Blyth’s Fourth Quarter Net Sales Jump 5%

Blyth Inc., Greenwich, CT, reported fourth quarter net sales increased 5% to $380.5 million versus sales of $362.3 million a year earlier. Operating profit grew 51% to $39 million from $25.9 million in the prior-year period. Net earnings for the quarter were $22.9 million versus $13.6 million a year earlier, an increase of 69%.

Net sales for the fiscal year ended Jan. 31 increased 9% to $1,288.6 million versus $1,178.8 million reported a year ago. Operating profit for the twelve month period was $155.5 million compared to $120.5 million a year earlier, an increase of 29%. Net earnings for fiscal 2003 were up 25% to $85.0 million, compared to $68.0 million for the prior year.

Commenting on the fourth quarter sales and earnings results, Robert B. Goergen, chairman of the board and chief executive officer, said, “We are pleased to have achieved our goals in spite of the growing number of negative exogenous factors, including a very difficult December and January for retailers and consumers.”

He said management at PartyLite and in our Creative Expressions businesses maintained strong customer service levels and controlling expenses. At the Sterno Group, sales and profits are about equal to pre-September 11th levels.

The company’s fourth quarter results were influenced by several factors. Within the Candles & Home Fragrance segment, PartyLite Worldwide, the Company’s direct selling business unit, reported fourth quarter sales growth of 5%. Within Blyth HomeScents International, the Company’s Candles & Home Fragrance segment consumer wholesale businesses, sales growth in Europe was more than offset by declines in North America. Finally, in the Creative Expressions segment, modest sales increases in the premium channel of distribution, as well as the addition of CBK, Ltd., which Blyth acquired in May 2002 and which is now known as CBK Styles, Inc., more than offset a sales decline in the mass channel of distribution within this segment.

Fourth quarter net sales in the Candles and Home Fragrance products businesses were $347.1 million, compared to $342.1 million in the prior year period. For the full year, net sales in this segment were $1,084.6 million, compared to $1,042.8 million in the prior year.