Global consumer products company Spectrum Brands Holdings has reported record performance for fiscal 2015 ended Sept. 30, 2015.
During fiscal 2015, Spectrum Brands completed the acquisitions of Armored AutoGroup Parent Inc. (Armored AutoGroup), the European IAMS and Eukanuba pet food business, Salix Animal Health and Tell Manufacturing. The company also strengthened its balance sheet and improved liquidity through significant capital structure activity.
The company reported net sales of $4.69 billion in fiscal 2015 increased 5.9 percent compared to $4.43 billion last year. Excluding the negative impact of $229.8 million of foreign exchange and acquisition sales of $400 million, organic sales increased 2.1 percent from the prior year.
The company also reported net income of $148.9 million and diluted earnings per share of $2.66 in fiscal 2015 compared to net income of $214.1 million and diluted earnings per share of $4.02 in fiscal 2014.
“Fiscal 2015 was our sixth consecutive year of record financial performance, including a solid fourth quarter,” said Andreas Rouvé, CEO of Spectrum Brands Holdings. “Highlights included record Home and Garden and HHI results, strong performances from our personal care and small appliances businesses, and, regionally, another excellent year in Europe. Even excluding acquisitions, we were able to grow adjusted EBITDA in the fourth quarter, overcoming $22 million of negative foreign exchange.”
Fiscal 2015 Fourth Quarter Consolidated Financial Results
Net sales of $1.31 billion in the fourth quarter of fiscal 2015 increased 11 percent compared to $1.18 billion in fiscal 2014. Excluding the negative impact of $73.6 million of foreign exchange, as well as acquisition sales of $178 million, organic sales increased 2.2 percent.
Gross profit and gross profit margin in the fourth quarter of fiscal 2015 were $467.4 million and 35.7 percent, respectively, compared to $411 million and 34.9 percent, respectively, last year. The gross profit margin percentage increase was primarily due to acquisitions and improved mix, partially offset by the negative impact of foreign exchange.
Global Auto Care
Global Auto Care (GAC) is the company’s newest reporting segment as of its acquisition on May 21, 2015. GAC reported net sales of $96.1 million, adjusted net income of $6 million and adjusted EBITDA of $28 million in the fourth quarter of fiscal 2015. Armor All and STP continued to experience solid POS at key U.S. customers, while lower retailer replenishment levels impacted A/C PRO results.
Fiscal 2016 Outlook
Spectrum Brands expects fiscal 2016 net sales, as reported, to increase in the high-single digit range compared to fiscal 2015 reported net sales of $4.69 billion, including the positive impacts of the company’s recent acquisitions.
