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Mar 31, 2024
Energizer Q2 2024 Earnings Report
Energizer's performance remained solid with improved category trends and Project Momentum benefits driving adjusted gross margin expansion and adjusted earnings per share growth.
Key Takeaways
Energizer Holdings, Inc. reported a decrease in net sales by 3.0% and organic net sales by 2.7% compared to the prior year, but this was in line with their financial outlook. The company saw improvements in gross margin and delivered earnings per share of $0.45 and adjusted earnings per share of $0.72, which is an approximate 13% increase over the prior year on an adjusted basis. The company reaffirms its fiscal year outlook for Net sales, Adjusted Earnings per share and Adjusted EBITDA.
Net sales decreased by 3.0%, with organic net sales declining by 2.7% versus the prior year.
Auto Care segment net sales increased by 2.3% driven by 2.4% organic growth.
Gross margin improved 120 basis points over prior year, up 260 basis points on an adjusted basis.
Earnings per share was $0.45 and adjusted earnings per share was $0.72, an increase of approximately 13% over prior year on an adjusted basis.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Batteries & Lights Revenue
CapyFin.comAuto Care Revenue
CapyFin.com Forward Guidance
The company expects organic revenue to be flat to down low single digits. Adjusted EBITDA is expected to be in the range of $600 million to $620 million and Adjusted earnings per share to be in the range of $3.10 to $3.30. For the third quarter, organic revenue is expected to be up approximately 1% and Adjusted earnings per share to be in the range of $0.62 and $0.68.
Positive Outlook
- Reaffirms fiscal year outlook for Net sales.
- Reaffirms fiscal year outlook for Adjusted Earnings per share.
- Reaffirms fiscal year outlook for Adjusted EBITDA.
- Expects organic revenue to be up approximately 1% for the third quarter.
- Expects Adjusted earnings per share to be in the range of $0.62 and $0.68 for the third quarter.
Challenges Ahead
- Expects organic revenue to be flat to down low single digits for fiscal year 2024.
- Global economic and financial market conditions beyond our control might materially and negatively impact us.
- Competition in our product categories might hinder our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers.
- Changes in the retail environment and consumer preferences could adversely affect our business, financial condition and results of operations.
- We must successfully manage the demand, supply, and operational challenges brought on by any disease outbreak, including epidemics, pandemics, or similar widespread public health concerns.
Revenue & Expenses
Visualization of income flow from segment revenue to net income