Spectrum Brands Reports Mixed Q2 Results Amid Product Availability Challenges

Spectrum Brands Holdings Inc SPB reported second-quarter FY22 sales growth of 6.2% year-on-year, to $807.8 million, beating the consensus of $792.27 million.
Net sales from the Home & Personal Care increased 6.1%, Global Pet Care sales gained 0.5%, and Home & Garden rose 16.5%.
Gross profit fell 2.1% Y/Y to $255.6 million, and the margin contracted 270 basis points to 31.6%.
The operating expenses rose 22.3% Y/Y to $263.7 million. The operating loss for the quarter was $(8.1) million versus an operating income of $45.3 million.
The company held $195.8 million in cash and equivalents as of April 3, 2022.
Adjusted EBITDA of $79 million decreased 26.5% Y/Y.
Adjusted EPS of $0.41 missed the consensus of $0.42.
SPB's quarterly dividend of $0.42 per share is payable on June 9, 2022, to stockholders of record on May 19, 2022.
Outlook: Spectrum Brands raised its FY22 sales growth outlook to the mid-to-high teen range (prior view: mid to high single-digit).
Adjusted EBITDA growth outlook raised to mid-single-digits range from low-single-digits.
The company continues to expect $310 million - $330 million of additional inflation during FY22 and intends to offset most of the high inflation through pricing actions.
Price Action: SPB shares closed lower by 3.63% at $81.70 on Thursday.

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