Energizer Tops Expectations on Stronger Sales
February 03 2016 - 7:20AM
Dow Jones News
Energizer Holdings said Wednesday that its earnings and revenue
increased in the latest quarter on stronger sales growth and
increased prices.
The results topped Wall Street expectations.
"We increased distribution and implemented price increases in
several markets while continuing to closely manage costs," Chief
Executive Alan Hoskins said. "In addition, the battery category
continues to show signs of stabilization and a favorable mix shift
to premium, performance and specialty products."
Energizer in July split from the newly named Edgewell Personal
Care Co., a move to separate its struggling battery business from
the better-performing Schick razors and other personal-care
brands.
As consumers shift to smartphones and other devices with built
in and rechargeable batteries, disposable batteries have been
largely displaced.
For the quarter ended Dec. 31, the St. Louis company said
organic net sales increased by 9.5%, reflecting growth across all
of its geographic segments and offsetting unfavorable currency
impacts that shaved 6.7% off the sales. Changes in Venezuela
results, due to the deconsolidation, also weighed results.
The battery and portable lighting company said it now expects to
be at the upper end of its previously issued adjusted per-share
earnings guidance range of $1.90 to $2.10. It also now anticipates
net sales of flat to up low-single digits. It had previously
projected sales to decline by $50 million to $60 million, or 3% to
4%.
Spin off and restructuring related charges were $6.9 million in
period.
Over all for the period, the company posted a profit of $65.5
million, or $1.05 a share, up from $61.7 million, or 99 cents a
share, in the prior first quarter. Excluding certain items,
adjusted earnings were $1.16 a share, up from $1.14 a year
earlier.
Revenue edged up 1.1% to $506.8 million.
Analysts surveyed by Thomson Reuters forecast earnings of 70
cents on $461 million in revenue.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
February 03, 2016 07:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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