Energizer Tops Expectations on Stronger Sales

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 [e-mail]

(END) Dow Jones Newswires

February 03, 2016 07:05 ET (12:05 GMT)

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