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Jun 30, 2024
Energizer Q3 2024 Earnings Report
Energizer's third quarter performance in fiscal year 2024 was announced, marked by organic net sales growth and adjusted earnings per share increase.
Key Takeaways
Energizer Holdings, Inc. reported a 0.3% increase in net sales, driven by a 1.2% organic net sales growth. The adjusted earnings per share increased by 46% compared to the prior year. The company expects to be at the top end of its adjusted earnings per share guidance for the year.
Net sales increased by 0.3% driven by organic Net sales growth of 1.2% versus the prior year.
Gross margin improved 160 basis points over prior year, up 270 basis points on an adjusted basis.
Adjusted Earnings per share were $0.79, an increase of approximately 46% over prior year.
Paid down $150 million of debt year to date.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Batteries & Lights Revenue
CapyFin.comAuto Care Revenue
CapyFin.com Forward Guidance
For fiscal 2024, Energizer expects organic revenue to be down roughly 2%. Adjusted EBITDA is expected to be in the range of $610 million to $620 million and Adjusted earnings per share to be in the range of $3.20 to $3.30. For the fourth quarter, the company expects organic revenue to be roughly flat and Adjusted earnings per share to be in the range of $1.10 to $1.20.
Positive Outlook
- Adjusted EBITDA to be in the range of $610 million to $620 million.
- Adjusted earnings per share to be in the range of $3.20 to $3.30.
- For the fourth quarter, organic revenue to be roughly flat.
- Adjusted earnings per share to be in the range of $1.10 to $1.20 for Q4.
- Project Momentum total savings have increased and now are expected to be in the range of $180 to $200 million over the life of the program.
Challenges Ahead
- Organic revenue to be down roughly 2% for fiscal year 2024.
- Cash costs to achieve Project Momentum savings over this same period are expected to be $150 to $170 million.
- For fiscal year 2024, one-time cash costs to achieve Project Momentum savings are expected to be between $70 to $80 million.
- Net loss for the quarter is driven by the $110.6 million non-cash pre-tax impairment charge recorded on the Company's indefinite lived intangibles.
- Pricing declines of 3.4%, primarily within Battery & Lights, driven by planned strategic pricing and promotional investments in the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income