Energizer Holdings Inc

Latest Results (14.08.2024):

Net Sales Decline

Energizer Holdings Inc. reported net sales of $716.6 million for the first fiscal quarter ended December 31, 2023, a decrease of 6.3% compared to $765.1 million in the prior year period. Organic net sales declined by 7.4%, primarily due to earlier holiday orders and weaker performance in non-tracked channels.

Gross Margin Improvement

The gross margin for the first quarter was 37.3%, with an adjusted gross margin of 39.5%, a 50 basis points improvement over the prior year's adjusted gross margin. This improvement was largely driven by the benefits of Project Momentum, which delivered savings of approximately $16 million in the quarter.

Operating Cash Flow

Operating cash flow for the first quarter was $178.1 million, with free cash flow exceeding 21% of net sales. The company also paid down $78 million in debt during the quarter, continuing its trend of reducing debt for the sixth consecutive quarter.

Earnings Per Share

Net earnings for the first quarter were $1.9 million, with diluted net earnings per common share at $0.03. Adjusted net earnings were $42.5 million, resulting in adjusted diluted net earnings per common share of $0.59. Adjusted EBITDA for the quarter was $132.9 million.

Fiscal Year Outlook

Energizer Holdings Inc. reaffirmed its fiscal year 2024 outlook, expecting organic revenue to be flat to down low single digits. Adjusted EBITDA is projected to be in the range of $600 million to $620 million, and adjusted earnings per share are expected to be between $3.10 and $3.30. For the second quarter, the company anticipates organic revenue to be down 2% to 3% and adjusted earnings per share to be within the range of $0.65 to $0.70.