Energizer: Fiscal Q4 Earnings Snapshot

Energizer Holdings, Inc. (NYSE: ENR) recently reported its fiscal fourth quarter and full-year 2024 results, providing investors with a snapshot of the company's performance and outlook. The battery and auto care giant delivered solid earnings and adjusted earnings per share (EPS) above its originally guided range, driven by strong organic growth in the back half of the year.

**Key Financial Highlights**

* Net sales for the fourth fiscal quarter were $805.7 million, a 0.7% decrease from the prior year, while full-year net sales were $2,887.0 million, a 2.5% decrease.
* Adjusted gross margin for the full year was 40.9%, up 190 basis points from the prior year, primarily driven by Project Momentum initiatives.
* Operating cash flow for the fiscal year was $429.6 million, and free cash flow was 11.7% of net sales.
* Net leverage was reduced to 4.9 times in fiscal 2024, driven by $200 million of debt pay down and Adjusted EBITDA growth.
* Earnings per share (EPS) for the fiscal year was $0.52, and adjusted EPS was $3.32, an increase of 7% on an adjusted basis.



**Drivers of Growth**

Energizer's organic growth in the back half of the year was driven by several factors, including distribution gains and improved category trends in the Battery & Lights segment, as well as early holiday sales and distribution gains in the Auto Care segment. However, these volume increases were partially offset by pricing declines due to planned strategic pricing and promotional investments.

**Project Momentum Initiatives**

Project Momentum, launched in fiscal 2022, has played a significant role in driving gross margin improvements and enhancing free cash flow. By the end of fiscal 2024, the initiative had unlocked over $50 million in efficiencies, contributing to a 190 basis point increase in adjusted gross margin. Key cost-saving measures implemented under Project Momentum included restructuring costs, network transition and integration costs, and product cost impacts.



**Outlook**

For fiscal 2025, Energizer expects organic revenue growth of 1% to 2% and adjusted EBITDA and adjusted EPS in the ranges of $625 to $645 million and $3.45 to $3.65, respectively. The company is confident in its ability to deliver consistent, ratable growth and continued improvement in operating margins, driven by its strategic foundation and financial position.

Energizer's fiscal Q4 earnings snapshot highlights the company's strong performance and growth prospects. Despite a slight decrease in net sales, the company's adjusted gross margin and free cash flow margins improved significantly, driven by Project Momentum initiatives and strategic pricing. As the company enters fiscal 2025, investors should monitor its progress toward its growth and margin improvement targets, as well as its ability to navigate any potential headwinds in the market.