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Dec 31, 2022
Energizer Q1 2023 Earnings Report
Energizer reported strong operating results driven by Project Momentum initiatives, with free cash flow of nearly 20% of net sales and debt pay down of over $50 million in the first quarter and over $50 million subsequent to quarter-end.
Key Takeaways
Energizer Holdings, Inc. announced results for the first fiscal quarter ended December 31, 2022. The company reported Net sales of $765.1 million compared to $846.3 million in the prior year period. Operating cash flow was $161.0 million, and free cash flow was $152.2 million, or approximately 20% of Net sales.
Operating cash flow of $161.0 million and Free cash flow of nearly 20% of Net Sales driven by strong operating results and Project Momentum initiatives.
Debt pay down of over $50 million in the first quarter and over $50 million subsequent to quarter-end.
Reaffirms fiscal year outlook for Net sales, Adjusted earnings per share and Adjusted EBITDA.
Categories remain strong and company believes brands continue to be chosen by consumers.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Auto Care Revenue
CapyFin.com Forward Guidance
The Company is maintaining its previously communicated full year outlook, with organic revenue expected to increase low single digits, Adjusted EBITDA in the range of $585 million to $615 million, and Adjusted earnings per share in the range of $3.00 to $3.30.
Positive Outlook
- Organic revenue expected to increase low single digits
- Adjusted EBITDA in the range of $585 million to $615 million
- Adjusted earnings per share in the range of $3.00 to $3.30
- Project Momentum remains on track with approximately $7 million of savings delivered in the current quarter
- Total project savings of $30 million to $40 million anticipated for the full year
Challenges Ahead
- Expect low single digit declines for reported revenues
- Currency headwinds of approximately $50 million
- Anticipate negative currency headwinds on pre-tax earnings of approximately $20 million
- Anticipate negative currency headwinds on earnings of approximately $0.23 per share
- Total one-time project expenses for the current year are expected to be in the range of $25 million to $35 million