Spectrum Brands ends the year with slow growth
The increase in Q4 companion animal segment sales continued to be offset by softness in the aquatic segment.
The Wisconsin-based manufacturer reported $302.5 million (€286.3M) in net sales for its pet care segment for the 3 months ending 30 September 2024. This marks a 3.5% year-on-year (YoY) growth from $292.4 million (€276.7M) in Q4 2023.
Organic net sales improved by 2.9% during the quarter. However, continued softness in the aquatic segment, consistent with trends observed in Q1 2024, offset “higher net sales” in the companion animal category.
The increase in overall sales was attributed to higher volumes driven by a “strategic pull forward of orders by retailers in preparation for S4/Hana ERP implementation” (a system designed to help businesses streamline operations) and favorable foreign currency impacts.
Full-year revenue
For the full fiscal year (FY) 2024, the pet care segment generated net sales of $1.15 billion (€1.08B), compared to $1.13 billion (€1.06B) in 2023.
Organic net sales accounted for $1.14 billion (€1.07B), reflecting a 0.4% YoY increase.
2025 guidance
In Q4, Spectrum Brands’ total sales across all segments increased by 4.5% to $774 million (€732.6M), up from $741 million (€701.3M) during the same period last year. For the entire year, revenue reached $2.96 billion (€2.8B), reflecting a slight growth of 1.5% from $2.91 billion (€2.75B) in 2023.
The company anticipates low single-digit net sales growth in FY 2025 across all its segments – pet care, personal care and home products.
Spectrum Brands aims to bolster this growth through brand-building investments to navigate the “challenging geopolitical and economic environment.”
Additionally, it plans incremental inventory investments to support e-commerce growth as part of its broader strategy for the upcoming fiscal year.
