- Fourth Quarter Net Sales Increased 4.5% With Organic Net Sales Increase of 4.8%
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- Fourth Quarter Net Income of $12.8 Million; Adjusted EBITDA of $68.9 Million Net of Incremental $25.9 Million of Brand Investments
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- Full Year Net Sales Increased by 1.5% with Organic Net Sales Increase of 1.5%
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- Full Year Net Income of $99.3 Million; Adjusted EBITDA of $371.8 Million; Excluding Investment Income of $52.7 Million, Adjusted EBITDA of $319.1 Million Grew Over 20% Despite an Incremental $61.6 Million of Brand- Building Investments
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- Fiscal 2024 Operating Cash Flow of $162.6 Million; Adjusted Free Cash Flow of $176.6 Million Returned $482.7 Million to Shareholders Through Share Repurchases in Fiscal 2024
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- Ended the Year with Net Debt Leverage of 0.56x Adjusted EBITDA and $402.7 Million Remaining Under Existing Share Repurchase Program, Leaving Substantial Capacity for Further Share Repurchases
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- Increased Quarterly Dividend Payout by 12% to $0.47; New Quarterly Dividend Rate Represents an Annualized Dividend Yield of 2% Based on the Closing Stock Price on Day of Announcement
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- Expect to Deliver Low Single-Digit Net Sales Growth and Mid to High Single-Digits Adjusted EBITDA Growth for Fiscal 2025, with Growth in Net Sales and Adjusted EBITDA For All Segments, Targeting ~50% Conversion of Adjusted EBITDA to Adjusted Free Cash Flow
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| Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or the “Company”), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, today reported results from continuing operations for the fourth quarter ended September 30, 2024. |
| “The team and I are proud of our fourth quarter and fiscal 2024 results. We exceeded our annual operating plans on virtually every metric and all of our businesses returned to growth in the second half of the year, despite the challenging economic and geopolitical conditions that are impacting consumer demand. We achieved over 20% adjusted EBITDA growth for the year despite an incremental $62 million of investments into our brands, demonstrating the high quality of our earnings growth. We upgraded our capabilities in commercial operations, innovation, marketing and advertising. We restored operational momentum to our businesses with best-in-class operational efficiency and fill rates in the mid-90 % across each of our businesses. We have transformed from a difficult working capital position to a company with best-in-class working capital management capabilities and we have the strongest balance sheet in our peer group, ending fiscal 2024 with net leverage below 0.6 turns,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands. |
| Continuing, Mr. Maura commented, “I am excited about the upcoming year. Our focus during fiscal 2025 will be to continue the momentum we built in fiscal 2024 by investing in our brands to drive long-term growth, in innovation to expand core and adjacent categories, and in our operations to drive further cost improvement, quality and safety. Despite the overall challenging macro-economic environment, we intend to make incremental investments in fiscal 2025 to drive top-line growth.” |
| Fiscal 2024 Fourth Quarter Highlights |
| Three-Month Periods Ended |
| (in millions, except per share and %) |
September 30, 2024 |
September 30, 2023 |
Variance |
|
|
| Net sales |
$ 773.7 |
$ 740.7 |
$ 33.0 |
4.5 % |
|
| Gross profit |
288.0 |
244.4 |
43.6 |
17.8 % |
|
| Operating income |
21.9 |
16.2 |
5.7 |
35.2 % |
|
| Net income from continuing operations 12.8 |
53.5 |
(40.7 ) (76.1 )% |
| Diluted earnings per share from continuing operations $ 0.45 |
$ 1.50 |
$ (1.05 ) (70.0 )% |
| Non-GAAP Operating Metrics |
|
|
| Adjusted EBITDA from continuing operations $ 68.9 |
$ 111.5 |
$ (42.6 ) (38.2 )% |
| Adjusted EPS from continuing operations $ 0.97 |
$ 1.12 |
$ (0.15 ) (13.4 )% |
|
|
|
|
|
|
|
|
- Net sales increased 4.5%. Excluding the impact of $2.7 million of unfavourable foreign exchange rates, organic net sales increased 4.8%. Net sales increased across all segments with higher volumes in GPC driven in part by a retailer pull forward of orders in advance of S4/Hana ERP implementation, favourable weather resulting in an extended season and improved retailer inventory health in H&G, and global sales growth in both the Home Appliance and Personal Care categories in HPC.
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- Gros profit and margin increased due to productivity improvements, operational efficiencies and inventory actions in the prior year partially offset by ocean freight inflation.
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- Operating income increased due to gross profit improvements offset by higher operating expenses primarily from increased investments in marketing, advertising and new product development.
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- Net income and diluted earnings per share decreased due to lower interest income and higher income tax expense offset by increased operating income and lower interest expense. Diluted EPS also benefited from a lower share count. The effective tax rate in the quarter was 23.8%.
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- Adjusted EBITDA decreased $42.6 million, driven by $32.5 million of lower investment income and $25.9 million of increased brand-focused investments, offset by gross profit improvements.
|
- Adjusted diluted EPS decreased 13.4% due to decreased adjusted EBITDA, offset by the decrease in interest expense and share count.
|
| Fiscal 2024 Fourth Quarter Segment Level Data Global Pet Care (GPC) |
| Three-Month Periods Ended |
| (in millions, except %) |
September 30, 2024 |
|
September 30, 2023 |
|
Variance
|
|
| Net Sales |
$ 302.5 |
|
$ 292.4 |
|
$ 10.1 |
3.5 % |
| Adjusted EBITDA |
44.3 |
|
53.5 |
|
(9.2 ) |
(17.2 )% |
| Adjusted EBITDA Margin |
14.6 |
% |
18.3 |
% |
(370 ) bps |
|
Net sales increased by 3.5% with an increase in organic net sales of 2.9% excluding a favourable foreign currency impact of $1.7 million. Higher net sales in Companion Animal were offset by softness in Aquatics. The sales increase was driven by higher volumes and favourable foreign currency. The volume increase was driven by an acceleration of sales into the quarter due to the S4/Hana ERP implementation. |
| Adjusted EBITDA and margins decreased due to a significant increase in brand-focused investments and trade programming, partially offset by higher sales and operational productivity improvements. |
| For the full document click the link below: |
| Spectrum Brands Holdings, Inc. |
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