Spectrum Brands Holdings, Inc. (SPB): history, ownership, mission, how it works & makes money

A Brief History of Spectrum Brands Holdings, Inc.

Company Overview

Spectrum Brands Holdings, Inc. operates in the consumer products sector, offering a diverse range of products across several categories including home and personal care, pet supplies, and home appliances. The company is publicly traded on the New York Stock Exchange under the ticker symbol SPB.

Recent Financial Performance

As of June 30, 2024, Spectrum Brands reported net sales of $2,190.2 million for the nine-month period, reflecting a slight increase from $2,178.1 million in the prior year. The gross profit for the same period was $821.2 million, with a gross profit margin of 37.5%.

Segment Performance

The company operates through three primary segments: Global Product Categories (GPC), Home & Garden (H&G), and Home & Personal Care (HPC). The following summarizes their performance:

Share Repurchase Programs

In 2024, Spectrum Brands initiated a $200 million share repurchase plan, which was subsequently terminated after repurchasing 1.9 million shares for $156 million. Additionally, a new $500 million common stock repurchase program was authorized, replacing a prior $1 billion program.

Debt Management

The company has actively managed its debt, repurchasing outstanding Senior Notes worth $180.1 million during the nine-month period ended June 30, 2024. This included $8.1 million of 5.00% Senior Notes due October 1, 2029, and $132.8 million of 5.50% Senior Notes due July 15, 2030.

Market Position and Challenges

Spectrum Brands continues to face challenges in the HPC segment, which reported a net loss of $(198.2 million) for the nine-month period. However, the company has seen improved performance in the GPC and H&G segments, with net sales growth attributed to increased distribution through e-commerce channels.

Liquidity and Financial Health

As of June 30, 2024, the company reported total assets of $5,258.4 million and total liabilities of $3,755.3 million, resulting in total shareholders' equity of $2,085.1 million.

A Who Owns Spectrum Brands Holdings, Inc. (SPB)

Ownership Structure

As of 2024, Spectrum Brands Holdings, Inc. (SPB) has a diverse ownership structure that includes institutional investors, retail investors, and company insiders.

Major Shareholders

The following table outlines the major shareholders of Spectrum Brands Holdings, Inc. as of 2024:

Stock Performance

As of June 30, 2024, Spectrum Brands Holdings, Inc. reported the following financial metrics:

Recent Share Repurchase Activity

In 2024, Spectrum Brands initiated a stock repurchase program that includes the following:

Financial Overview

For the nine-month period ended June 30, 2024, the following financial highlights were recorded:

Spectrum Brands Holdings, Inc. (SPB) Mission Statement

Company Overview

Spectrum Brands Holdings, Inc. is a global consumer products company operating in various segments including Home and Garden, Home and Personal Care, and Global Pet Care. The company focuses on providing innovative and quality products that enhance consumers' lives.

Mission Statement

Spectrum Brands is committed to delivering innovative products that meet the evolving needs of consumers while maintaining a strong focus on sustainability and corporate responsibility. The mission emphasizes creating value for customers, employees, and shareholders.

Financial Performance

As of June 30, 2024, Spectrum Brands reported the following financial results:

Segment Performance

For the nine months ended June 30, 2024, the performance across different segments was as follows:

Share Repurchase Program

During the nine-month period ended June 30, 2024, Spectrum Brands executed a share repurchase program totaling:

Market Trends and Strategic Initiatives

Spectrum Brands has been focusing on expanding its product lines and enhancing its market presence through strategic initiatives aimed at increasing operational efficiency and reducing costs. The company is also committed to sustainability, aiming to reduce its environmental impact while delivering high-quality products to consumers.

Conclusion

As of 2024, Spectrum Brands continues to align its mission with the overall performance and strategic direction of the company, focusing on innovation, sustainability, and delivering value to its stakeholders.

How Spectrum Brands Holdings, Inc. (SPB) Works

Company Overview

Spectrum Brands Holdings, Inc. operates as a global consumer products company, offering a diverse range of products across various categories including home and garden, personal care, and more. The company is publicly traded on the New York Stock Exchange under the ticker symbol SPB.

Financial Performance

As of June 30, 2024, Spectrum Brands reported the following financial results for the three and nine month periods ended:

Segment Performance

Spectrum Brands operates through several key segments, including Home & Garden (H&G), Home & Personal Care (HPC), and Global Pet Care (GPC). The following summarizes segment performance for the three months ended June 30, 2024:

Balance Sheet Highlights

As of June 30, 2024, Spectrum Brands reported the following balance sheet highlights:

Cash Flow Analysis

For the nine month periods ended June 30, 2024, Spectrum Brands' cash flow from operating activities was:

Stock Repurchase Program

During the nine month period ended June 30, 2024, Spectrum Brands repurchased a total of 7.4 million shares at an average price of $76.66 per share, totaling approximately $565.9 million. This included:

Recent Developments

In May 2024, Spectrum Brands announced a new share repurchase program authorizing up to $500 million in stock repurchases, replacing a previous program of $1.0 billion. This reflects the company's ongoing commitment to returning value to shareholders.

Market Position and Strategy

Spectrum Brands continues to focus on strategic initiatives across its product lines, leveraging brand strength and market presence to drive growth. The company emphasizes innovation, cost management, and operational efficiency as key components of its strategy moving forward.

How Spectrum Brands Holdings, Inc. (SPB) Makes Money

Business Segments Overview

Spectrum Brands operates through three primary segments:

• Global Pet Care (GPC)
• Home & Garden (H&G)
• Home and Personal Care (HPC)

Financial Performance

As of June 30, 2024, Spectrum Brands reported the following financial results for the three and nine months ended:

Revenue Breakdown by Segment

The revenue for each segment for the three and nine months ended June 30, 2024 is as follows:

Cost of Goods Sold and Gross Profit

The cost of goods sold (COGS) and gross profit for the three and nine months ended are as follows:

Operating Expenses and Adjusted EBITDA

Operating expenses and adjusted EBITDA for the three and nine months ended are summarized as follows:

Market Position and Competitive Strategy

Spectrum Brands has a diverse customer base, including several large retail customers that accounted for 36.4% of consolidated net sales in the nine months ended June 30, 2024. The company has continued to focus on optimizing its product mix and improving operational efficiencies to enhance profitability. The licensing agreement with Stanley Black & Decker for the Black & Decker brand remains a critical element of their strategy, contributing significantly to net sales.

Recent Developments

In May 2024, Spectrum Brands entered into a new trademark license agreement with Stanley Black & Decker, which commenced on January 1, 2024. This agreement allows Spectrum to market products under the Black & Decker brand for various household appliances, with a minimum annual royalty payment starting at $11.7 million.