Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q2 2024 Earnings Presentation
27 slides from Energizer's earnings presentation, May 7, 2024
Slide 1: Fiscal 2024 Q2 Earnings Outlook
Fiscal 2024 Q2 Earnings Outlook + May 7, 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 his
Slide 4: Financial Results Second Quarter 2024
Financial + Results Second Quarter 2024
Slide 5: Key Metrics – Second Quarter 2024
Key Metrics – Second Quarter 2024 METRIC Second Quarter 2024 Net sales on a reported basis of $663.3 million, down 3.0% Net Sales* • Organic net sales decline of 2.7% • Auto net sales +2.3% reported, +2.4% organic Adjusted Gross Adjusted gross margin was 40.5%(1), up 260 basis points from the prior
Slide 6: Strategic Priorities
Strategic + Priorities
Slide 7: We have made significant progress over the last seven quarters
We have made significant progress over the last seven quarters Rebuilding profitability and generating top-tier free cash flow enable shareholder value creation through debt paydown while strengthening the balance sheet ADJUSTED GROSS MARGIN* FREE CASH FLOW* BALANCE SHEET Expanded Adjusted Gross
Slide 8: Strong free cash flow and debt paydown over the past seven quarters
Strong free cash flow and debt paydown over the past seven quarters Last 7 Quarters $121 ($ in millions) Q3 FY 2022 $151 Q2 FY 2024 (Ended June 2022) (Ended March 2024) $717 $425 $796 $645 $62 $200 $200 $220 $158 $158 Q3'22 Ending Cash (+) Operating Cash (-) Capex (-) Dividends (-) Debt Repayment (-
Slide 9: Battery Category
Battery Category +
Slide 10: Global Battery volume recovery continues into Fiscal 2024
Global Battery volume recovery continues into Fiscal 2024 Battery Category Volume & Value – Rolling 3 Months Value % Chg vs YA Volume % Chg vs YA 6% 4% 2% 0% -2% -4% -6% -8% FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2024 2024 10 Source
Slide 11: Private Label Battery share is below Total Store and declining
Private Label Battery share is below Total Store and declining Private Label Value Share Change Total US MULC Total Store Batteries 2.5 1.9 2.0 1.5 1.0 0.8 0.5 0.2 0.0 -0.4 -0.5 -1.0 -1.5 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: Auto Care
Auto Care +
Slide 13: We have made significant progress restoring the profitability of the auto business
We have made significant progress restoring the profitability of the auto business while growing topline Auto Segment Profit of 16.8% of Net Sales in Fiscal ‘24 year to date Auto Net Sales & Segment Profit % $700.0 30.0% $650.0 $618.7 $622.8 $624.2 25.0% $614.8 $600.0 20.0% $550.0 $521.3 15.0% $500.
Slide 14: Outlook Q2 FY2024
Outlook + Q2 FY2024
Slide 15: Key Metrics – Maintaining Fiscal 2024 Outlook
Key Metrics – Maintaining Fiscal 2024 Outlook METRIC Fiscal 2024 Outlook Organic net sales projected flat to down low single digits Net Sales • Q3 organic net sales projected to increase by approximately 1% Adjusted gross margin of over 100 basis point consolidated Adjusted Gross improvement, with i
Slide 16: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 16
Slide 17: Non-GAAP Reconciliation: Consolidated Net Sales
Non-GAAP Reconciliation: Consolidated 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 b
Slide 18: Non-GAAP Reconciliation: Auto Care Net Sales
Non-GAAP Reconciliation: Auto Care 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 belo
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. 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, the loss/(
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 - March 31, 2024
Non-GAAP Reconciliation: Adjusted EBITDA - March 31, 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, a
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 March 31, 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