Spectrum Brands Holdings Reports Fiscal 2021 Second Quarter Results

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Very Positive)

Tags

earnings

Rhea-AI Summary

Spectrum Brands Holdings (NYSE: SPB) reported strong financial results for Q2 FY2021, with net sales growth of 23%, totaling $1.15 billion. Net income from continuing operations rose by $96 million, while adjusted EBITDA increased by 29% to $181 million. The company's liquidity stands at over $860 million with net leverage of 3.2 times. They anticipate mid-teens growth in net sales and adjusted EBITDA, with expected adjusted free cash flow of $260 million to $280 million for the fiscal year.

Positive

Net sales increased by 23% to $1.15 billion.
Net income from continuing operations rose by $96 million.
Adjusted EBITDA grew by 29% to $181 million.
Over $860 million in total liquidity and net leverage improved to 3.2 times.
Raising earnings guidance to reflect mid-teens sales and EBITDA growth.

Negative

None.

05/07/2021 - 06:30 AM

Spectrum Brands Holdings, Inc. (NYSE: SPB; “Spectrum Brands” or the “Company”), a leading global branded consumer products and home essentials company focused on driving innovation and providing exceptional customer service, today reported results from continuing operations for the second quarter of fiscal 2021 ended April 4, 2021.

“Our latest financial results for second quarter reflect another quarter of exceptional top line growth and operating leverage, with net sales growth of 23%, net income from continuing operations increased $96 million with adjusted EBITDA up 29% to $181 million. Our operating leverage also improved despite higher inflation and incremental investments in marketing and advertising. Higher re-investments continue to reignite the fly wheel of new product launches, improving our top line growth, expanding our margins and driving greater profitability and cash flow generation,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

“Our balance sheet this quarter also improved sequentially, ending the quarter with net leverage of 3.2 times and over $860 million in total liquidity. Going forward, we will continue to focus on disciplined execution of our winning playbook. Our stellar first half financial performance and continued organic growth give us confidence in again raising our earnings framework to reflect mid-teens net sales and adjusted EBITDA growth, as well as adjusted free cash flow of $260 million to $280 million. We are also raising our total gross savings target from our Global Productivity Improvement Program to $200 million by the end of fiscal 2022" said Mr. Maura.

Fiscal 2021 Second Quarter Highlights

Three Month Periods Ended

(in millions, except per share and %)

April 4, 2021

March 29, 2020

Variance

Net sales

1,149.8

937.8

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FAQ

What were Spectrum Brands' Q2 FY2021 earnings results?

Spectrum Brands reported a net sales growth of 23% for Q2 FY2021, totaling $1.15 billion, with net income increasing by $96 million.

What is Spectrum Brands' adjusted EBITDA for Q2 FY2021?

The adjusted EBITDA for Spectrum Brands in Q2 FY2021 was $181 million, reflecting a 29% increase.

What is the future outlook for Spectrum Brands?

Spectrum Brands anticipates mid-teens growth in net sales and adjusted EBITDA, with projected adjusted free cash flow of $260 million to $280 million for the fiscal year.