Hamilton Beach Brands reported an 11.8% year-over-year, second-quarter sales gain to $154.7 million, driven by what the company said was strong demand in all of its markets.
Hamilton Beach Brands operating profit for the quarter declined to $900.000 compared to compared to $10.9 million in the year-earlier period. The company attributed the decline to significantly higher transportation costs because of supply chain disruption and congestion; increased materials and labor cost; and higher SG&A expenses, the company reported.
Hamilton Beach Brands management said the company plans to help mitigate the effect of rising operating costs by implementing price increases set to go into effect in the second half of 2021.
The company told shareholders ongoing global supply chain pressures could impact its ability to satisfy what it expects to be strong demand in the second half of 2021.
E-commerce channel accounted for 32% of Hamilton Beach Brands sales in the second quarter. Sales of premium small appliances increased 35% year over year, reflecting the growth of the Bartesian cocktail delivery system and Hamilton Beach Professional and Wolf Gourmet countertop appliances.
Net income from continuing operations in the second quarter was $100,000 compared to net income from continuing operations of $8.1 million in the year-earlier quarter
Hamilton Beach Brands said it is expanding its presence in the home health and wellness markets with two new strategic partnerships: a license from The Clorox Company to launch a new line of air purifiers under the Clorox brand in the second half of 2021; and an agreement with HealthBeacon, Limited, for Hamilton Beach Brands to distribute a smart Injection Care Management System in the U.S. and Canada under the new brand name Hamilton Beach Health. The Company expects to begin online distribution in the fourth quarter of 2021, starting with a new direct-to-consumer website www.smartsharpsbin.com.
Hamilton Beach Brands said it expects to introduce about 130 new products in 2021 and 2022.
