ENR - Earnings call transcript Q2 2021 | Energizer Holdings, Inc.

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Operator

Good morning, my name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to Energizer's Second Quarter Fiscal Year 2021 Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the conference call over to Ms. Jackie Burwitz, Vice President, Investor Relations. Ms. yours, is floor the ma'am. Burwitz,

Jackie Burwitz

morning, Thank quarter to second welcome XXXX you. conference Good fiscal call. Energizer's and

Joining me on Officer; today and on call website, Accounting the call are energizerholdings.com. of replay Relations Officer; our and this Gorman, section Officer. Drabik, our A Chief be Mark Tim Chief Investor John Financial available and will Controller Chief the Executive LaVigne, President of

the slide deck website. providing quarter for is a results our also addition, In financial on posted detailed

statements forward-looking these statements update about company's During the management's the filed those undertake make call, do the COVID-XX presentation among that in to from These statements. slides will and materially Other to resulting factors included business in matters. actual current subject We ongoing performance, these we including cause statements. pandemic, these are the the results financial to with and are actual results we from future today's SEC. and on could differ differ not uncertainties, which risk forward-looking from expectations are may other and based to statements materially reports cause

measures which refer believe shown release website. to in based we concerning categories our estimates GAAP internal discussed is measures. Information our financial on reconciliation in non-GAAP from is where today, and available analysis and on share and also Energizer's this financial market reasonable. markets on data, to our be compete issued comparable non-GAAP earlier call relates of we to industry to data press measures We A presentation is our

over will available all currently is otherwise Unless when overview is in as This uncertain the our comments data become in future. data is It data category quarter e-commerce that available. not not year included noted, the period fiscal call year and to to quarter Mark. same With prior-year to all and relate the turn XXXX. that, the in to to like the fiscal I'd comparisons Energizer's regarding pertain

Mark LaVigne

demand, results, XXXX which to we am good quarter quarter our momentum led from our execution, expanded the and everyone. first share Today, all earnings second which strong and morning, from build growth. I distribution Jackie, as elevated pleased robust on Thanks, to benefited of

at sales XX.X% we and maintained with synergies, categories offset to we As the markets momentum strong able control of with while organic cost headwinds transportation, We from and around the the delivering costs. that specifically quarter, partially across and sales top meet product demonstrating were also results for look input demand the inflationary which improved tariffs line globe.

share more growth, prior-year, double lower per earnings organic interest and adjusted $X.XX, sales expense. currencies synergy realization, than favorable were the Our by strong driven

Tim half, X% to Given in our X% our on to new in first sales range performance a the million. full $X.XX fiscal $XXX to to new EBITDA we will range growth of Net both to following. per $X.XX million results share to to a moment. quarterly outlook a the earnings provide are and $XXX more the information adjusted of and adjusted revised increasing the outlook year

Turning our trends. demand to categories elevated. Consumer remains category in

have comments. opening e-commerce, about battery reminder, category in drove Jackie COVID with consumer to Starting a does in the behavior provide not category few our the As indicated emerged beginning include the I'm globally. batteries, data since as of that changes

led the number increase the time and to an of has used, on amount per being second, devices which frequent in are more increase an household; in devices replacement. First, of battery

four declines, our COVID like March, including anticipated markets we that weeks from U.S. and gained initial in the during four-week the these experienced decline the category benefited brands share the most February, faster through recent category In UK, we distribution discussed XX.X% ending in We timeframe. related year-over-year U.S., year-over-year a the the Australia globally as lapped the points declines and months buy. spike three as in gains. grew the X.X the During we than previously

example, if compare markets and look when the In at was XX.X% to same U.S., growth XXXX. Across the the pre-pandemic you for robust there XXXX two-year levels. category to weeks recent when both significantly the most period compared that four the basis, a However, you category. four-week basis, two-year Energizer the on is those up for outpaced

Looking February, penetration at X.X% in more category, and on an the spending the category consumer category existing the experienced growth in as AutoCare cleaning saw maintaining XX cars. U.S. and healthy household both their a through weeks we of increase

are short-term in on we the Similar on outpacing the been U.S. portfolio, batteries, recently four wipes basis the two-year our category category. to Given a which Energizer in cold weather the latest resolved, lag growth seasonality the have the supply constraints of with and seeing growth our and category weeks Energizer

and category have XX% of sales vaccines, we the we positioning or e-commerce ongoing while lead remains us the don't habits. a have this our data net environment resulting dynamic investments are quarter, of impact portfolio, across predict the future. and which the reflection our consumer our The into Finally, can't virus to combined paying and variance focus off well increased

in and However, of as the their office influence devices surveys home use continue, habits including to equipment such as increased habits. well expect auto consumers, on with as pandemic their focus increased many cleaning home health

costs. During we inflationary the transportation, faced input tariffs headwinds from quarter, and

delivery of However, the to portion we offset able were synergies. these through of a significant

and we efforts future, management not As revenue are costs believe them. productivity offset these transitory to we and initiated look have do to that the

and innovation of product Our pipeline based the our a and in leveraging markets, management longer-term pack premium promotion our revenue main impacts. currency price including framework, to and Channel value. depth management sizes, mix battery increases brands of our costs, our across of on outlook three breadth brands focused input efforts from Resetting the strong are and including and frequency areas. promotional

work, we in are recently this portfolio we've price increases of headwinds example an to U.S. the As AutoCare in offset experiencing. the announced our

actions portfolio. for the number Going we including costs, the of across pricing and a of assess product conditions, costs, additional transportation innovation our forward, market macroeconomic factors to input evaluate will balance dynamics, currency need

ensure Our we internal and well. growth are initiatives our poised future for progressing organization all designed are to to reshape

on being business is brand portion reinvested are by to fiscal over innovation synergies the and $XXX we million of XXXX, Specifically, of building deliver in end which in track the activities. a through

have in lower plant provides significantly first increased production of at Indonesian source in acquired high-quality the the products with which us quarter, that We costs. we a

built an growth pipeline innovation have International the We have international for second AutoCare growth our for and XX%. with impressive plans our AutoCare quarter business organic at advanced

significant in flow seamless starts ease will the which supply the more are in consumer our capabilities, way deeper analytics year. And organization's global that team With advance in finally, to a will for expect in will our automated will product financial demands network, provide data we its we manner, outlook and now our about rapidly supply fiscal things over the and which our made chain turn we the changing dive into that, performance Our our Tim? to meet to and strides environment. launched efficiency, details who with operating result more greater effectiveness a quarter project I of have ensure has Tim reshaping data consumers through for creating and a resiliency. organization positioned updated

Timothy Gorman

good and everyone. Thanks, Mark, morning,

additional earnings slide key deck In release a we highlights on morning, this website our included addition issued financial the metrics. to

year, are for the the As with mark Mark fiscal our touched pleased as on, halfway we we momentum. continued crossed

margin with our line growth. Both $X.XX, compared revenue momentum categories lower prior-year organic strong and resulted points with in gross cost, Battery the began product with and controls, organic tariffs demand EBITDA currency by maintained increased gross more meet that in of margin favorable distribution synergy Care our impacted up of businesses interest growth basis from headwinds trends the adjusted expense from to organic resulted per consistent and up the prior input Our to million, grew than quarter International line revenue and elevated summer. deeper benefiting costs showed product prior to XX% with This all X%, demand, Taking decreased last our global of was and of operating growth primarily cost first We our reported XXX segments share double a in XX% that all market. in XX.X% labor across and with transportation, and year. strong gains earnings adjusted year geographies. $XXX adjusted second Americas Auto combined up top the versus nearly realization, higher the XX.X% with associated elevated the of Adjusted the our source look inflationary up at quarter. sales and

negatively and favorable our impacted distribution of was the from Additionally, with margin negative offset gross rates currency gains million these associated $XX.X profile partially acquisitions, exchange margin and recent impacts. impacts by synergies lower

XXXX. do commodity hedged we mentioned, over we inflationary current year. costs are At expect the and next fully As of year the a balance on headwinds fiscal the for present year time, into essentially Mark

and prior quarter. our with X% continuous or million year's percent basis an continue over with will these we year, the with to prior invested as and Consistent actions. pricing priorities, year. our on actions offset a A&P support compared relatively through flat this take beyond of efforts absolute brands headwinds $X we A&P was sales A&P of to Looking in XX% the to total dollar spending impact second innovation improvement the of

over total nearly we recognized with million $XX costs, of On approximately was of year. the $X and basis, to primarily sales and $XX we SG&A initial million a experienced because $XX to of balance half in and increased of quarter, our net completed, line synergies an an of of growth XX.X% result the our dollar part exceeding targets current XX.X% the percent million million. $XXX in integration the this higher absolute sales for million Since $XX top SG&A in bringing acquisitions rate as associated Battery foreign realize the XXXX overheads We year. year, Excluding the synergies, have impacts. our additional in Auto acquisition prior were and to the Care first elevated adjusted expect versus sales exchange realized million that

taken significant last markets quarter, the favorable debt last As I a portion advantage refinanced months. of our we've of over XX debt and mentioned

a of realized our refinancings interest $X to fixed the XXXX total XX% with and end expense, defined these of an At cost We X.X interest $X.X debt at was which approximately net in rates second EBITDA, times or the was nearly expect debt to the billion reduction credit $XX in quarter. million X.X%. our debt quarter, contribute of of all-in to million

in end with The revised provided AutoCare and in net Net $X.XX half business, we working year, with expected gross we the of organic to of due to demand pressures our range now of of we demand year to the over between Adjusted to and sales expected impacts. to lap to flat finally, throughout our our updating quarter line XXXX million fiscal basis part first battery earnings is in be range of adjusted outlook. year digit low-single As mix previously inventory X% favorable to to following growth With expected weather in expect key of requirements, rebuild third offset be growth result full currency shifts. balance is particularly prolonged the provided be began share owing related roughly as year of we for are favorable the And to We Adjusted in year fiscal $XXX and the the favorable inflationary million. gross our essentially to elevated sales outlook our free America a low our and capital X%, them of million elevated the of battery now currency be is cost $X.XX. outlook consistent the second the million the previously outlook. synergies fourth the margin strong the stocks. cash is be North in as look late $XXX margin full is to to large will rate for and at $XXX the rates, COVID-related to the mostly impacts a reflects to in refrigerants a quarter. Adjusted remain flat in impacts flow balance prior a expected year-over-year decline provided on EBITDA in range on respect to lapping expected the per safety metrics. of $XXX

benefit one-time in of the third the and also over $X burdened costs million, will gross We with the year of as million fourth rest and quarter our of COVID-related margin was respectively. $XX XXXX

year first the build deliver strong expect on our second As the to full from strategic outlook. half on the we executing priorities the of year, turn momentum to half by to the we

Now, call to turn I for closing comments. the Mark to would some like over back

Mark LaVigne

you, Thank Tim.

products world We to our had during that fiscal first have deliver our of the this a great the is XXXX, make, a testament and half consumers which the time. around ship efforts colleagues to of need

the customers, by on questions. open on win and focused while to are day for the that, in the We winning With delivering foundation for the I focused future. will building all our consumer call the staying

Operator

come question And of ahead. Please first Instructions] Chappell [Operator the go Securities. we Truist from have will Bill

Bill Chappell

first maybe talk I kind five commodity little one, your Just and more in do more 'XX, than are I hedging question know just a guess margin four, what of - gross - you where months fiscal of bit on you into out. outlook. terms

just timing imagine I So of if you're know AutoCare, in then give more the what you revenue on side. you're at the examples some promotions. looking I terms but I shape? more you're commentary pricing on color second, management price or us Appreciate decent on don't or battery And maybe - the doing on assume increases in

great? be there would any Just color

Mark LaVigne

then start thing balance impacts and we've the our ongoing exceptionally we well that need gross sure to costs brands, to make and control going within continue sizes management, that On to to and year. the can everything gross ensure costs, margin we analyzed and the levers to bridge them, an four have QX address something as as focused that Bill. Why we that's first assortment internally to I well drive that activate that's don't question do and channels, the margin foremost, can we cover to an to John pack first headwinds pull the walls. discipline need is it's four we we've the that mix make done managed across for second in When done do everything the ongoing Sure, and proactively customers we I'll order we've improvement, so across buckets, discipline. with the we're margin we on we sure control our really do in of to

at And anyway. like do begun we've that. But headwinds this in heard frequency that to of we and on filter who quarters again and of something bit look as once then that's a - teams promotion, do little did we of take that's dedicated over pricing daily in on quarter. implement that promotional the in factors; in tighter tighter currencies, And at inflationary what's out, finally dynamic have and continue the day activity. we activity, We that couple hard that last is a you're headwinds, look basis. a number we'll promotional be day we'll then optimized inflationary you've AutoCare when And we we those, needs really base past look to facing something past, to the at you've a do market actions investments the depth innovation,

proactive able the going have part the through that we just anticipate first the fiscal mentioned. really for and all We've management of During seen inflationary year, I they're that of pressures areas we to continue balance this of the mitigate been those year. to

as impacts and a we into program can that why us smooth of hedging account forward that mentioned, out you activities. we're the which us helps planning gross all and of some those benefit on we the bridge a have so gives we these look synergies, take the of headwinds also you of margin. as kind have cover John, don't feel We also

John Drabik

on maybe first question And to sure. Yes, hedging. the

XX% hedged and So for the of we're fully rest about commodities for 'XX we're for hedged 'XX.

about rates. our transportation put but locations, seen that production we This Boston costs, volumes, a demand. Mark, of also basis as is And America. related from to tariffs especially North did related we've rates to and to elevated was product quarter, increased higher of in China more points see mentioned, XXX that then really you sourcing Increased it incremental half really number labor in of freight that we've seen increased meet

fully So rates, year. higher but are for commodity we've have seen spot as we we this discussed, hedged

the this So modest. impact was quarter

half, seeing $XX due incremental as of half look as the with same but and for freight incurred by the despite $XX we've relatively the the year, we well of as back costs. and inflation. million XX% the be that's we're to about million As flat expect incremental of that costs calling the labor do will at first million margin Driven one-time year $XX of $XX offsetting such issues amount tariffs, we're million synergies COVID roughly and costs gross repeat about More those don't for of of million to last $XX rest than to to commodity year. that this year and

Operator

Dara Stanley. have Morgan we Next, Mohsenian of

Dara Mohsenian

questions. two So

about you're thinking forward, category going fiscal halo higher that batteries? the the look growth characterize battery also usage as wondering and of well half greater per on you of category us that of higher term what household. just the in so bit devices as how the in on would the just sustainability years, can a also? trends mostly per year detail over I'm you you category a that the this you out of much dissipates, longer-term just at assuming First, side, Thanks. back how give dissipates, that? next fully And longer Are then couple as volume assuming look of on thoughts household of

Mark LaVigne

Yes, elevated some I the going demand, we next because the quarters, think we're comps of likely longer-term to I but me or think take over next that the four do it's the over let have quarters tough four view see today.

going we've that pandemic feel the at but that's going about the frequency the habits where pandemic. going digits that a battery staying me if X% Consumers for we number There's have were some that we you that the a category extremely Also dampen implemented have of more increased and they've mentioned more and they to in are that comps no what to their than the in and are devices doesn't like through, to lot really in have positioned in And per coming tough of prior why? out important out explain mid-single year, how X.X some some battery place do have we're has more power going enthusiasm we're we're the let that's up all they're XX%. equates for In previously. the devices. doubt think the are the to about those remarks cycle they I consumer encouraging coming of buying using we're that well of they the moment. feeling different at than that that - purchased more, consumers devices roughly and the versus purchase roughly more is power. And U.S., is XXXX buy, of devices data up had seen, look at prepared households household they when to and our

buying those category in we've not of us the that very moment. who loading, that consumer them for tells healthy research of All the buying immediate today are factors at are dynamics pantry are batteries engaged driving use. And it's XX% consumers

So have it's nearly those period what future at data have data at they're XX% month you're the not sort has you more look going April to of XXXX you And batteries in really what seeing end trends, was And than is loads, up to February, playing is, three if up of a which then the to with XX% Energizer to Energizer we're is I four-week category their in of in up the XX%. but the roughly XXXX, data. stepping up look I the the XX%. category consumers the category with use a globally big they pantries negative more past. say the and would recent of expect mean third continue out for if

the be far. to healthy of do expectations you growth of be appropriate demand, what believe is, that there's it's what very at have pandemic, believe against these but that to to I we think seeing us And want so to at the noise an comps to have a coming numbers, trends think for extreme take point we of we're some going deal and long-term same lot out but I with time category, going category. continue we a that our if the a for So in see we look do would some are power the they like to

Dara Mohsenian

versus bit And if percent us and AutoCare, up on question can I follow up of Thanks. taking that, help sense give pricing. in Obviously, what me just a increases understand take you of In me the a but of conceptually? pricing magnitude the better price commodities sense you're could announcing terms there not portfolio of in just for underlying Bill's on anything very decision that understand to different batteries. sort just pricing help decision

Mark LaVigne

couple which percentage you some is, benefits hedging Yes, we it other in cost right publicly One from the And than in category, it broad we're was question. don't in headwinds always critical some there business, also look to price seasonality offset auto of there factors the the little terms of more experiencing and batteries, of the increase the it don't do itself, you in input the the that timing about to pointed our a perspective. that we speak increases, have in have we we is categories. your the in of the then certainly, of a level across made based inflationary

Operator

Lauren Barclays. have Lieberman we Next, of

Lauren Lieberman

being elevated day? in inflation is the just that's day ask on embedded the inflation, to inputs. there current But your I there that First understand about obviously, supply that, in of you more if transitory. overall over inflationary Thanks. we're curious about talking something XX to all on thing talked some we're if about that costs the to want cost about chain current baked picture global degree knowing which was that I transitory being experienced not really reading the was months, just the not being you the I was last the way

Mark LaVigne

read we're nothing reading inflation to that all current think than other about day that more I It's into to day.

Lauren Lieberman

also update I And Good, looking on simple innovation. for AutoCare was an then answer.

think start sort pipeline Energizer the is this would time when owned the I coming to of market.

launching delayed down little trends could just COVID until overall given has any bit So some or and about been I was that from slowed if that's of retailers? activity or mobility if a next what if curious been been of talk in that you read and has the year, or

Mark LaVigne

as as haven't about the in were so very stores. moment period cycle helpful. same a rapid that up growth, through period up able up, very down. things of slowed to innovation Right excited fact, spent disinfectant product we the we've in down up on we but in in XX%, time seen anything shut based the healthy I'm was you've nearly Not, 'XX pandemic, we in Energizer showing seen very to versus have launch going several of we we've the now, products Early time the latest the end declare for which period X.X% at well market that the going in with now, value see in when today. very the in auto at to ceramic also What products victory introduced All a pending the category AutoCare you're the April, more XX% wouldn't you it's to the broadly promising. season XX% for I want nearly a very a days Armor a timeframe to the on up two-year were Energizer, four have basis retailers we're weeks, if category look it's with particularly right

very to the early spring. of So data But category last some that's in results. healthy now, but look season, see on that really again, based you're to going experience promising going as

what cleaner, out excited cleaner We the there very some with of four wipes the of have have growing top four about that and SKUs AutoCare of has our latest we upholstery top wheel in and seen to bring. data eight -

Operator

have comes like The from Nik Capital next apologize. that do Actually, Markets. of question Modi RBC on. looks questionnaire It we moved I

we of So go Ottenstein will sir. Evercore. ahead, ahead go to Please Rob

Rob Ottenstein

Couple questions. very Great. Thank of you much.

new the and in why general the that's you. over you had equity brands there you're getting a International brand margin? the can or you any you where strong, details the building were little about First very Thank side, on a batteries, side, under moving more that bit in lower of side? on and talk year then And on talked that so the distribution automotive somewhat automotive are the on if invested terms auto in, ago was

Mark LaVigne

the On talking great distribution distribution standpoint, the battery really from of and about broad year that fiscal a gains. based last was deal were for we that side,

in saw rejuvenate innovation able driving pipeline. you're both expand into had we've importantly, A&P markets both we've advertising at really and the able You presence were as center. referring wins with that from our perspective, seeing but the that expanded wins in in in the fragrance AutoCare impressive back launch we've the may as get International AutoCare club online, business. some able in improved margin base, we've and wasn't creative European to a launched off channel We've previously. to online of low distribution space invested home to where Australia space, retailers in new but We where the center rates, some home that have business nice additional maps. presence some growth home We headwinds brands, able some get improved Mexico as Similar in to. - most and auto story been we've well center, been to as well been been

strong what it's as to as been. is go ever so able to we're and retailers present And

Operator

Nik we Capital of Markets. have RBC Modi Next

Nik Modi

everyone. morning, Good

the years that Just I a about gains. asked mean wanted up question distribution guys from on and to been a should we last you about we provide runway and it? quantify curious, about do like it, of we way framework think have anyway should follow very just just many, distribution Edgewell? how how to separate it's how think every Robert good And it's gains, the there year, - to is almost company many been any I'm been further

Mark LaVigne

the out so the and preferential we're expanded of of some because for timeframe. balance club for big space, June, bills distribution space, our day year, battle that taper start of looking for. taper were team's for in year, the are tailwind particularly of going last in while constantly more see the additional the you'll of to distribution But of and off distribution, in off is big the 'XX, to going us. This But to new cycle gains across something a we off some balance that day be to we're for those all constantly distribution the space to July the categories continues gain able

going to a impact the positive September. all have through it's way think I

Nik Modi

And just you thinking about should to way certain you it be? channels still there index believe longer where term, where are or geographies relative under certain

Timothy Gorman

obviously, across do to our market the or for it space we'll analyze more footprint but market the way, U.S., and retailers the to to fairly have we board growth differ both be and the while digital category going going back, our in and invest robust drive there we an that. would is have that's growth But emphasis throttle That's that, well a expect world years. to new always around day going for significant of to allow brands right to opportunity distribution, get and and renewed isn't you're it And as of us now, space, mature we the as the seeing, carry the have couple we really the right and we a ever to to an for a more. is on investment continue that omnichannel area pure play what we're to doing the significant fight next over pull discipline

Operator

Jefferies. of Next, have Grundy we Kevin

Kevin Grundy

particularly and have to up opportunity around target. bit particularly appreciated. but given think just you one online focused - next? I done importance everyone. of cost a Can first to other and limitation how around both. your can cost synergies there of talk year how Mark, heightened you guess, And the about the perhaps the organization can extent the be Basics with second Morning a sort commodity is then give seeing, productivity, of into could, know data, company that Thank opportunity an good as the I little for holding emphasis just growth that now even be color we I and are as a for right this given more relative profitability, exceeding Tim trends large respect in that the Couple you, that about and So Duracell? for category has industry share would to you're areas can growth where you a job initial not you but it and with that with Mark. Amazon you're environment the one us Tim, questions cost the here, synergies if clearly

Timothy Gorman

synergies to continuous improvement. Relative Kevin. Yes, and

continuous know, on been you acquisitions, before always the As AutoCare we've focused Battery improvement. and

first the indicated, those Mark indicated, to we against for chain continue into As for as deem out we year, thing do that's that Battery inflationary pricing AutoCare product supply of next our costs these balance and see we're actions as will areas any and And year. costs synergy pressures, on global going move go as we look and appropriate. take to improvement to is the that and as had continue have in had necessary to we that that then offset to you up over-delivered we expectations the we then take through this

So it's cost overhead. as in as both well

will as an us So we for to also look technology make that we forward. in investments opportunity provide as move

Mark LaVigne

provided and the we've not the it. And important. information on not just And front, the but of past, the in we're Kevin, retailers category providing are information, I many receiving that e-commerce know it's

to precision. with bit any do of degree So a that we're little unable

provide that our XX% business Lights can our about Battery's doing we I a is talked or higher little roughly you, and bit online, a say, bit would what rate, that, we than growth are and mentioned a than there. around what right lower little prepared we remarks So AutoCare the in sales

healthy what seeing So growth online. we're

that has continuing a was, do we the we you're we factual based say, to have growth and we're if an would on holding - our category information, side opinion, is our provide data that I the which again are that to own, We we're trending reason a meaningfully for have updated rates but see more that - think an hope it sources used the the to can starts no database flow also based we than battery we consolidation information gaining share category it to of as they on to I share online and last more on and ahead believe of AutoCare that's as from information. from so. insights believe that get. able soon year or trending we're was those position gather where are - changed the of

Operator

JPMorgan. Andrea Teixeira we Next, have of

Andrea Teixeira

high-end, lead your comparisons And course good morning. to half lap you, internationally. takes there puts in at and the of but the Thank fiscal flat tough back to going you that you just that second U.S., guidance eased year's

elaborate e-commerce so relatively as you given seeing of e-commerce now, some even the Thanks. also that a mentioned please your you penetration? So pace on International mentioned lower AutoCare you in abroad, just same are you there? the internationally, how follow-up in can are gains on growth batteries more impact you accelerating or that And it's tracking

Mark LaVigne

Andrea, is we more International growth I efforts them to markets. our - applying last taking in because On our just the U.S. international Internationally of lower off base, think it's it's but seeing robust where are and we markets question in nice the are a to the there, growth

side, first you're continues In seen in 'XX. one terms to the the latest has very XX% I pandemic, We're then of has like XX.X%. the months up and market and like nearly is the three of in battery a respond the Germany well. been that International other we've think category up France, on which through the been side markets markets on February X% Australia, the this markets of

we're healthy seeing category business well is as our those results the So as battery and internationally well. in

Andrea Teixeira

consumption And ahead - on have have since read And seen since consumers any - been super changed? that's places, is has reopening us, there you've the how may habits earlier helpful. where of

Mark LaVigne

the out it. where are some and where we pandemic markets and coming it's around we little Australia markets interesting - of the the middle of read they watching bit got an we're as world you've certainly Zealand. We that It's New earlier in are something were like right had a and

information, We're some that. that far there PLF there's we're the categories the watching like data and if are of watching markets category out power data markets we health of we see in. so that thus of coming the New have Australia, to indications. to the staying those And consumer is is Zealand indications out the any Leading leading

it. to that expect We continue, into and we're going to lean

Operator

Jason Sachs. Next, have we of Goldman English

Jason English

Congrats quarter. very strong a a on really

Mark LaVigne

Thank you.

Jason English

Thank questions. this you out quick different of EBITDA, you build bridges in slightly terms how cetera. quarter on the Couple et of for

drop organic as give with variable EBITDA of very million struck $X.X growth through, at some us but leading sales not why you around $XX margin only that the of is me robust? flow-through more low, Looking million, XX.X%. can organic context to at It

Mark LaVigne

John.

John Drabik

Yes.

we impacts So really we've $XX we got to we're this expect look, the million and costs. well improvement EPS to you're the Offsetting of in that by like doing to We're that's strong performance, the additional investment related couple million of full quarter. a some comping realization year SG&A driven $XX COVID positive sort of the well. million A&P be seeing as things; some half some of that, things in $XX and of and synergy saw volumes operating as incremental currency second are as sales EBITDA

slightly you so growth. seeing are EBITDA And the accretion less sales to relative

Jason English

concerns? any those Okay. roll cost be And with, of or either expecting kind of into key we Is is color whether materially back rates give a next question should your cost come can to investors we bit hedge ease context talk spot with below that is cliff a they as or one hedges, the year. we validate there whether continuously not there out your and you or

John Drabik

out. did Yes, call Jason. mean we I

So this $XX incremental costs. look if at you quarter million in of

$XX bit tariffs, as XX% talking labor and that For of that's fixed. of commodities as related were we're incremental XXX% months, a the million $XX million little well of nine transportation about to those and about the commodities, to

some but into XXXX. of as impact in costs, big rolling higher an we're not those So

see will some - the as you'll to come out, as and side start off, those hedges out roll through further on We we see inflation commodity start to so get well.

our prices XX% account our seeing COGS. top cost we to those in spot for commodities and average up look So relative to as at XX%. We're 'XX, four our about XX% of

bit So revenue expectation seeing we're Mark take that a and our to that that's address come out, as continuous some the going mentioned, of as cost those that to is the well talked. we're through as Tim inflation has of efforts through improvement management

Operator

we Bank So America. William of Reuter of next have

William Reuter

the raw basis enough or was offset to basis? know were for I in the you were increases details sharing a not the price interested in increases but materials margin of on percentage on price the and through push So you this auto, a dollar dollar

Mark LaVigne

The price increases experiencing through sufficient on are offset we pressures auto. we pushed to the inflationary were

William Reuter

of increases second push price battery, mid-season Okay. push those price pushing through? space through And I to on battery you wait then increases question discussion in with do guess larger through additional typically a around more to how resets regard my for are shelf frequently

Mark LaVigne

well. percent have when feel When We'll internal in we and a labor facts We're the past do the activities is together do what price through it it That's to and that expect we we've of have headwinds right and And time like approaches pull think to I what to the and go in and as discussion or would and in it that that. customers come enough to have tariffs to and increase. last and time costs, fulsome fact past. the in data we we have the we'll experiencing way no, together, book magic won't. it's and no we've approached labor, in There pricing. have are future that to that of be exercises, and when handle management we permanency, we're going a a revenue about impact feeling able we we're go do as whenever pull to discussion. feel to to the window when information into we had go I cycle, the to the we done pressures so information is based resort, have the move are transportation, we just and on the there then is enough a the those a have have that a sort in like commodities soon on we as now, justify story as And all in, as of going go is when justify like that's

Operator

closing remarks. the like any Mr. to at no this ahead over for Mark showing answer Sir? question questions. I'm call I Well, time, conclude session. turn We'll further to and and LaVigne would go conference back our now

Mark LaVigne

everyone, today ongoing joining interest for time your your for and Energizer. Thanks, us and in

Operator

the you your care disconnect management At Everyone, the Again right. we this the All also. lines. conference sir call wonderful now you team concluded. and and day. And to for take time, may of your has also time a thank have rest

Energizer (ENR) 10 May 212021 Q2 Earnings call transcript