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Jul 03, 2022
Spectrum Brands Q3 2022 Earnings Report
Reported third quarter fiscal year 2022 results, showing net sales increase and strategic progress in business transformation.
Key Takeaways
Spectrum Brands Holdings reported a 10.0% increase in net sales and a 4.4% increase in organic net sales for the third quarter of fiscal 2022. The company is progressing with the sale of its HHI business and the separation of its Home & Personal Appliances business. However, adjusted EBITDA declined due to lower volume, unfavorable foreign exchange impact, and higher transaction and restructuring costs.
Net sales increased by 10.0%, with organic net sales up by 4.4%.
Net income from continuing operations was $3.0 million.
Adjusted EBITDA decreased to $80.1 million.
The company is focused on reducing inventory levels and maximizing cash flow.
Revenue by Segment
Forward Guidance
Spectrum Brands expects mid-single digit top-line growth with a mid-twenties EBITDA decline for fiscal year 2022. The company maintains a long-term net leverage target ratio of 2.0 - 2.5 times after deploying HHI proceeds.
Positive Outlook
- Expected mid-single digit top-line growth.
- Focus on maximizing cash flow.
- Long-term net leverage target ratio of 2.0 - 2.5 times.
- Confident in closing HHI sale to ASSA ABLOY.
- Businesses remain competitively positioned.
Challenges Ahead
- Expected mid-twenties EBITDA decline for fiscal year 2022.
- Challenging customer dynamics.
- Reduced foot traffic in home center channels.
- Higher inventory levels.
- Unfavorable weather conditions in the Home & Garden business.
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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