Spectrum Brands Q1 2025 – Net Sales Up 1.2%

By Bobby Samwell • Thursday, February 06 15:30 • Permanent Link

Spectrum Brands Holdings reported its fiscal 2025 first quarter results, showing a 1.2% increase in net sales to $700.2 million, with organic sales up 1.9%. The company's net income from continuing operations saw a significant rise of 40.6% to $24.6 million, and diluted earnings per share from continuing operations increased by 70.6% to $0.87.

The company's adjusted EBITDA from continuing operations decreased by 7.7% to $77.8 million, with the adjusted EBITDA margin dropping 110 basis points to 11.1%. However, when excluding investment income in the prior year, adjusted EBITDA increased by $16.5 million.

Spectrum Brands Holdings repurchased 0.8 million shares in the first quarter for $72.9 million and has repurchased 15.3 million shares since the close of HHI through today for $1.2 billion.

In terms of segment performance, the Global Pet Care segment saw a 6.1% decrease in net sales, attributed to a pullforward of sales from the prior quarter and category softness in global aquatics. The Home & Garden segment experienced a substantial 27.9% increase in net sales due to seasonal inventory build and an extended fall selling season. The Home & Personal Care segment's net sales increased by 1.4%, with organic net sales up 3.1%, driven by growth in e-commerce sales.

Spectrum Brands Holdings also highlighted its liquidity and debt, noting a cash balance of $180 million and total liquidity of $670.7 million as of the end of the quarter, with $575.1 million of debt outstanding.

Looking ahead, the company maintains its outlook for fiscal 2025, expecting low single-digit net sales growth and mid to high single-digit adjusted EBITDA growth, targeting approximately 50% conversion of adjusted EBITDA to adjusted free cash flow.

Spectrum Brands Holdings' chairman and CEO, David Maura, expressed satisfaction with the company's start to the year, attributing it to brand-focused investments driving innovation and consumer demand, as well as the momentum built in the previous year. He also mentioned the company's efforts to mitigate the impact of recent tariff actions and its intention to sustain the positive momentum as the year progresses. Following these announcements, the company's shares moved -6.2%, and are now trading at a price of $77.72. If you want to know more, read the company's complete 8-K report here.

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