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Mar 31, 2021
Energizer Q2 2021 Earnings Report
Energizer's financial performance improved in the second quarter of fiscal year 2021, with strong top-line growth and increased adjusted earnings per share.
Key Takeaways
Energizer Holdings, Inc. reported net sales of $685.1 million, a 16.7% increase, with organic growth of 12.7%. Adjusted diluted net earnings per share increased by 108% to $0.77. The company has increased its full year outlook to 5% to 7% net sales growth and $3.30 to $3.50 for adjusted earnings per share.
Net sales increased by 16.7% to $685.1 million, with organic growth of 12.7%.
Adjusted diluted net earnings per share rose by 108% to $0.77.
The company finalized the refinancing of its existing debt, contributing to a reduction in interest expense of $8.1 million.
Full year outlook increased to 5% to 7% Net sales growth, $3.30 to $3.50 for Adjusted earnings per share and $620 to $640 million for Adjusted EBITDA.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Batteries & Lights Revenue
CapyFin.comAuto Care Revenue
CapyFin.com Forward Guidance
Energizer updated its full year fiscal 2021 outlook.
Positive Outlook
- Net sales growth is now expected to be between 5% to 7%, attributed to distribution gains, elevated battery demand and favorable currency impacts.
- Adjusted gross margin rate is expected to be essentially flat on a year-over-year basis as synergies and the impacts of favorable currency are expected to offset inflationary cost pressures and mix shifts. This full-year rate is consistent with our previously provided outlook.
- Adjusted earnings per share is now expected to be in the range of $3.30 to $3.50.
- Adjusted EBITDA is now expected to be in the range of $620 to $640 million.
- The company expects benefits from synergies and favorable currency impacts.
Challenges Ahead
- Adjusted free cash flow is now expected to be at the low end of our previously provided range of $325 to $350 million due to working capital requirements, primarily related to inventory, as we look to rebuild safety stock and meet increased demand.
- The company began lapping the COVID elevated demand levels for batteries late in the second quarter.
- In the third and fourth quarter, the company anticipates year-over-year declines as they approach more normalized levels for both categories.
- Fiscal 2020 included COVID-related costs of $36 million, including interest expense, which were heavily weighted to the back half of the year.
- Inflationary cost pressures and mix shifts are expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income