Core Viewpoint - Energizer Holdings reported strong first-quarter fiscal 2025 results, with both net sales and earnings exceeding estimates, while raising its organic sales guidance for the fiscal year [2][3][4]. Financial Performance - Adjusted earnings were 67 cents per share, beating the Zacks Consensus Estimate of 64 cents, and increased by 13.6% year over year [4]. - Net sales reached $731.7 million, surpassing the Zacks Consensus Estimate of $728 million, marking a 2.1% increase from the previous year [4]. - Organic net sales grew by 3.8% year over year [4]. Segment Performance - The Batteries & Lights segment saw net sales increase by 2.4% to $632.4 million, although segment profit decreased by 9.9% to $119.3 million [7]. - The Auto Care segment's net sales rose by 0.5% to $99.3 million, with segment profit increasing significantly by 197.1% to $20.5 million [7]. Margin and Cost Analysis - Adjusted gross margin expanded by 50 basis points to 40%, driven by Project Momentum, which generated approximately $16 million in savings [8]. - Adjusted SG&A expenses increased by 11.9% year over year to $119.2 million, influenced by higher depreciation and legal fees [9]. - Adjusted EBITDA was $140.7 million, reflecting a 5.9% year-over-year increase, with an adjusted EBITDA margin of 19.2% [10]. Financial Health - As of December 31, 2024, cash and cash equivalents stood at $195.9 million, with long-term debt of $3.12 billion [11]. - The company paid down an additional $25 million of debt during the fiscal first quarter, resulting in a net debt to adjusted EBITDA ratio of 4.7x [11]. Future Outlook - For the fiscal second quarter, organic growth is expected to be between 2% and 3%, with reported net sales projected to be flat to a 1% increase [12]. - The forecast for fiscal 2025 includes a reported net sales increase of 1% to 2%, with organic net sales guidance raised to 2% to 3% [14]. - Adjusted earnings per share for the year are anticipated to be between 60 cents and 70 cents, down from 72 cents in the prior year [13]. Industry Context - Energizer is part of the Zacks Consumer Products - Staples industry, where Procter & Gamble reported a revenue increase of 2.1% year over year [22].

Core Insights - Energizer Holdings, Inc. reported strong first-quarter fiscal 2025 results, with both net sales and earnings exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings per share were 67 cents, surpassing the Zacks Consensus Estimate of 64 cents, marking a 13.6% increase from the previous year [3] - Net sales reached $731.7 million, exceeding the Zacks Consensus Estimate of $728 million, and reflecting a 2.1% year-over-year increase [3] - Organic net sales grew by 3.8% year over year, surpassing the anticipated growth rate of 2.7% [3] Segment Performance - The Batteries & Lights segment saw net sales increase by 2.4% to $632.4 million, while segment profit decreased by 9.9% to $119.3 million [6] - The Auto Care segment's net sales increased by 0.5% to $99.3 million, with segment profit rising significantly by 197.1% to $20.5 million [6] Margin and Cost Analysis - Adjusted gross margin expanded by 50 basis points to 40%, driven by Project Momentum, which generated approximately $16 million in savings [7] - Adjusted SG&A expenses rose by 11.9% year over year to $119.2 million, influenced by higher depreciation and legal fees [8] - Adjusted EBITDA was $140.7 million, reflecting a 5.9% year-over-year increase, with an adjusted EBITDA margin of 19.2% [10] Financial Health - As of December 31, 2024, cash and cash equivalents were $195.9 million, with long-term debt at $3.12 billion and shareholders' equity of $140.6 million [11] - The company paid down an additional $25 million of debt during the quarter, resulting in a net debt to adjusted EBITDA ratio of 4.7x [11] Future Outlook - For the fiscal second quarter, organic growth is expected to be between 2% and 3%, with reported net sales projected to be flat to a 1% increase [14] - The fiscal 2025 outlook for reported net sales has been raised to an increase of 1% to 2%, with organic net sales expected to grow by 2% to 3% [16] - Adjusted earnings per share for fiscal 2025 are anticipated to be between 60 cents and 70 cents, down from 72 cents in the prior year [15]

Financial Performance - The Company reported net sales of $7.7 million and $12.3 million with operating profit of $1.9 million and $5.1 million for the three months ended December 31, 2024 and December 31, 2023, respectively[140]. - Net earnings for the first fiscal quarter of 2025 were $22.3 million, or $0.30 per diluted common share, compared to $1.9 million, or $0.03 per diluted common share in the prior year, representing a significant increase[153]. - Adjusted diluted net earnings per common share increased by approximately 14% to $0.67 from $0.59 in the prior year quarter[153]. - Total net sales for the first fiscal quarter of 2025 were $731.7 million, an increase of $15.1 million or 2.1% compared to the prior year[159]. - Organic net sales improved by 3.8%, driven by new distribution and hurricane-related volume increases of approximately $10 million[160]. - Gross margin percentage on a reported basis was 36.8%, down from 37.3% in the prior year, while adjusted gross margin improved to 40.0% from 39.5%[161]. - SG&A expenses were $131.3 million, or 17.9% of net sales, consistent with the prior year, with adjusted SG&A at $119.2 million, or 16.3% of net sales[163]. - Advertising and sales promotion expense increased to $53.4 million, or 7.3% of net sales, compared to $47.0 million, or 6.6% in the prior year[164]. - Battery & Lights segment net sales increased by 2.4%, with organic net sales improving by $24.9 million, or 4.0%[174]. - Auto Care reported a net sales increase of 0.5% year-over-year, with an organic net sales increase of $2.1 million, or 2.1%[175]. - Global reported segment profit increased by 0.4% compared to the prior year, with an organic profit increase of $8.2 million, or 5.9%[177]. - Auto Care's segment profit surged by 197.1% year-over-year, with an organic segment profit increase of $14.7 million, or 213.0%[179]. Currency and Economic Impact - The Company recognized $21.0 million in currency losses due to the devaluation of the Argentine Peso, including $14.7 million from remeasurement of monetary assets and $6.3 million in transactional currency exchange losses[141]. - The Company is subject to risks related to international operations, including currency fluctuations that could adversely affect results of operations[130]. - Energizer's foreign currency derivative contracts resulted in a loss of $8.4 million for the quarter ended December 31, 2024, compared to a gain of $3.2 million for the same quarter in 2023[208]. - The Egypt subsidiary's financial statements were consolidated under highly inflationary accounting effective October 1, 2024, due to a cumulative inflation rate exceeding 100 percent[216]. - The Argentina subsidiary's financial statements have been consolidated under highly inflationary accounting since July 1, 2018, and the economy remains highly inflationary as of December 31, 2024[217]. - Changes in non-functional currency balance sheet positions at foreign subsidiaries resulted in exchange gains or losses recorded in Other items, net[207]. Project Momentum and Restructuring - The Project Momentum program is expected to generate approximately $200 million in total pre-tax savings by the end of fiscal year 2025, with $161 million realized as of December 31, 2024[149]. - The Company incurred total Project Momentum restructuring and related pre-tax costs of $20.3 million and $22.4 million for the quarters ended December 31, 2024 and 2023, respectively[150]. - The restructuring component of Project Momentum is expected to incur one-time cash operating costs of $180 to $185 million and generate annual pre-tax savings of approximately $180 million[148]. - The Company’s future results may be impacted by operational execution and the ability to achieve cost savings from restructuring efforts[130]. Investments and Acquisitions - The Company acquired battery manufacturing assets in Belgium and all outstanding shares of Centralsul Ltda., enhancing its presence in Europe and Brazil[143][144]. - The Company recorded $2.6 million of acquisition and integration costs associated with the Belgium Acquisition during the three months ended December 31, 2023[146]. - The company entered into a share purchase agreement to acquire Advanced Power Solutions NV for a purchase price of EUR 26.8 million, expected to close in 2025[199]. Cash Flow and Debt - Cash flow from operating activities was $77.0 million, a decrease of $101.1 million year-over-year, primarily due to working capital changes[187]. - Net cash used by investing activities was $34.7 million, with capital expenditures of $34.6 million for the quarter[188]. - The company prepaid $22.0 million of the Term Loan during the quarter, resulting in a loss on extinguishment of debt of $0.1 million[185]. - As of December 31, 2024, the company had $195.9 million in cash and cash equivalents, with approximately 96% held outside the U.S.[182]. - The company has a contractual commitment to repay long-term debt of $3,105.0 million, with $12.0 million due within the next twelve months[197]. - The company had variable rate debt outstanding of $757.0 million under the 2020 Term Loan as of December 31, 2024[211]. - The weighted average interest rate on variable rate debt, inclusive of the interest rate swap, was 3.67% for the quarter ended December 31, 2024[213]. Other Financial Metrics - Incremental network transition costs of $14.0 million were incurred to maintain business continuity during the relocation of production lines[155]. - The effective tax rate for adjusted net earnings was 24.8%, slightly up from 24.0% in the prior year[169]. - General corporate and other expenses decreased to $27.4 million, representing 3.7% of net sales, down from 4.1% in the prior year[180]. - The company expects $7.3 million of the pre-tax gain included in accumulated other comprehensive loss to be recognized in earnings over the next twelve months[206]. - The company uses hedging instruments to reduce exposure to price volatility in raw materials, including zinc[209]. - The company has 16 open hedging contracts on future zinc purchases with a total notional value of approximately $24 million as of December 31, 2024[210].

Core Insights - Energizer Holdings (ENR) reported revenue of $731.7 million for the quarter ended December 2024, reflecting a year-over-year increase of 2.1% [1] - The earnings per share (EPS) for the quarter was $0.67, up from $0.59 in the same quarter last year, indicating a positive trend in profitability [1] - The reported revenue exceeded the Zacks Consensus Estimate of $727.99 million by 0.51%, while the EPS surpassed the consensus estimate of $0.64 by 4.69% [1] Financial Performance Metrics - Net Sales from Batteries & Lights amounted to $632.40 million, exceeding the four-analyst average estimate of $629.32 million, with a year-over-year change of 2.4% [4] - Net Sales from Auto Care reached $99.30 million, slightly above the estimated $98.69 million, representing a year-over-year increase of 0.5% [4] - Segment Profit for Auto Care was reported at $20.50 million, significantly higher than the estimated $7.28 million, while Segment Profit for Batteries & Lights was $119.30 million, below the average estimate of $134.27 million [4] Stock Performance - Over the past month, shares of Energizer have returned -2.1%, contrasting with the Zacks S&P 500 composite's increase of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

•Organic. This is the non-GAAP financial measurement of the change in revenue or segment profit that excludes or otherwise adjusts for the change in hyperinflationary markets and impact of currency from the changes in foreign currency exchange rates as defined below: Q1 Fiscal 2025 Earnings February 4, 2025 + Forward-Looking Statements This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, esti ...

Group 1 - Energizer Holdings reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and up from $0.59 per share a year ago, representing an earnings surprise of 4.69% [1] - The company achieved revenues of $731.7 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.51%, compared to $716.6 million in the same quarter last year [2] - Energizer has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has underperformed the market, losing about 2.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $670.47 million, and for the current fiscal year, it is $3.58 on revenues of $2.93 billion [7] - The Zacks Industry Rank indicates that the Consumer Products - Staples sector is currently in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Net sales for the first fiscal quarter increased by 2.1% to $731.7 million compared to $716.6 million in the prior year[3] - Organic net sales grew by 3.8%, driven by growth in both Batteries and Auto Care segments[5] - Adjusted EBITDA for the quarter was $140.7 million, up from $132.9 million in the prior year[9] - Adjusted earnings per share increased by 14% to $0.67, compared to $0.59 in the previous year[5] - Gross margin for the first quarter was reported at 36.8%, with an adjusted gross margin of 40.0%, reflecting a 50 basis points improvement year-over-year[5] - Total net sales for the quarter reached $731.7 million, up from $716.6 million year-over-year, representing a growth of approximately 2.2%[34] - Net earnings for the quarter ended December 31, 2024, were $22.3 million, a significant increase from $1.9 million in the same quarter of 2023[40] - Adjusted net earnings rose to $49.4 million, compared to $42.5 million in the prior year, reflecting a strong performance[40] - The diluted net earnings per common share increased to $0.30, up from $0.03 year-over-year[40] - Adjusted EBITDA for the quarter was $140.7 million, representing a 5.9% increase from $132.9 million in the previous year[44] Cash Flow and Debt Management - Free cash flow for the quarter was $42.4 million, representing 5.8% of net sales[13] - Long-term debt pay down in the first quarter was approximately $25 million[13] - Total debt decreased to $3,132.0 million as of December 31, 2024, down from $3,207.7 million on September 30, 2024[54] - Net debt as of December 31, 2024, was $2,936.1 million, a reduction from $2,990.8 million on September 30, 2024[54] - The company reduced net leverage to 4.7 times, driven by debt pay down and adjusted EBITDA growth[5] Operating Activities - Net cash from operating activities was $77.0 million, a decrease from $178.1 million in the prior year[21] - Cash and cash equivalents decreased to $195.9 million from $216.9 million, reflecting a decline of approximately 9.5%[21] - Total liabilities decreased to $4,089.6 million from $4,206.6 million, indicating a reduction of approximately 2.8%[19] Segment Performance - Segment profit for Batteries & Lights decreased to $119.3 million from $132.4 million, while Auto Care segment profit increased to $20.5 million from $6.9 million[34] - Segment profit for Batteries & Lights decreased by 9.9% to $119.3 million, while Auto Care segment profit surged by 197.1% to $20.5 million[48] Future Outlook - The fiscal year 2025 outlook for organic net sales has been increased to a range of 2% to 3%[11] - Fiscal 2025 adjusted net earnings are projected to be between $45 million and $51 million, with adjusted EPS ranging from $0.60 to $0.70[57] - Adjusted EBITDA for Fiscal 2025 is expected to be between $625 million and $645 million[57] - The company plans to continue focusing on market expansion and product innovation to drive future growth[34] Restructuring and Costs - The company’s adjusted EBITDA for the quarter was impacted by restructuring and related costs, totaling $20.3 million[34] - Restructuring and related costs for Fiscal 2025 are estimated at $38 million, impacting adjusted net earnings by approximately $0.52 per share[57] - Network transition costs are projected at $15 million for Fiscal 2025, affecting adjusted EPS by about $0.20[57] Exchange Losses - The company recorded $21.0 million in exchange losses due to the December 2023 Argentina Economic Reform, which included a 50% devaluation of the Argentine Peso[37] - The company recorded $21.0 million in exchange losses due to the Argentine Peso devaluation as part of the December 2023 economic reform[41]

Grew Net sales for the quarter by 2.1% and organic Net sales by 3.8% with organic growth in both Battery and Auto Care.1 Gross margin for the first quarter was 36.8% and 40.0% as adjusted, a 50 bps improvement over prior year Adjusted Gross margin.1 Delivered Earnings per share of $0.30 and Adjusted Earnings per share of $0.67, an increase of 14% on an adjusted basis.1 Reduced net leverage to 4.7 times driven by debt pay down and Adjusted EBITDA growth.1 Increases organic Net sales fiscal year outlook to 2 ...

Energizer Holdings Inc. (ENR) stands out as a compelling value play, trading at a forward 12-month price-to-sales ratio of 0.85, below the industry average of 2.44 and the sector average of 7.69. This undervaluation highlights its potential for investors seeking attractive entry points. Furthermore, Energizer’s Value Score of A underscores its appeal as a potential investment.ENR Looks Attractive From a Valuation Standpoint Image Source: Zacks Investment Research Shares of the company are currently trading ...

New packaging hits Walmart stores in March, nationwide expansion to followST. LOUIS, Jan. 28, 2025 /PRNewswire/ -- Energizer Holdings, Inc. (NYSE: ENR), one of the world's largest manufacturers and distributors of primary batteries, today announced the launch of 100% recyclable plastic-free packaging* for its portfolio of Energizer® batteries. The new paper-based packaging* offers a sleek, user-friendly design that simplifies the shopping, opening and storage experience for consumers. It also elevates in-st ...