## Energizer Holdings Delivers Strong Fiscal 2024 Results, Outperforming Expectations
Energizer Holdings, Inc. (ENR) today announced its financial results for the fourth fiscal quarter and full fiscal year ended September 30, 2024. The company reported a strong performance across its Battery and Auto Care segments, exceeding its initial expectations for adjusted earnings. This success underscores the effectiveness of Energizer’s strategic initiatives and positions the company for continued growth.
Key Financial Highlights for Fiscal Year 2024:
*
Net Sales:
While total net sales were slightly down year-over-year ($2,887.0 million compared to $2,959.7 million), this was primarily due to planned strategic pricing and promotional investments, and currency fluctuations. Organic net sales, which exclude the impact of currency and changes in Argentina operations, decreased by 2.2%. The decline was offset by volume increases in the Auto Care segment. The fourth quarter saw organic net sales consistent with the prior year.*
Gross Margin:
Energizer achieved significant improvements in gross margin. The full-year gross margin reached 38.3% on a reported basis and 40.9% on an adjusted basis, representing a 190 basis point increase year-over-year. This improvement is largely attributed to the successful implementation of Project Momentum initiatives, which delivered approximately $59 million in savings, coupled with lower input costs.*
Operating and Free Cash Flow:
Operating cash flow for the fiscal year was $429.6 million, with free cash flow representing a healthy 11.7% of net sales. This strong cash flow enabled significant investments in long-term growth objectives and debt reduction.*
Debt Reduction:
Energizer significantly reduced its net leverage to 4.9 times in fiscal 2024, down from 5.2 times in the prior year. This was achieved through a $200 million debt pay-down and Adjusted EBITDA growth.*
Earnings Per Share:
The company delivered earnings per share of $0.52 and Adjusted Earnings per share of $3.32 for the fiscal year, a 7% increase on an adjusted basis.*
Acquisitions:
Energizer completed two strategic acquisitions in fiscal 2024, bolstering its presence in battery manufacturing and the Auto Care market.*
Capital Allocation:
In addition to debt reduction, the company paid dividends of $1.20 per common share and authorized a new share repurchase program for up to 7.5 million shares.Mark LaVigne, President and Chief Executive Officer
, commented on the results, stating that the solid performance across both segments demonstrates the effectiveness of Energizer’s strategies. He expressed confidence in the company’s ability to deliver on its financial algorithm, driven by consistent growth and improved operating margins.Fiscal 2025 Outlook:
Energizer projects continued strong performance in fiscal 2025. The company anticipates:
* Organic revenue growth of 1% to 2%.
* Adjusted EBITDA in the range of $625 million to $645 million.
* Adjusted earnings per share in the range of $3.45 to $3.65.
* First-quarter organic revenue growth of 2% to 3%, with Adjusted EPS expected to be between $0.60 and $0.65.
Detailed Breakdown of Sales and Margin Performance:
The provided financial statements offer a comprehensive view of the company’s financial performance, including detailed segment performance in both Batteries & Lights and Auto Care, analysis of pricing, volume, and currency impacts, and explanations of changes in SG&A and advertising and promotion expenses. Project Momentum’s significant contribution to gross margin improvement is clearly highlighted.
Conclusion:
Energizer Holdings’ fiscal 2024 results demonstrate a strong financial position and successful execution of its strategic plan. The positive outlook for fiscal 2025, coupled with the company’s focus on operational efficiency and debt reduction, positions Energizer for continued growth and success in the coming year. Investors can find further details in the company’s press release and supplemental schedules available on its website. A webcast discussing these results and the fiscal 2025 outlook is also available on the Energizer Holdings website.
