Energizer (ENR)2025-02-04 11:54Financial 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]