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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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