Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
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promotional sales volumes, increased e-commerce and new private label customers; an increase in hearing aid and specialty batteries of $14.9 million due to higher volumes with new and existing customers coupled with increases in portable power sales; and increases in Latin America of $9.7 million primarily from hearing aid and specialty batteries.
Hardware and home improvement products organic net sales grew $50.2 million for Fiscal 2016 compared to Fiscal 2015 mainly attributable to an increase in the security product category of $40.0 million from an increase in point of sale, new product listings with key retail customers, increases in e-commerce volumes, and market growth with non-retail customers, partially offset by a $5.5 million decrease in sales with private label customers due to the transition in production of higher-margin branded product; an increase in plumbing products of $14.7 million from the introduction of new products and promotional sales with key retail customers. These increases were partially offset by a $3.7 million decrease in hardware products driven by a $22.8 million decrease for the expiration of a customer tolling agreement and planned exit of unprofitable businesses, mitigated by volume growth at existing retail and market expansion with non-retail customers in North America.
Home and garden control products organic net sales grew $35.1 million for Fiscal 2016 compared to Fiscal 2015 primarily attributable to increases in repellent products growth of $15.7 million due to volume growth with key retailers and increased demand in response to the Zika virus; an increase in household insect control products of $10.3 million from volume growth with key retailers; and an increase in lawn and garden control products of $9.0 million from an extended outdoor season due to warmer weather and early season retail shipments.
Global auto care organic net sales increased $16.6 million for Fiscal 2016 compared to Fiscal 2015 primarily driven by increased sales from air conditioning recharge and refrigerant products and the introduction of private label products with a key customer.
Personal care products organic net sales increased $12.9 million for Fiscal 2016 compared to Fiscal 2015 mainly attributable to increases in Europe of $13.0 million and Latin America of $9.5 million from higher volume due to promotional sales and market expansion; offset by decrease in North America of $13.9 million for softer point of sales in the category, reduction in retail inventory, shifting of holiday sales and competitive pricing.
Global pet supplies net sales increased $1.2 million primarily due to increases in aquatic sales of $1.1 million from timing of prior year holiday shipments, partially offset with the exit of lower margin business; while companion animal and pet food sales were consistent to prior year due to increased competition at key retailers, offset by growth with independent pet retailers, timing of promotional activity, and exiting of certain private label business.
Small appliances organic net sales decreased $43.5 million for Fiscal 2016 compared to Fiscal 2015 primarily attributable to decrease in sales in North America of $43.8 million due to softer point of sale within the category, reduction in retail inventory, shifting of holiday sales, and competitive pricing.
Net consumer products sales for Fiscal 2015 increased $261.3 million, or 5.9%, to $4,690.4 million from $4,429.1 million for Fiscal 2014. The increase was primarily due to the impact of the acquisitions of AAG, European IAMS and Eukanuba, Salix and Tell that accounted for $400.0 million and the growth in organic net sales across global pet supplies, small appliances, home and garden control, personal care, and hardware and home improvement product lines. These increases were partially offset by the negative impact of foreign exchange of $229.8 million and a decrease in consumer battery sales. The following table details the principal components of the change in the Consumer Products segment net sales from the Fiscal 2014 to Fiscal 2015 (in millions):
 
 
Net Sales
Fiscal 2014 Net consumer and other product sales
 
$
4,429.1

Acquisition of AAG
 
160.5

Acquisition of European IAMS and Eukanuba
 
128.7

Acquisition of Salix
 
71.4

Acquisition of Tell
 
39.4

Increase in small appliances
 
51.3

Increase in home and garden control products
 
42.2

Increase in personal care products
 
35.5

Increase in hardware and home improvement products
 
20.7

Decrease in global pet supplies
 
(15.8
)
Decrease in consumer batteries
 
(42.8
)
Foreign currency impact, net
 
(229.8
)
Fiscal 2015 Net consumer and other product sales
 
$
4,690.4

Small appliances organic net sales increased $51.3 million for Fiscal 2015 compared to Fiscal 2014 driven by increased sales in North America of $25.1 million attributable to the success of new product launches; an increase in Europe sales of $24.9 million from promotional activity; and an increase in Latin America sales of $2.0 million from new product introductions and volume increases in certain product lines.

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