<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON D.C. 20549

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      FOR THE QUARTER ENDED APRIL 30, 2000

                         Commission file number 1-13026



                             BLYTH INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)

                 DELAWARE                                 36-2984916
      (State or other jurisdiction of          (IRS Employer Identification No.)
       incorporation or organization)

100 FIELD POINT ROAD, GREENWICH, CONNECTICUT                06830
  (Address of principal executive offices)                (Zip Code)


                                 (203) 661-1926
              (Registrant's telephone number, including area code)

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                         if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes  X    No
    ---      ---

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.

                   47,924,884 COMMON SHARES AS OF MAY 31, 2000

<PAGE>

                             BLYTH INDUSTRIES, INC.

                                      INDEX

<TABLE>
<CAPTION>
                                                                             PAGE
                                                                             ----
<S>                                                                          <C>
Form 10-Q Cover Page .......................................................     1

Form 10-Q Index ............................................................     2


Part I.   Financial Information:

     Item 1.   Financial Statements:
                    Consolidated Balance Sheets ............................     3

                    Consolidated Statements of Earnings ....................     4

                    Consolidated Statements of Stockholders' Equity ........     5

                    Consolidated Statements of Cash Flows ..................     6

                    Notes to Consolidated Financial Statements .............   7,8

     Item 2.   Management's Discussion and Analysis of
                    Financial Condition and Results of Operations ..........  9-12

     Item 3.   Quantitative and Qualitative Disclosures About Market Risk ..    13


Part II.  Other Information

     Item 1.   Legal Proceedings ...........................................    14

     Item 2.   Changes in Securities .......................................    14

     Item 3.   Defaults upon Senior Securities .............................    14

     Item 4.   Submission of Matters to a Vote of Security Holders .........    14

     Item 5.   Other Information ........................................... 14,15

     Item 6.   Exhibits and Reports on Form 8-K ............................    16


Signatures .................................................................    17
</TABLE>


                                       2
<PAGE>

Part I. FINANCIAL  INFORMATION
Item I. FINANCIAL STATEMENTS

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
==========================================================================================================
                                                                                   APRIL 30,   JANUARY 31,
(In thousands, except share data)                                                    2000         2000
----------------------------------------------------------------------------------------------------------
                                                                                  (Unaudited)
<S>                                                                                 <C>          <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                                                           $ 87,084     $ 46,047
Accounts receivable, less allowance for doubtful receivables
  of $1,867 and $2,154, respectively                                                  77,320       84,919
Inventories                                                                          201,904      186,696
Prepaid expenses                                                                       4,485        3,000
Deferred income taxes                                                                  1,209        1,200
----------------------------------------------------------------------------------------------------------
          Total current assets                                                       372,002      321,862
PROPERTY, PLANT AND EQUIPMENT, AT COST:
     Less accumulated depreciation of $121,532 and $113,044, respectively            272,355      273,528

OTHER ASSETS:
Investments                                                                            8,472       10,303
Excess of cost over fair value of assets acquired, net of
  accumulated amortization of $8,368 and $7,290, respectively                        103,966      102,328
Deposits and other assets                                                              5,109        5,075
----------------------------------------------------------------------------------------------------------
                                                                                     117,547      117,706
----------------------------------------------------------------------------------------------------------
          Total assets                                                              $761,904     $713,096
==========================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank lines of credit                                                                $ 30,488     $  5,572
Current maturities of long-term debt                                                  15,983       14,063
Accounts payable                                                                      64,668       53,359
Accrued expenses                                                                      38,491       51,819
Dividend payable                                                                       4,793            -
Income taxes                                                                          16,222        5,792
----------------------------------------------------------------------------------------------------------
          Total current liabilities                                                  170,645      130,605
DEFERRED INCOME TAXES                                                                 23,219       24,202
LONG-TERM DEBT, less current maturities                                              176,930      176,587
MINORITY INTEREST AND OTHER                                                              941        1,488
COMMITMENTS AND CONTINGENCIES                                                              -            -
STOCKHOLDERS' EQUITY:
Preferred stock - authorized 10,000,000 shares of $0.01
  par value; no shares issued and outstanding                                              -            -
Common stock - authorized 100,000,000 shares of $0.02 par value; issued
  and outstanding, 47,957,384 shares and 48,037,309 shares, respectively                 987          985
Additional contributed capital                                                        95,021       93,784
Retained earnings                                                                    336,612      320,384
Accumulated other comprehensive loss                                                  (7,794)      (4,760)
Treasury stock, at cost, 1,396,300 shares and 1,208,700 shares, respectively         (34,657)     (30,179)
----------------------------------------------------------------------------------------------------------
          Total stockholders' equity                                                 390,169      380,214
----------------------------------------------------------------------------------------------------------
          Total liabilities and stockholders' equity                                $761,904     $713,096
==========================================================================================================
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                       3
<PAGE>

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF EARNINGS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
==========================================================================================================
THREE MONTHS ENDED APRIL 30 (In thousands, except per share data)
                                                                                     2000          1999
==========================================================================================================
<S>                                                                                 <C>          <C>
Net sales                                                                           $274,880     $244,273
Cost of goods sold                                                                   111,560      103,793
----------------------------------------------------------------------------------------------------------
     Gross profit                                                                    163,320      140,480
Selling and shipping                                                                 100,669       85,385
Administrative                                                                        24,070       21,864
Amortization of goodwill                                                               1,048          636
----------------------------------------------------------------------------------------------------------
                                                                                     125,787      107,885
----------------------------------------------------------------------------------------------------------
     Operating profit                                                                 37,533       32,595
Other expense (income):
     Interest expense                                                                  4,153        1,884
     Interest income and other                                                          (579)        (120)
     Equity in earnings of investees                                                     851          413
----------------------------------------------------------------------------------------------------------
                                                                                       4,425        2,177
----------------------------------------------------------------------------------------------------------
     Earnings before income taxes and minority interest                               33,108       30,418
Income tax expense                                                                    12,439       11,683
----------------------------------------------------------------------------------------------------------
     Earnings before minority interest                                                20,669       18,735
Minority interest                                                                       (352)         198
----------------------------------------------------------------------------------------------------------
     Net earnings                                                                   $ 21,021     $ 18,537
==========================================================================================================
Basic:    Net earnings per common share                                             $   0.44     $   0.38
          Weighted average number of shares outstanding                               47,982       48,941
==========================================================================================================
Diluted:  Net earnings per common share                                             $   0.44     $   0.38
          Weighted average number of shares outstanding                               48,265       49,262
==========================================================================================================
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                       4
<PAGE>

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
APRIL 30, (In thousands, except share data)
=============================================================================================================================
                                                                                                      ACCUMULATED
                                                   COMMON STOCK      ADDITIONAL                           OTHER
                                                 -----------------  CONTRIBUTED RETAINED    TREASURY  COMPREHENSIVE
                                                  SHARES     AMOUNT   CAPITAL   EARNINGS       STOCK       LOSS       TOTAL
=============================================================================================================================
<S>                                              <C>           <C>    <C>       <C>         <C>         <C>        <C>
FOR THE THREE MONTHS ENDED APRIL 30, 1999:

Balance, January 31, 1999                        49,190,474    $984   $93,281   $227,995    $   (228)   $     -    $322,032

Net earnings for the period                               -       -         -     18,537           -          -      18,537
Foreign currency translation adjustments                  -       -         -          -           -       (242)       (242)
                                                                                                        ---------------------
     Comprehensive income                                 -       -         -          -           -       (242)     18,295

Common stock issued in connection with
  exercise of stock options                           4,800       -        63          -           -          -          63

Treasury stock purchase                            (573,300)      -         -          -     (13,641)         -     (13,641)
                                                 ----------------------------------------------------------------------------

Balance, April 30, 1999                          48,621,974    $984   $93,344   $246,532    $(13,869)   $  (242)   $326,749
=============================================================================================================================
FOR THE THREE MONTHS ENDED APRIL 30, 2000:

Balance, January 31, 2000                        48,037,309    $985   $93,784   $320,384    $(30,179)   $(4,760)   $380,214

Net earnings for the period                               -       -         -     21,021           -          -      21,021
Foreign currency translation adjustments                  -       -         -          -           -     (3,034)     (3,034)
                                                                                                        ---------------------
     Comprehensive income                                                                                (3,034)     17,987

Common stock issued in connection with
  exercise of stock options                         107,675       2     1,237          -           -          -       1,239

Dividends declared                                        -       0         -     (4,793)          -          -      (4,793)

Treasury stock purchase                            (187,600)      -         -          -      (4,478)         -      (4,478)
                                                 ----------------------------------------------------------------------------

Balance, April 30, 2000                          47,957,384    $987   $95,021   $336,612    $(34,657)   $(7,794)   $390,169
=============================================================================================================================
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.


                                       5
<PAGE>

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
==========================================================================================================

THREE MONTHS ENDED APRIL 30 (In thousands)                                            2000          1999
==========================================================================================================
<S>                                                                                 <C>          <C>
Cash flows from operating activities:
     Net earnings                                                                   $ 21,021     $ 18,537
     Adjustments to reconcile net earnings to net cash
       provided by operating activities:
          Depreciation and amortization                                                8,488        6,508
          Deferred income taxes                                                           13          226
          Equity in earnings of investees                                                851          413
          Minority interest                                                             (352)         198
     Changes in operating assets and liabilities, net of effect of business
       acquisitions:
          Accounts receivable                                                          7,599       (4,154)
          Inventories                                                                (12,719)     (16,415)
          Prepaid expenses                                                              (310)        (196)
          Deposits and other assets                                                       (8)          83
          Accounts payable                                                             5,935       (6,659)
          Accrued expenses                                                           (12,227)       2,389
          Income taxes                                                                 9,327        9,294
----------------------------------------------------------------------------------------------------------
               Total adjustments                                                       6,597       (8,313)
----------------------------------------------------------------------------------------------------------
               Net cash provided by operating activities                              27,618       10,224
Cash flows from investing activities:
     Purchases of property, plant and equipment                                       (6,608)      (4,894)
     Long term investments                                                            (4,774)       6,496
     Purchase of businesses, net of cash acquired                                      1,264         (782)
----------------------------------------------------------------------------------------------------------
               Net cash provided by (used in) investing activities                   (10,118)         820
Cash flows from financing activities:
     Proceeds from issuance of common stock                                            1,239           63
     Purchase of treasury stock                                                       (4,478)     (13,641)
     Borrowings from bank line of credit                                              25,919      127,019
     Repayments on bank line of credit                                                (1,003)    (114,400)
     Borrowings (repayments) on long-term debt                                         1,860      (10,006)
----------------------------------------------------------------------------------------------------------
               Net cash provided by (used in) financing activities                    23,537      (10,965)
----------------------------------------------------------------------------------------------------------
               Net increase in cash and cash equivalents                              41,037           79
Cash and cash equivalents at beginning of period                                      46,047       18,571
----------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period                                          $ 87,084     $ 18,650
==========================================================================================================
Non-cash investing and financing activities:
     Cash dividend declared, $0.10 per share                                        $  4,793     $      -
==========================================================================================================
</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.

                                       6
<PAGE>

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   BASIS OF PRESENTATION

     The Company, which operates in a single segment, home fragrance products,
     designs, manufactures, and markets an extensive line of candles and home
     fragrance products including scented candles, outdoor lighting products,
     potpourri and environmental fragrance products and markets a broad range of
     related candle accessories and decorative seasonal products.

     The consolidated financial statements include the accounts of the Company,
     and its direct and indirect subsidiaries. All significant intercompany
     accounts and transactions have been eliminated. Investments in companies
     which are not majority owned or controlled are reported using the equity
     method and are recorded in other assets. Certain of the Company's
     subsidiaries operate on a 52 or 53 week fiscal year ending on the last
     Saturday in January. European operations maintain a calendar year
     accounting period which is consolidated with the Company's fiscal period.
     In the opinion of the Management, the accompanying unaudited consolidated
     financial statements include all accruals (consisting only of normal
     recurring accruals) necessary for fair presentation of the Company's
     consolidated financial position at April 30, 2000 and the consolidated
     results of its operations and cash flows for the three-month periods ended
     April 30, 2000 and 1999. These interim statements should be read in
     conjunction with the Company's consolidated financial statements for the
     year ended January 31, 2000, as set forth in the Company's Annual Report on
     Form 10-K. Operating results for the three months ended April 30, 2000 are
     not necessarily indicative of the results that may be expected for the year
     ending January 31, 2001.


2.   INVENTORIES

     The components of inventory consist of the following (in thousands):

<TABLE>
<CAPTION>
                                                    APRIL 30, 2000      JANUARY 31, 2000
----------------------------------------------------------------------------------------
<S>                                                 <C>                 <C>
Raw materials                                       $ 44,331            $ 40,071
Work in process                                        3,728               4,625
Finished goods                                       153,845             142,000
----------------------------------------------------------------------------------------
                                                    $201,904            $186,696
========================================================================================
</TABLE>

3.   EARNINGS PER SHARE

     The components of basic and diluted earnings per share are as follows (in
     thousands):

<TABLE>
<CAPTION>
THREE MONTHS ENDED APRIL 30,                                2000                 1999
========================================================================================
<S>                                                 <C>                 <C>
Net earnings                                        $ 21,021            $ 18,537
========================================================================================
Weighted average number of common
  shares outstanding:
     Basic                                            47,982              48,941
     Dilutive effect of stock options                    283                 321
----------------------------------------------------------------------------------------
Weighted average number of common
  shares outstanding:
     Diluted                                          48,265              49,262
========================================================================================
</TABLE>

     As of April 30, 2000 and 1999, options to purchase 104,268 and 100,014
     shares of common stock, respectively, are not included in the computation
     of earnings per share because the effect would be antidilutive.


                                       7
<PAGE>

                     BLYTH INDUSTRIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

4.   SEGMENT INFORMATION

     The Company operates in a single segment, home fragrance products. The
     Company designs, manufactures, and markets an extensive line of candles and
     home fragrance products including scented candles, outdoor lighting
     products, potpourri and environmental fragrance products. Closely
     complementing these products are a broad range of candle accessories and
     decorative seasonal products. The Company has operations outside of the
     United States and sells its products worldwide.

     The following geographic area data include trade net sales and net earnings
     based on product shipment destination and long-lived assets (which consist
     of fixed assets, goodwill and long term investments) based on physical
     location.

<TABLE>
<CAPTION>
THREE MONTHS ENDED APRIL 30, (In thousands)           2000                1999
========================================================================================
<S>                                                 <C>                 <C>
Net Sales:
     United States                                  $204,725            $181,773
     International(1)                                 70,155              62,500
----------------------------------------------------------------------------------------
          Total                                     $274,880            $244,273
========================================================================================

THREE MONTHS ENDED APRIL 30, (In thousands)           2000                1999
========================================================================================
Net Earnings:
     United States                                  $ 17,719            $ 15,584
     International(1)                                  3,302               2,953
----------------------------------------------------------------------------------------
          Total                                     $ 21,021            $ 18,537
========================================================================================

                                                    APRIL 30,           JANUARY 31,
(In thousands)                                        2000                2000
========================================================================================
Long-Lived Assets:
     United States                                  $291,938            $289,480
     International(1)                                 92,855              96,679
----------------------------------------------------------------------------------------
          Total                                     $384,793            $386,159
========================================================================================
</TABLE>

(1) No individual country represents a significant amount of net sales, net
earnings or long-lived assets.


                                       8
<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS:

NET SALES

     Net sales in the first quarter ended April 30, 2000 increased $30.6
     million, or 12.5%, to $274.9 million compared with $244.3 million a year
     earlier. In particular, the premium brands, PartyLite and Colonial at
     retail, experienced the strongest growth rate in the first quarter. Sales
     growth was experienced both in the United States and international markets;
     however the deterioration of European currencies had a negative impact of
     two percentage points on the overall sales growth rate of the Company in
     the quarter ended April 30, 2000. International sales accounted for
     approximately 26% of the total net sales for the quarter ended April 30,
     2000.

GROSS PROFIT

     Gross profit in the first quarter ended April 30, 2000 increased $22.8
     million, or 16.2%, from $140.5 million for the quarter ended April 30, 1999
     to $163.3 million. Gross profit margin increased from 57.5% for the quarter
     ended April 30, 1999 to 59.4% for the quarter ended April 30, 2000. The
     increase in gross profit margin is a result of the growth of PartyLite
     sales and other premium brands as a percentage of the total sales, and cost
     improvements in distribution resulting from the investments made in this
     critical area of the business.

SELLING AND SHIPPING EXPENSE

     Selling and shipping expense increased $15.3 million, or 17.9%, from $85.4
     million in the quarter ended April 30, 1999 (35.0% of net sales), to $100.7
     million in the quarter ended April 30, 2000 (36.6% of net sales). The
     increases were primarily attributable to increased sales to the consumer
     channel, particularly sales through the Company's home party plan direct
     selling activities and of other premium brands, in which sales expenses, as
     a percentage of net sales, are relatively higher.

ADMINISTRATIVE EXPENSE

     Administrative expense increased $2.2 million, or 10.0%, from $21.9 million
     in the quarter ended April 30, 1999 (9.0% of net sales) to $24.1 million in
     the quarter ended April 30, 2000 (8.8% of net sales). Administrative
     expenses as a percentage of sales declined versus the same period last year
     reflecting the continued trend of last fiscal year, as our administrative
     expenses are increasing at a rate below our sales growth rate.

OPERATING PROFIT

     Operating profit in first quarter ended April 30, 2000 increased $4.9
     million, or 15.0%, to $37.5 million compared with $32.6 million a year
     earlier. The increase in operating profit was the result of strong premium
     brand growth, distribution cost benefits and administrative expense
     leveraging. Expressed as a percentage of net sales operating profit was
     13.6% for the first quarter ended April 30, 2000 compared to 13.3% for the
     quarter ended April 30, 1999.

INTEREST EXPENSE

     Interest expense for the three months ended April 30, 2000 was $4.2 million
     compared to $1.9 million for the same period in the prior year. The
     increase in interest expense is primarily attributable to the Company's
     $150.0 million public debt offering.


                                       9
<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS: (CONTINUED)

INCOME TAXES

     Income tax expense increased $.7 million, or 6.0%, from $11.7 million in
     the quarter ended April 30, 1999 to $12.4 million in the quarter ended
     April 30, 2000. The effective income tax rate decreased from approximately
     38.4% in the quarter ended April 30, 1999 to approximately 37.6% in the
     quarter ended April 30, 2000 due to the growth in countries with lower tax
     rates than the U.S.

NET EARNINGS

     As a result of the foregoing, net earnings increased $2.5 million, or
     13.5%, from $18.5 million the quarter ended April 30, 1999 to $21.0 million
     for the quarter ended April 30, 2000.

     Basic earnings per share based upon the weighted average number of shares
     outstanding for the quarter ended April 30, 2000 increased $.06, or 15.8%,
     to $.44 compared to $.38 for the quarter ended April 30, 1999.

     Diluted earnings per share based upon the potential dilution that could
     occur if options to issue Common Stock were exercised or converted, were
     $.44 for the quarter ended April 30, 2000 compared to $.38 for the same
     period last year, an increase of $.06, or 15.8%.

LIQUIDITY AND CAPITAL RESOURCES

     Inventory increased from $186.7 million at January 31, 2000 to $201.9
     million at April 30, 2000. This translates to an increase of 8.1% compared
     to sales growth of 12.5% which is a result of continued effectiveness of
     the Company's inventory management efforts. Accounts receivable decreased
     $7.6 million, or 9.0% from $84.9 million at the end of fiscal 2000 to $77.3
     million at April 30, 2000 which reflects the normal business payment
     pattern. Accounts payable and accrued expenses decreased $2.0 million, or
     1.9% from $105.2 million at the end of fiscal 2000 to $103.2 million at
     April 30, 2000. The decrease in accounts payable and accrued expenses is
     attributable to normal payment patterns of operating expenses.

     Capital expenditures for property, plant and equipment were $6.6 million in
     the three months ended April 30, 2000. Capital expenditures were primarily
     investments in new equipment and improvements to existing plant and
     equipment. The Company anticipates capital spending of approximately $35.0
     million for fiscal 2001, to be used primarily for upgrades to machinery and
     equipment in existing facilities, and technology.

     The Company has grown in part through acquisitions and, as part of its
     growth strategy, the Company expects to continue from time to time in the
     ordinary course of its business to evaluate and pursue acquisition
     opportunities as appropriate. In the future, acquisitions may contribute
     more to the overall Company's sales growth rate than historically. This
     could be in the form of acquiring other companies, selected assets and
     product lines, long-term investments, and/or joint ventures that either
     complement or expand the Company's existing business.

     The Company's primary capital requirements are for working capital to fund
     the increased inventory and accounts receivable required to sustain the
     Company's sales growth, for capital expenditures and acquisitions. The
     Company believes that cash on hand, cash from operations, proceeds of the
     Company's public debt offering, and available borrowings under the Credit
     Facility and lines of credit described below, will be sufficient to fund
     its operating requirements, capital expenditures, stock repurchase program,
     dividends, and all other obligations for the next twelve months.


                                       10
<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)

     Pursuant to the Company's revolving credit facility ("Credit Facility"), as
     amended on September 14, 1999, which matures on October 17, 2002, lending
     institutions have agreed, subject to certain conditions, to provide an
     unsecured revolving credit facility to the Company in an aggregate amount
     of up to $135.0 million and to provide, under certain circumstances, an
     additional $33.8 million. Amounts outstanding under the Credit Facility
     bear interest, at the Company's option, at Bank of America's prime rate
     (9.00% at April 30, 2000) or at the Eurocurrency rate plus a credit spread
     ranging from 0.25% to 0.50%, based on a pre-defined financial ratio. At
     April 30, 2000, approximately $2.6 million in letters of credit was
     outstanding under the Credit Facility. The Credit Facility contains, among
     other provisions, requirements for maintaining certain financial ratios and
     limitations on certain payments. At April 30, 2000, the Company was in
     compliance with such covenants.

     As of April 30, 2000, the Company had a total of $70.0 million available
     under uncommitted bank lines of credit maturing in August 2000 and January
     2001. Amounts outstanding under the lines of credit bear interest at the
     Company's option, at short term fixed rates, at the banks' prime rate
     (9.00% at April 30, 2000), or at the Eurocurrency rate plus a credit
     spread. No amounts were outstanding under the uncommitted lines of credit
     at April 30, 2000.

     As of March 31, 2000, Liljeholmens had available lines of credit of
     approximately $35.0 million of which approximately $8.2 million was
     outstanding. The amounts outstanding under the lines of credit bear
     interest at a weighted average rate of 5.39% at March 31, 2000. The lines
     of credit are renewed annually.

     Colony Gift has a short term revolving credit facility with Barclays Bank
     ("Barclays"), which matures on June 20, 2000, pursuant to which Barclays
     has agreed to provide a revolving credit facility in an amount of up to
     $25.8 million, collateralized by certain of Colony's assets. As of March
     31, 2000, Colony had borrowings under the credit facility of approximately
     $21.8 million, at a weighted average interest rate of 6.55%.

     At March 31, 2000, Liljeholmens had various long-term debt agreements in
     multiple European currencies maturing at different dates over the next two
     to six years. The total amount outstanding as of March 31, 2000 under the
     loan agreements was approximately $20.8 million with variable interest
     rates ranging from 3.60% to 5.51%, of which $11.9 million relates to
     current maturities. The loans are collateralized by certain of
     Liljeholmens' real estate and by a pledge of Liljeholmens' shares in its
     subsidiaries.

     Net cash provided by operating activities amounted to $27.6 million for the
     three months ended April 30, 2000 compared to $10.2 million for the three
     months ended April 30, 1999 which was driven by strong earnings of $21.0
     million, depreciation and amortization of $8.5 million and net operating
     asset and liability growth of $2.4 million.

     On both June 8, 1999, and March 30, 2000, the Company's Board of Directors
     authorized the Company to repurchase up to an additional 1,000,000 shares
     of its common stock bringing the total authorization to 3,000,000 shares.
     As of April 30, 2000, the Company had purchased on the open market an
     aggregate of 1,396,300 common shares for a total cost of approximately
     $34.7 million. The acquired shares are held as common stock in treasury at
     cost.

     On March 30, 2000 the Company declared a cash dividend of $0.10 per share
     of the Company's common stock for the six months ended January 31, 2000.
     The dividend reflects the Company's intention to initiate the payment of
     semi-annual dividend of $0.10 per share at the discretion of its Board of
     Directors. The dividend was payable to shareholders of record as of May 1,
     2000 and was paid on May 15, 2000 in the amount of $4.8 million.


                                       11
<PAGE>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
        FINANCIAL CONDITION AND RESULTS OF OPERATIONS

IMPACT OF ADOPTION OF RECENTLY ISSUED ACCOUNTING STANDARDS

     On June 15, 1998, the Financial Accounting Standards Board issued Statement
     No. 133 ("SFAS 133"), "Accounting for Derivative Instruments and Hedging
     Activities". SFAS 133 (as deferred by SFAS 137) is effective for all fiscal
     years beginning after June 15, 2000. SFAS 133 requires that all derivative
     instruments be recorded on the balance sheet at their fair value. Changes
     in the fair value of derivatives are recorded each period in current
     earnings or other comprehensive income, depending on whether a derivative
     is designated as part of a hedge transaction and, if it is, the type of
     transaction. The Company anticipates that, due to its limited use of
     derivative instruments, the adoption of SFAS 133 will not have a
     significant effect on the Company's results of operations or its financial
     position.


                                       12
<PAGE>

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

MARKET RISK

The Company has operations outside of the United States and sells its products
worldwide. The Company's activities expose it to a variety of market risks,
including the effects of changes in foreign currency exchange rates, interest
rates and commodity prices. These financial exposures are actively monitored
and, where considered appropriate, managed by the Company.

INTEREST RATE RISK

As of April 30, 2000 the Company is subject to interest rate risk on
approximately $31.6 million of variable rate debt, including Liljeholmens and
Colony Gift. Each 1.00% increase in the interest rate would impact pre-tax
earnings by approximately $316,000 if applied to the total.

FOREIGN CURRENCY RISK

The Company uses forward foreign exchange contracts to hedge the impact of
foreign currency fluctuations on certain committed capital expenditures,
Canadian intercompany payables and on certain intercompany loans. The Company
does not hold or issue derivative financial instruments for trading purposes.

With regard to commitments for machinery and equipment in foreign currencies,
upon payment of each commitment the underlying forward contract is closed and
the corresponding gain or loss is included in the measurement of the cost of the
acquired asset. With regard to forward exchange contracts used to hedge Canadian
intercompany payables, gain or loss on such hedges is recognized in earnings in
the period in which the underlying hedged transaction occurs. Gains or losses on
foreign currency forward contracts related to intercompany loans are recognized
currently through income and generally offset the transaction gains or losses in
the foreign currency cash flows which they are intended to hedge. If a hedging
instrument is sold or terminated prior to maturity, gains and losses are
deferred until the hedged item is settled. However, if the hedged item is no
longer likely to occur, the resultant gain or loss on the terminated hedge is
recognized into earnings. For consolidated financial statement presentation, net
cash flows from such hedges are classified in the categories of the cash flow
with the items being hedged.

The following table provides information about the Company's foreign exchange
forward contracts at April 30, 2000.

<TABLE>
<CAPTION>
                                                               U.S. DOLLAR            AVERAGE          ESTIMATED
(In thousands, except average contract rate)               NOTIONAL AMOUNT      CONTRACT RATE         FAIR VALUE
----------------------------------------------------------------------------------------------------------------
<S>                                                                <C>                   <C>             <C>
Canadian Dollar                                                    $ 1,785               1.46            $    36
Swiss Franc                                                         13,183               1.59                986
Euro                                                                   431               1.02                (44)
Pound Sterling                                                       3,951               1.58                 67
----------------------------------------------------------------------------------------------------------------
                                                                   $19,350                               $ 1,045
================================================================================================================
</TABLE>

The foreign exchange contracts outstanding as of April 30, 2000 have maturity
dates ranging from May 2000 through June 2000.


                                       13
<PAGE>

Part II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
        None

ITEM 2. CHANGES IN SECURITIES
        None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
        None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
        None

ITEM 5. OTHER INFORMATION

     The Company is including the following cautionary statement in this Report
     to make applicable, and to take advantage of, the safe harbor provisions of
     the Private Securities Litigation Reform Act of 1995 for any
     forward-looking statements made by, or on behalf of, the Company.
     Forward-looking statements include statements concerning plans, objectives,
     goals, strategies, future events or performance and underlying assumptions
     and other statements which are other than statements of historical facts.
     From time to time, the Company and its representatives may publish or
     otherwise make available forward-looking statements of this nature. All
     such forward-looking statements, whether written or oral, and whether made
     by or on behalf of the Company, are expressly qualified by the following
     cautionary statements. Forward-looking statements involve risks and
     uncertainties which could cause actual results or outcomes to differ
     materially from those expressed in the forward-looking statements. Such
     forward-looking statements are expected to be based on various assumptions,
     many of which are based, in turn, upon further assumptions.

     There can be no assurance that management's expectations, beliefs or
     projections will occur or be achieved or accomplished. In addition to other
     factors and matters discussed elsewhere in this Report and in the Company's
     other public filings and statements, the following are important factors
     that, in the view of the Company, could cause actual results to differ
     materially from those discussed in the Company's forward-looking
     statements. The Company disclaims any obligation to update any
     forward-looking statements, or the following factors, to reflect events or
     circumstances after the date of this Report.

Risk of Inability to Maintain Growth Rate

     The Company has grown substantially in recent years. We expect that our
     future growth will be generated by sales to the faster growing worldwide
     consumer market for home fragrance products. The market for our
     institutional products has grown, but more slowly, and we expect it will
     continue to do so. Our ability to continue to grow depends on several
     factors, including the following: market acceptance of existing products,
     the successful introduction of new products, and increases in production
     and distribution capacity to meet demand. The home fragrance products
     industry is driven by consumer tastes. Accordingly, there can be no
     assurance that our existing or future products will maintain or achieve
     market acceptance. We expect that, as we grow, our rate of growth will be
     less than our historical growth rate. In addition, we have grown in part
     through acquisitions and there can be no assurance that we will be able to
     continue to identify suitable acquisition candidates, to consummate
     acquisitions on terms favorable to the Company, to finance acquisitions or
     to successfully integrate acquired operations. In the future, acquisitions
     may contribute more to the overall Company's sales growth rate than
     historically.


                                       14
<PAGE>

Part II. OTHER INFORMATION (CONTINUED)
ITEM 5. OTHER INFORMATION (CONTINUED)

Ability to Respond to Increased Product Demand

     Our significant internal growth has required increases in personnel,
     expansion of production and distribution facilities, and enhancement of
     management information systems. Our ability to meet future demand for
     products will be dependent upon success in (1) training, motivating and
     managing new employees, (2) bringing new production and distribution
     facilities on line in a timely manner, (3) improving management information
     systems in order to respond promptly to customer orders and (4) improving
     our ability to forecast anticipated product demand in order to continue to
     fill customer orders promptly. If we are unable to meet future demand for
     products in a timely and efficient manner, our operating results could be
     materially adversely affected.

Risks Associated with International Sales and Foreign-Sourced Products

     Our international business has grown at a faster rate than sales in the
     United States in recent years. In addition, we source a portion of our
     candle accessories and decorative gift bags from independent manufacturers
     in the Pacific Rim, Europe and Mexico. For these reasons we are subject to
     the following risks inherent in foreign manufacturing and sales:
     fluctuations in currency exchange rates, economic and political
     instability, transportation delays, difficulty in maintaining quality
     control, restrictive actions by foreign governments, nationalizations, the
     laws and policies of the United States affecting importation of goods
     (including duties, quotas and taxes) and trade and foreign tax laws.

Raw Materials

     For certain raw materials, there may be temporary shortages due to weather
     or other factors, including disruptions in supply caused by raw material
     transportation or production delays. Such raw material shortages have not
     previously had, and are not expected to have, a material adverse effect on
     the Company's operations.

Dependence on Key Management Personnel

     Our success depends upon the contributions of key management personnel,
     particularly our Chairman, Chief Executive Officer and President, Robert B.
     Goergen. We do not have employment contracts with any of our key management
     personnel, nor do we maintain any key person life insurance policies. The
     loss of any of the key management personnel could have a material adverse
     effect on the Company.

Competition

     Our business is highly competitive, both in terms of price and new product
     introductions. The worldwide consumer market for home fragrance products is
     highly fragmented, with numerous suppliers serving one or more of the
     distribution channels served by the Company. Because there are relatively
     low barriers to entry to the home fragrance products industry, we may face
     increased future competition from other companies, some of which may have
     substantially greater financial and marketing resources than those
     available to us. From time to time during the year-end holiday season, we
     experience competition from candles manufactured in foreign countries,
     particularly China. In addition, certain of our competitors focus on a
     particular geographic or single-product market and attempt to gain or
     maintain market share solely on the basis of price.


                                       15
<PAGE>

Part II. OTHER INFORMATION (CONTINUED)

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     a)   Exhibits

          27. Financial data schedule

     b)   Reports on Form 8-K

          During the fiscal quarter ended April 30, 2000, the Company filed the
          following Current Report on Form 8-K:

               Current Report on Form 8-K on March 17, 2000 to file as an
               exhibit the press release announcing the Company's results of
               operations for the fiscal quarter ended January 31, 2000.

               Current Report on Form 8-K on April 3, 2000 to file as exhibits
               two press releases: announcing the Company's initiation of a
               semi-annual dividend; and announcing the increase in the number
               of shares authorized under the share repurchase program.

               Current Report on Form 8-K on April 17, 2000 to file as an
               exhibit the amended Employee Stock Option Plan.


                                       16
<PAGE>

SIGNATURES

PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.


                                             BLYTH INDUSTRIES, INC.



     Date: June 13, 2000                     By: /s/ Robert B. Goergen
          ------------------------              --------------------------------
                                             Robert B. Goergen
                                             Chief Executive Officer


     Date: June 13, 2000                     By: /s/ Richard T. Browning
          ------------------------              --------------------------------
                                             Richard T. Browning
                                             Chief Financial Officer


                                       17
<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT             DESCRIPTION                             PAGE NO.
-------             -----------                             --------
<S>                 <C>                                     <C>
27.                 Financial data schedule                 N/A
</TABLE>