Energizer (ENR) - 2024 Q4 - Annual Results

Financial Performance - Fiscal 2024 net sales were $2,887.0 million, a decrease of 2.5% compared to the previous year, with fourth quarter net sales at $805.7 million, down 0.7%[6] - Adjusted EBITDA for fiscal 2024 was $612.4 million, reflecting a year-over-year increase, while adjusted earnings per share rose to $3.32, a 7% increase on an adjusted basis[15] - Gross margin for fiscal 2024 was 38.3%, with an adjusted gross margin of 40.9%, up 190 basis points from the prior year, driven by Project Momentum initiatives[9] - Net earnings for the quarter were $47.6 million, compared to $19.7 million in the same quarter of 2023, representing a significant increase of 141.6%[36] - Basic net earnings per share for the quarter were $0.66, up from $0.28 in the prior year, reflecting a growth of 135.7%[36] - Net earnings for the twelve months ended September 30, 2024, were $38.1 million, a decrease of 72.9% from $140.5 million in the previous year[65] - Adjusted diluted net earnings per common share for the twelve months were $3.32, a 7.4% increase from $3.09 in the prior year[65] Cash Flow and Debt Management - Operating cash flow for fiscal 2024 was $429.6 million, with free cash flow representing 11.7% of net sales[21] - The company reduced net leverage to 4.9 times in fiscal 2024, down from 5.2 times in the previous year, following a $200 million debt pay down[23] - Total debt as of September 30, 2024, was reported at $3,207.7 million, a decrease from $3,352.6 million as of September 30, 2023[73] - Net debt as of September 30, 2024, was $2,990.8 million, down from $3,129.3 million year-over-year, indicating improved leverage[73] Expenses and Cost Management - SG&A expenses for fiscal 2024 were $473.1 million, or 16.4% of net sales, an increase from 15.5% in the prior year, primarily due to higher labor and benefit costs[13] - Advertising and promotion expenses were 5.0% of net sales for fiscal 2024, up from 4.8% in the previous year[14] - Reported SG&A expenses for Q4'24 were $146.1 million, representing 18.1% of net sales, compared to 16.6% in Q4'23[71] - The company incurred restructuring and related costs of $21.2 million in Q4'24, compared to $17.4 million in Q4'23[71] Acquisitions and Investments - Two acquisitions were completed in fiscal 2024, totaling $22.2 million, including a battery manufacturing facility and an Auto Care manufacturer in Brazil[22] - Capital expenditures for the quarter were $97.9 million, compared to $56.8 million in the previous year, indicating a significant increase in investment[44] Segment Performance - Net sales for Batteries & Lights in FY '24 were $2,259.5 million, a decrease of 3.6% compared to the prior year[69] - Auto Care segment net sales increased by 2.1% to $627.5 million in FY '24[69] - Segment profit for Batteries & Lights increased to $179.5 million from $176.8 million year-over-year, while Auto Care segment profit rose to $20.0 million from $17.6 million[59] - The company reported a segment profit of $94.1 million for Auto Care in FY '24, a 25.5% increase compared to the prior year[69] Future Outlook - The company expects organic revenue growth of 1% to 2% for fiscal 2025, with adjusted EBITDA projected between $625 million and $645 million[27] - The company projects net earnings for FY 2025 to be between $194 million and $221 million, with an expected EPS range of $2.65 to $3.02[75] - EBITDA for FY 2025 is forecasted to be between $520 million and $563 million, reflecting a positive outlook for operational performance[75] - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[72]