07.05.07
18. Blyth
Greenwich, CT
203.661.1926
www.blythinc.com
Sales: $1 billion
Sales:
$1 billion for home fragrance and related products. Corporate sales: $1.2 billion. Net loss: $103 million for the year ended Jan. 31, 2007.
Key Personnel:
Robert Goergen, chairman and chief executive officer; Robert H. Barghaus, vice president and chief financial officer; Robert B. Goergen Jr., vice president and president, multichannel group; Frank P. Mineo, senior vice president and president, direct selling group.
Chief Technical Officer:
Anil J. Gupte, vice president, research and development.
Major Products:
Candles and home fragrance products. Brands include PartyLite, Boca Java, CBK, Colonial Candle, Exposures, Miles Kimball, Seasons of Cannon Falls, Sterno and Walter Drake.
Comments:
It was a tough year for Blyth. Sales declined and the company reported a net loss after net earnings of $24.9 million a year ago.“Fiscal year 2007 has been one of significant transition for Blyth, as demonstrated by our fourth quarter and full year restructuring charges,” observed Robert B. Goergen, Blyth’s chairman and CEO. “Most of these unusual charges are non-cash, and Blyth continues to generate strong cash flow, achieving $95 million in cash flow from operations in fiscal year 2007.”
Restructuring efforts within the multi-channel group of wholesale and catalog & internet businesses, as well as the direct selling segment, have further streamlined operations, eliminated numerous less profitable customers and continued to improve the efficiency of Blyth’s asset base, he said.
During the year, the company completed the sale of its European wholesale businesses with the divesture of its Colony premium candle company in the U.K. That move enables Blyth to narrow its European focus to direct selling, which is where, executives insist, the best opportunities for profitable growth lie.
“This year’s strong, double-digit sales growth in markets such as France and the Nordic region support our conclusion,” added Mr. Goergen.
For the first quarter ended April 30, 2007, sales declined 3% to about $270 million. First quarter sales growth in PartyLite’s international markets was offset by lower sales in PartyLite’s U.S. market. In addition, sales growth in the catalog and internet segment partially offset lower sales in the company’s wholesale segment. International sales represented 32% of total sales in the first quarter this year and 27% last year, reflecting strong growth overall in PartyLite’s international markets.
Net earnings for the first quarter were $11.7 million versus a net loss of $30.6 million a year ago. During the quarter, Blyth sold its Blyth HomeScents International (BHI) North American mass channel candle business. The sale resulted in a pre-tax loss of $500,000.