SEC Filings
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| 10-Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HRG GROUP, INC. filed this Form 10-Q on 05/05/2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The following table details the principal components of the change in the Consumer Products segment net sales from the Fiscal 2016 Quarter to the Fiscal 2017 Quarter (in millions):
Net sales in hardware and home improvement products increased $12.1 million, or 4.0%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, while organic net sales increased $10.7 million, or 3.5%, primarily attributable to increases in security and locksets of $6.4 million from higher volumes through the introduction of new products with key retailers, increased volumes with non-retail wholesale and builder channels, and the introduction of Tell Manufacturing, Inc. product into retail channels, partially offset by the exit of lower margin business; the increase in plumbing of $4.3 million through introduction of new products with key retailers; and a marginal increase in hardware. Overall, net sales were adversely impacted by $4.0 million due to product exits that were primarily associated with a branded product that was transitioned under a third party license agreement. Net sales in consumer batteries increased $7.0 million, or 3.9%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, with an organic net sales increase of $9.0 million, or 5.1%, primarily due to an increase in EMEA of $7.0 million from promotional sales of branded alkaline batteries plus expansion with new and existing customers for both branded alkaline and specialty batteries; an increase in NA of $2.6 million due to branded alkaline and specialty batteries volume growth with a key retailer, partially offset with reduced retail inventory on lighting products; an increase in APAC of $0.3 million and a decrease in LATAM of $1.0 million. Net sales in global auto care decreased $0.6 million, or 0.5%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, with a decrease in organic net sales of $0.5 million, or 0.4%, primarily due to lower auto appearance products of $3.8 million due to cooler weather conditions; partially offset by an increase in refrigerant products of $2.9 million from implemented price increases in response to product cost increases; and a marginal increase in licensing and auto performance products. Net sales in personal care products decreased $3.7 million, or 3.4%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, with an organic net sales decrease of $1.7 million, or 1.6%, primarily attributable to decreases in NA and EMEA of $2.5 million and $0.8 million, respectively, due to softer category point of sale (“POS”) retail inventory reductions and competitor promotions; offset by increases in LATAM and APAC of $0.8 million and $0.8 million, respectively, from promotional sales and market expansion. Net sales in small appliances decreased $14.7 million, or 10.6%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, with an organic net sales decrease of $11.2 million, or 8.1%, primarily due to a decrease in NA of $5.5 million from declines in POS due to category softness retailer inventory reductions and competitor promotions, partially offset by sales growth through e-commerce channels; decreases in EMEA of $4.8 million from Brexit-related market softness in the UK; and decreases in LATAM and APAC of $0.8 million and $0.2 million, respectively. Net sales in global pet supplies decreased $16.7 million, or 8.0%, for the Fiscal 2017 Quarter compared to the Fiscal 2016 Quarter, with a decrease in organic net sales of $13.3 million, or 6.4%, driven by decreases in companion animal and pet food sales of $6.7 million and aquatics of $6.6 million. The decrease in companion animal and pet food sales was due to a decrease in EMEA of $7.4 million from lower distribution of branded companion animal products and a reduction of $4.5 million for the acceleration of the exit of a pet food tolling agreement; partially offset by an increase in NA of $0.3 million from channel expansion of Nature’s Miracles products, despite exiting of low margin private label products reducing net sales by $2.2 million; and increases in LATAM and APAC of $0.1 million and $0.3 million, respectively. The decrease in aquatics was due to a decrease in NA of $4.5 million driven by soft category POS and lower retailer inventory; a decrease in EMEA of $1.7 million driven by deferred sales due to weather; and a decrease of $0.4 million in APAC. Net sales in home and garden control products decreased $23.1 million, or 14.9%, primarily attributable to lower sales in lawn and garden control products and repellents of $10.1 million and $12.0 million, respectively, due to timing of seasonal inventory sales, reduction in distribution from retail inventory management initiatives and higher demand driven by Zika concerns in the prior period; and a decrease in household insect control products of $1.0 million. 45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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