Rayovac 2009 Annual Report Download - page 63

Table of Contents
Index to Financial Statements
Net Sales. Net sales for Fiscal 2008 increased to $2,427 million from $2,333 million in Fiscal 2007, a 4.0% increase. The following table details the
principal components of the change in net sales from Fiscal 2007 to Fiscal 2008 (in millions):
Net Sales
Fiscal 2007 Net Sales $ 2,333
Increase in Pet supplies sales 18
Decrease in consumer battery sales (26)
Decrease in home and garden product sales (4)
Foreign currency impact, net 106
Fiscal 2008 Net Sales $ 2,427
Consolidated net sales by product line for Fiscal 2008 and 2007 are as follows (in millions):
Fiscal Year
2008 2007
Product line net sales
Consumer batteries $ 916 $ 882
Pet supplies 599 563
Home and garden control products 334 338
Electric shaving and grooming products 247 268
Electric personal care products 231 187
Portable lighting products 100 95
Total net sales to external customers $2,427 $2,333
Global consumer battery sales during Fiscal 2008 increased $34 million, or 4%, compared to Fiscal 2007, primarily driven by a favorable foreign
exchange impact of $61 million and market share gains of $15 million in North America. This increase was tempered by lower European battery sales as a
result of our continued efforts to exit from unprofitable or marginally profitable private label battery sales as well as a shift in the timing of shipments, done
at the request of certain of our retailers, related to holiday displays and promotions to the fourth quarter of Fiscal 2007 from the first quarter of Fiscal 2008.
Sales of portable lighting products in Fiscal 2008 increased $5 million, or 5%, as sales gains resulting from new product launches in North America of $4
million and favorable foreign exchange impact of $4 million were partially offset by decreases in Latin America and Europe due to a declining market
demand.
Electric shaving and grooming product sales during Fiscal 2008 decreased $21 million, or 8%, compared to Fiscal 2007 due to disappointing results in
the men’s electric shaving category. Further contributing to the sales decrease in electric shaving and grooming products for Fiscal 2008 versus Fiscal 2007
is the shift in timing of shipments to certain retailers from the first quarter of Fiscal 2008 to the fourth quarter of Fiscal 2007. These decreases were offset by
a favorable foreign exchange impact of $9 million. Net sales of electric personal care products for Fiscal 2008 increased $44 million, or 24%, when
compared to Fiscal 2007, driven by strong worldwide growth in our women’s hair care products. We continued to see strong electric personal care double
digit growth in all geographic regions during Fiscal 2008, particularly in North America with 28% growth, when compared to Fiscal 2007.
Pet product sales during Fiscal 2008 increased $36 million, or 6%, compared to Fiscal 2007, primarily driven by a favorable foreign exchange impact
of $18 million, growth in European aquatic sales, increases in global companion animal sales, driven by our Dingo brand, and increased volume resulting
from the continued introduction of companion animal products in Europe.
Sales of home and garden control products during Fiscal 2008 versus Fiscal 2007 decreased $4 million, or 1%, primarily due to rising commodity
costs and lower volume as a result of lower inventory levels at certain customers, partially offset by price increases.
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