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Mar 31, 2023
Energizer Q2 2023 Earnings Report
Energizer's second quarter of fiscal year 2023 resulted in net sales of $684.1 million and adjusted EPS of $0.64.
Key Takeaways
Energizer Holdings, Inc. reported a strong second quarter with organic growth and gross margin improvement. The company improved adjusted gross margin by 300 basis points, grew adjusted earnings per share by 36%, and paid down over $100 million of debt in the quarter.
Net sales in the second quarter of $684.1 million, with organic growth of 2.6%.
Gross margin improvement of 220 basis points over prior year, 300 basis points on an adjusted basis.
Earnings per share of $0.55 and Adjusted earnings per share of $0.64, up 36% compared to prior year.
Operating cash flow of $210.2 million with Free cash flow exceeding 13% of Net Sales year-to-date.
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 $20 million of savings delivered in the first half of the year.
- Total project savings of $30 million to $40 million anticipated for the full year.
Challenges Ahead
- Low single digit declines for reported revenues due to the currency headwinds experienced in the first half of the year of approximately $44 million.
- Currency also negatively impacted pre-tax earnings by approximately $20 million, or $0.22 per share, in the first half of the year.
- Total one-time project cash costs for the current year are expected to be in the range of $25 million to $35 million.
- Capital expenditures for the program this year are expected to be $15 million to $20 million.
- We remain on track to deliver our previously reported total savings and one-time costs over the life of the program.