NEW YORK - Spectrum Brands Holdings Inc (NYSE:SPB) reported better-than-expected fourth quarter revenue on Friday, sending shares up 1.2% in early trading.
The consumer products company posted revenue of $773.7 million, surpassing analyst estimates of $747.8 million. However, adjusted earnings per share came in at $0.97, missing expectations of $1.04.
Net sales increased 4.5% year-over-year, with organic sales growth of 4.8% excluding currency impacts. The company saw sales increases across all segments, driven by higher volumes in Global Pet Care, favorable weather extending the season for Home & Garden products, and global growth in Home & Personal Care appliances.
"We exceeded our annual operating plans on virtually every metric and all of our businesses returned to growth in the second half of the year, in spite of the challenging economic and geopolitical conditions that are impacting consumer demand," said CEO David Maura.
Adjusted EBITDA decreased to $68.9 million from $111.5 million last year, which the company attributed to $32.5 million of lower investment income and $25.9 million in increased brand-focused investments.
For fiscal 2025, Spectrum Brands expects low single-digit net sales growth and mid to high single-digit adjusted EBITDA growth. The company is targeting adjusted free cash flow of approximately 50% of adjusted EBITDA.
Spectrum Brands ended the year with a strong balance sheet, reporting net leverage of 0.56x adjusted EBITDA.
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