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Fiscal Year Ended March 30, 2025: | |||||||||||||||||||||||
| Sales | $ | 446,489 | $ | 382,487 | $ | 145,455 | $ | 974,431 | |||||||||||||||
| Cost of sales - materials | 259,721 | 285,295 | 106,524 | 651,540 | |||||||||||||||||||
| Cost of sales - operational overhead | 65,159 | 24,591 | 7,603 | 97,353 | |||||||||||||||||||
| Gross profit | 121,609 | 72,601 | 31,328 | 225,538 | |||||||||||||||||||
| Selling, general, and administrative expenses | 61,993 | 27,540 | 16,831 | 106,364 | |||||||||||||||||||
| Operating income | $ | 59,616 | $ | 45,061 | $ | 14,497 | $ | 119,174 | |||||||||||||||
| Identifiable assets* | $ | 358,860 | $ | 241,776 | $ | 138,936 | $ | 739,572 | |||||||||||||||
| Capital expenditures | $ | 20,166 | $ | 20,530 | $ | 400 | $ | 41,096 | |||||||||||||||
| Depreciation and amortization | $ | 18,893 | $ | 15,814 | $ | 5,241 | $ | 39,948 | |||||||||||||||
| Fiscal Year Ended March 31, 2024: | |||||||||||||||||||||||
| Sales | $ | 363,289 | $ | 409,465 | $ | 146,408 | $ | 919,162 | |||||||||||||||
| Cost of sales - materials | 214,020 | 310,074 | 111,460 | 635,554 | |||||||||||||||||||
| Cost of sales - operational overhead | 50,771 | 31,846 | 7,355 | 89,972 | |||||||||||||||||||
| Gross profit | 98,498 | 67,545 | 27,593 | 193,636 | |||||||||||||||||||
| Selling, general, and administrative expenses | 45,286 | 28,316 | 15,998 | 89,600 | |||||||||||||||||||
| Operating income | $ | 53,212 | $ | 39,229 | $ | 11,595 | $ | 104,036 | |||||||||||||||
| Identifiable assets* | $ | 255,188 | $ | 239,586 | $ | 134,915 | $ | 629,689 | |||||||||||||||
| Capital expenditures | $ | 15,739 | $ | 24,280 | $ | 132 | $ | 40,151 | |||||||||||||||
| Depreciation and amortization | $ | 12,360 | $ | 14,155 | $ | 5,288 | $ | 31,803 | |||||||||||||||
| Fiscal Year Ended April 2, 2023: | |||||||||||||||||||||||
| Sales | $ | 304,925 | $ | 470,760 | $ | 159,413 | $ | 935,098 | |||||||||||||||
| Cost of sales - materials | 197,010 | 383,670 | 120,827 | 701,507 | |||||||||||||||||||
| Cost of sales - operational overhead | 40,707 | 18,975 | 8,790 | 68,472 | |||||||||||||||||||
| Gross profit | 67,208 | 68,115 | 29,796 | 165,119 | |||||||||||||||||||
| Selling, general, and administrative expenses | 35,734 | 25,703 | 15,532 | 76,969 | |||||||||||||||||||
| Operating income | $ | 31,474 | $ | 42,412 | $ | 14,264 | $ | 88,150 | |||||||||||||||
| Identifiable assets* | $ | 155,430 | $ | 253,436 | $ | 155,626 | $ | 564,492 | |||||||||||||||
| Capital expenditures | $ | 16,311 | $ | 31,635 | $ | 375 | $ | 48,321 | |||||||||||||||
| Depreciation and amortization | $ | 9,261 | $ | 12,881 | $ | 5,298 | $ | 27,440 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 14, 2025 | Showing above |
| 2024 | May 15, 2024 | |
| 2023 | May 17, 2023 | |
| 2022 | May 18, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.