Spectrum Brands’ pet chews drive its financials

The Wisconsin-based firm noted a slight rise of 0.5% in net sales in its pet care segment. Spectrum’s Global Pet Care (GPC) unit reached $296.7 million (€272M) from February to April. In the same period of 2022, it hit $295.1 million (€270.6M).

David Maura, Chairman and CEO of Spectrum Brands, told investors that Spectrum’s pet portfolio “is performing in line with their expectations.”

The company attributed the good numbers to “strong growth” in pet ownership and increased chew sales in North America, Europe, the Middle East, and Africa (EMEA). 

Conversely, the company observed declines in “other hard goods and aquatic environments” compared to 2022. 

Operating income also experienced growth with $30.3 million (€27.8M), up from $19.9 million (€18.3M) in the same period in 2022. The achievement represented a 52.3% increase.

Record growth 

Pet care was the only unit that recorded growth in net sales in the quarter compared to last year.

The company posted global sales of $729.3 million (€666.6M), 9.7% less than in 2022. The operating loss increased by 850.6%.

Maura said the company had reached a “new milestone” with the sale of its hardware home improvement business for $4.3 billion (€3.9B), which is expected to be completed by June 20, 2023.

The CEO added that the deal will allow Spectrum to get closer “to our long-term goal of becoming a faster growing, higher margin, pure-play Global Pet Care.”

Analyst site Seeking Alpha commented on the sale of company assets writing that Spectrum Brands has an interesting position in the market. Although they warn: “It’s still possible that the deal to sell off its assets could fall through.”