Energizer Powers Ahead with Strong Q4 Performance
Energizer Holdings Inc. wrapped up its fiscal year 2024 on a high note, showcasing remarkable progress across various fronts. In a conference call held on November 19, 2024, company executives highlighted key achievements and provided a glimpse into the outlook for the new fiscal year.
The hard work and dedication of Energizer teams paid off in 2024, with the company delivering organic net sales within its originally guided range. The second half's top-line momentum boosted performance, while adjusted gross margins improved by an impressive 190 basis points. Additionally, free cash flow reached nearly $340 million, enabling a debt reduction of $200 million and lowering leverage to below 5x.
Mark LaVigne, President and Chief Executive Officer, emphasized the company's strategic top-line growth initiatives as key contributors to its success. "We delivered organic net sales within our originally guided range, bolstered by second half's top line momentum," he said. The CEO also highlighted the improvement in gross margins and earnings, with adjusted gross margins reaching 42.2% in the fourth quarter and nearly 41% for the full fiscal year.
Energizer's cash flow remains healthy, with free cash flow of nearly 12% of net sales. This enabled another $50 million of debt reduction in the quarter and a total of $200 million in the fiscal year. The company is carrying significant momentum into the new fiscal year, with executives expressing confidence in its ability to drive both top and bottom-line growth.
Looking ahead to fiscal 2025, Energizer expects to deliver 1% to 2% organic sales growth across both Batteries and Auto Care categories. Adjusted EBITDA is forecasted to be within the range of $625 million to $645 million, while adjusted earnings are expected to reach between $3.45 and $3.65 per share.
Mark LaVigne also touched on areas where the company expects to drive consistent top-line growth. This includes expanding its distribution footprint with retailers where it does not currently have a presence, as well as accelerating its growth in e-commerce and expanding its presence in developing markets. By investing in these strategic initiatives, Energizer is positioning itself for continued success in the years ahead.
The company's commitment to ongoing margin improvement while driving velocity of its products with customers also reflects its dedication to long-term sustainability. As Energizer continues to power ahead, it remains an exciting player in the industry, and investors can expect significant growth prospects from this market leader."
