Strong Personal Care Results Can’t Lift Energizer in Q3

Energizer Holdings Inc. reported that personal care sales increased during its fiscal third quarter, but battery and other product sales dragged down results during the period. Third quarter sales rose 1.7% to $1.1 billion. Net sales of personal care products, including Banana Boat sun care products and Schick shaving cream, rose 10.6% to $718 million and organic net sales increased 1.9%. 

Energizer said last quarter that it plans to separate into two publicly traded companies—one for batteries and other household products, and the other for personal care brands such as Schick razors and Stayfree female hygiene products.

For the nine months, corporate sales fell 2.8% to $3.3 billion.

“Third quarter adjusted net earnings per diluted share were in-line with our expectations,” said Ward M. Klein, Chief Executive Officer.  “A&P spending increased significantly in the third quarter, our Personal Care Division achieved top-line growth and this is the last full quarter of cycling through the impact of the distribution losses that the Household Products Division experienced at the end of the last year's third fiscal quarter.   In addition, we continue to make excellent progress with our Restructuring Project and Working Capital Initiative.  We believe these results will help us achieve a strong finish to the fiscal year and position both businesses for future success as we work towards separating the businesses in 2015.  We are reaffirming our adjusted earnings per share outlook of $7.00 to $7.25,” continued Mr. Klein.

Looking ahead, total company organic net sales are expected to decline in the low- to mid-single digits for the full 2014 fiscal year; quarter four organic net sales are estimated to be flat. More specifically,personal care organic net sales are expected to decline in the low-single digits for the full fiscal year; while quarter four organic net sales are estimated to be flat. Household products organic net sales are expected to decline in the mid- to high-single digits for the full fiscal year; quarter four organic net sales are expected to stabilize after lapping the prior year distribution losses in the U.S.