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Sep 30, 2022
Energizer Q4 2022 Earnings Report
Energizer reported a net sales increase of 3.2% driven by organic growth, and launched Project Momentum to restore margins.
Key Takeaways
Energizer Holdings, Inc. announced its fourth fiscal quarter and full fiscal year results, with net sales up 3.2% compared to the prior year, driven by organic growth of 7.4%, primarily due to pricing actions. The company also announced Project Momentum, a profit recovery program, with targeted annualized savings of $80 to $100 million over the next two fiscal years.
Net Sales for the fourth quarter up 3.2% to prior year, driven by organic growth of 7.4%, primarily due to pricing actions.
Free cash flow in the fourth quarter at 12% of Net Sales and net debt decreased by over $100 million.
Company expects to deliver low single digit organic revenue growth, Adjusted EBITDA in the range of $585 to $615 million and Adjusted earnings per share in the range of $3.00 to $3.30 for fiscal 2023.
Announces Project Momentum, a profit recovery program, with targeted annualized savings of $80 to $100 million over the next two fiscal years.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Auto Care Revenue
CapyFin.com Forward Guidance
The Company expects organic revenue to increase low single digits. Adjusted EBITDA is expected to be in the range of $585 million to $615 million, and Adjusted earnings per share is expected to be in the range of $3.00 to $3.30 for fiscal 2023.
Positive Outlook
- We expect organic revenue to increase low single digits, as continued pricing actions are partially offset by category volume declines across both the battery and auto care segments.
- Adjusted EBITDA is expected to be in the range of $585 million to $615 million, up approximately 10% on a currency-neutral basis at the mid-point.
- Adjusted earnings per share is expected to be in the range of $3.00 to $3.30, up approximately 12% on a currency-neutral basis at the mid-point.
- Project Momentum has targeted annualized pre-tax savings of approximately $80 million to $100 million, with approximately $30 million to $40 million of those savings to be recognized in fiscal 2023.
- The restructuring component is estimated to generate annualized pre-tax savings of approximately $65 million to $80 million of the total savings.
Challenges Ahead
- We also expect low single digit declines for reported revenues when considering negative currency headwinds of approximately $90 million, based on September 2022 rates.
- We anticipate negative currency headwinds on earnings of approximately $27 million and $0.30 per share based on September 2022 rates.
- category volume declines across both the battery and auto care segments.
- anticipated one-time pre-tax costs of $40 million to $50 million over the next two years related to restructuring component.
- inflation on our input costs