Spectrum Brands: Profit slashed at Russell Hobbs, George Foreman and Remington owner despite sales surge
Profit at the UK arm of the group behind Russell Hobbs, George Foreman and Remington was slashed during its latest financial year despite its sales surging by almost £80m.
Spectrum Brands, which has its UK base in Manchester, has reported a pre-tax profit of £3.3m for the 12 months to September 30, 2023, according to newly-filed accounts with Companies House.
That comes after the business posted a pre-tax profit of £33m for the prior year.
However, Spectrum Brands’ turnover increased in the 12 months from £240.7m to £329.5m.
In a statement signed off by the board, the company said: “The retail landscape in the UK remains challenging as businesses adapt to changing consumer preferences, with the move away from traditional bricks and mortar to e-commerce.
“The company refreshes its strategy to win across its channel estate.
“The company has been subject to increasing costs which are keenly felt in higher freight rates, increased product costs and general wage expectations but manages its margin mix to maintain profitability.
“The company is exposed to foreign exchange risk through its overseas sourcing; however, these are managed on a group-wide basis.
“On an entity level the company is managing the currency risk by taking out derivative contracts to mitigate the risk.”
The wider Spectrum Brands group reported a revenue of $2.9bn (£2.2bn) for the same financial year, down from $3.1bn (£2.4bn).
For the first half of its current financial year, the group reported net sales of $718.5m (£536.5m), down from $729.2m (£574.3m) but its adjusted EBITDA from continuing operations rose from $51m (£40.1m) to £112.3m (£88.4m).