Energizer Holdings, Inc. (NYSE: ENR) announced preliminary results for its second fiscal quarter of 2020 ended March 31, 2020. The Company expects to report net sales of approximately $587 million, compared to $556 million in the prior year, driven in part by organic sales growth of approximately 2.7 percent, and adjusted EBITDA in the range of $120 to $125 million, compared to $101 million. These results reflect strong battery category growth in the month of March driven in part by strong consumer demand associated with the global COVID-19 outbreak.
“While our business continues to sustain high operating levels during the unprecedented environment brought about by COVID-19, we are taking the prudent steps to strengthen our financial liquidity to weather any potential uncertainties that may lie ahead,” said Alan Hoskins, Chief Executive Officer. “During these challenging times, Energizer continues to operate with two enduring principles – ensuring the health and safety of our colleagues and providing our customers and consumers with essential products when they need them most. We remain well-positioned because of the tremendous efforts by our colleagues to collectively deliver on these guiding principles.”
Business Performance
On a preliminary basis, Energizer expects fiscal second quarter net sales to be approximately $587 million, with organic sales growth of approximately 2.7 percent, and adjusted EBITDA of $120 to $125 million. The company has been able to operate effectively thus far in the environment relating to the COVID-19 pandemic and continues to move forward with its integration efforts for the acquired battery and auto care businesses, with expected synergy realization remaining unchanged. However, due to the uncertainties in this rapidly changing environment, including the possible impact of the pandemic on the global economy and consumer demand, Energizer is withdrawing its previously disclosed full year outlook.
The company will provide more details on May 7, 2020, with the release of its second quarter fiscal 2020 results before the market opens. Alan Hoskins, Chief Executive Officer, Mark LaVigne, President and Chief Operating Officer, and Tim Gorman, Chief Financial Officer, will host a conference call on the same day at 10 am EDT.
Energizer’s Response to COVID-19
Energizer’s top priorities are the safety and health of colleagues and maintaining business continuity to meet the needs of its customers and consumers. Given the criticality of Energizer’s products to the medical community and general preparedness needs, Energizer colleagues have worked diligently to support the integrity of the company’s supply chain in order to keep its global manufacturing footprint and network of suppliers operating effectively to serve the needs of customers and consumers.
In order to operate in the safest manner possible, the company is working closely with the appropriate public health officials to follow stated health and safety guidelines in the cities and countries where Energizer operates. All of the company’s manufacturing, distribution, and other facilities are operating under these guidelines while maintaining global fill rates above 90 percent throughout this crisis.
To increase its liquidity position in the event future developments related to the COVID-19 pandemic negatively impact business operations and working capital, the Company has fully drawn its Revolving Credit Facility, resulting in current cash and cash equivalents held globally of approximately $484 million.
About Energizer:
Energizer Holdings, Inc., headquartered in St. Louis, Missouri, is one of the world’s largest manufacturers and distributors of primary batteries, portable lights, and auto care appearance, performance, refrigerant, and fragrance products. Our portfolio of globally recognized brands include Energizer®, Armor All®, Eveready®, Rayovac®, STP®, Varta®, A/C Pro®, Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL®, Eagle One®, Nu Finish®, Scratch Doctor®, and Tuff Stuff®.
