Spectrum reports record FY2016 second quarter
Spectrum’s holdings includes Tetra, Pro-Sense and Wild Harvest.
Spectrum Brands Holdings, Inc. (NYSE: SPB) reported record performance for the second quarter of fiscal year 2016 and reiterated expectations for a seventh consecutive year of record results for fiscal year 2016. Spectrum’s pet supplies holdings includes brands such as Tetra, Pro-Sense and Wild Harvest.
Fiscal 2016 Second Quarter Highlights
- Net income of US$75.2 million and diluted earnings per share of US$1.26 in the second quarter of fiscal 2016 compared to net income of US$27.8 million and diluted earnings per share of US$0.52 in fiscal 2015.
- Fiscal 2016 net cash provided from operating activities after purchases of property, plant and equipment is expected to grow to approximately US$505 to US$515 million versus US$454 million in fiscal 2015 and US$359 million in fiscal 2014.
- Net sales of US$1.21 billion in the second quarter of fiscal 2016 increased 13.4 percent compared to US$1.07 billion last year. Excluding the negative impact of US$ 32.1 million of foreign exchange and acquisition sales of US$122.8 million, organic sales increased 4.9 percent from 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 7th consecutive year of record performance in fiscal 2016,” said Andreas Rouvé, Chief Executive Officer of Spectrum Brands Holdings, in a press release. “At the same time, we are selectively investing more in R&D, marketing and other growth initiatives and building out sales teams to help push our ‘more, more, more’ organic strategy to enter more countries, serve more channels, and launch more categories through leveraging our strong retailer relationships.”
“Looking to the balance of the year, the second half should again be larger than the first half, given the seasonal nature of some of our businesses,” Rouvé said. “We see healthy top- and bottom-line improvement driven by distribution gains, innovation and continuous improvement savings.”
Global Pet Supplies
The Global Pet Supplies segment reported net income was US$18.4 million in the second quarter of fiscal 2016 versus US$12.6 million in the second quarter of fiscal 2015. Second quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$31.4 million compared to US$30.9 million in fiscal 2015.
The segment reported net sales of US$208.5 million in the second quarter of fiscal 2016 compared to US$209.8 million last year. Excluding the negative impact of foreign exchange of US$2.6 million and acquisition revenues of US$3.3 million, fiscal 2016 second quarter organic sales of US$207.8 million fell by 1.0 percent compared to the prior year. Higher companion animal revenues in North America were offset by lower aquatics net sales in Europe and the U.S., primarily due to the exit of an unprofitable aquarium promotion last year.