Energizer (US:ENR)2024-08-06 17:14Financial Performance - The Company reported a net loss of $43.8 million for the third fiscal quarter of 2024, compared to net earnings of $31.8 million in the prior year quarter, resulting in a loss of $0.61 per common share [126]. - For the nine months ended June 30, 2024, the Company reported a net loss of $9.5 million, down from net earnings of $120.8 million in the prior year, with a loss of $0.13 per common share [126]. - Adjusted diluted net earnings per common share increased by 46% to $0.79 for the third fiscal quarter, compared to $0.54 in the prior year quarter [126]. - Adjusted diluted net earnings per common share increased by 10% to $2.09 for the nine months ended June 30, 2024, compared to $1.90 in the prior year [126]. - The effective tax rate year-to-date was 66.7%, significantly higher than 21.1% in the prior year, impacted by charges from the December 2023 Argentina Reform [145]. Sales and Revenue - The Company experienced a decline in net sales in Argentina, reporting $9.4 million for the quarter ended June 30, 2024, down from $10.4 million in the same quarter of 2023, and $28.8 million for the nine months ended June 30, 2024, compared to $34.3 million in 2023 [116]. - Net sales for the nine months ended June 30, 2024, were $2,081.3 million, a decrease of $67.3 million or 3.1% compared to the prior year [134]. - Organic net sales increased by 1.2% to $701.4 million for the third fiscal quarter, driven by improved category trends and new distribution globally [133]. - Total net sales for the quarter ended June 30, 2024, were $701.4 million, a slight increase of 0.3% compared to the prior year [148]. - For the nine months ended June 30, 2024, Battery & Lights net sales decreased by 4.8%, with organic net sales down $80.2, or 4.7% [150]. Cost and Expenses - SG&A expenses for the third fiscal quarter of 2024 were $129.6 million, or 18.5% of net sales, compared to $116.1 million, or 16.6% of net sales, in the prior year [138]. - R&D expenses for the quarter ended June 30, 2024, were $7.4 million, or 1.1% of net sales, down from $8.8 million, or 1.3% of net sales, in the prior year [140]. - Interest expense for the third fiscal quarter of 2024 was $38.5 million, a decrease from $42.2 million in the prior year [141]. - The Company incurred restructuring and related costs of $18.8 million for the quarter ended June 30, 2024, compared to $9.1 million in the prior year quarter [125]. Impairment and Losses - The Company reported a non-cash impairment of $85.2 million for the Rayovac trade name and $25.4 million for the Varta trade name due to missed sales forecasts and elevated weighted average cost of capital [112]. - The company recorded a non-cash impairment of intangible assets totaling $110.6 million for the quarter and nine months ended June 30, 2024 [140]. - The Company recognized $22.0 million in currency and related losses during the nine months ended June 30, 2024, including $14.7 million from the remeasurement of Argentina monetary assets and liabilities [117]. Strategic Initiatives - The Project Momentum restructuring program is expected to generate annual pre-tax savings of $155 to $170 million, with total expected pre-tax savings between $180 and $200 million by the end of fiscal year 2025 [123]. - As of June 30, 2024, the Company has realized approximately $117 million in savings from Project Momentum, with $63 million in fiscal year 2024 [124]. - Project Momentum initiatives delivered savings of approximately $14 million in the third fiscal quarter and $41 million for the nine months ended June 30, 2024 [137]. Acquisitions - The Company acquired Centralsul Ltda. for an initial cash payment of $10.6 million, aimed at increasing its Auto Care presence in Southern Brazil [119]. - The Company acquired battery manufacturing assets in Belgium for a total purchase price of $11.6 million, including value-added taxes, to establish a manufacturing location in Europe [120]. Cash Flow and Financing - Cash flow from operating activities was $260.7 million for the nine months ended June 30, 2024, down from $296.3 million in the prior year [162]. - Net cash used by investing activities was $89.0 million for the nine months ended June 30, 2024, compared to $34.7 million in the prior year [163]. - Net cash used by financing activities was $223.9 million for the nine months ended June 30, 2024, down from $261.2 million in the prior year [165]. - As of June 30, 2024, the company had $146.7 million in cash and cash equivalents, with approximately 93% held outside of the U.S. [158].