Energizer Holdings, Inc. announced results for its third fiscal quarter, which ended June 30, 2014. The company reported adjusted net earnings per diluted share of $1.46, a decrease of 7.0% and net earnings per diluted share of $1.03, a decrease of 25.4%, compared to the prior year third fiscal quarter. Net sales were $1.13 billion, up 1.7% versus the same time period in 2013, but were down 2.8% on an organic basis.
"Third quarter adjusted net earnings per diluted share were in line with our expectations," said Ward M. Klein, CEO of Energizer Holdings. "A&P spending increased significantly in the third quarter, our personal care division achieved top-line growth and this is the last full quarter of cycling through the impact of the distribution losses that the household products division experienced at the end of the last year's third fiscal quarter. In addition, we continue to make excellent progress with our restructuring project and working capital initiative. We believe these results will help us achieve a strong finish to the fiscal year and position both businesses for future success as we work towards separating the businesses in 2015. We are reaffirming our adjusted earnings per share outlook of $7.00 to $7.25.”
Net sales for the third fiscal quarter increased 1.7% primarily driven by incremental sales from the feminine care brand acquisition and organic growth within the personal care segment. These gains were partially offset by the previously disclosed loss of distribution within two U.S. retail customers in the household products segment, unfavorable foreign currency rates, pricing controls and import restrictions in certain Latin American countries and continued soft category dynamics across both segments.
Specifically for the personal care segment, net sales were up 10.6% to $649.5 million, with organic net sales up 1.9%. Segment profit was $112.2 million, up 0.8%. Excluding the impacts of currencies and the incremental benefit from the feminine care acquisition, segment profit was down 3.3% as increased A&P spending offset top-line growth. Organic net sales in the third fiscal quarter increased 1.9% driven by increased sun care sales and growth in women's razor and blade systems. These gains were partially offset by continued soft category performance across many personal care segments and continued competitive pressures.