Spectrum Brands pet business remains flat in Q2 2022

Sales within the portfolio accounted for $295.1M (€278.9M), 0.5% more than last year.

Spectrum posted global net sales of $807.8M (€764.7M) in the second quarter of 2022. In the same period of 2021, it reached $760.3M (€719.7M). The company said this was driven by “strong growth” in companion animals offset by “softness” in aquatics.

The American company reached a global operating income of $19.9M (€18.8M) against $39.8M (€37.6M) in the same period of 2021.

“Lower operating income and margins were driven by increased freight and input cost inflation ahead of the timing of incremental pricing actions, in addition to continued marketing and new product initiatives partially offset by productivity improvements,” it said.

In the same line, the global gross profit of all businesses decreased by 2.1% to $255.6M (€241.9M) due to a “gross profit margin decline further pressured by higher distribution costs, as well as continued investment in marketing and new product innovation, restructuring initiatives and strategic transactions.”

Spectrum Brands is in the process of updating its earnings forecast for the rest of the year to include some of the latest developments, such as the impact of the war in Ukraine. Reported net sales growth is now expected to be in the mid-to-high teens this year.