#United States #St. Louis #Energizer Holdings #Auto Care #Battery Lights

Energizer Holdings Reports Positive Financial Results for Q2 FY2025

On May 6, 2025, Energizer Holdings, Inc. (NYSE: ENR) announced its financial results for the second fiscal quarter of 2025, ending on March 31, 2025. The company reported net sales of $662.9 million, a slight decrease from $663.3 million in the previous year. However, despite this marginal decline, Energizer has experienced organic growth of 1.4%, helping to counteract the 1.7% negative impact from foreign currency fluctuations.

Mark LaVigne, the CEO of Energizer, expressed pride in the company’s quarterly performance. He noted that the strategic investments made by the company have played a significant role in maintaining momentum in their sales and operational flexibility. This is evident as the company achieved its fourth consecutive quarter of organic sales growth and expanded its adjusted gross margins, reaching 40.8%.

Key Highlights

• - Net Earnings: For the quarter, Energizer recorded net earnings of $28.3 million, equivalent to $0.39 per diluted share. In comparison, net earnings for the same quarter last year stood at $32.4 million or $0.45 per share.
• - Adjusted Earnings: The adjusted earnings per share were recorded at $0.67, close to the upper limit of the company's predictions.
• - Sales Dynamics: The organic sales growth primarily stemmed from an increase in the battery lights segment, where distribution expansions drove a volume growth of about 1.9%. Conversely, the auto care segment reported flat volumes due to timing shifts in refrigerant sales, which have been moved to the next quarter, offsetting some of the sales gains from new distribution and innovations.
• - Gross Margin Improvement: Gross margins have improved, with a reported gross margin of 39.1% for the quarter, up from 38.2% the previous year. The adjusted gross margin reached 40.8%, reflecting the benefits from the Project Momentum initiatives, with cost savings of approximately $16 million achieved in the quarter.

Financial Outlook

Looking forward, Energizer anticipates a more cautious consumer landscape for the remainder of 2025. As a result, the company is projecting its full fiscal year net sales to be flat to an increase of up to 2%. Adjusted EBITDA is expected to range between $610 million and $630 million for the year, while adjusted earnings per share predictions are set between $3.30 and $3.50.

LaVigne cautioned that while there are challenges ahead, the company's strategic investments should continue to foster long-term growth and value creation.

Operational Efficiency

The company's selling, general and administrative expenses (SGA) increased to $124.5 million for the quarter, a jump from $113.9 million a year ago, primarily driven by investments in digital growth and transformation initiatives. Energizer successfully maintained its advertising and promotion expenses at 3.1% of net sales, a slight decrease from the previous year, indicating a more disciplined approach to advertising.

Conclusion

In summary, while Energizer faces external pressures from currency fluctuations and a cautious outlook from consumers, the company’s strategic maneuvers, investment in growth initiatives, and consistent performance in organic sales reflect its resilience in the competitive consumer market. Energizer will continue to focus on its core product segments, ensuring that it meets consumer demands while adapting to the evolving economic landscape.