Q4 2024 Energizer Holdings Inc Earnings Call Transcript
Key Points
- Energizer Holdings Inc (ENR) achieved organic net sales within their originally guided range, supported by strong second-half momentum.
- The company improved adjusted gross margins by 190 basis points, reaching 42.2% in the fourth quarter.
- Energizer Holdings Inc (ENR) generated free cash flow of nearly $340 million, allowing for a $200 million debt reduction.
- The company is expanding its distribution footprint and accelerating growth in e-commerce, with a 15% increase in e-commerce sales in fiscal 2024.
- Energizer Holdings Inc (ENR) introduced innovative products, such as the Armor All Podium Series and the world's first three-in-one coin lithium Child Shield battery, enhancing their market position.
- Organic net sales declined by 2.2% for the full year, primarily due to timing of holiday orders and planned pricing and promotional spend.
- Adjusted SG&A expenses increased due to higher digital transformation costs, travel expenses, and wages.
- The company faces headwinds from pricing, with a 100 basis point impact expected in fiscal 2025.
- Energizer Holdings Inc (ENR) continues to carry a high leverage ratio, ending fiscal 2024 with a net leverage ratio of 4.9 times.
- The company anticipates foreign exchange headwinds, with a projected impact of 100 to 150 basis points on top-line growth in the first quarter of fiscal 2025.
Good morning, ladies and gentlemen, and welcome to the Energizer Holdings Inc. fourth-quarter and FY 2024 results conference call. (Operator Instructions) This call is being recorded on Tuesday, November 19, 2024. I would now like to turn the conference over to Jon Poldan, Vice President, Treasurer and Investor Relations. You may begin.
Good morning, and welcome to Energizer's fourth-quarter and fiscal 2024 conference call. Joining me today are Mark LaVigne, President and Chief Executive Officer; and John Drabik, Executive Vice President and Chief Financial Officer. A replay of this call will be available on the Investor Relations section of our website, energizerholdings.com. In addition, a slide deck providing detailed financial results for the quarter is also posted on our website. During the call, we will make forward-looking statements about the company's future business and financial performance, among other matters.
These statements are based on management's current expectations and
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