(Reuters) - Newell Brands Inc (NWL.N), the maker of Sharpie pens and Rubbermaid food containers, reported better-than-expected quarterly sales and profit, helped by the acquisition of Jarden Corp.
Shares of Newell Brands, which closed the $15.4 billion acquisition of the maker of Yankee Candle and Crock-Pot cookware in April, were up 5.3 percent in light premarket trading on Friday.
The company’s sales more than doubled to $3.86 billion in the second quarter, with $2.22 billion coming from the Jarden business.
Analysts on average had expected revenue of $3.76 billion, according to Thomson Reuters I/B/E/S.
The company’s legacy brands such as Paper Mate InkJoy gel pens and Jarden’s Yankee Candle performed strongly in the quarter, Chief Executive Michael Polk said in an interview to Reuters.
The Jarden deal, which added about 120 brands to Newell’s portfolio, increased its exposure to Europe and doubled the company’s footprint in markets such as the United Kingdom, France and Germany, Polk added.
However, the company does not expect any major impact from Britain’s vote to leave the European Union.
“In the next year there might be some forex-related issues that we have to deal with ... It (Brexit vote) is not a major disruption and does not have a major impact this year,” Polk said.
The deal will boost pro forma annual revenue from Europe to more than $2 billion, the CEO said. The company had revenue of $591.1 million from Europe, Middle East and Africa last year.
However, the company’s net income fell 9 percent to $135.2 million, or 30 cents per share, as it spent more on advertising and promotions.
Excluding items, the company earned 78 cents per share, beating the average analyst expectation of 72 cents.
Reporting by Gayathree Ganesan and Sruthi Ramakrishnan in Bengaluru; Editing by Maju Samuel and Anil D'Silva