Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q3 2024 Earnings Presentation
27 slides from Energizer's earnings presentation, Aug 6, 2024
Slide 1: Fiscal 2024 Q3 Earnings Outlook
Fiscal 2024 Q3 Earnings Outlook + August 6, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). However, management believes that certain non-GAAP financial measures provide users with additional meaningful comparisons to the corresponding hist
Slide 4: Financial Results Third Quarter 2024
Financial + Results Third Quarter 2024
Slide 5: Key Metrics – Third Quarter 2024
Key Metrics – Third Quarter 2024 METRIC Third Quarter 2024 Net sales of $701.4 million, +0.3% reported, +1.2% organic Net Sales* • Battery net sales –0.4% reported, +0.6% organic • Auto net sales +2.2% reported, +2.7% organic Adjusted Gross Adjusted gross margin was 41.5%(1), up 270 basis points fro
Slide 6: Strategic Priorities
Strategic + Priorities
Slide 7: Significant progress delivering against strategic priorities over last eight quarters
We have made significant progress delivering against our strategic priorities over the last eight quarters Rebuilding profitability and generating top-tier free cash flow enable incremental investment in our business to generate sustainable growth PROJECT MOMENTUM ADJUSTED GROSS MARGINS* FREE CASH F
Slide 8: Strong free cash flow and debt paydown over the past eight quarters
Strong free cash flow and debt paydown over the past eight quarters Last 8 Quarters ($ in millions) $139 Q3 FY 2022 Q3 FY 2024 (Ended June 2022) (Ended June 2024) $173 $763 $823 $432 $650 $72 $200 $200 $218 $147 $147 Q3'22 Ending Cash (+) Operating Cash (-) Capex (-) Dividends (-) Debt Repayment (-)
Slide 9: Battery Category
Battery Category +
Slide 10: Battery category has delivered low single digit volume growth over the long term
Battery category has delivered low single digit volume growth over the long term Global Batteries Annual Volume Sales (Billions) ’15 - Apr ’24 CAGR +1.3% 25.0 22.4 22.2 20.5 19.9 20.0 20.0 18.4 19.1 19.2 19.1 18.0 15.0 10.0 5.0 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 Apr-24 Elevated COVID Dem
Slide 11: Global Battery volume & value trends remain positive
Global Battery volume & value trends remain positive Battery Category Volume & Value – Rolling 3 Months Value % Chg vs YA Volume % Chg vs YA 6% 4% 2% 0% -2% -4% -6% -8% JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY 2023 2023 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 Source: Nielsen Global
Slide 12: Innovation anticipating consumer needs and delivering meaningful connections
Through innovation we deliver products that anticipate consumer needs and deliver meaningful connections • Energizer has a history of launching “world’s first” innovation in the battery category • Latest launch offers the world’s first 3-in-1 child safety system: secure packaging + bitter coating +
Slide 13: Auto Care
Auto Care +
Slide 14: Significant progress restoring profitability of Auto Care while growing topline
We have made significant progress restoring the profitability of the Auto Care business while growing topline Auto Segment Profit of 15.7% of Net Sales in Fiscal ‘24 year to date Auto Net Sales & Segment Profit % $700.0 30.0% $650.0 $628.4 $622.8 25.0% $618.7 $614.8 $600.0 20.0% $550.0 $521.3 15.0%
Slide 15: Outlook Q4 FY2024
Outlook + Q4 FY2024
Slide 16: Key Metrics – Fiscal 2024 Outlook
Key Metrics – Fiscal 2024 Outlook METRIC Fiscal 2024 Outlook Net Sales Organic net sales projected down ~2% • Q4 organic net sales projected to be roughly flat Adjusted gross margin of over 150 basis point improvement Adjusted Gross Margin* • Q4 improvement of roughly 150 basis points versus prior y
Slide 17: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 17
Slide 18: Non-GAAP Reconciliation: Net Sales
Non-GAAP Reconciliation: Net Sales (in millions) Organic. This is the non-GAAP financial measurement of the change in revenue that excludes or otherwise adjusts for the change in Argentina operations and impact of currency from the changes in foreign currency exchange rates as defined below: • Chang
Slide 19: Non-GAAP Reconciliation: Adjusted Gross Margin
Non-GAAP Reconciliation: Adjusted Gross Margin (in millions) Adjusted gross margin as a percent of sales excludes any charges related to restructuring programs, acquisition and integration, the 2022 Exit of the Russia Market and the May 2022 Brazil flood to our manufacturing plant. 19
Slide 20: Non-GAAP Reconciliation: Adjusted Earnings Per Share
Non-GAAP Reconciliation: Adjusted Earnings Per Share (in millions, except per share data) Adjusted Net Earnings and Adjusted Diluted Net Earnings Per Common Share (EPS). These measures exclude the impact of restructuring and related costs, the costs related to acquisition and integration, impairment
Slide 21: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation: Free Cash Flow (in millions) Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales. 21
Slide 22: Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2024
Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2024 (in millions) EBITDA is defined as net earnings before income tax provision, interest, the loss on extinguishment of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of the costs related to restructuring, ac
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2022
Non-GAAP Reconciliation: Adjusted EBITDA - June 30, 2022 (in millions) EBITDA is defined as net earnings before income tax provision, interest, the loss on extinguishment of debt, and depreciation and amortization. Adjusted EBITDA further excludes the impact of acquisition and integration costs, the
Slide 24: Non-GAAP Reconciliation: Net Debt and Net Leverage
Non-GAAP Reconciliation: Net Debt and Net Leverage (in millions) Net Debt is defined as total Company debt, less cash and cash equivalents. Net leverage is Net debt divided by the last twelve months Adjusted EBITDA. LTM is the last twelve months for June 30, 2022 and June 30, 2024, respectively. 24
Slide 25: Non-GAAP Reconciliation: Segment Profit
Non-GAAP Reconciliation: Segment Profit (in millions) Operations for Energizer are managed via two product segments: Batteries & Lights and Auto Care. Energizer’s operating model includes a combination of standalone and shared business functions between the product segments, varying by country and r
Slide 26: Non-GAAP Reconciliation: Segment Profit continued
Non-GAAP Reconciliation: Segment Profit continued (in millions) 26
Slide 27: Non-GAAP Reconciliation: FY 2024 Outlook
Non-GAAP Reconciliation: FY 2024 Outlook (in millions – except per share data) 27