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Jun 30, 2020
Energizer Q3 2020 Earnings Report
Announced fiscal year 2020 third quarter results.
Key Takeaways
Energizer Holdings reported a 1.7% increase in net sales to $658.0 million, driven by strong performance in batteries and auto, leading to organic growth of 3.4%. Diluted net earnings from continuing operations per common share was $0.37, while adjusted diluted net earnings from continuing operations per common share was $0.50. The company is providing fiscal 2020 guidance on net sales growth of 9% to 10% and adjusted diluted EPS from continuing operations of $2.45 to $2.55.
Net sales increased by 1.7% to $658.0 million, with organic growth of 3.4% driven by batteries and auto performance.
Diluted net earnings per share from continuing operations was $0.37, and adjusted diluted net earnings per share was $0.50.
Adjusted free cash flow increased by $136.4 million, representing 20.7% of net sales for the quarter.
Fiscal 2020 guidance includes net sales growth of 9% to 10% and adjusted diluted EPS of $2.45 to $2.55.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Batteries & Lights Revenue
CapyFin.comAuto Care Revenue
CapyFin.com Forward Guidance
The company is providing the following financial outlook for Fiscal 2020: Reported Net sales growth is expected to be in the range of 9% to 10%, including organic growth of 1% to 1.5%. Adjusted EBITDA is expected to be in the range of $575 to $585 million. Adjusted EPS is expected to be in the range of $2.45 to $2.55. Adjusted free cash flow is expected to be in excess of $300 million.
Positive Outlook
- Reported Net sales growth is expected to be in the range of 9% to 10%.
- Organic growth of 1% to 1.5% is expected.
- Adjusted EBITDA is expected to be in the range of $575 to $585 million.
- Adjusted EPS is expected to be in the range of $2.45 to $2.55.
- Adjusted free cash flow is expected to be in excess of $300 million.
Challenges Ahead
- Negative impacts on net sales and gross margin due to the pandemic and related lockdowns.
- Further disruption may occur in the future due to the pandemic.
- Incremental costs to ensure the health and safety of colleagues and continuity of business.
- Increased interest to provide sufficient liquidity during the pandemic.
- Negative impact of currency movements of approximately $0.16 since the previous outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income