Sales Rise at Energizer

Energizer today said its personal care sales for the fourth quarter rose 12% to $503.0 million. The most significant driver of the increase in sales was the shave preparation acquisition, which added $57 million for the quarter. This was partially offset by unfavorable currency, which negatively impacted the quarter by approximately $11 million.

Excluding the impact of the shave preparation acquisition and unfavorable currency, net sales increased 2%. Wet Shave net sales, excluding the acquisition, were essentially flat as increased sales of Quattro for Women Trimmer razors and Quattro for Women replacement blades were offset by a decline in legacy system products. Skin Care sales increased 9% due to higher shipments of Wet Ones. Infant Care sales increased 8% due to growth in Diaper Genie, Cups and reusable bottles. Finally, Feminine Care sales decreased 5% as the continued strong sales growth of Sport, was more than offset by lower sales of Gentle Glide.

Segment profit for the quarter fell 12% to $61.0 million. Excluding the impact of unfavorable currency of approximately $3 million, segment profit decreased $5 million, including a $4.5 million favorable impact of the shave preparation acquisition in the quarter. The decrease was due primarily to a write-down of sun care inventory due to an upcoming packaging restage and higher product costs. Lower A & P and lower overhead costs, including incremental Playtex synergies, partially offset these negative impacts.

For the year, sales rose 2% to $1,890.3 million. Excluding the impact of unfavorable currency, sales increased $113.6 million, or 6%, due to the shave preparation acquisition, which added $57 million, or 3%, and higher sales of Wet Shave, Infant Care and Skin Care products partially offset by lower sales of Feminine Care.

Wet Shave sales increased 3%, excluding the acquisition, driven by the launch of Quattro for Women Trimmer in the second quarter, and higher disposable and Quattro men’s systems sales, partially offset by ongoing declines in legacy system products. Infant Care sales increased 7% due to Diaper Genie, cups and soothing products. Skin Care sales increased 4% on higher sales of Wet Ones and sun care in international markets. Feminine Care sales decreased 2% as higher sales of Sport were offset by lower sales of Gentle Glide, due, in part, to increased competitive activity.

Segment profit for the fiscal year was $341.1 million, an increase of $18.6 million or 6%. Excluding currency, segment profit grew $39 million or 12% due to incremental synergies, lower A&P, and the inclusion of the shave preparation acquisition, which added $4.5 million, partially offset by higher product costs and unfavorable product mix.