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Energizer Announces Its Financial Results for Quarter Ending March 31, 2014
Posted: April 30, 2014
Energizer Holdings, Inc. announced results for the second fiscal quarter, which ended March 31, 2014. The company reported net earnings per diluted share of $1.57, an increase of 16.3% and adjusted net earnings per diluted share of $1.88, up 4.4%, compared to the prior year second fiscal quarter. Net sales were $1.06 billion, down 3.1% from fiscal second quarter 2013 (down 6.1% on an organic basis).
"Second quarter adjusted net earnings per diluted share were in line with our expectations as we continue to make excellent progress with our cost savings initiatives," said Ward M. Klein, CEO, Energizer Holdings. "Our focus on cost optimization has provided the financial flexibility needed to offset top-line challenges, increased competitive pressures and continued currency headwinds. We expect that top-line performance will improve in the second half for our personal care division behind strong execution of our innovation plans and anticipated improved category performance. Although the top line will remain challenging for household products, we believe that continued focus on cost optimization, cash flow generation and sustained investments in support of our brands will help position the business for future success. We have maintained our adjusted earnings per share outlook of $7.00 to $7.25.”
Energizer reported second fiscal quarter net earnings of $98.5 million, or $1.57 per diluted share. This compares to net earnings of $84.9 million, or $1.35 per diluted share in the prior year quarter. Second fiscal quarter results reflect the continued benefit of cost savings from the 2013 restructuring project, strong margin performance across both segments, the favorable impact of incremental segment profit from the recently acquired feminine care brands and lower advertising and promotion spending. The favorable impacts of these items were able to offset the anticipated net sales shortfall within the household products segment, lower sales within the personal care segment, and the unfavorable impact of currencies.
For the personal care division, net sales were $689 million, up 5.6% compared to fiscal second quarter 2013 (organic net sales decreased -1.6%). Segment profit was $170.7 million, up 25.1%, or up 20.6% excluding currencies and the incremental impact of the feminine care acquisition, and incremental net sales and segment profit from the feminine care acquisition totaled $59.7 million and $15.1 million, respectively, excluding the acquisition inventory valuation adjustment and acquisition/integration costs. Organic net sales in the second fiscal quarter decreased 1.6% due primarily to continued soft U.S. category trends in the men's razor and blade system, shave preps, and infant care segments, increased competitive pressures and timing of sun care shipments. The company was able to partially offset these category declines through increased pricing, growth within the Hydro franchise and distribution of product innovation within the feminine care business.