Energizer Holdings, Inc. Announces Fiscal 2025 Second Quarter Results

Core Insights - Energizer Holdings, Inc. reported net sales of $662.9 million for the second fiscal quarter ended March 31, 2025, a slight decrease of 0.1% compared to $663.3 million in the prior year period, marking the fourth consecutive quarter of organic revenue growth of 1.4% [3][5][10] - The company achieved an adjusted gross margin of 40.8%, an improvement from 40.5% in the prior year, driven by Project Momentum initiatives [4][7][10] - Net earnings for the quarter were $28.3 million, or $0.39 per share, with adjusted earnings per share at $0.67, reflecting a decrease from $0.45 and $0.72 in the prior year, respectively [10][43] Financial Performance - Net sales for the second quarter were $662.9 million, down from $663.3 million in the same quarter last year, with organic growth of 1.4% [3][5] - Gross margin was reported at 39.1%, with an adjusted gross margin of 40.8%, up 30 basis points from the previous year's adjusted gross margin [5][7] - The company reported net earnings of $28.3 million, down from $32.4 million in the prior year, and adjusted EBITDA of $140.3 million, slightly lower than $142.5 million in the previous year [10][43] Strategic Initiatives - The company emphasized its investments in digital transformation and growth initiatives, which contributed to an increase in SG&A expenses to 18.8% of net sales, compared to 17.2% in the prior year [8][10] - Project Momentum delivered savings of approximately $16 million in the quarter, although this was partially offset by increased product costs and planned strategic pricing investments [7][10] - The company expects organic net sales for fiscal 2025 to be flat to up 2%, with adjusted EBITDA projected between $610 million and $630 million [12][14] Market Outlook - The CEO expressed a cautious outlook for the remainder of the year, anticipating a more cautious consumer environment impacting demand [2][12] - The company expects limited direct impact from tariffs due to completed sourcing shifts and pricing actions [5][12] - For the third quarter, reported and organic net sales are expected to be flat to down 2%, with adjusted earnings per share projected between $0.55 and $0.65 [14]