Spectrum Brands finds ways to grow

Spectrum Brands fiscal 2015 story was complicated by unfavorable foreign exchange, but the company of brands -- from Nature’s Miracle to National Hardware -- is  planning a seventh consecutive year of record performance in the next year.

Spectrum’s net sales of $4.69 billion in fiscal 2015 increased 5.9% compared with $4.43 billion last year. Excluding the negative impact of $229.8 million of foreign exchange and acquisition sales of $400.0 million, organic sales increased 2.1% from the prior year.

Net income of $148.9 million in fiscal 2015 compared with net income of $214.1 million and diluted earnings per share of $4.02 in fiscal 2014.

The company’s wide-ranging holdings included the following highlights:

• The Hardware & Home Improvement segment reported net sales of $331.4 million in the fourth quarter of fiscal 2015, an  increase of 5.6% compared with $313.8 million in the prior year’s quarter. The increase was driven by growth in the U.S. residential security and plumbing categories, along with sales of $10.4 million from the Tell acquisition in fiscal 2015. The planned exit of unprofitable businesses and expiration of a customer tolling agreement adversely impacted sales growth by 2.8%. Excluding the negative impact of foreign exchange of $7.7 million, net sales increased 8.1% in the fourth quarter of fiscal 2015.

• Battery net sales of $229.2 million were down 14.7%. Excluding negative exchange impact, net sales decreased 4.2%.

• Small appliance saes increased slightly to $197.9 million. Excluding negative foreign exchange impacts net sales increased 8.2%.

• Pet supplies sales of $219.3 million increased from $159.8 million in the same quarter last year -- due to acquisition-related revenues of $71.4 million.

“We exited several unprofitable geographic product categories in the HHI business, significantly reduced ineffective promotional programs in the Battery and Pet businesses, stepped up the pace of new product introductions, delivered strong cost improvement savings, and leveraged expenses across the business,” said Andreas Rouvé, CEO of Spectrum Brands Holdings.

“Looking to fiscal 2016, we expect healthy top- and bottom-line growth again from a mix of new products, new customers, distribution and market share gains, increased cross-selling, geographic expansion and continuous improvement savings along with strong expense controls,” he said.