Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q4 2024 Earnings Presentation
24 slides from Energizer's earnings presentation, Nov 19, 2024
Slide 1: Fiscal 2024 Q4 & Full Year Earnings and Fiscal 2025 Outlook
Fiscal 2024 Q4 & Full Year Earnings and Fiscal 2025 Outlook + November 19, 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 Full Year 2024
Financial + Results Full Year 2024
Slide 5: 2024 In Review
Delivered financial objectives and advanced our strategic priorities 1. Financial results met or exceeded outlook 2. Project Momentum continued to deliver significant savings 2024 3. Adjusted Gross Margin improvement drove strong Adjusted Earnings Per Share IN REVIEW growth 4. Generated strong Free
Slide 6: Financial results met or exceeded outlook
Financial results met or exceeded outlook FY'24 OUTLOOK FY’24 ACTUAL (Provided Nov. 2023) (Reported Nov. 2024) Organic Net Sales* Flat to down LSD (2.2%)(1) Adjusted Gross Margin* +100 bps +190 bps(2) Adjusted EBITDA* $600M - $620M $612M(3) Adjusted EPS* $3.10 - $3.30 $3.32(4) Debt Paydown $150M - $
Slide 7: Project Momentum is continuing to deliver strong results
Project Momentum is continuing to deliver strong results… Savings Achieved in 2024: $90M $40M-$60M 2025 $180M - $200M ~$90M 2024 In Run Rate Savings ~$50M 2023 7 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 8: Continued Adjusted Gross Margin improvement
…driving continued Adjusted Gross Margin improvement Rebuilding to +360 bps pre-pandemic levels 40.9% 40.6% 39.6% 39.0% 37.3% 2020 2021 2022 2023 2024 8 FOR INTERNAL GAAP USE FY Gross Margin: ONLY – DO 2020: NOT DISTRIBUTE 39.4%, FY 2021: 38.4%, FY 2022: 36.7%, FY 2023: 38.0%, FY 2024: 38.3%
Slide 9: Strong free cash flow enabling significant debt reduction and deleveraging
…and strong free cash flow, enabling significant debt reduction and deleveraging ($ in millions) $167 $195 Q3 FY 2022 $932 Q4 FY 2024 (Ended June (Ended Sept 2022) $486 2024) $965 $770 $67 $284 $217 $217 $200 $200 Q3'22 Ending (+) Operating (-) Capex (-) Dividends (-) Debt (-) Other Q4'24 Ending Cas
Slide 10: Driving Growth
Driving Growth +
Slide 11: We are focused on driving profitable growth globally
We are focused on driving profitable growth globally DISTRIBUTION Expanding our footprint with new retailers and our space with existing customers ECOMMERCE Driving accelerated growth in e-commerce in the U.S. and in key international markets MARKET Expanding our presence in higher growth markets EX
Slide 12: Strategic innovation is key to maintaining our position as the battery category leader
Strategic innovation is key to maintaining our position as the battery category leader Leading the Battery Category Plastic Free Initiative Energizer offers the world’s first Energizer is developing a 3-in-1 Child Shield™ packaging solution that is right for: Secure packaging Environment Bitte
Slide 13: Armor All Podium Series will hit shelves in early 2025
Armor All® Podium Series will hit shelves in early 2025 13 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 14: Outlook Fiscal 2025
Outlook + Fiscal 2025
Slide 15: FY 2025 Outlook
FY 2025 Outlook +1% to +2% Organic Net Sales (Q1 +2% to +3%) Adjusted Gross Margin* +50 bps (Q1 + 50 to 100 bps) Adjusted EBITDA* $625M - $645M Adjusted EPS* $3.45 - $3.65 (Q1 $0.60 - $0.65) Free Cash Flow % Sales 8% - 10% Debt Paydown $150M - $200M Net Leverage ~4.5x All comparisons are to Fiscal 2
Slide 16: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 16
Slide 17: 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 18: 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, network transition costs, acquisition and integration, costs from exiting the Russian market and flood damage in our Brazil facility. 18
Slide 19: 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, network transition costs, the costs related to acquisition a
Slide 20: 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. 20
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA - September 30, 2024
Non-GAAP Reconciliation: Adjusted EBITDA - September 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 restructurin
Slide 22: 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 23: 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 September 30, 2024, respectively
Slide 24: Non-GAAP Reconciliation: FY 2025 Outlook
Non-GAAP Reconciliation: FY 2025 Outlook (in millions – except per share data) 24