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Sep 30, 2023
Energizer Q4 2023 Earnings Report
Energizer's Q4 2023 earnings were announced, revealing a sales increase and margin expansion driven by strategic initiatives.
Key Takeaways
Energizer Holdings reported a 2.6% increase in net sales for the fourth quarter, driven by organic growth. Gross margin improved, and the company reduced net leverage. They expect fiscal 2024 organic revenue to be flat to down low single digits, and Adjusted EBITDA and Adjusted earnings per share to be up low single digits.
Net sales for the fourth quarter increased by 2.6% year-over-year, with organic growth of 2.0%.
Gross margin for the fourth quarter was 37.9%, with an adjusted gross margin of 40.0%, up 380 basis points due to Project Momentum initiatives.
Operating cash flow reached $395.2 million, and free cash flow represented 11.5% of net sales for the fiscal year.
Net leverage was reduced by 0.6 times in fiscal 2023, driven by debt paydown and Adjusted EBITDA growth.
Energizer
Energizer
Energizer Revenue by Segment
Revenue by Segment
Auto Care Revenue
CapyFin.com Forward Guidance
For fiscal year 2024, 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 is expected to be in the range of $3.10 to $3.30.
Positive Outlook
- Savings from Project Momentum initiatives
- Lower cost across materials
- Lower transportation costs
- Focus on gross margin restoration
- Focus on free cash flow generation and debt pay down
Challenges Ahead
- Macroeconomic uncertainties are expected to persist
- Organic revenue is expected to be flat to down low single digits
- First quarter organic revenue is expected to be down 6% to 8%
- Impacted by projected category trends
- Shift in timing of holiday orders