Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q4 2023 Earnings Presentation
24 slides from Energizer's earnings presentation, Nov 14, 2023
Slide 1: Fiscal 2023 Q4 & Full Year Earnings and Fiscal 2024 Outlook
Fiscal 2023 Q4 & Full Year Earnings and Fiscal 2024 Outlook + November 14, 2023
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: Fourth Quarter 2023
Financial + Results Fourth Quarter 2023
Slide 5: Key Metrics – Fourth Quarter 2023
Key Metrics – Fourth Quarter 2023 METRIC Fourth Quarter 2023 Fourth quarter Net sales on a reported basis of $811.1 million, up 2.6% Net Sales* • Organic net sales up 2.0% Adjusted Gross Adjusted Gross margin was 40.0%(1), up 380 bps • Up sequentially 120 bps from Q3 2023 Margin* Fourth quarter free
Slide 6: Financial Results: Full Year 2023
Financial + Results Full Year 2023
Slide 7: Key Metrics – Full Year 2023
Key Metrics – Full Year 2023 METRIC Full Fiscal Year 2023 Full Year Net sales on a reported basis of $2,959.7 million, down 3.0% Net Sales* • Organic net sales down 1.0% driven by volume declines partially offset by pricing Adjusted Gross Adjusted Gross margin was 39.0%(1), up 170 bps Margin* Free c
Slide 8: Strong cash flow and debt paydown over the past four quarters
Strong cash flow and debt paydown over the past four quarters Expect to reduce leverage to below 5x's in FY24 ($ in millions) Last 12 Months Q4 FY 2022 Q4 FY 2023 (Ended Sept 2022) (Ended Sept 2023) $56.8 $86.3 $395.2 $220.9 $543.7 $13.2 $457.4 $205.3 $205.3 $236.5 $223.3 $223.3 4Q22 Ending Cash (+)
Slide 9: Battery Category
Battery Category +
Slide 10: Battery category delivered low single digit volume growth over the long term
Battery category delivered low single digit volume growth over the long term Global Batteries Annual Volume Sales (Billions) ’19-’23 CAGR +1.4% ’15-’19 CAGR +1.5% 25.0 22.4 22.2 20.5 20.1 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 52W APR 2023 10 Source: Ni
Slide 11: Device ownership and consumption both stable and above pre-pandemic levels
Device ownership and consumption both stable and above pre-pandemic levels Battery sales closely track device ownership over time. Devices Batteries Sales and Device Ownership Batteries per HH Device Growth ’15-’23 +5.3% Volume 25.0 9,000 20.7 21.8 7,500 20.0 6,389 6,000 15.0 5,766 4,500 3,000 10.0
Slide 12: Battery Category Volume & Value – Rolling 13 Week
Battery Category Volume & Value – Rolling 13 Week Battery volume recovered throughout Fiscal 2023, with an impact to September trends due to Hurricane Ian in 2022 15% Total US - MULC + Amazon 10% 5% Hurricane Ian September '22 0% -5% -10% -15% Dollar Sales % Chg vs YA Volume Sales % Chg vs YA 12 Sou
Slide 13: Auto Care
Auto Care +
Slide 14: Progress restoring profitability of the auto business
We have made progress restoring the profitability of the auto business in the last 18 months while maintaining topline stability Despite inflation, efforts on pricing initiatives and relentless focus on cost control allowed for significant improvement in gross margin Auto Net Sales & Segment Profit
Slide 15: Outlook: Fiscal 2024
Outlook + Fiscal 2024
Slide 16: Key Metrics - Fiscal 2024 Outlook
Key Metrics - Fiscal 2024 Outlook METRIC Fiscal 2024 Outlook Organic net sales projected flat to down low single digits Net Sales • Q1 organic net sales projected to decline 6 – 8% Adjusted gross margin of 40%; 100 bps improvement Adjusted Gross • Q1 adjusted gross margin expected to be flat to slig
Slide 17: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 17
Slide 18: Non-GAAP Reconciliation: Consolidated Net Sales
Non-GAAP Reconciliation: Consolidated Net Sales (in millions) Organic revenues is the non-GAAP financial measurement of the change in revenue or segment profit that excludes or otherwise adjusts for the change in Russia and Argentina operations and impact of currency from the changes in foreign curr
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, the costs of exiting the Russian market, the costs of the flooding of our manufacturing facility in Brazil and acquisition and integration
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
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) EBITDA is defined as net earnings before income tax provision, interest, (gain)/loss on extinguishment of debt, depreciation and amortization. Adjusted EBITDA further excludes the impact of the restructuring and related costs, the settlement los
Slide 22: Non-GAAP Reconciliation: Currency Neutral Adjusted EBITDA
Non-GAAP Reconciliation: Currency Neutral Adjusted EBITDA (in millions) (1) The Impact of Currency is the change in foreign currency exchange rates year-over-year on reported results, which is calculated by comparing the value of current year foreign operations at the current period USD exchange rat
Slide 23: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt (in millions) Net Debt is defined as total Company debt, less cash and cash equivalents. 23
Slide 24: Non-GAAP Reconciliation: FY 2024 Outlook
Non-GAAP Reconciliation: FY 2024 Outlook (in millions) 24