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Spectrum Brands Holdings, Inc. has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing reports net sales of $2,963.9 million, a 1.5% increase from the previous year. The increase is attributed to higher sales in the Home and Garden segment, which grew by 7.8%, driven by favorable weather conditions and increased retail traffic.
Global Pet Care segment sales increased by 1.1%, primarily due to higher volume in consumables, such as chews and treats, offset by declines in aquatics equipment. The Home and Personal Care segment saw a slight decline of 0.8% in net sales, impacted by lower volumes in kitchen appliances.
Gross profit for the year was $1,109.3 million, reflecting a 20.0% increase due to lower cost inventory and improved volume. The gross profit margin improved by 570 basis points to 37.4%.
Selling, general, and administrative expenses increased by 6.5% to $958.5 million, driven by higher marketing and advertising investments and increased incentive compensation costs.
The company reported a net income from continuing operations of $99.3 million, compared to a net loss of $233.7 million in the previous year. The improvement is largely due to the absence of goodwill impairment charges, which were significant in the prior year.
Interest expense decreased to $58.5 million from $116.1 million, following debt repayments and refinancing activities, including the issuance of $350 million in Exchangeable Notes.
Cash flows from operating activities increased significantly to $269.8 million, primarily due to improved working capital management and reduced strategic transaction spending.
Spectrum Brands continues to focus on its strategic initiatives, including the potential separation of its Home and Personal Care segment and the ongoing global ERP transformation project.
The company also recognized $65 million from representation and warranty insurance proceeds related to the Tristar Business acquisition, contributing to its financial results for the year.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Spectrum Brands Holdings Inc. annual 10-K report dated November 15, 2024. To report an error, please email earnings@qz.com.