Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 05/09/2016
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compared to the Fiscal 2015 Quarter mainly as a result of increase in sales for security and hardware products of $16.3 million due to increased volumes with existing retail relationships, introduction of new products, and market growth with non-retail customers. The consumer batteries constant currency revenues improved $7.2 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter primarily driven by a $5.3 million increase in Europe due to increased volumes of hearing aid and specialty batteries to existing and new customers. Small appliances constant currency sales decreased $5.3 million mainly driven by softer volumes within the product category and competitive pricing, including the exit of unprofitable business in Latin America.
Net consumer products sales for the Fiscal 2016 Six Months increased $293.6 million, or 13.8%, to $2,428.4 million from $2,134.8 million for the Fiscal 2015 Six Months. The increase in net consumer product sales in the Fiscal 2016 Six Months was driven by the impact of the acquisitions of AAG, European IAMS and Eukanuba and Salix and the organic growth in sales across the consumer batteries, home and garden control products, hardware and home improvement products, and personal care products lines. These increases were partially offset by the negative impact of foreign exchange of $93.5 million and a decrease in small appliances.
The following table details the principal components of the change in the Consumer Products segment net sales from the Fiscal 2015 Six Months to the Fiscal 2016 Six Months (in millions):
 
 
Net Sales
Fiscal 2015 Six Months Net consumer and other product sales
 
$
2,134.8

Increase in global auto care
 
193.3

Increase in global pet supplies
 
87.9

Increase in consumer batteries
 
43.1

Increase in home and garden control products
 
39.3

Increase in hardware and home improvement products
 
33.8

Increase in personal care products
 
15.5

Decrease in small appliances
 
(25.8
)
Foreign currency impact, net
 
(93.5
)
Fiscal 2016 Six Months Net Sales
 
$
2,428.4

Global pet supplies constant currency sales increased $87.9 million for the Fiscal 2016 Six Months compared to the Fiscal 2015 Six Months, which includes sales of $44.2 million and $27.0 million from the European IAMS and Eukanuba and Salix acquisitions, respectively, during the first fiscal quarter of 2016. On a constant currency basis and excluding impact from acquisitions, sales increased $16.7 million primarily due to increases in companion animal sales of $12.4 million and aquatic sales of $4.6 million, predominantly attributable to stronger rawhide and stain and odor product categories in North America and timing of holiday shipments; with partial offset from existing lower margin aquatic business. Consumer battery sales increased $43.1 million primarily driven by higher alkaline battery sales across all regions coupled with increased volumes of hearing aid and specialty batteries to existing and new customers in Europe. Home and garden control products constant currency sales increased primarily due to the Fiscal 2016 Quarter factors discussed above. Hardware and home improvement products constant currency sales increased $33.8 million for the Fiscal 2016 Six Months compared to the Fiscal 2015 Six Months, primarily attributable to higher constant currency sales of security products of $27.2 million and plumbing products of $8.2 million. Personal care products constant currency revenues increased $15.5 million for the Fiscal 2016 Six Months compared to the Fiscal 2015 Six Months mainly due to expansion with new retail customers and increased promotional volumes. Small appliances constant currency revenues decreased $25.8 million for the Fiscal 2016 Six Months compared to the Fiscal 2015 Six Months mainly due to softer volumes within the product category and competitive pricing in North America.

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