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Apr 04, 2021
Spectrum Brands Q2 2021 Earnings Report
Reported strong Q2 2021 results with increased net sales, net income, and adjusted EBITDA, and raised the 2021 earnings framework.
Key Takeaways
Spectrum Brands Holdings reported a strong second quarter in fiscal year 2021, with net sales increasing by 22.6% and organic net sales increasing by 17.8%. Net income from continuing operations increased by $96.0 million to $36.8 million, and adjusted EBITDA increased by 28.8% to $180.9 million. The company raised its 2021 earnings framework to reflect expected net sales and adjusted EBITDA growth in the mid-teens.
Net sales increased 22.6% and organic net sales increased 17.8%, with double-digit growth across all business units.
Net income from continuing operations increased $96.0 million to $36.8 million.
Adjusted EBITDA increased 28.8% to $180.9 million.
The board of directors authorized a new 3-year, $1 billion stock repurchase program.
Forward Guidance
Spectrum Brands expects mid-teens reported net sales growth and adjusted EBITDA increase, with adjusted free cash flow between $260 million and $280 million.
Positive Outlook
- Mid-teens reported net sales growth expected.
- Mid-teens adjusted EBITDA increase expected.
- Adjusted free cash flow is expected to be between $260 million and $280 million.
- Foreign exchange expected to have a positive impact.
- Raising total savings gross target from Global Productivity Improvement Program from $150 Million to $200 Million
Challenges Ahead
- Continued transportation and commodity-related inflation.
- Incremental investments in inventory levels.
- Impact of COVID-19 pandemic.
- General economic conditions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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