By Rob Curran

Intro

Energizer Holdings, a leading manufacturer of batteries, flashlights, and other consumer products, reported a decline in net income for the fiscal first quarter. The company attributes this decrease to a shift in consumer behavior, as more people purchased batteries ahead of the holiday season. Despite these challenges, Energizer remains confident in its projections for the current fiscal year, anticipating either stagnant or shrinking sales.

Q1 Earnings

In the fourth quarter, Energizer posted earnings of $1.9 million, or 3 cents per share, compared to $49 million, or 68 cents per share, for the same period last year. Adjusted earnings for the first quarter came in at 59 cents per share, slightly exceeding the average analyst target of 57 cents per share.

Sales Performance

First-quarter sales declined by 6.3% to $716.6 million, with analysts expecting $711 million. The drop in organic sales, which exclude the impact of foreign exchange and acquisitions, was even more pronounced at 7.4%. This decrease reflects the shift in holiday spending habits, as well as stable pricing among other factors.

Projections for Q2 and Beyond

Energizer projects adjusted earnings for the second quarter to fall between 65 cents and 70 cents per share, with organic revenue expected to decline by 2% to 3% compared to the previous year. For the fiscal year ending in September, Energizer maintains its forecast of adjusted earnings between $3.10 and $3.30 per share, while organic revenue is anticipated to remain flat or decrease by a low-single digit percentage compared to fiscal 2023.

Cost Savings

Under its Project Momentum program, Energizer expects cost savings between $160 million and $180 million, an increase from the previous estimate of $130 million to $150 million. It is projected that between $55 million and $65 million of these savings will be realized during the current fiscal year.

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