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Sep 30, 2024
Spectrum Brands Q4 2024 Earnings Report
Reported a 4.5% increase in net sales and net income of $12.8 million, despite increased brand investments.
Key Takeaways
Spectrum Brands Holdings reported a 4.5% increase in net sales for the fourth quarter of fiscal year 2024, with organic net sales up by 4.8%. Net income for the quarter was $12.8 million. The company exceeded annual operating plans and all businesses returned to growth in the second half of the year. The company expects low single-digit net sales growth and mid to high single-digit adjusted EBITDA growth for fiscal 2025.
Net sales increased 4.5% with organic net sales increase of 4.8%.
Net income was $12.8 Million; Adjusted EBITDA was $68.9 Million, net of incremental brand investments of $25.9 Million.
The company returned $482.7 million to shareholders through share repurchases in fiscal 2024.
Spectrum Brands expects low single-digit net sales growth and mid to high single-digits adjusted EBITDA growth for fiscal 2025.
Revenue by Segment
Forward Guidance
Spectrum Brands expects low single-digit growth in reported net sales and mid to high single-digits adjusted EBITDA growth for fiscal 2025. Adjusted free cash flow is expected to be approximately 50% of adjusted EBITDA. The Company continues to target a long-term net leverage ratio of 2.0 - 2.5 times.
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.
- Growth in net sales and adjusted EBITDA for all segments
Challenges Ahead
- Challenging macro-economic environment
- Overall economic conditions impacting consumer demand.
- Increased marketing and advertising expenses.
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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