Rayovac 2013 Annual Report Download - page 55

Global consumer battery sales decreased $17 million, or 2%, during Fiscal 2013 compared to Fiscal 2012.
Excluding the impact of negative foreign exchange of $8 million, global consumer battery sales decreased
$9 million. The constant currency decrease in global consumer battery sales was primarily attributable to the
non-recurrence of promotions, timing of holiday shipments and inventory management at key customers,
tempered by new customer listings and expansion into new channels.
Small appliances sales decreased $32 million, or 4%, during Fiscal 2013 versus Fiscal 2012, primarily
attributable to declines in North American sales of $45 million and negative foreign exchange impacts of
$4 million, partially offset by a $17 million increase in European small appliance sales. The North American
sales declines resulted from the planned exit of certain low margin products. Strong small appliances sales in
Europe were driven by market share gains in the United Kingdom, regional expansion in both Eastern and
Western Europe and successful new product introductions.
Pet supply sales increased $7 million, or 1%, during Fiscal 2013 versus Fiscal 2012, driven by increased
companion animal sales of $16 million, tempered by a $4 million decline in aquatics sales and $5 million of
negative foreign currency impacts. Gains in companion animal sales resulted from strong growth in the Dingo
and FURminator brands, expansion in Europe, new product launches and the inclusion of FURminator sales
during all of Fiscal 2013 as the acquisition was completed on December 22, 2011. The decline in aquatic sales
was primarily due to a decline in tropical food and outdoor pond product sales in Europe as a result of a later
arrival of the spring season due to cooler temperatures.
Home and garden product sales increased $3 million, or 1%, in Fiscal 2013 versus Fiscal 2012, driven by a
$4 million increase in lawn and garden control sales resulting from an extension to the season due to favorable
fall weather, combined with reduced returns and more efficient trade spending. The negative impact on
household insect control sales due to a late spring season was offset by increased year over year fourth quarter
sales driven by the extension of the season due to favorable fall weather and gains in the first quarter of Fiscal
2013 from new retail distribution. Also contributing to the sales gains was the inclusion of Black Flag sales
during all of Fiscal 2013, as the acquisition was completed on October 31, 2011, and retail replenishment
following strong retail sales in the fourth quarter of Fiscal 2012.
Electric shaving and grooming product sales decreased $2 million, or 1%, during Fiscal 2013 compared to
Fiscal 2012, attributable to an $11 million decline in North American sales and $1 million of negative foreign
currency impacts, partially offset by an increase of $10 million in European sales and a slight increase in Latin
American sales. North American sales declined as a result of labor disruptions at U.S. ports of entry during the
peak holiday period in Fiscal 2013, coupled with decreased retail space available for the product category at a
major retailer and customer inventory management. European sales gains were driven by successful new product
launches and promotions, market growth, increased distribution and customer gains. The gain in Latin American
sales was driven by expansion in Brazil due to successful new product launches and distribution gains, tempered
by lower sales to customers who export to Venezuela and import restrictions in Argentina.
Electric personal care sales increased $5 million, or 2%, in Fiscal 2013 versus Fiscal 2012, resulting from a
sales increase of $8 million in Europe, driven by new innovative products, coupled with additional distribution
channels and customer gains. The gains were tempered by a $3 million decline in Latin American sales, resulting
from decreased promotions and lower sales to customers who export to Venezuela, partially offset by distribution
gains in Brazil and Central America.
Hardware and home improvement sales were $870 million for Fiscal 2013, reflecting the results of the HHI
Business, subsequent to the acquisition on December 17, 2012. The results of TLM Taiwan are included in the
results of hardware and home improvement sales subsequent to its acquisition on April 8, 2013.
Gross Profit. Gross profit for Fiscal 2013 was $1,390 million versus $1,116 million for Fiscal 2012. The
increase in gross profit was driven by the acquisition of the HHI Business which contributed $273 million in
Gross profit in Fiscal 2013. Our gross profit margin for Fiscal 2013 decreased slightly to 34.0% from 34.3% in
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