Fiscal year net sales at Spectrum Brands were up 7.4% as growth in the company’s hardware and home improvement, pet supplies and home and garden segments offset declines in its global batteries and appliances division, which includes small electrics and personal care products.
Consolidated net sales of $5.04 billion in fiscal 2016, which ended September 30, increased 7.4% compared to $4.69 billion in fiscal 2015. Excluding the negative impact of $126.2 million of foreign exchange, as well as acquisition sales of $351.8 million, organic net sales increased 2.6%.
In the fourth quarter, company wide net sales were $1.25 billion, down from net sales of $1.31 billion in the comparable quarter the previous year. Quarterly net income was $89.1 million, up from net income of $26.6 million in the fourth quarter of 2015.
Operating expenses of $1.26 billion in fiscal 2016 compared to $1.20 billion in the prior year. Higher SG&A expense, driven primarily by the full-year effect of the GAC acquisition, was partially offset by lower acquisition, integration and restructuring costs. The company reported net income of $357.1 million, or $5.99 diluted income per share, compared to net income of $148.9 million and diluted EPS of $2.66 in fiscal 2015.
“Fiscal 2016 was our seventh consecutive year of record financial performance,” said Andreas Rouvé, CEO of Spectrum Brands Holdings. “Our improvement was broad-based across most businesses and geographies. Home and garden, hardware and home Improvement and global auto care achieved record results. Batteries, personal care and global pet delivered strong performances.”
Fourth quarter net sales for the global personal care product category were $120.6 million, down from net sales of $125.8 million last year. Excluding negative foreign exchange impacts of $3 million, organic net sales declined 1.7%, including the unfavorable impact of four fewer shipping days of approximately $6 to $8 million. The North American decline was primarily due to competitor discounting, category softness in certain hair care appliance channels, and the timing of customer shipments against strong growth last year, company officials said.
The company’s global small appliance segment reported net sales of $176.7 million in the fourth quarter, down from net sales of $197.9 million in comparable quarter of 2015. Excluding negative foreign exchange impacts of $7.9 million, fiscal 2016 fourth quarter organic net sales decreased 6.7%, including the unfavorable impact of four fewer shipping days of approximately $9 to $10 million of sales.
Compared to strong growth of 8.2% in the prior year, lower fiscal 2016 fourth quarter revenues in North America, Europe and Latin America were attributable to competitor discounting, retailer shipment timing, fewer shipping days and soft POS largely in food preparation, beverage and cooking categories at several key U.S. retail customers, the company said.
