Energizer (ENR) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales for the second fiscal quarter were $662.9 million, a slight decrease of 0.1% compared to$ 663.3 million in the prior year period, with organic growth of 1.4%[4] - Net earnings were $28.3 million, or$ 0.39 per share, while adjusted earnings per share were $0.67, down from$ 0.72 in the prior year[9] - Net sales for the quarter ended March 31, 2025, were $662.9 million, a slight decrease of 0.06% compared to$ 663.3 million for the same quarter in 2024[24] - Net earnings for the six months ended March 31, 2025, were $50.6 million, representing a significant increase of 47.5% compared to$ 34.3 million in 2024[28] - Total net sales for the current year reached $1,394.6 million, reflecting a 1.1% increase compared to the prior year[54] Margins and Profitability - Gross margin for the quarter was reported at 39.1%, with an adjusted gross margin of 40.8%, reflecting a 30 basis points improvement over the prior year[5] - Gross profit for the six months ended March 31, 2025, increased to$ 528.6 million, up 1.1% from $520.3 million in the prior year[24] - Segment profit for Batteries & Lights was$ 112.3 million for the quarter ended March 31, 2025, down 1.1% from $113.5 million in the prior year[41] - Total segment profit for the six months ended March 31, 2025, was$ 287.3 million, a decrease of 2.0% from $293.2 million in the same period of 2024[41] - Adjusted EBITDA for the quarter ended March 31, 2025, was$ 140.3 million, reflecting a decrease of 1.5% compared to $142.5 million in the prior year[51] Expenses and Costs - Selling, General and Administrative expenses (SG&A) were 18.8% of net sales, totaling$ 124.5 million, an increase from 17.2% or $113.9 million in the prior year[7] - Advertising and Promotion expenses decreased to 3.1% of net sales, down from 3.2% in the prior year[8] - The company incurred$ 8.1 million in research and development expenses for the quarter ended March 31, 2025, compared to $7.9 million in the same quarter of 2024[24] - Reported SG&A expenses for Q2'25 were$ 136.0 million, representing 20.5% of net sales[56] - Restructuring and related costs totaled $37.9 million for the six months ended March 31, 2025[57] Cash Flow and Debt - Free cash flow for the six months ended March 31, 2025, was$ 8.6 million, representing 0.6% of net sales[19] - Cash flow from operating activities for the six months ended March 31, 2025, was $64.2 million, a decrease of 70% from$ 214.9 million in 2024[28] - Total debt as of March 31, 2025, was $3,163.2 million, down from$ 3,207.7 million as of September 30, 2024[59] - The company reported a net debt of $3,023.9 million as of March 31, 2025, compared to$ 2,990.8 million as of September 30, 2024[59] Future Outlook - The company expects fiscal 2025 organic net sales to be flat to up 2%, with adjusted EBITDA projected between $610 million and$ 630 million, and adjusted earnings per share between $3.30 and$ 3.50[14] - The company anticipates a more cautious consumer outlook for the remainder of the year due to economic volatility and tariff uncertainties[13] - The fiscal 2025 outlook projects adjusted net earnings between $168 million and$ 194 million, with adjusted EPS ranging from $2.29 to$ 2.65[61] - The company anticipates adjusted EBITDA for fiscal 2025 to be between $492 million and$ 530 million[61] - Restructuring and related costs are expected to impact adjusted net earnings by approximately $40 million for fiscal 2025[61] Currency Impact - The impact of currency fluctuations reduced total net sales by$ 17.8 million, or 1.2%[54] - The company recorded $1.0 million and$ 22.0 million in currency exchange and related losses due to the December 2023 Argentina Economic Reform for the quarter and six months ended March 31, 2024, respectively[44]