Financial Data and Key Metrics Changes - The company reported a flat net sales for the second quarter, while organic revenue increased by 1.4%, marking the fourth consecutive quarter of organic growth [12][7] - Adjusted earnings per share (EPS) reached $0.67, at the upper end of the guidance range [7][14] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings [13] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [14][15] Business Line Data and Key Metrics Changes - The battery business experienced a strong performance with 3% organic growth, benefiting from distribution wins in the U.S. and strong international results [9][12] - Auto care saw strong growth in appearance and air freshener segments, with the appearance business delivering 5.5% organic growth, driven by the new Podium Series product line [10][12] - Overall, the auto business declined approximately 2.5% organically, attributed to a shift in refrigerant shipment timing [10][12] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, although weakened consumer confidence may pressure volumes in the short term [23] - In auto care, consumer caution is anticipated to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending in less discretionary categories [23] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing and revenue management, and market expansion to drive growth [8] - Strategic acquisitions have been made to enhance manufacturing capabilities and improve supply chain resilience [20] - The company aims to reduce exposure to tariffs through sourcing shifts and pricing adjustments [25][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and changing consumer sentiment, emphasizing the need to stay close to consumers [18][23] - The outlook for the remainder of the year has been tempered due to anticipated consumer pullback and inflationary pressures [24][30] - The company expects reported and organic net sales for the full year to be flat to up 2%, with adjusted EBITDA and EPS reflecting positive growth [30][31] Other Important Information - The company refinanced its $500 million revolving credit facility, extending maturities and improving debt portfolio flexibility [14] - The recent acquisition of APS in Europe is expected to enhance scale and manufacturing capabilities in key markets [69] Q&A Session Summary Question: Follow-up on tariff commentary and mitigation impacts - Management clarified that they have mitigated the impact of tariffs for fiscal year 2025 and are working on strategies to address future exposures [36][39] Question: Evaluation of devices using batteries and impact on forecasts - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles [50][53] Question: Retailer destocking and its impact - Management noted a slight uptick in retailer inventory due to softer sales, which is expected to normalize over time [65][66] Question: Details on the APS acquisition - The acquisition is expected to enhance the company's manufacturing capabilities and will involve transitioning from Panasonic to Energizer branding [69] Question: Long-term leverage target - The company aims to reduce leverage to below four times, with debt paydown being a top priority [108]

Financial Data and Key Metrics Changes - The company reported a flat net sales for the second quarter, while organic revenue increased by 1.4%, marking the fourth consecutive quarter of organic growth [12][7] - Adjusted earnings per share (EPS) reached $0.67, at the upper end of the guidance range [7][14] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings [13] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [14][15] Business Line Data and Key Metrics Changes - The battery business experienced a strong performance with 3% organic growth, benefiting from distribution wins in the U.S. and strong international results [9][12] - Auto care saw strong growth in appearance and air freshener segments, with the appearance business delivering 5.5% organic growth, driven by the new Podium Series product line [10][12] - Overall, the auto business declined by approximately 2.5% organically, attributed to a shift in refrigerant shipment timing [10][12] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, although weakened consumer confidence may pressure volumes in the short term [23] - In auto care, consumer caution is anticipated to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending on less discretionary items [23] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing and revenue management, and market expansion to drive growth [8] - Strategic acquisitions have been made to enhance manufacturing capabilities and improve supply chain resilience [20] - The company aims to reduce exposure to tariffs through sourcing shifts and pricing adjustments, with a clear path to mitigate impacts over the next twelve months [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and changing consumer sentiment, emphasizing the need to stay close to consumers [18][23] - The outlook for the remainder of the year has been tempered due to recent volatility and consumer caution [24][30] - The company expects reported and organic net sales for the full year to be flat to up 2%, with adjusted EBITDA and EPS reflecting positive growth at the midpoint [30][31] Other Important Information - The company has refinanced its $500 million revolving credit facility, extending maturities and improving the weighted average maturity of its total debt portfolio [14] - The recent acquisition of APS in Europe is expected to enhance scale and manufacturing capabilities, transitioning from Panasonic to Energizer brands over the next eight months [69] Q&A Session Summary Question: Follow-up on tariff mitigation impacts - Management clarified that they have mitigated the impact of tariffs for fiscal year 2025 and are working on strategies to address future exposures [36][39] Question: Evaluation of devices using batteries and pricing impacts - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles [50][53] Question: Retailer destocking and its impact - Management noted a slight uptick in retailer inventory due to softer sales, but does not expect it to be significant [65][66] Question: Insights on the APS acquisition - The acquisition is expected to enhance the company's European business and manufacturing capabilities, with a transition to Energizer branding planned [68][69] Question: Long-term leverage target - The company aims to reduce leverage to below four times, with debt paydown as a top priority [108]

Financial Data and Key Metrics Changes - The company reported organic sales growth of nearly 1.5% for the fourth consecutive quarter, with adjusted earnings per share of $0.67 at the upper end of the guided range [6][12] - Adjusted gross margin increased by 30 basis points to 40.8%, driven by project momentum savings of $16 million [12] - Free cash flow declined by $44.1 million year over year, primarily due to investments in inventory and capital expenditures [13][14] Business Line Data and Key Metrics Changes - The battery business experienced strong performance with 3% organic growth, benefiting from distribution wins and strong international results [8][11] - Auto care saw a 5.5% organic growth in the appearance segment, driven by the launch of the new Podium Series product line, although overall auto care declined by approximately 2.5% due to shipment timing [9][11] Market Data and Key Metrics Changes - The battery category is expected to deliver low single-digit growth over the long term, but weakened consumer confidence may pressure volumes in the short term [21] - In auto care, consumer caution is expected to have mixed impacts, with some consumers shifting to DIY categories while others prioritize spending in less discretionary categories [21] Company Strategy and Development Direction - The company is focused on distribution, innovation, digital commerce, pricing, revenue management, and market expansion to drive fiscal 2025 results [7] - Strategic acquisitions and investments in supply chain transformation are aimed at improving cost, agility, and resiliency, particularly in response to tariff impacts [17][18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating the current macroeconomic challenges, emphasizing the importance of understanding consumer sentiment and spending behavior [20][25] - The outlook for the remainder of fiscal 2025 has been tempered due to recent volatility and consumer caution, with expectations for flat to 2% growth in reported and organic net sales [26][27] Other Important Information - The company has refinanced its $500 million revolving credit facility, extending maturities and improving the weighted average maturity of its total debt portfolio [13] - The recent acquisition of APS in Europe is expected to enhance scale and manufacturing capabilities, transitioning from Panasonic to Energizer brands over the next eight months [59] Q&A Session Summary Question: Can you run through the mitigation impacts of tariffs? - Management clarified that they have mitigated the impact of tariffs for fiscal 2025 and are working on plans to reduce exposure for fiscal 2026, aiming to offset most of the $150 million gross exposure [31][33][34] Question: What is the evaluation of devices that use batteries in light of potential price increases? - Management acknowledged that higher prices for devices could lead to consumer pullback, impacting battery replenishment cycles, but emphasized ongoing communication with OEM partners [44][45] Question: Have you seen any retailer destocking? - Management noted a slight uptick in retailer inventory due to softer point-of-sale sales, but did not consider it significant [55][56] Question: Can you provide details on the APS acquisition? - The acquisition is expected to enhance the company's European business scale and manufacturing capabilities, with a transition from Panasonic to Energizer brands planned [58][59] Question: What is the long-term leverage target? - The company aims to reduce leverage to below four times, with debt paydown being a top priority [98]

Q2 Fiscal 2025 Earnings May 6, 2025 + This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future sales, gross margins, costs, earnings, cash flows, tax rates and performance of the Company. These statements generally can be identified by the use of forward-looking words or phrases such as "believ ...

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]

Net sales of $662.9 million driven by organic growth of 1.4%, offset by currency headwinds of 1.7%, resulting in the fourth consecutive quarter of organic revenue growth.1 Gross margin for the second quarter was 39.1% and 40.8% as adjusted, a 30 bps improvement over prior year Adjusted Gross margin.1 Delivered Net Earnings of $28.3 million, or $0.39 per share, Adjusted Earnings per share of $0.67 and Adjusted EBITDA of $140.3 million.1 The Company expects limited direct impact from tariffs to fiscal 2025 r ...

Core Viewpoint - Energizer Holdings (ENR) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending March 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Energizer's quarterly earnings is $0.68 per share, reflecting a year-over-year decrease of 5.6%. Revenues are projected to be $669.4 million, which is a 0.9% increase from the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 1.45%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Energizer is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.22%. This suggests a bearish sentiment among analysts regarding the company's earnings prospects [10][11]. Historical Performance - In the last reported quarter, Energizer was expected to post earnings of $0.64 per share but exceeded expectations with actual earnings of $0.67, resulting in a surprise of +4.69%. The company has beaten consensus EPS estimates in the last four quarters [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 4 indicates that Energizer may not be a compelling candidate for an earnings surprise, suggesting investors should consider other factors before making investment decisions [11][16].

Core Viewpoint - Energizer Holdings, Inc. is set to report its Second Quarter Fiscal Year 2025 results on May 6, 2025, before market opening, followed by an investor conference call [1]. Company Overview - Energizer Holdings, headquartered in St. Louis, is a leading manufacturer and distributor of primary batteries, portable lights, and various auto care products [2]. - The company’s portfolio includes well-known brands such as Energizer, Armor All, Eveready, Rayovac, STP, and Varta, among others [2]. - Energizer aims to be a leader in its categories by effectively serving consumers and customers [2].

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Core Viewpoint - Energizer Holdings, Inc. has successfully extended its $760 million Term Loan and $500 million Revolving Credit Facility, enhancing its debt capital structure and financial flexibility [1][2]. Group 1: Financial Transactions - The transactions are leverage neutral and extend the maturities of both facilities by more than four years, with the new Term Loan maturing in 2032 and the Revolving Credit Facility maturing in 2030 [1][3]. - The new Term Loan bears interest at a rate equal to Secured Overnight Financing Rate (SOFR) plus 200 basis points per annum [2]. - The Revolving Credit Facility bears interest at a rate equal to SOFR plus the applicable margin based on leverage [3]. Group 2: Management Commentary - The Chief Financial Officer expressed satisfaction with the execution of the credit facilities extension, highlighting it as a testament to the credit market's appreciation of the company's debt reduction track record and strong operating performance [2]. - The company aims to continue evaluating opportunities to extend debt maturities or improve its interest rate profile as part of its debt paydown and deleveraging objectives [2]. Group 3: Company Overview - Energizer Holdings is one of the world's largest manufacturers and distributors of primary batteries, portable lights, and auto care products, with a portfolio of globally recognized brands [4].