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Dec 29, 2024
Spectrum Brands Q1 2025 Earnings Report
Reported a mixed first quarter of fiscal 2025, marked by increased net sales and net income, alongside a decrease in adjusted EBITDA.
Key Takeaways
Spectrum Brands Holdings reported a 1.2% increase in net sales and a 1.9% increase in organic sales, driven by an extended fall season and accelerated pre-season sales for Home & Garden. Net income from continuing operations increased to $24.6 million, while adjusted EBITDA decreased to $77.8 million. The company maintains its fiscal 2025 earnings framework, expecting low single-digit net sales growth and mid to high single-digit adjusted EBITDA growth.
Net sales increased by 1.2% and organic sales increased by 1.9%, driven by the extended fall season and accelerated pre-season sales for Home & Garden.
Net income from continuing operations was $24.6 million, while adjusted EBITDA was $77.8 million.
Adjusted EBITDA increased $16.5 million excluding investment income in the prior year.
The company repurchased 0.8 million shares in Q1 for $72.9 million.
Revenue by Segment
Forward Guidance
Spectrum Brands continues to expect low single-digit growth in reported net sales in fiscal 2025. Fiscal 2025 adjusted EBITDA is expected to increase by mid to high single-digits. Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA.
Positive Outlook
- Expects low single-digit growth in reported net sales in fiscal 2025.
- Fiscal 2025 adjusted EBITDA is expected to increase by mid to high single-digits.
- Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA.
- Targeting a long-term net leverage ratio of 2.0 - 2.5 times.
- Brand-focused investments are expected to drive innovation and consumer demand.
Challenges Ahead
- Impact of the Russia-Ukraine war and the Israel-Hamas war.
- Increased reliance on third-party partners, suppliers and distributors that are outside our control.
- Impact of government intervention with or influence on the operations of our suppliers, including in China.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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