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]

Financial Data and Key Metrics Changes - The company reported organic net sales growth of nearly 4% for Q1 fiscal 2025, with adjusted earnings per share increasing by 14% [6][20] - Adjusted gross margin expanded by 50 basis points to 40% [6][18] - Reported net sales were up 2.1%, with organic revenue increasing 3.8% [17][20] - The company paid down $25 million of debt, marking the 10th consecutive quarter of debt reduction [6][20] Business Line Data and Key Metrics Changes - The battery business achieved 4% organic growth, driven by distribution gains and $10 million of hurricane-related sales [17][20] - The auto care segment saw organic growth of 2%, supported by distribution gains and international market expansion [10][18] Market Data and Key Metrics Changes - The battery category volume remained positive both globally and in the U.S., with improving value trends [9][10] - The auto care category showed strong fundamentals, including an increase in the age of the car park and a shift towards DIY car care activities [10] Company Strategy and Development Direction - The company is focused on five strategic growth initiatives: distribution, pricing and revenue management, market expansion, innovation, and digital economy [12][66] - Project Momentum is expected to generate total savings of approximately $60 million for the year and $200 million for the program [11][22] - The company plans to continue investing in growth areas, including digital transformation and product innovation [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic initiatives and raised the full-year organic sales guidance to 2% to 3% [20][22] - The consumer environment is described as stable but cautious, with a focus on value-seeking behavior [50][51] - The company anticipates consistent organic growth driven by distribution gains and new product launches [20][22] Other Important Information - The company expects adjusted gross margin expansion of 50 basis points to more than 41% for the full year [22] - Capital expenditures are projected to be in the range of $80 million to $90 million, focusing on IT, operations, and sustainable packaging initiatives [22] Q&A Session Summary Question: Impact of tariffs on manufacturing - Management noted that domestic manufacturing helps minimize exposure to tariffs, with only about 5% of COGS sourced from China [30][32] Question: Consumer behavior during the holiday season - Management described the holiday season as solid, with varying consumer shopping patterns, leading to confidence in raising the sales outlook [34][35] Question: Input cost pressures - Management indicated mixed input cost pressures, with some materials seeing cost increases while others provide modest benefits [41][42] Question: E-commerce growth and competition - E-commerce is a growing source of revenue, with expectations of 30% growth in that segment for fiscal 2025 [93] Question: Distribution gains and shelf space - Distribution gains are broad-based, with some coming from expanded shelf space and others from displacing competitors [60][80]