Net sales from Home & Personal Care increased 20%, Global Pet Care sales gained 12.8%, and Home & Garden fell 6.4%.
Gross profit rose 5.1% Y/Y to $276 million, and the margin contracted 160 basis points to 33.7%.
The operating expenses rose 2% Y/Y to $237.3 million. The operating margin for the quarter was 4.7%, and the operating income was $38.7 million.
The company held $247.7 million in cash and equivalents as of July 3, 2022.
Adjusted EBITDA of $80.1 million decreased 19.4% Y/Y, and the margin decreased 360 basis points attributable to the decrease in volume and higher supply chain costs.
Adjusted EPS was $0.54 versus $0.72 last year.
"Given these drastic changes in the operating environment, we pivoted our operating strategy to reduce our own inventory levels and run the operations to maximize cash flow over earnings, despite the negative impact it has on margins in the short term. We have also taken swift actions to eliminate 17% of our global salaried positions during the quarter that will drive over $30 million in annualized savings," said Chairman and CEO David Maura.
Outlook: Spectrum Brands now expects mid-single digits sales growth with mid-twenties EBITDA decline for FY22.
The company expects Q4 top line to grow mid-single digit over the prior year.
Price Action: SPB shares traded lower by 8.41% at $64.61 in premarket on the last check Friday.
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