Spectrum Brands reports Q4 adjusted EPS $1.36, consensus $1.03

Reports Q4 revenue $740.7M, consensus $738.26M. “We have concluded a pivotal year for the business as we close out our fourth quarter. We have already paid down $1.6 billion of our outstanding debt with the proceeds from the sale of our HHI business and have ended the year in a net cash position. We have reduced our inventory by over $300 million since the beginning of the year while improving fill rates across all businesses. We have also improved our margin structure by driving cost improvements and exiting non-core unproductive categories. With the latest financial results for the quarter, we have started to transition our business from defending against the various headwinds and preserving cash to leaning into the opportunities that a strong balance sheet and improved margins present to us,” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands. Continuing, Maura commented, “I am excited about fiscal 2024 as we enter the new fiscal year with a strong balance sheet, healthier margins and better inventory profile. Our focus during fiscal 2024 will be investing in our people, our brands and supporting new products initiatives to drive long-term growth in our businesses. We started increasing our investments in marketing and advertising during the fourth quarter and will continue that trend going forward. We believe the overall macro-economic environment will continue to deteriorate and will result in top-line pressure, particularly in our Home and Personal Care business. However, we have taken the right steps to position each of our businesses to grow EBITDA with an overall EBITDA expectation of high single-digit growth.”