Pet and aquatic products supplier Spectrum Brands has reported a 62.7% increase in operating income to $67.7m (£53.9m) compared with $41.6m (£33.1m), in its second quarter results.
In the period ended 29 March, the company reported a 7.7% increase in gross profit to $328.9 (£261.2m) compared with $305.5 (£242.9m). It also reported a 3.4% increase in net sales to $937.8m from $906.7m in 2019.
Organic sales also increased by 4.1% in the period with Spectrum reporting a 62.7% increase in GAAP operating profit, driven by “improved” gross profit.
David Maura, chairman and chief executive officer of Spectrum Brands said: “Our second quarter results reflected strong top and bottom-line results, with net sales growth of 3%, organic growth of 4%, operating income growth of 62.7% and adjusted EBITDA growth of 21.5%.
“It is important to recognise that this growth was driven by strong results throughout the quarter. From a balance sheet perspective, we moved quickly to increase the amount of cash on hand to strengthen liquidity by drawing down on our $800m (£637.1m)revolver and ended the quarter with $458m (£364.5m) of cash on hand.”
He added: “Since the end of the quarter, we added a new $90m (£71.6m) tranche to our revolving credit facility. During the quarter, we also finalized the sale of the European dog and cat food manufacturing operations for cash proceeds of over $30m (£23.8m) , closed our Cambodia rawhide manufacturing facility and acquired Omega Sea to add to the Global Pet Care portfolio of aquatics brands.”