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 Six Months to the Fiscal 2017 Six Months (in millions):
Net sales in consumer batteries increased $14.9 million, or 3.5%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, with an organic net sales increase of $21.4 million, or 5.0%, due to an increase in EMEA of $18.2 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 $2.0 million due to branded alkaline and specialty batteries volume growth with a key retailer and specialty batteries previously discussed coupled with strong holiday POS on branded alkaline batteries, partially offset by discontinued private label business and reduced retail inventory on lighting products; an increase in APAC of $1.8 million and a decrease in LATAM of $0.6 million. Net sales in hardware and home improvement products increased $18.2 million, or 3.1%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, while organic net sales increased $17.1 million, or 2.9%, primarily attributable to increases in security and locksets of $13.6 million from higher volumes through the introduction of new products with key retailers, promotional sales through e-commerce channels, 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; increase in plumbing of $4.1 million through introduction of new products with key retailers; and decrease in hardware of $0.6 million driven by the exit of lower margin business offset by incremental retail volumes and new product introduction. Overall, net sales were adversely impacted by $8.0 million due to product exits that were primarily associated with a branded product that was transitioned under a third party license arrangement. Net sales in personal care products decreased $9.9 million, or 3.6%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, with an organic net sales decrease of $4.2 million, or 1.5%, due to decreases in NA of $7.7 million due to softer category POS, retail inventory reductions and competitor promotions; offset by increases in EMEA of $2.0 million from promotional sales and market expansion; and increases in APAC and LATAM of $1.2 million and $0.1 million, respectively. Net sales in global auto care decreased $4.8 million, or 2.5%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, with a decrease in organic net sales of $4.6 million, or 2.4%, primarily due to the cooler weather conditions and marginal increases in refrigerant from price increases and auto performance products. Net sales in small appliances decreased $18.2 million, or 5.5%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, with an organic net sales decrease of $7.3 million, or 2.2%, primarily due to a decrease in EMEA of $3.9 million from Brexit-related market softness in the UK; a decrease in LATAM of $4.0 million for lower promotion activity and a decrease in APAC of $2.6 million from lower POS within the region; offset by an increase in NA of $3.2 million from incremental product listings and volumes with key retailers, promotional sales and expansion in other distribution channels including e-commerce, partially offset by declines in POS and lost distribution discussed above. Net sales in global pet supplies decreased $25.9 million, or 6.3%, for the Fiscal 2017 Six Months compared to the Fiscal 2016 Six Months, with a decrease in organic net sales of $19.7 million, or 4.8%, driven by lower sales in companion animal and pet food of $15.5 million and aquatics of $4.2 million. The decrease in companion animal sales was due to a decrease in EMEA of $12.1 million from lower distribution of branded companion animal products and a reduction of $5.1 million for the acceleration of the exit of a pet food tolling agreement, partially offset by promotional activity during the period; a decrease in NA of $4.0 million from reduced listings and retail inventory with key pet retailers, increased competition and low-margin product exits of $4.3 million, offset by channel expansion of Nature’s Miracle product; partially offset by an increase in APAC and LATAM of $0.4 million and $0.2 million, respectively. The decrease in aquatics was due to a decrease in NA of $4.5 million driven by soft category POS and lower retail inventory; marginal increase in EMEA of $1.0 million due to promotional sales offset by deferred sales due to weather; and a decrease in APAC of $0.7 million. Net sales in home and garden control products decreased $21.0 million, or 10.4%, primarily attributable to lower sales in lawn and garden control products and repellents of $11.0 million and $12.5 million, respectively, due to timing of seasonal inventory 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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