Spectrum Brands 10-K Report Highlights – Net Sales Up 1.5%

By Tamara Parker • Friday, November 15 15:22 • Permanent Link

Spectrum Brands Holdings, Inc. has recently released its 10-K report, providing insights into its operations and financial performance. The company operates as a branded consumer products and home essentials company, with a presence in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances and personal care products, while the Global Pet Care segment offers a range of products for dogs, cats, and other small animals. The Home and Garden segment provides outdoor insect and weed control solutions, animal repellents, and household pest control solutions.

In the year ended September 30, 2024, Spectrum Brands reported net sales of $2,963.9 million, reflecting a 1.5% increase from the previous year. The company's Adjusted EBITDA stood at $371.8 million, representing an Adjusted EBITDA margin of 12.5%, compared to 9.4% in the previous year. The company's net income from continuing operations also showed improvement, standing at $99.3 million compared to a loss of $233.7 million in the previous year.

Spectrum Brands' report also highlighted significant costs and initiatives that impacted its financial results. The company incurred costs related to strategic transactions, restructuring, and optimization initiatives, totaling $32.7 million in the year ended September 30, 2024. Additionally, the company recognized exit and disposal costs, primarily consisting of severance and contract termination costs, which impacted the comparability of its consolidated business and segments.

The report also detailed the company's recent financing activities, including the completion of an offering of $350.0 million principal amount of 3.375% Exchangeable Senior Notes due June 1, 2029, and a tender offer on outstanding senior notes. These activities resulted in the reduction of the principal debt balance and recognition of gains and losses on early extinguishment of debt.

Following these announcements, the company's shares moved -6.4%, and are now trading at a price of $87.81. For more information, read the company's full 10-K submission here.

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