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Sep 30, 2020
Energizer Q4 2020 Earnings Report
Announced fourth quarter and full year results, along with the financial outlook for fiscal year 2021 and a new share repurchase authorization.
Key Takeaways
Energizer Holdings, Inc. reported strong top-line growth with a fiscal fourth-quarter net sales increase of 6.1% due to organic net sales growth. The company expects to deliver 2% to 4% organic revenue growth for fiscal 2021.
Net sales were $763.0 million for the fourth fiscal quarter compared to $719.0 million in the prior year period.
Diluted net loss from continuing operations per common share of $0.67 in the fourth fiscal quarter.
Adjusted Diluted net earnings from continuing operations per common share of $0.59 in the fourth fiscal quarter.
Cash flows from operating activities of $157 million in the fourth fiscal quarter and Adjusted free cash flow of $161 million in the fourth fiscal quarter.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Batteries & Lights Revenue
CapyFin.comAuto Care Revenue
CapyFin.com Forward Guidance
The Company expects to deliver 2% to 4% organic revenue growth, Adjusted EBITDA in the range of $600 to $630 million and Adjusted earnings per share in the range of $2.95 to $3.25 for fiscal 2021.
Positive Outlook
- Net Sales growth in the range of 2% to 4% with expected growth in batteries at the low end of the range and auto care at the high end of the range
- Adjusted gross margin to be essentially flat with approximately $15 million of COVID-19 costs expected to be incurred in the first quarter, and an expected sequential improvement in gross margin rate as we progress through 2021
- Adjusted earnings per share in the range of $2.95 to $3.25
- Adjusted EBITDA range of $600 to $630 million
- Adjusted free cash flow in the range of $325 to $350 million dollars, as working capital returns to more normalized levels and we lapped one-time tax items from the prior fiscal year
Challenges Ahead
- Our assumptions for fiscal 2021 do not anticipate any significant disruptions to our global manufacturing plants, distribution centers or customers.
- We assume the retail environment will remain competitive and the commodity costs will be benign.
- Should disruption occur that is prolonged, our expected results may be significantly impacted as we may not be able to supply demand in a timely manner or at all.
- Given the expected growth in fiscal 2021 is off lower-than-previously expected fiscal 2020 results and the uncertainty related to the pandemic, the the Company is withdrawing its pre-pandemic targets for 2022 of $700 million in adjusted EBITDA and $400 million in adjusted free cash flow.
- Approximately $15 million of COVID-19 costs expected to be incurred in the first quarter, and an expected sequential improvement in gross margin rate as we progress through 2021
Revenue & Expenses
Visualization of income flow from segment revenue to net income