ENR - Earnings call transcript Q3 2019 | Energizer Holdings, Inc.

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Operator

Good morning. My name is Andrew, and I will be your conference operator today. At this time, I would like to welcome everyone to Energizer's Third Quarter Fiscal Year 2019 Conference Call. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded.

to Investor conference Relations. like Burwitz, to now President, Vice would turn over the Jackie I

You begin may your conference.

Jackie Burwitz

quarter Mark Hoskins, Good joining morning Financial Executive Officer. Alan is Gorman, us. for Operating Officer; Chief With be a replay website, third me via will This and and available on slide this Also morning Chief for Energizerholdings.com. providing results. our Investor details Relations thank and recorded Tim is LaVigne, Chief the available you for being website presentation Officer; additional our section of call are: the

make During events. the such call, about our current for we performance reflect performance. which may future financial plans Any and views statements, operating statements and with future expectations to forward-looking are statements our respect

measures. release issued website. today, on refer of GAAP non-GAAP reconciliation comparable to available also non-GAAP earlier press is measures to shown the our measures financial A which is in financial We

Lighting category markets we data, our industry Comments concerning and in not reasonable. VARTA to be Portable Energizer's and relates internal and VARTA this data discussed Europe, compete on on battery, to using based that adjustments we Information markets. are analysis where relates VARTA estimates these the share include to chargers, comments and believe from power market call Middle business consumer East referencing and Africa portable do regions, the the referencing Business and brand

Investors not the years risk our factors materially These Battery relate our specific cause business. results statements. risks the to other do forward-looking description undertake references in to Care completion differ to our SEC prior for References the business factors fiscal the affecting to update Auto filings forward-looking a and Form Energizer our We the these legacy to and key review actual statements. may of and to from and XX-Q pertain base acquisitions. the years to and/or business quarters should of XX-K,

to the Alan. would call to I over like that, With turn

Alan Hoskins

and Jackie, good Thanks, morning everyone.

we diversified During Energizer on a quarter, great made progress transforming into global the leader. products household

lighting top-line, represents business, been and and Care, that and Our the our we which completion combined operating XX% of stabilizing successful approximately nearing on of strong facility now Dayton focused battery project. are well. In have Auto is

focused by innovation well and brand and combination delivering We of EBITDA plans future flow will businesses drive us on growth. now strong drive are long-term growth. that for these value shareholder building free positions to cash The

battery business, the categories, Our and third our to quarter our brands, of results related strength lighting in on our challenges and refrigerant Care combined integration. weather the the reflect Battery Auto progress robust cost of health strong business, our significant management within and commitment growth our

free look As the our year, deliver businesses integrate flow and continuing to earnings ahead to to we per XXXX adjusted cash balance share, to remain to EBITDA for while invest on build outlook growth. all synergies realized full-year new and of our drive we future the track in momentum

driving and X.X% First strategic excellence our and extended We and of with behind quarter, sales our our in distribution record strong behind the growth consistent growth delivered organic leading innovation, productivity. operating we importantly, legacy pricing gains. track of priorities most in business with

our our by inventory our growth Turning parents in the We're tight All just flexibility. scale customers stronger Auto quarter already the benefits bases weather In brand chain delivered refrigerant trends. that the we've business, in to manufacturing Armor improved to behind declines combined offset year-over-year the of from management in by was seeing broader is that In more acquired the driving supply both business leveraging the Care strategic are the battery year-over-year acquired and than business. core related incremental ever. for are global which the than seen acquisitions, business, portfolio, the wins beginning rationale utilize our

trends negatively U.S. weather was The cool July of in the continued year category the prior across and unseasonably U.S. weather hot most the versus year. in impacted refrigeration current hot prolonged to wet The reversed experience weather unseasonably with as weather

sell-through, season be given able a seeing we we us fiscal is prone share the start impacts. but expect now U.S., weather over up to in to the to year. that more not the our late do are to difference in the strong predominantly refrigerant have Recall business XX% We the making make where

we operating our peak selling our needs you Care and in priority that was to first recall, may Auto season. customers' throughout with As acquisition the the excellence ensure

level hard we a facility As and average ensure the of prioritize well approximately the customer performed thanks Dayton Dayton service expectations to of facility The with our fill met work result, we XX%. to the rates stabilization of team.

insured have attention set top-line of we initiatives. to going Now innovation deliver pipeline reinvigorating drive our clear margin turn we the excellence, operational improvements as we that and growth can execute forward to a

the look we our As Care strength in and long-term ahead, we health Auto brands. confidence category the of of the have

drive us into core the and to efficiencies growth allow business Our future. will in the strategies

game Our simple. is plan

we First, to lead and to supported our long-term connections building brand growth drive smart products. investments innovation with will consumer by

focusing in Second, investing growth will visibility, our create and to fundamentals on categories. as management we brands and distribution execute core our in category such drive value with and in revenue excellence by

our footprint. We will through also drive global incremental distribution growth

reinvestment productivity maximize growth. have future adequate deliver drive will in efficiency business we reduce gains and to to to costs ensure our we finally, And

excellent synergy We integrating and progress, that the synergy minimal we $X with work ahead of million over Dayton, important the quarter in Coupled original with also of several Beyond our target milestones for have businesses have XXXX. on tracking made been quarter to on our the completed achieved benefits tremendous synergy our disruption. we expectations. two in progress able new deliver tremendous

reinvest opportunities and years approximately raising we the into support we to to drive of This business $XXX profitability over drop that activities the by are expect first target $XXX approximately also line promising have deliver those incremental the is and synergy back total that the significant ownership. $XX above in and bottom more Even three brand-building the of the term. target. incremental year addition, to the uncovered to and long In synergies three target innovation is our growth from of we'll would million end million million original up

the primarily be return investments had and brand combined across limited the are those will investments Care innovation focused we on will expect improve where building and our confident on been initial portfolio. significant innovation and Auto business greatly focused We there be branding as the consumer that

plans is our should in that and we what greater these distribution, resulted This leverage most increased if are plan extended which similar, with It operating and our across the our executed proven benefits in share organic enhanced capabilities to and and know we and will are profitable These battery existing to value investments margins retailers than business, separation platform. expansion. importantly after margin familiar drive not confident top-line and expanded growth acquired a well we categories expertise we achieve like same our sound have playbook. growth legacy achieved businesses in increased we

years our for to the our and will business we steady come. organic will synergies, growth with have which significant you foundation delivering behind acquired realized dividend. those to in generate We and businesses, attributes solid the legacy continue to combine When ability reduction a invest value stable enable for newly shareholder meaningful a debt

like integration of on activity the over Mark? the I'd a and the initiatives, turn that, divestiture to our call for an business. VARTA deeper to into update Mark With dive

Mark LaVigne

in Global to the a I'm percent category. a by our point morning specialty performance then with the now the good largest of broader into performance XX.X%. and Energizer’s performance, Starting increased our efforts, our half Rayovac down as with and down Alan, brand. our the everyone. provide a we the tenths declines share portfolio finally and segment by you, review to of our leveraged performance categories This alkaline combined Thank price slightly year up offset going divestiture. batteries. business battery driven our value integration were Energizer first battery growth four category, outperformed alkaline insights the of as was anchored partially business by in status distribution and was and

MAX what category market recent notably outpace the Ultimate the share remain U.S. able actions several Once have and U.S., growth growth We in to again, to and most slowed to we In Energizer category leader Lithium. period. online we overall e-commerce were pricing also compared markets, we the on implement U.S. battery in channel. continues Energizer seen in significantly across saw this

we presence. We early what indication our are do portfolio. By were of to improved expertise, able battery Rayovac’s also combined our we have e-commerce seeing combined with an using significantly online

to continues brand And achieve. the stable. provides including growing online growing months, Rayovac fastest the category well Across example which battery at pricing combined and X%. organizations e-commerce, E-commerce force channels, growth rate of XX%, beyond last promotional the of what the of an the is during environment early the can all three was be

priced We more the have have products. retailer of depth as full seen ads focused declined promotions on

upside addition, back the the the the to actions certain U.S. in half in benefits over driven and months. with of next pricing continue June expected In taken XX quarter markets international have

auto it the related segments weather declines to in category. with by Turning offset category, growth in up nearly was the X% strong those refrigerant

the category value points X.X activity to total refrigerants driven weak by declined segments. sales competitive Our share in other in XX.X% and

and strong share a was refrigerant. significant category the in in discussed, to Alan disproportionately our As business overall headwind weather our due impacts

amount expect in We the rebounded, to have to of start sales late not the July beginning season, do seen shortfall. the up weather given the but and full have hotter we make

Care growth trended category of fragrance in the chemicals the excited of weather about after have price innovation. Auto Pricing with in refrigerant. across and performance other even per and the Auto well six Despite we're respond rates in compete: more opportunities ownership, this Care category Three we than quarter we in healthy four category. to and Energizer positively up and segments all year have the sub-segments promotion and the appearance, the which both months unit impact

a negatively weather have the and we by refrigerant being growing with base. this Even strong segment impacted quarter, the share

these and We our behind iconic growth. drive to invest have future clear brands in categories plans

drive in we further have addition, can the that that the levels XXs. efficiencies service high with In we operating we in Dayton facility know now

focus inventory driving production labor on management. including key continuous and to in improvement efficiencies, will efficiencies we forward, line areas improving Going distribution optimize optimizing driving runs,

drive business our We onto performance; as categories. with from formula. of lead referenced, all we operate we a Moving and come in productivity simple results excellence innovation, Alan with our

innovation. leading with First,

which connect has Our and globally, identity. new rolled shelf refresh packaging Energizer consumers been visual out new on and clear we'll impactful This packaging started through with this visual a up quarter. showing identity

drive for our of expect all products. this We will connection velocity greater

and we significant STP. category, particularly can with now incremental All in feel shortly most innovation battery that we While that as you the brands we efforts Those in like our greater iconic opportunity underway and with are after we we mentioned pipeline, have these ideas infuse transaction, can the even are the Care. innovation announced familiar into we Auto leverage Armor

much have to will on calls. on that We more come future

Second, excellence. operating with

operational excellence to batteries in second none. is Our

deep category execution enable maximize make Our expertise, retailers. do, operational chain expanded a supply Combining truly few us Rayovac the for the things category to expectations. to in-store next of assets customer's efficiencies partner with exceed to and which the even platforms will the are our of the choice we just take that footprint better U.S. our level. in With or can an we us meet excellence

expertise Auto service turn capabilities acquired which of Now didn't been in beginning These the on all already have are achieved scaled while operational where the improvements that toward operating we were we significant laser do. we U.S.-based can The manufacturing Dayton what have we focused facility staying levels. improvements accomplished Care just before. can

exit to will Looking Dayton enhance engaging series peak improvement a the ahead in exercises began to facility efficiency we continuous season, XXXX XXXX. of and the as the of be we in

basis gross our integration year-over-year a greatest is expect on the the margin to We of finally for several healthy And next through our next couple drive years. productivity opportunity years over efforts. expansion

in mentioned, are be synergies of million, to expected profit year end the Alan ownership. $XXX run will realized by our which operating updating the As third rate approximately we fully of

which to to are of Separately, additional reinvest synergies those our of is excess support believe amounts building and we in and brand in expect intention have we activities. innovation million $XX

which growth synergies, reinvested and degree We confidence these profitability when high over long-term. have to in a the of drive achieving

and exit rate of we run all to with will continue expect year ahead the push original opportunities. any to the synergy plan We our uncover organization and savings to

minimizing and in we will credit they focused over customer well have we mentioned operate the to able that customer close, stability any the since teams a any businesses first disruption, the expected. the As It have delivering disruption. synergies and excellence we to with been is on the remain all minimize

opportunities have will impact The teams of by and identified our cross leveraging With our of and the leading combined and implemented with numerous innovation with the operating Energizer selling portfolios. sales excellence, deliver more. forces Rayovac power

upside of multi-brand in global value brand leveraging our with Over Rayovac strategy part markets. the premium brand in as significant Energizer our our conjunction long-term, see we across our

leverage the of really been we retailers. or the us. vote Rayovac, team resonates bring In Auto have what this brand in will Care at Energizer, category provides clear confidence can that between consumers our the recently As previously, market discussed like we to most VARTA. for A combined each optionality Eveready, with captaincies space. We we additional awarded major have this

Turning integration activities. to core

Our integration from program planning execution. now has and stabilization shifted to

minimal firm both two have way, These and we us Recently, we were all remaining milestones three on which of with transition costs. growth. which system all to synergies very and systems integrate the are we first across together in a agreements smoothly. reduce plans steps future We integration stream. updated place went These integrations allow will eventually to completed captures will completed and today service on disruption remain in work integration successfully track exit businesses major the drive that

And announced briefly to battery $XXX an on business process agreement VARTA the May VARTA the the based divestiture for business. Europe consumer sell we In of million. late

regulatory now the by close transaction approval expectation the to of calendar year. end is Our the receive and

all Looking opportunities attractive portfolio ahead, we leading the drive to in growth we across of expanded integrations have brands. believe and our to performance improved place execute with seamless that pieces

turn Tim. that, With it will I to over

Tim Gorman

free flow to are Thanks, share. morning cash shareholders. XXXX, for for free delivering we the and for everyone. earnings adjusted and flow value outlook EBITDA, our organization, us for primary per on deliver Mark, enable and In EBITDA our focus good cash are and our

strong benefited expect on acceleration balance focus we relentless of us the it continue over Our cost the and and management year. synergies the the in will of quarter

to million, $XXX and adjusted We EBITDA metrics of million, the free $X.XX adjusted in are $XXX to EPS million range be $XXX to of for in flow the Adjusted for $X. and reconfirming our $XXX be range XXXX. the following outlook between million cash to

XXXX and both Energizer. transformative the is year transitional for

transactions As two transformative we close in January.

point year. at this Here takeaways key in are the the

are and levels increased in core Our progressing business, in Acquired improving. are It and business the Auto the was important accelerating business Auto operations to call growing we high-XXs. battery Dayton challenged experienced is stabilized Care our out smoothly. integration Synergy is is and Care with which and service strong in growing. softness is that expectations also sustained weather competition.

approximately negatively full-year to for We Care million. expect expectation $XX this by Auto impact sales our

As you Auto priority first Care, stabilize Dayton recall in our was to the facility.

can With the activities. operational incremental direct in to performance brand improved building and and customer service levels our innovation high now we investing attention

We are six acquisition. of period our rationalization through a seeing and cost beginning value in of meaningful recent from creation now three-year months already the we're

just earlier, full-year double we expect already end which three estimates and combined is had synergies to approximately of the $XXX quarter, this than million Behind operational the of Mark million our the beginning. first By results. will discussed delivered over we we be efficiencies line are and in the $X bottom work in to Alan more years our third synergy significant overall realized ownership, first business and for synergies the the ownership, now on that across benefit done projecting of

was the through our walk let's Starting results, with website; for the posted detail in to and more current of updated our third million EBITDA quarter results the third XXXX quarter $XXX the detailed. slides increasing year-to-date. adjusted the results on on outlook. $XXX We've quarter provide Now greater also for million

from $X.XXcompared increased prior second the Our per continuing Adjusted year $X.XX adjusted to third operations to quarter. million quarter free earnings million from cash flow $XX was $XXX year-to-date. the share in

share change of earnings negatively on refrigerant PRO by between $X.XX offset part business, lower impacted additional synergies to an we're operations The and A/C impact. reduced allocation our able reflecting efficiencies to $X.XX and discontinued the per cost weather due evaluation. and operations which was in current Improved was a these by partially affects quarter the continuing interest

$XXX for the the inclusive basis sales on Net by million, quarter was the acquired contributed businesses. a reported $XXX million up net sales of

and organic which battery gains, primarily currency than X.X% pricing our $X.X as X.X%. million the or distribution action offset business result more Importantly, of in reflecting were up headwinds a sales strength of the

sales net and segment, and X%. XX% international, net net million, The including sales activity at by $XXX both reflected to In pricing increased net up in growth distribution quickly the geographic sales up XX% Americas was gains. sales of organic by sales organic Looking to $XXX growth increased increased sales growth X.X%. of million, organic driven segments

quarter We third for improvements XX% in business in gross negative legacy rate margin margin rate lower currency. businesses. the profile largely acquired Our driven adjusted see our the excluding margin adjusted by for of the did the was gross impacts the

and included the point improvement was XX.X% acquisition the costs business. year from XXX prior in which excluding integration legacy sales, of SG&A net our basis

efficiencies continue across to cost combined businesses. and synergies drive We our the

expect Moving synergies we favorability realize as in additional SG&A acquisitions. forward we continue to from the

businesses. the into year. anniversary million, space unfavorable improvement also representing prior shelf trend by of sales a changes business currency we sequential acquired headwinds. The $XXX in in its was contributed turning as acquired Now net quarterly quarter The battery impacted current the

expect activities. net fourth compared in to to turn upcoming battery display year slightly quarter the the sales We positive prior due increased to

to and was where $XXX Acquired weather business million private in in million weather, experienced performance we and declines for share chemicals were Quantifying and results losses. do $XX $XX refrigerant approximately from Auto large private in exit. in the was negatively due exited the the unprofitable part from in negative contributed impacts quarter. business million related impacted label the net of The quarter the our Care label sales refrigerant performance business

not full the the do due over up we weather, to year In season. weather arrived, to the improving balance warmer now of of trends difference the shortened expect are but has terms that make

shareholder remain capital strategy a deliver our by fueled generation balanced through overall combined free our confident strong our allocation we value allocation, As flow approach we from to and will look capital businesses. at cash

businesses continue building of timing the During Pay closing. innovation to to the the and our achieve in of a and in the debt reflecting by brand activities. X.X million leverage VARTA of we first $XX end quarter net ratio times remain XXXX on the through invest down track quarter

quarterly preferred X and offset of repurchased at $X we shares million million million to $XX dividend $XX paid dilution. of common and approximately also We our dividend million,

manage from appropriate prudently which in Energizer the We are sheet, with competent of balance provides our can business. which base we strength the our

Lastly, to and outlook updated I our like would for XXXX XXXX. turn to

we in outlook to our from adjusted for year, predict the share earnings outlook operations, flow. incremental from are outlook per which current our be difficult would and over This is free and year. reaffirming any not activity First XXXX, benefit of continuing storm the the balance cash EBITDA for assume to does

the improve our ability our the acquired acquired Due challenges of impact the full-year losses businesses the across Auto in opportunities in outlook due Care and challenge and to cost, confident part declines in efficiencies Auto business, headwinds, team's acquired the quarter identifying business. net in particularly distribution are follows. performance battery sales to and the all as expect currency are We modest our incremental sub refrigerant sales category full-year work despite operating third to outlook in our revising in the reflecting to in business net reduce in great Care we achieve

battery $XXX be Care range the on a in million; our at billion sales $XXX of net and to net million the be of million low-end billion, global to sales range net to to to acquired the guided Auto of basis in to $X.X range million. reported Total $XXX sales previously acquired of be $X.XX $XXX

of unchanged the range with from growth sales for net business expected the be outlook remains Our to previous organic legacy X% X.X%. to the in outlet

and the points. inflationary headwinds XX range impact highly currency basis Foreign of in be X.X% X%, negative to of Argentina's to

range XX rate to XX.X%. Our be improves basis in gross of the margin our range mid-point points to the by XX.X% of

VARTA a continuing This Interest in expense is the to expense and allocation purchase expected $XXX operation. allocation now full-year of evaluation. for change the the between discontinued million reflecting in be driven approximately accounting interest is by revision

provided the We quarter. to of expect release remains first XXXX our the over our occur second remainder in outlets. impact earnings now this in as The from expected to quarter unchanged to is carry prior outlook the divestiture

turning XXXX. for Now the outlook to

XX% our for As growing midst our lighting stable we noted are we which expect business in annual in the our outlook. XXXX in XXXX. as not would our be and prior process morning, of our of earnings planning total outlook we reconfirming our is with are such, and this represents we business and The currently would outlook battery release for approximately line

Care $XXX our Care for million the the of upon based to However, in be Auto to million. revise outlook will range sales $XXX XXXX, outlook revising be for we Auto

the flow of expect in million also to of increased EBITDA, lower share offset and marginal to to adjusted by We $XX impact cash approximately per free benefits. sales these through earnings million synergy flow part $XX

updated will for during We earnings fourth provide our full release. quarter a guidance XXXX

Now like I turn over Alan for to to back remarks. would call the closing

Alan Hoskins

Tim. Thanks,

it open to I as work integration for our we want we questions, industry up respective continue globe the in Before the leadership and thank hard around continued providing their category. plan for colleagues executing our our

We successfully key the on we initiatives as executing company. transformed our are

is Our recently is future than to legacy ever and battery both business a source continues acquired be growth. stronger of and

excellence, in careful bring growth and and their to We full stabilization with potential to considered that are confident we our by can investment brand these efforts in brands remain Auto invigorated building. Care

and the growing approach pursue net strong a reinvest generates our transaction, and and growth, a remain will our us as benefits years, in ever brands acquisition enable in three We confident synergy which in to ability full of from leverage target cash our as flows the long-term for next business ratio continue balanced delever times full as achieve to allocation. to the EBITDA, closing to and we rapidly capital free quickly X.X VARTA

businesses on value. is With to these shareholder long-term better its positioned, execute deliver strategy now Energizer combined

the up who turn With for over the open to questions. operator will it that, line I would now to like

Operator

Chappell first from Bill with [Operator go comes The Instructions] SunTrust. question Please ahead.

Bill Chappell

Thanks, good morning.

Alan Hoskins

morning, Bill. Good

Tim Gorman

Bill. Good morning,

Bill Chappell

weather the if in why down? and change Auto unless bridge to weather would a of XXXX Care you're it's journey, With maybe the us going you that to just related, from some for its sales into kind year, can just understand guidance the trying understand next that expecting help XXXX understanding come

Alan Hoskins

bear with I just I around because think little more I this we question because an provide Bill, think and the detail a update. I'm me than a great question. bit more detail and might important to is can going where otherwise, that��s give color one And

There which number were Auto the a for guidance XXXX. business balance Care the of on us caused factors the of to change

first The in was seasons, contributing behind the weather. and actually it against That reason high a important unseasonably and had summer the historically season. an had biggest We comp largest factor. was year, this was spring which early summer cool and early a last equally wet hitting and

the load right the next international forecast network. weather there the attribute some lower result from The the we increase about $XX inventory promotional advance of closing so too that aggressive distributor the in at focus but as and international growth load million another to This as is also that our given The we change a was is hit of or POS was the response in which $XX transaction. of early price factor in in that direct distributor to about and XXXX impact. And retailers retail, to fiscal before frankly, hitting. half well both guidance was the then a million saw of

for the team year transition but that disruption, of what the fairly a preserve came the and with bulk the last then inventory our line rest of competitive of – the space the the performance, There is do and The minor did they otherwise from accounts that balance appearance to inventory between distributors levels have on that's the able two. And about some introduced But innovation entered market. pause Dayton. $XX in split ownership overall probably load remaining that. and would was equally from a portion the change. of the and activity significant during was is they despite XX% million shelf reviews or issue to The also some heavy those have disruption

that marketplace grew the slightly. what and appearance And than saw is performance slowly we more chemicals anticipated in we declined

I So our is XXXX priority about those want say are that was it. about issues the bit was ensure is would first been what And level. first foremost driving the high what a calls talk an and But operating little at the to doing are – on we're who's before, update. I that as Dayton extremely everyone to

is continues point be. which sustained in wanted innovation it is high-XXs to to exactly where into is retailers, levels service introducing That's and It our the XXs. where last it dipped to – it no at compared was new it to in we times be There year undertake deploying in we're plant the or full. points. to to in time and weren't be of when continuous by long on able to improvement ship up you A&P a efficiency the list also Operational which is we able XX once There's season. going activities, exit peak

to accepting operating be next want need level. and as I the to come is to as across to don't top address any that the results. really turn So, mission this that And to it us cavalierly allows growth. is is, at Dayton. It where needs we accomplished of line we're

confident it and reasons we're are urgency. we're that categories the who's to infuse appearance addressing us to consumer respond and These that. identified performance X.X%, opportunities number are fragrance and growing to insight anyone aggressively we've around weather, happy X.X%, than X.X%. if of are into with understands are we so look other do of chemicals portfolio, at And the a categories one right refrigerants, which growing, of was that is the and innovation these impacted at innovation, categories think now I working is at we by not you the

have, innovation favorability behind ahead times grow And have that firepower to at because grants iconic that going we're with the innovation several our or brand ability and confident we've that you building. mentioned synergies, on When we're invest growth pair going to we in forward rates. the to category the of

million in all mid-point. in gets $XXX FY you call range, we XXXX and we of to why? the the and $XXX logic is this million then that behind when lead expect XXXX factor into the is So at more to to million $XXX What's finish, question XXXX it Bill, your

Whether weather years back. and – exceptionally prudent was it divergent weather. million built of was $XX we all believe that to XXXX into plan you the bring-back have look at XXXX, weather is come we a going to didn't the XXXX to you didn't our updated guidance When

were that's with Obviously want XXXX into upside trend it than then weather worse is like the weather continues if impact little built we to would bit the on XXXX, our the it that, If so hurricanes that's we ends really being And it but in what's obviously be side. some that. weather, battery assumptions. with much the up – how approaching of do to be there's XXXX, in we like a balanced the

growth, category we to expect above rates. grow category or With growth at

that call X%. So

Dayton we've to market. in that we're Now innovation introduce going support to it we're going the and stabilized

with growth So we being about able feel up to good keep category rates.

International, to I of minor and hope anything for that the the that may position we is bit you the more around brands that a would one number transition because compete a otherwise going of there There's the but the into resume as have we more But some $X how to normal more ordering be in going our a then what be little could and in XXXX year point, but bit built muted be. distributors think helps. rest a it’s that pattern gives think XXXX. minor be we've portfolio. in kind cannibalization we of XXth. within then be I be a some brands assumed And to in don't will got of growth holistically back than into we've I portfolio, so few it'll space this same million the flavor XXXX cannibalization. significant,

Bill Chappell

No, number, just two, thoughts, to years a ago. where closer Dayton wanted of the the is with be the match thanks operationally. and piece at – your of the three that color. your look getting to $XXX I follow-up back Care side, eventual of that to extended is commentary how the synergy on does profitability was then the that is I – bill just million it you with updated to as That Dayton did that how battery for – on trying match side, is Auto split the big

look and on Dayton I'm trying to are profitability match? how synergy progressing do we they and do understand to back I just So at how number then that how getting

Mark LaVigne

we the Dayton. we We’ve Yes, believe bottom and on achieve more identified I'll the behind to $XX the help in to start initiatives $XXX for both million and those which stay so ownership. of over on in by going confident in extremely dropping ability the of to the Alan are color growth then synergies, A&P. confident both years feel I to synergies, turn line are of three We which fund Auto some innovation excess in things. of million, Care are really end of

have line feel So something $XXX a good we we very sight I million the think is of to.

means which of say needs doesn't way have are not through where undertaken to list be take the we It future, able those terms when levels I which is a to in operating and XXXX. initiatives going be levels impact place it to service the service to operating it's in are efficiently Dayton, we In those as a be, of long – the needs it as that and are high-XXs. in will

Alan Hoskins

to overflow, those a managed. acquisition; reduction then the sourcing. drive We existed just and improving which were to we away inventory Bill, that, did as if we maximizing four workforce efficiency that materials you right undertook in waste, that And line efficiencies, those, eliminating four did and that including all been there well the to look of the think about have prior build on by at

As key we that continue to further for one Mark complete We to now, done; surface look the alluded distribution a drive to network don't levels, service XX. looking And improved of manufacturing the go months levels you ownership the high-XXs XXs of in the from terms on and That noticed acquisition to productivity. driving first because of you're we're ways at things high when went forward anticipate we've six as we that one so efficiencies. becomes of at the we'll also optimization. in be was these

thing efficiency. we've the The done is other also we've equipment overall that improved

as XX up productivity. points that the in just four manufacturing So last That's improvement think in about overall months. almost the

we're on can to current and look go is come efficiency know more further so waste have to to What even the either to expect do we ability more in at continue productivity sustain of we that. going level you we performance. So how and that and drive the elimination,

Bill Chappell

Thanks. Got it.

Operator

Ottenstein The next of ahead. question Evercore. comes from Robert go Please

Robert Ottenstein

follow-up the just you business. thank one auto And for Great. on the I’ve on a question detailed answer and then on that batteries.

on So on you and levels, held on the service service do levels the back autos, work innovation. are that where to because you you of mentioned are that the had you

Or able able question. So to impact you you'd do Dayton, improve and efficiency That's sales as accomplish the the have the also to is an of – the be going the top-line sales? without on impacting the you business? that first of think to that work to you

if able Thank question little a on of to you've what kind with little you business. QX give Energizer of detail my on assets, Rayovac business? more on And is any that could a bit the to detail assets business, bit – upgrade to them current second assessment been your a be done you've To extent that you. what us and stabilization looks the repurpose maybe what more

Mark LaVigne

started Alan Tim and in additional detail. get I'll and with let I'll any jump

just clear, ownership. before innovation First back be was held didn't our that previously Dayton for we Dayton, on to back hold on

review to line introduce, the been for you who's I think much it’s is a has shelf. once longer anyone to everyone innovation one It’s elongated retailers line this thing heard takes cycle us different cycle. more has And hit it to review before. acquisition a listening remind actually since as HandStands

we held in reviews, current right terms ahead innovation now, with have back line on year. shelf through they and this pushed innovation are which the So that of underway we the And the are was – innovation system. they on going

as that better your In will if that the growth operate continue on only we growth, to to continuing facility, question will should It terms – in facility impede innovation. improve fact absolutely better that accelerate impede of Dayton, future. not and will help new introducing we not absolutely

for one, it. been acquire e-commerce. mentioned on the has we An all were portfolio in our prepared do acquisition mean remarks the of that, to cylinders. markets is battery question I able the of of early that XX% terms love In to business in on where indication what frankly, our as able this we We hitting on is

online. the that It was growth time the You've healthy seen brand in Rayovac fastest period. growing over rates brand the

So expanded of Energizer, you're it's ongoing. at brands. number distributions underway. conversations, early are the major extent other of retailers of indication. expense scale a for the an expense had number regional We've other space to of of Rayovac, the going not wins Those are but All where some at in grocery see discussions

be business of you You QX. in is are we the X% would with cylinders. organically seeing battery legacy grow is positive. going to pair improvement to all slightly the sales business, sequential expect a continued in business on when that's flat acquired In from our to that QX that firing QX, And on absolutely line which XX%

Robert Ottenstein

Thank you very much.

Alan Hoskins

question last utilize to North the on Yes, America assets. the ability

brand. it are to the and our opportunities all able in react to the to We activity Energizer of between flex market gives facilities, so flexibility us agility for

Tim Gorman

true. acquired when the we business everything holds still And believed we that

LatAm battery now breadth the by we our Rayovac If global compelling the Certainly that are scaling expanded. synergies, and expand to the about been and already leadership market distribution has VARTA up category, you portfolio think the talked clear leveraging visibility our – of we have fact business we've about product the in brands.

significant learned Asia, things And It's that two and to then that us approach opportunity to allowed One, to of aid volume doing the leverage. aid because aid strategy has very done important sub that piece ideology able in we've access markets we're and as provides build there’s XX% part strategic the hearing to in in is channels. hearing non-retail distribution. with multi-brand channel hearing of category and battery is total that

is important. So having access really that

mark been with several in Made to performing in USA high the the leverage we've as finally, alluded product channels then to, able U.S. our of And

Robert Ottenstein

X% comes growth business. that number for the you us give legacy organic mentioned the Can where You from?

Tim Gorman

Yes.

look So of guide X.X%, we've growth X%. X% given it if organic in QX the reflects at for that to you in full-year excess the

X.X% terms pricing. And driving promotional so X.X% just is that breaking that, related down it’s of distribution to what's is in activity; and

XXX point was royalty which activity, then contributor about last Hurricane have We offsetting re-class the is the contributor points basis that XX basis and year. that

any I As there did would if storm activity script this to that in noted be incremental the our for outlook. year, not that we project is,

Robert Ottenstein

the Rayovac? tight additional gains pricing, presumably tied distribution and position into you the And with improved – is that from are those how how have

Tim Gorman

some been in and then and XXXX. over pricing, And into the we and of be both. a the in carrying the price the increase the combination distribution have then It's there took carryover of International into we'll and Americas both It's obviously is over of and combination that. U.S. a impact with would that QX biggest gains will that in so our carry Energizer

Robert Ottenstein

you Thank very much.

Tim Gorman

you. Thank

Operator

The Please ahead. next question comes with Sachs. from Jason English Goldman go

Jason English

Hi, morning folks. you Thank good for…

Alan Hoskins

Good morning.

Jason English

legacy this rev XXXX. in business business. to to want business was track Thanks million short quick Auto you're on for swapping business year around annualized fiscal basis the about like $XX is a acquired me to I did looks where – spectrum in. of deliver the Care for that fiscal It Care the $XXX real – Auto business come on what spectrum year million fully a or that million, and the $XX

the First, am ballpark? I roughly in

declines of it may international with quarter in and losses may little annualized that much you quarter distributors. this then comment – and recovery happened the some level that what particularly – inventory, bit been based a that label? last can on from of issue to like a second, then presumably come And expect How have and from this with have net private much base share how weather been bit some unpack and sounds do your of inventory inflated

would share you any So be those helpful? components can on color

Mark LaVigne

balance driver roughly fragrance load was And the part then performance that distributor the was in, $XX indicated parent the decline. of – around to from the in that's terms million in $XX $XX where the spot on. Yes, as exit lack The of Jason decrease fiscal indicated to Relative discussion international, is will XXXX. that attributed Whether end-up your performance to is of that’s number million million. had the approximately $XX private and chemicals. is of acquired roughly innovation Mark of so label million. the Mark

Jason English

And your doing? refrigerated how AC in share business, market the the is recharge

Alan Hoskins

growing. actually It's

able So time the category but been because take rough period. during a has obviously same of that weather, the to season had share we've

Jason English

batteries. that's one then Awesome, And you question base on for helpful Thank that. guys. quick

retailers. that sort the timing we a point this subdued what with unclear got is loaded Presumably negotiated innovation. pricing new somewhat the marketplace you at some so of promotional through you've the holiday this bend from Optimum What promotional roll as holiday expecting on maybe with locked programming It's environment much depth the the and the of are mentioned you've far? us, a trend season and how you see You based versus into in critical right with in Duracell now. to

Alan Hoskins

Yeah.

if no significant look most mix current So expecting you at words flat. price pricing is – where change. we other overall the In are just is stable, quarter,

pricing you've You've category up story then a got in battery, promotional got by in average way. and levels of to percent the similar down the two-tenths almost auto,

as Energizer restage we've continued I did performance markets included forward That done current at business, in standpoint, in look from their all the the market you're pricing XX the is standpoint, expectation improvements from with you'll world. the that the as we things a in around and As a pricing our launch our our take around think overall see probably U.S. stability category promotional aware well the

you'll We see to continue QX annualized the to after expect the in that. and through three next QX quarters that through pricing benefit flow

on seeing seeing to we on seeing both we private well Duracell. same shelf up value for that the price to were overall for the Energizer. appear pricing and are on Ultimate Prior We shelf announced prices increase as as consumers MAX label going on We're brand. on Lithium,

our gap it over So with since bit and line we what is expected normalize in a time. announcement widened will it’s the still while

pricing line premium brands XX% labels alkaline premium below value premium is private premium the in for auto. in it's the and part the with X you've XX% brands of times price between the to got what it's can roughly to to the previously, over the times the brands and premium XX% declining promotion communicated X gaps same X.X said to and all-in is brands, category is brands. battery other the stable with category the and environment the be XX% brands U.S. overall a below XX% which XX% we Lithium is brands. On the the Performance brands, the internationally, But Ultimate premium in

Operator

Please question go Jefferies. ahead. Grundy from of next Kevin The comes

Kevin Grundy

morning good Hey, guys.

Alan Hoskins

morning. good Kevin, Hey,

Kevin Grundy

acquired to come said I'm I the ago, a I back I think not Auto Jason's can Auto Care of think to wanted Maybe Care that moment wrong number? the high single-digit I'm your guidance you fourth business implies and you confirm trends Mark, sort me in had improved here correct mistaken, July declines if you you on question if can well. in business as building quarter. the

it in that hope terms, more guess with then what's some case sort Mark, a with just earnings gets improvement. I forward-looking time once driving XXXX that the at is this the the an million if hope broadly, just More business. of it And business Is upon here Is correct Auto point. was This was some $XXX EBITDA normalized eventually that back from troughs to the is in carryover issue? from perspective. that Care the bull the fiscal distributor, was on this weather this hope distributor impact this international business,

it everyone as distribution. and seems the and Alan for, for like Mark of to And and that well level what's comment the guys the that does confidence today this and this business? you just sort indeed speaks your of business the And hands XXXX point this the over piece, to on of aware sort be low changed this expand the last fiscal years will this international mark international the opportunity that will are ability then has opportunity,

inventory us all internationally? where stands? So, and aside that there, ability your talk piece you distributor about that the for distribution around levels to level of see excitement setting How to maybe expand the guys. that Thanks

Mark LaVigne

thanks. Yeah,

and then So, then in the Kevin, and and catch can Alan us questions. here know we didn’t if all will start let Tim I jump

Auto of is about, I accurate. Care think balance you for year this directionally you're know, the fiscal the way thinking

normalized and versus a is question bit weather XXXX to the come important from? more go we're weather your I does trying patterns. in diversion point and that back of XXXX extreme out where build Again, think we're into for little us pull does it building the XXXX on more where

– – So normalized them and we've We’ve built well as in more in inventory as we what order growth. that took normalized pause put ownership load see that that. to order and we levels we obviously more for that before weather of a because did distributors – heavy into at patterns on some causes reasonable a pattering assumption again

innovation. are We introducing

fiscal innovation. line reviews, past which line built match impact are into to going reviews. challenge can better was next did the year of being really bit good in next even able fiscal will a the we in are Feel But year's a We category we've middle We more year. do about this where there. of growth they pause on rates, because which in

In terms where international that about it. let about really we plans. building cover we are growth, lot quick growth. But people the one me of I good really is talked international feel know a of have

I call that – earnings or our for us we of think any far nothing we've otherwise. really about gives Tim think thus international business. mentioned, our confident And feel the that ability seen planned reason double to in the last in size to

Alan Hoskins

liked to go the of if an opportunity that you this, we tell can platform I'd auto brands are we the compete that add gave the thesis is you strong. really acquired acquisition segments additional automotive overall the have what we beyond an and we back is categories, underlying us And diversify battery. fundamentals only the we in and the to for that the And when grow the explored

that takeaway Mark we've I alluded that growing. think are to, auto are that. which this. in compete I and the support to as think total going from that we facts underlying And in that key segments needs auto Again, be to some four of a three got

owned and and stable growing, years look are overall of average The behind those the car in you've is DIY car are fact number used size. fact improvement older number being are And that of the up. growing. are are sales vehicles driving driven the miles all indicators and you The that key the that in is holding park the if at of that got that vehicles both

very the about at to So bring look that smelling as three the better, and we of running creating those around level just innovate around segments, innovation but to that, not to innovation and grow we're domestically, of we platforms idea in, of opportunity internationally. the better, ability excited trends the our looking compete longer, same

Tim Gorman

answer to not how way – updated and with but approached confident we're to the really we're we've we're make this this emphasize this want belabor Kevin, in even integration longer, business how And this it. kind notwithstanding of we numbers and this the I and integration approaching today. and provided point business that handling I’m the

We have issue is We with that. That first dealt behind priority us. – was Dayton.

on brand also The we've sure up to innovation get reviews were line this focused and in one were next set next And for we cycle had focused really year and we so was setting make success. on that. We've line to reviews ourselves and building. joint that for good and do

we've in QX were that terms the way of in we fiscal impact owned think limited going a the were disappointed limited I have of months results. We XXXX, six in to to and very obviously, impact business. the this ability in

to long-term we've the is medium everything going doing what forward. help is and to focused So we're on up set there going success

base, the feel in the X.X% and we for the start really lower you're forward. at growing confident point at call albeit we think that's XXXX just mid a So – at of going

Alan Hoskins

And would I add.

that bring improvement give retailers our to the to pick ability we're remarks, to additional category his going innovation we've the to fact growth that been in call category to captainships bear. is prepared the bring to important the key able said to drive story up us delivers Mark going As That's at that and and out. trade to

Operator

of next The William of go America. Reuter comes Please Bank from question ahead.

William Reuter

this could year yet, I Auto know revenues XXXX seeing path all of Has in fiscal provide what changed terms two guys general you're not at if you you're the talk wondering about the over in based prepared upon next deleveraging materially it see was in Care? guidance to years. but you year that I

Alan Hoskins

the hasn't. impacting the it's de-leveraging is the factor closing. one Bill, The of is timing that No, VARTA

had year. moving originally the It's by of to now that the we projected of So fiscal QX close into end XXXX.

we're fiscal X.X be then for XXXX, of times roughly we'd four expect So the at times. and end on at the track to

William Reuter

payments from remind – any And sale my guess, and with the just can term-loan us, I what then up you the reduction? go should net then VARTA be follow from taxes will towards combination And there, due? of the that regard Spectrum to to proceeds then of

Alan Hoskins

towards term loan go Yes. reduction. It'll

free So $XXX cash the purchase price against it's that there price purchase million debt is adjustments are and deal. roughly as free a

so, we're somewhere in $XXX range And to of – the million net to of projecting million proceeds closing… $XXX subject

Tim Gorman

And on made were the adjustments those also side Spectrum VARTA… were which of

Alan Hoskins

correct. That's

Operator

next go Alwy Deutsche question of Please Faiza The ahead. comes from Bank.

Faiza Alwy

Yes. Good Hi. morning.

Alan Hoskins

good Hi, morning.

Faiza Alwy

Hi. more I bit about wanted to a fiscal XXXX. talk little

portfolio. the So or guess sound you I legacy battery very not. the I good know that you're on entire

cost seem if to You as be, It favorable, sound margins. looks least good on if favorable. manageable, at inflation not gross anything stable. like Currencies

Care So incremental are have the you coming in. Auto I sales synergies then know missing pieces do the but side,

not of sort to guide? So just reiterate fiscal I'm able why XXXX wondering – you're what your

Alan Hoskins

of the One, gave of we that going outlook. outlets that we out it the As items provided far QX. the changed QX. as doesn't XXXX update at go The would the rest since in at sense have through think QX indicative called make be. we fiscal rate of planning run We've all we're to business of as to the and the QX two that in at full we're what know I – process the midst that were

that the at we given components we've were before. from are where changing So major

the synergy XXXX. have identified what to then expected of we've we so, and call And incremental down benefits are Auto for Care

offset take by you to impact roughly the of million if call marginal XX, Auto down, benefits. $XX Care the increased XX that is $XX synergy million to So the

impact The to $XX million on range. be in the would $X EBITDA roughly million

update know, to we've what in puts we've with going a we'll think and teams appropriate we're And and that that of confident now at we in QX. our we're with where different at. things, terms again, of provided as provided there's right through takes So update you we're but lot QX,

is growing and were indicated there we XX% our XXXX. we're Auto move as battery addressing you strong XXXX As in Care impacts of forward and that in business in

Tim Gorman

note those forward that to in our And and planning included the business our do to take and time plans to want we're it's that annual and understand approaching important will sit going process be teams November. in we the with update

Faiza Alwy

that's Okay, helpful.

look sort brand of growth in if legacy out seeing this called it we Can the improving little type about a X% like wanted you've follow has bit data? up on we're of XQ. then seems more channel to I declining, you – talk data. growth If the not organic and very by at anything Okay, near-term has what the the Energizer been you're Nielsen Rayovac in again, because been like just the seeing the

channels? So anything can you is call there in out terms of

Alan Hoskins

you at flat. the if look volume both quarter in overall most category, the and current so Yeah, value the near are

You saw it started at the segment level first. Overall premium was flat.

quarter early prior comping year, You're weather.

alkaline that by decline. you've that's to performance addition and rechargeable driven segment down the performance In got

occurred specialty a bit an promotional anomaly growth you've alkaline watch/electronic. price That's event seeing in predominantly got of that And because then You're of a up. in driven by Germany.

at most really we of point quarter half that and the across did gained channels. channels, current As look most in we share Energizer a

a e-commerce, in saw also up And our that non-measured it we'll today. growth answer when channel. the call in we which We question comes started during growth

So EHI. declines really overall we're not seeing in total

that's example of brand. are at mass took part from a occur of was certain pre-acquisition now in as that we an the between benefiting we're some occurred. that mix actions seeing the result brands channels, You shifts Energizer But

Mark LaVigne

going It's too is pocket just had from way approaching it between growth and left this right just combined and in trading pointed battery get Rayovac is not and that – terms lot to out. of you one we it. a our I share We pocket think, Faiza, the are the of our Energizer on growth. Alan question sales

more not quarters. to between think we we're of talk so, I portfolio and the it's And acquisition Rayovac. that's And more try just going as Energizer trading the something anniversary and holistic continue that to about

Operator

of next of ahead. Bank go comes America. Olivia from The question Tong Please

Olivia Tong

Great, thanks.

little could on question. a maybe that First bit build I

mean distribution sort channels – the that prepared significantly, in you bit? comments which in mentioned little to growth through you are talk channels, e-commerce then that terms your of non-tracked, I parse slowed Just batteries can a so the of out And everywhere.

growing, So e-commerce slow bit Thanks. down? is little a which of of through especially channels in are terms if non-tracked going

Alan Hoskins

– address a position then which I'll the don't get start with question. Yeah, so DIY, let's the and – center non-measured of channel channel start big certainly the you've to the channels. got From channel Energizer particular is a and part has that have home is in Mark or first perspective, dominant base a growing. part of

do to continue well We there.

channels. center. goes non-measured in that So home seeing And we beyond growth are

in pretty So bit plus versus for why e-commerce it. speak the little months the to the a that's turned a and three important current to plus XX let four the us specifically Mark part I'll in minus the… of

Mark LaVigne

Olivia, at the as XX% [indiscernible], Alan latest it in grew mentioned, XX.

share, time and period. share Duracell terms was of and time when was a X% XX at Rayovac resulting Amazon's at at mentioned In same a individuals, that combined I the growth brand XX% was script, same guys in Amazon we period. you at XX% individual Rayovac as was in XX%. Duracell rates. know in, then hear Energizer like at XX, those rates you that Energizer XX% over growth The factor to sometimes down

Alan Hoskins

going approaching not We're and continue is with to in a both It's channel to innovation any really to sauce, our So of be way we're the – we're will. to innovation. lead perspective, if acquired secret an going from part you legacy going battery different. important

of the in half is excellence that that operational stores. we're doing other The really

in are of that on with be as That really equation have the and for our able overall. combined going as expect visibility, can where expanding for a teams remains well be at looking increasing you space You us focused you’re for retailers The focus multi-brand well. existing consumers leveraging that is in looking which to today. The to looking forward. key to channels is as distribution gaining your batteries continue value going different strategy to performance points price reach that remain

Mark LaVigne

third focus was I growth also point in of our X.X%. is you Olivia, the on U.S., to growing. Organic we international quarter kind revenue the but just And

continuation a of over we is expect a that the of year, move balance We as as that so the well. contributor

Operator

comes of UBS. ahead. next Steve question from go The Please Strycula

Steve Strycula

good Hi, morning.

Alan Hoskins

Good morning, Steve.

Steve Strycula

battery or points sales want the the and trend the the getting four first and battery to numbers business, batteries organic just follow sure ENR of quarter, you distribution? that fourth that that to I just Was for specific saying Were to where's So on fiscal the organic X.X% is right. legacy make I'm system? sales the question up total

Alan Hoskins

It and was Pricing would X.X% re-class battery points. XX Care. basis inclusive lives royalty be legacy business, was that and of on revenue was the X.X Auto so our

Mark LaVigne

acquired did to organic QX to we we reference be And that and slightly in on the would distribution growth be that as expect flat well. battery positive it related

Alan Hoskins

But out because that's in the business. on the that calling is that legacy we're that organic not growth organic numbers

Steve Strycula

Right, correct.

retail of kind of major with pop all into sudden Like a company retailer where distribution? the a distribution wallet? business for gains so of the And legacy terms you're distribution share like you're level driving just existing it exclusivities in where the maybe that an what's you and observing unique doing getting now were for of now. that they battery a of really right Is some business have didn't anything battery premium in previously one

Mark LaVigne

one a an competition us. retailer to from sort on of not flip It's exclusive any our of basis

is healthier activity continued regard. So which that – of continued growth. it space. it's It’s really based, us it that broad store makes drive It's again in the even expansion allows within the to that

is some in the – clubs. mass, it So channel dollar in There's some in there's inconvenience. some

what's growth. You start distribution to expansion and see space driving that's the and expansion some

Alan Hoskins

And in you'll well. as non-measured that the channel also see

Operator

Teixeira ahead. Andrea question Please of JPMorgan. next comes from go The

Andrea Teixeira

acquired Can I like how but trajectory go I the understand to of going. business, trying the triangulate battery know you. the the is of Thank to business just it's and performance important we're – you think just

we not And performance quarter first this e-commerce, on all acquired further you the channels? in comments other in referencing companies. from A&P, can quarter on would legacy quarter. the about do by combined are the that. have for of fourth much please, you made the on shipment one e-commerce have you And to gains, Thank that's the the appreciate an – third quarter shipping batteries, I the decelerating it on distribution day the guidance seems in Energizer? the distribution of your this increasing a So trends second, And been couple our in only to if math, invest quarter? are fulfill you as acquired what that – that, you. the So your what business heard the if implies you clarifications bridge

Alan Hoskins

have I In terms impact we increase, this an of on that. you levels. – and with. inventory quarter monitor meaningful we to as times partner obviously increase say wouldn't based watch saw It's whether shipping e-commerce to and something we we partner continue saw on a

inventory We throughout. levels continue to watch

which In I focus means, terms of on as growth battery you and saw holistic want business, the overall the growth. business, you it saw of the again, to view sales share

working through better store. is sure the even that space that On expanded distribution continued business, the make legacy It's talked space. the to is we've gains in

with In our were us leveraging Rayovac the retailers This that products able meet came specific – seeing business, to relationships. needs. brands partner retailers. better and only product. instances we've touch and go go allows a existing display us Its continuing increased that there the number able just Anything in that's to to retailers the acquired different to didn't retailers us to we seen to of think meet in we just certain going And is different their to where a we making the battery to need to with where continue. just and on? And be our that it's activity it's you're

Andrea Teixeira

and Spectrum saying last that? much if as the the Yeah, mean commentary, I just investing the legacy than quarter you you're business lower it Or you're for that XXX the year acquired on on XXX sales? did and A&P than guess, two. not for it’s the A&P, that And was I also higher XXX in business seems the sales,

out… Just to that close

Alan Hoskins

lower businesses, been So historically have battery with A&P the business. are I the Auto maybe to we've in investment than to Care like the think to A&P first. acquired the the Rayovac, business, X%, to take respect the the Relative in to in last has legacy of we indicated you have business. a their valve-brand clearly of investment range which a investment on At X% question going level lower in

through that That's investment that Our walked view has historically we to earlier. market been that would expect level of forward increase is there. going what

Mark LaVigne

down Relative improvement a in is to we've sequential positive down that the we would from battery indicated on X%. just slightly what And business positive, it flat QX business, be in to the where XX%, was trends seen QX QX. as it

the teams the So a by work that trend portfolio. combined reflects the of a portfolio and that that been and the reflects that has trend combined It's strength like. is done that we

Alan Hoskins

really and idea started business to whole what had be is the can investments you investments, to you a a already we've how and rethinking two drive we that November A&P businesses, where an to investment going look expect the plans doing. toward more similar gone in legacy be things we're And acquired A&P. move the those of from of and the more continue on as drive businesses. going think investments those to and out at made if done be then we And trade trade look acquired productive if standpoint, working will to the A&P would investment in in where will. standpoint, to efficiencies we categories very those we're you The can And to be that One, efficiency and at have productivity those changes acquired teams dollars. then those reapplying more have will existing looking segments, investment parent identify we at what – businesses in From and the to. those

Operator

Karru The of Martinson go next from ahead. question Jefferies. Please comes

Karru Martinson

Good morning.

Alan Hoskins

Good morning.

Karru Martinson

Just bit a you this down but like what’s marketplace Or ask the blip? temporary feel that to slowing front? here, is in about wanted obviously been pause e-commerce is in that changed do it's why the that robustly so a on growing

Mark LaVigne

continue growth healthy grow to e-commerce the expect can you at think I rates. to

be growth we some at hurricane momentary growth rates into larger getting a rates were year those some going consumers also are impacted time this to they over as and the you're reach of stability how Again, the online I you rate expect harder, to growth in point near-term, to I pullbacks some see continue continue as that. shop the along get growth store, grow in right and at of to the that shop to same may get upon think of last I going to growth continue be I sort penetration. impacting in as think season the to rates, period. some they're some numbers with going we'll some to But comps bit it. in little time you're instances the can going think ready depending think and of the in rates

Alan Hoskins

Two other Energizer players, also comments terrific omnichannel, there and as online a growing e-commerce as brick growing was seeing well. and in but on in Energizer that outpacing e-commerce, growth also and growth so we're separately job we're international Those that growth own doing programs. think seeing their mortar are with about

as to, storms. comping a standpoint, calming of So is part is it overall e-commerce from of part an some Mark activity, alluded promotional it

as You can grow can also e-com, that you and hold expect international at expect but it well. levels, omnichannel will current to

Karru Martinson

ends promotional stay little mean here we much year? being front, that every confidence of promotional going us what the end a steady I bit the that up on season than will just then into gives And environment thought. more Okay. holiday pretty And I the think the promotional

Alan Hoskins

so typically in we in to advance. mind, year a Yes, plan out our customers keep

of deployed holiday. programs be types understanding would So the we during that have good of a pretty

for trends the several seen you overall at If look the years, quarter stable. last we've sequential to promotional level quarter

about that think as promotion price overall to and as not percent a seeing less decrease So promotional a you're aggressive activity. attached is

and full lot today, capture is In a to they're that not margin retailers understand is looking merchandising the the discounting they’re full when look the fact, putting a floor on of purchase. that what typically you at that at you price, which also leads to they're prompted

promotional to is expectation forward. stable So, category can unit you overall between is in our going see online and mortar. average the expect expectation brick prices go up that overall, pricing we'll and We're seeing the similar and activity stable our remain

flow will continues in companies goal we market prior X% as the the toward And for activity typically as It'll introduce continue I competitive questions, year more to can categories. That innovation see, you to as support something runs as that do. beefed you think bring working alluded be increasing to we innovation we A&P that to may X% to to expect what see in well. really up battery innovation that is their that Energizer is as A&P to across of Tim and will we depending range. on of investments one A&P like the well year ebb automotive

Operator

turn concludes closing the the question-and-answer call I session any remarks. like Hoskins That to call. back would over Alan for of to the

Alan Hoskins

That on continued thank Yes, the Energizer. everyone and our concludes for your interest you you, and joining us in for today operator, thank call call.

Operator

The for conference has now Thank concluded. attending presentation. you today's

disconnect. You may now

Energizer (ENR) 6 Aug 192019 Q3 Earnings call transcript