Spectrum Brands Reports Solid Q2 Sales Growth

Spectrum Brands CEO Andreas Rouvé

Second quarter net sales at Spectrum Brands increased 13.4% as growth in the company’s home and garden division offset sales declines in small appliances.

For the three-month period ending April 3, total sales were $1.2 billion, up from sales of $1.07 billion for the comparable quarter the previous year. Excluding the negative impact of $32.1 million of foreign exchange, as well as acquisition sales of $122.8 million, organic sales increased 4.9%.

For the quarter, adjusted EBITDA, a non-GAAP measure, of $229.6 million in the second quarter of fiscal 2016 increased 44.3% compared to $159.1 million in fiscal 2015. Excluding the negative impact of $17.7 million of foreign exchange, as well as acquisition-related EBITDA of $49.1 million, organic adjusted EBITDA of $198.2 million increased 24.6% versus the second quarter of 2015.

The company reported net income of $75.2 million and diluted earnings per share of $1.26 in the second quarter of fiscal 2016 compared to net income of $27.8 million and diluted earnings per share of $0.52 in fiscal 2015.

Spectrum sales for the first six months of its fiscal year were $2.4 billion, up 13.8% from the six-month period the prior year.

“Our solid second quarter results, together with our strong first quarter, gives us an excellent first half and momentum to deliver a seventh consecutive year of record performance in fiscal 2016,” said Andreas Rouvé, Spectrum’s CEO. “Home and garden and HHI delivered record results and, regionally, there were solid performances in the U.S. as well as in Europe and Latin America on a currency neutral basis.”

Net sales for the global personal care product category were $108.4 million in the second quarter of fiscal 2016 compared to $110.5 million last year. Excluding negative foreign exchange impacts of $5.3 million, fiscal 2016 second quarter net sales increased 2.9%.

Net sales of small appliances were $138.3 million in the second quarter of fiscal 2016 compared to $151.6 million in the year-ago quarter. Excluding negative foreign exchange impacts of $8 million, fiscal 2016 second quarter net sales decreased 3.5%.