Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q1 2025 Earnings Presentation
73 slides from Energizer's earnings presentation, Feb 4, 2025
Slide 1: Q1 Fiscal 2025 Earnings
Q1 Fiscal 2025 Earnings + February 4, 2025
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
Financial + Results Q1 Fiscal 2025
Slide 5: Financial results met or exceeded outlook
Financial results met or exceeded outlook Q1’25 ACTUAL (Reported Feb. 2025) Net Sales Net sales of $731.7M, +2.1% reported, +3.8% organic* • Battery net sales +2.4% reported, +4.0% organic* • Auto net sales +0.5% reported, +2.1% organic* Adjusted Gross Adjusted gross margin was 40.0%(1), up +50 basi
Slide 6: Investing in 5 key areas creates multiple levers to drive sales growth
Driving consistent, ratable sales growth DISTRIBUTION Investing in E-COMMERCE 5 key areas creates multiple levers to MARKET EXPANSION drive Sales growth in line with our PRICING & MIX long-term algorithm levers to drive Sales growth in line with our long-term algorithm INNOVATION & BRAND BUILDING 6
Slide 7: +$500 million of debt paydown since Q4 FY'22
Continued debt & leverage reduction $3.5 Net Debt & Net Leverage 7.0x 6.1x $3.0 5.8x 6.0x 5.2x 4.9x $2.5 4.7x 5.0x ~4.5x $2.0 4.0x $1.5 3.0x FY'22 Q3 FY'22 FY'23 FY'24 FY'25 Q1 FY'25 Q4 Est. Net Debt ($B) Net Debt / Adj. EBTIDA* +$500 million of debt paydown since Q4 FY’22 7 FOR INTERNAL USE ONLY –
Slide 8: Outlook
Outlook + Fiscal 2025 & Q2
Slide 9: Raising FY25 organic sales guidance & holding other key metrics
Raising FY25 organic sales guidance & holding other key metrics Prior FY’25 Outlook Updated FY’25 Outlook (Provided Nov. 2024) (Provided Feb. 2025) Reported Net Sales +1% to +2% +1% to +2% Organic Net Sales +1% to +2% +2% to +3% Adjusted Gross Margin* +50bps No Change Adjusted EPS* $3.45 - $3.65 No
Slide 10: Providing Q2 Guidance
Providing Q2 Guidance Q2’25 OUTLOOK (Provided Feb. 2025) Reported Net Sales Flat to +1% Organic Net Sales +2% to +3% Adjusted Gross Margin* ~Flat Adjusted EPS* $0.60 - $0.70 10 All FORcomparisons for FY’25 INTERNAL USE ONLYOutlook are to – DO NOT Fiscal 2024 comparable reported results. DISTRIBUTE *
Slide 11: Appendix Materials: Non-GAAP Reconciliations
Appendix Materials: Non-GAAP Reconciliations 11
Slide 12: 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 hyperinflationary markets and impact of currency from the changes in foreign currency exchange rates as defined below: •
Slide 13: 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, and acquisition and integration. 13
Slide 14: 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 15: 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. 15
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA - December 31, 2024
Non-GAAP Reconciliation: Adjusted EBITDA - December 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
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA - Fiscal 2024 and 2023
Non-GAAP Reconciliation: Adjusted EBITDA - Fiscal 2024 and 2023 (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 restructur
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA - Fiscal 2022
Non-GAAP Reconciliation: Adjusted EBITDA - Fiscal 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 the costs related to restructuring, acqu
Slide 19: 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 20: 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, September 30, 2022, 2023, and 2024,
Slide 21: Non-GAAP Reconciliation: FY 2025 Outlook
Non-GAAP Reconciliation: FY 2025 Outlook (in millions – except per share data) 21
Slide 22: Bone Yard
Bone Yard 22
Slide 23: Non-GAAP Reconciliation: Segment Profit – Quarters ended December 31, 2024 & 2023
Non-GAAP Reconciliation: Segment Profit – Quarters ended December 31, 2024 & 2023 (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
Slide 24: Non-GAAP Reconciliation: Segment Profit – Fiscal years 2020 through 2024
Non-GAAP Reconciliation: Segment Profit – Fiscal years 2020 through 2024 (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 s
Slide 25: Non-GAAP Reconciliation: Segment Profit continued
Non-GAAP Reconciliation: Segment Profit continued (in millions) 25
Slide 26: 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 Q1 FY 2025 (Ended June (Ended Dec 2022) $486 2024) $965 $770 $67 $284 $217 $217 $200 $200 Q3'22 Ending (+) Operating (-) Capex (-) Dividends (-) Debt (-) Other Q4'24 Ending Cash
Slide 27: Battery & Light Segment profit
Battery & Light Segment profit Battery & Light Segment Profit Dollars and Segment Profit % $600.0 $553.6 $553.6 $551.5 $554.8 $550.0 $541.7 $500.0 25.0% $450.0 23.0% 23.5% 24.6% 23.8% 22.8% $400.0 $350.0 $300.0 10.0% FY'21 FY'22 FY'23 FY'24 FY'25 Q1 TTM Segment Profit Dollars ($ in millions) Segment
Slide 28: Auto Care business profitability continues and now above pre-pandemic levels
Auto Care business profitability continues and now above pre-pandemic levels Auto Segment Profit of 17.1% of Net sales with continued expansion expected Auto Net Sales & Segment Profit % 30.0% $640.0 $627.5 $628.0 $618.7 $622.8 25.0% $620.0 $614.8 $600.0 20.0% $580.0 17.1% 15.0% 15.9% 15.0% $560.0 1
Slide 29: 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 29 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 30: Driving 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 30 GAAP FOR INTERNAL 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 31: Results met or exceeded Q1 outlook
Results met or exceeded Q1 outlook Q1 OUTLOOK Q1 ACTUAL (Provided Nov. 2024) (Reported Feb. 2024) Organic Net Sales* +2% to +3% 3.8%(1) Adjusted Gross Margin* +50 to +100 bps +50 bps(2) Adjusted EPS* $0.60 - $0.65 $0.67(4) Debt Paydown $25M 1. Reported Net Sales (2.5%) All comparisons for FY'25 Actu
Slide 32: Maintaining FY 2025 Outlook
Maintaining FY 2025 Outlook Organic Net Sales +1% to +2% Adjusted Gross Margin* +50 bps Adjusted EBITDA* $625M - $645M Adjusted EPS* $3.45 - $3.65 Free Cash Flow % Sales 8% - 10% Debt Paydown $150M - $200M Net Leverage ~4.5x All comparisons are to Fiscal 2024 comparable reported results. * See non-G
Slide 33: 2025 Q1 Highlights
Continuing to deliver on ENR top financial objectives and strategic priorities 1. Organic Net sales* growth of +3.8% 2025 Q1 2. Adjusted Gross Margin* improvement drove strong Adjusted Earnings Per Share* growth Highlights Adj EPS growth 1. Reduced Net Leverage* to 4.7x 33 *FOR SeeINTERNAL non-GAAPU
Slide 34: Maintaining FY 2025 Outlook & Providing Q2 Guidance
Maintaining FY 2025 Outlook & Providing Q2 Guidance +1% to +2% Organic Net Sales (Q2: +2% to +3%) Adjusted Gross Margin* +50 bps (Q2: flat) Adjusted EBITDA* $625M - $645M Adjusted EPS* $3.45 - $3.65 (Q2: $0.65 - $0.70) Free Cash Flow % Sales 8% - 10% Debt Paydown $150M - $200M Net Leverage ~4.5x All
Slide 35: Raising FY25 organic sales guidance & holding other key metrics
Raising FY25 organic sales guidance & holding other key metrics Old FY’25 OUTLOOK New FY’25 Outlook (Provided Nov. 2024) (Provided Feb. 2025) Organic Net Sales* +1% to +2% +2% to +3% Adjusted Gross Margin* +50 to + 100 bps No Change Adjusted EPS* $3.45 - $3.65 No Change Adjusted EBITDA* $625M - $645
Slide 36: Who We Are
Who We Are Energizer is a global household products leader leveraging its reach, scale and leading brands to deliver stable growth, top-tier cash flow, and long-term value creation Our purpose We responsibly create household products to make lives better 36
Slide 37: Top Line Organic Growth above Guidance
Top Line Organic Growth above Guidance Net Sales of $731.7M, up 2.1% Organic Revenue +3.8% Driven by: $805.7 +5.1% of volume growth -1.9% of strategic pricing and $731.7 promotion $716.6 $701.4 $663.3 Battery: +5.1% Organic growth driven by increased distribution and increased hurricane volume Auto:
Slide 38: Financial results met or exceeded outlook
Financial results met or exceeded outlook Q1’25 ACTUAL (Reported Feb. 2025) • Net sales of $731.7M, +2.1% reported Net Sales* +3.8% (1) • Battery Net sales +2.4% reported, +4% organic • Auto Net sales +0.5% reported, +2.1% organic Adjusted Gross Margin* +50 bps (2) • Adjusted Gross Margin was 40% Ad
Slide 39: Continued Margin Expansion moving back to Pre-Pandemic Levels
Continued Margin Expansion moving back to Pre- Pandemic Levels Adjusted Gross Margin of 40%, +50bps Driven by: 42.2% + $16 million of Project 41.5% Momentum savings & improvement 40.5% product costs across key materials. 40.0% - Offset by strategic pricing and 39.5% promotion along with unfavorable
Slide 40: Strong execution leading to Bottom Line growth
Strong execution leading to Bottom Line growth Adjusted EPS of $0.67, +13.8% $1.22 Driven by: + Increased Organic sales, Project Momentum savings, and lower interest expense - Offset by higher SG&A and A&P $0.79 spend, and unfavorable currency $0.72 movements due to the strengthening $0.67 $0.59 of
Slide 41: Continued debt & leverage reduction
Continued debt & leverage reduction $3.5 Net Debt & Leverage 7.0x Capital Structure Highlights: + Net debt of $3,132.0B 6.1x + Cash balance of $195.5M $3.0 5.8x 6.0x + Net Leverage ratio of 4.7x + 95% Fixed / 5% Float 5.2x + 4.5% all in rate 4.9x + $600 million fixed rate swap at $2.5 4.7x 5.0x 1.04
Slide 42: Brands
A LEADING PORTFOLIO INCLUDING #1 & #2 BRANDS THAT COMPETE ACROSS MANY CONSUMER SEGMENTS FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 43: Global footprint, scale and world-class supply chain
Global footprint, scale and world-class supply chain AVAILABILITY REACH EXPERTISE 160+ markets Billions of consumers World-class supply around the world in every day chain and distributor every consumer network 43 channel FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 44: Diversified portfolio with proven topline growth across Batteries & Lights and Auto Care
Diversified portfolio with proven topline growth across Batteries & Lights and Auto Care NET SALES BY CATEGORY GROWTH BY CATEGORY 22% 2024 Auto Care Batteries & Lights Auto Care +4.8% Total Company CAGR $628 $521 Net Sales $2.4B 2024 $2.9B +0.4% +1.3% CAGR CAGR $0.6B $2,224 $2,260 78% FY20 FY24 Batt
Slide 45: Supporting a healthy and growing Battery category
Supporting a healthy and growing Battery category Will not have 2024 num until April GLOBAL CATEGORY VOLUME SALES 20 Billion+ ‘15 – APRIL ‘24 CAGR +1.3% Outlook for category volume is + 25.0 FLAT TO 22.4 22.2 20.5 19.9 20.0 SLIGHTLY 18.4 19.1 19.2 19.1 20.0 18.0 POSITIVE 15.0 GROWTH 10.0 5.0 - Eleva
Slide 46: Global diversification with in-region, for-region manufacturing footprint
Global diversification with in-region, for-region manufacturing footprint NET SALES BY REGION 37% International 2024 $2.4B $0.6B 63% North America 2024 Net Sales ($B) $1.8B $1.1B North America International 46 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE Denotes manufacturing facility
Slide 47: Providing Fiscal '25 Q2 Guidance
Providing Fiscal ’25 Q2 Guidance Organic Net Sales Adjusted Gross Margin Adjusted EPS +1% to +2% +50 to +100bps $x.x - $x.x +$0.06 to $0.06 YOY 47 FOR INTERNAL USE ONLY – DO NOT DISTRIBUTE
Slide 48: Maintaining Fiscal 2025 Outlook
Maintaining Fiscal 2025 Outlook Organic Net Sales Adjusted Gross Margin Adjusted EPS +1% to +2% +50bps $3.45 - $3.65 Vs. $3.32 LY Adjusted EBITDA Debt Paydown Net Leverage $625M - $645M ~ 4.5x $150M - $200M Vs. 4.9x LY Vs. $612.4 LY Free Cash Flow 8% - 10% 48 FOR INTERNAL USE ONLY – DO NOT DISTRIBUT
Slide 49: Fiscal '25 Q1 Key Financial Metrics
Fiscal ‘25 Q1 Key Financial Metrics Organic Sales and Adjusted EPS above guidance provided on Nov.19 & Adjusted Gross Margin in line Organic Net Sales Adjusted Gross Margin Adjusted EPS +3.8% 40% $0.67 +50bps YOY +$0.08 YOY Adjusted EBITDA Debt Paydown Net Leverage $140.7M $25.0M 4.7x Vs. $132.9M LY
Slide 50: Our winning proposition
Our winning proposition Remove 1 2 3 Leading Strong & Profitable brands in consistent global growth solid, growing innovation categories 50
Slide 51: 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 52: Energizer Holdings has leading brands across all categories
Energizer Holdings has leading brands across all categories 1 1 Remove # # Battery in Auto Manufacturer Appearance 1 # 1 in the # growing segment of specialty In batteries Refrigerant Kits # 1 Premium Batteries # 1 Value Batteries
Slide 53: The Battery category is healthy and growing
The Battery category is healthy and growing 20 Remove Billion+ GLOBAL CATEGORY VOLUME ’15 - Apr ’24 CAGR +1.3% 25.0 22.4 22.2 20.5 19.9 20.0 18.4 19.1 19.2 19.1 20.0 18.0 15.0 10.0 5.0 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 Apr-24 Elevated COVID Demand Source: Nielsen Global Track, Profitero
Slide 54: Three macro trends drive the Auto Care category
Three macro trends drive Needthe AutoAuto updated Care category category slide $2.9 Billion+ Remove U.S. AUTO CARE CATEGORY SALES # OF CARS ANNUAL MILES DRIVEN AGE OF CAR Global Vehicle registrations Projected Global CAGR ‘20 – ‘22 US Average .7B Today and +2.0% 11.8 years and Growing Europe Average
Slide 55: Quarterly Debt Paydown
Quarterly Debt Paydown $3,619 $(58) $(56) $62 $3,318 $(103) $(42) $(25) $(78) Q3 22 Debt Q4'22 Q1' 23 Q2'23 Q3'23 Q4'23 Q1'24 *Other Q1 24 Debt Subsequent to Q1'24, Energizer paid off $58M of debt to bring total paydown to over $400M since Q4'22 56 * See non-GAAP reconciliations in the Appendix. *Ot
Slide 56: Increased Momentum savings target by $30M
Increased Momentum savings target by $30M, taking the savings range to $160M -180M- Do not use in Q2 $160 In Run Rate Benefits to anticipated to be achieved by end of FY25 $180 $55M - $65M in FY’24 (unchanged) $50M - $60M in FY’25 MILLION $150 In Working Capital Improvements MILLION $140 One-time Ca
Slide 57: 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 Q4 Slide - delete22.4 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 2
Slide 58: Project Momentum is delivering strong results
Project Momentum is delivering strong results… FY 2023 FY 2024 FY 2025 ~ $50M ~ $90M ~ $40M - $60M $180M - $200M In Run Rate Savings 59
Slide 59: Device ownership and consumption both stable and above pre-pandemic levels
Q4 Slide 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,
Slide 60: Battery Category Volume & Value – Rolling 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% 0% Q4 Slide - delete Hurricane Ian September '22 -5% -10% -15% Dollar Sales % Chg vs YA Volume Sales
Slide 61: Progress restoring the 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 62: 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 63: We have made significant progress over the last eight quarters
We have made significant progress over the last eight quarters- Updated 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 Adjuste
Slide 64: Private label value share change
Private SlideLabel TBD Battery – need share is above to clarify Total Store and PLV performance Rising in the Q Private Label Value Share Change Total US MULC Total Store Batteries 3.0 2.5 2.1 2.0 1.5 1.0 0.8 0.5 0.5 0.4 0.0 -0.5 -1.0 -1.5 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022
Slide 65: Key Metrics – Fourth Quarter 2024
Key Metrics – Fourth Quarter 2024 Flat organic growth Fourth Quarter 2024 • Battery net sales –0.7% reported, flat organic Netnet • Auto Sales* sales -0.6% reported, +0.1% (0.7%) organic Adjusted Gross Margin* 1% Adjusted gross margin was 42.2%(1), up 220 basis points from the prior year Adjusted EP
Slide 66: Updating Fiscal 2024 Outlook
Key Metrics&– guidance Format Updating Fiscal TBD 2024 Outlook METRIC Prior FY'24 Outlook Current FY'24 Outlook • Organic Net Sales projected to be • Organic Net Sales projected to be Net Sales flat to down low single digits down low single digits • Q4: Organic Net sales of flat to +1% Adjusted Gros
Slide 67: Key Metrics – Third Quarter 2024
Key Metrics – Third Quarter 2024 METRIC Third Quarter 2024 Net sales on a reported basis of $701.4 million, up 0.3% Net Sales* • Organic net sales increase of 1.2% • Auto net sales +2.2% reported, +2.7% organic Adjusted Gross Adjusted gross margin was 41.5%(1), up 270 basis points from the prior yea
Slide 68: Key Metrics – Fourth Quarter 2024
Key Metrics – Fourth Quarter 2024 METRIC Fourth Quarter 2024 Net sales of $805.7 million, -0.7% reported, flat organic Net Sales* • Battery net sales –0.7% reported, flat organic • Auto net sales -0.6% reported, +0.1% organic Adjusted Gross Adjusted gross margin was 42.2%(1), up 220 basis points fro
Slide 69: Financial Results Fourth Quarter 2024
Financial + Results Fourth Quarter 2024
Slide 70: Key Metrics – Full Year 2024
Key Metrics – Full Year 2024 METRIC Full Fiscal Year 2024 Full Year Net sales on a reported basis of $2,887 million, down 2.5% Net Sales* • Organic net sales down 2.2% due to earlier holiday orders compared to prior year and strategic pricing and promotional investment Adjusted Gross Adjusted Gross
Slide 71: Progress delivering against strategic priorities over the last nine quarters
We have made significant progress delivering against our strategic priorities over the last nine 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 FL
Slide 72: Auto Care
Auto Care +
Slide 73: Key Metrics – Fiscal 2025 & Q1'25 Outlook
Key Metrics – Fiscal 2025 & Q1'25 Outlook METRIC Fiscal 2025 & Q1'25 Outlook Net Sales Organic net sales projected up 1-2% • Q1 organic net sales projected to be up 1-2% Adjusted gross margin of 50 basis point improvement Adjusted Gross Margin* • Q1 improvement of roughly 100 basis points versus pri