ENR - Earnings call transcript Q3 2024 | Energizer Holdings, Inc.

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Operator

Good morning. My name is Lara, and I will be your conference operator today. At this time, I would like to welcome everyone to Energizer's Third Quarter Fiscal Year 2024 Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

I would now like to turn the conference call over to Jon Poldan, a President, Treasurer and Investor Relations.

Jonathan Poldan

to Quarter welcome Call. XXXX and morning, Energizer's Fiscal Third Conference Good

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

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

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

We also our non-GAAP presentation to refer measures. on financial

Energizer's all year data comparable regarding shown in data, fiscal The we our call categories non-GAAP both the noted, year from market which sales. same really period the industry includes believe analysis our we to concerning quarter financial and Information to reasonable. year category A issued comments to battery comparisons retail pertain otherwise is estimates where press fiscal discussed on and all on website. based Unless share information to XXXX. to be the is compete brick-and-mortar available measures e-commerce categories today, in and and and prior GAAP measures and internal reconciliation earlier release relates our on of to Energizer's this is estimated

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

Mark LaVigne

to years, organization, the thanks did third several rewarding results when strategic over call. it for past financial as decisions of particularly and is this recovery, dividends it started we stages cash significant this attention tremendous growth. margin a Once the turned quarter restoration ongoing accelerate those are everyone, made establish we flow and quarter. that at the objectives and made always Momentum, earnings focus. tangible reduction. work up of shows our We the couple pipeline seeing ensure free improvement, our of to morning, to we in Good early to against progress debt highlight It joining from designed with Project healthy We and

progress each in demonstrates those quarter This areas. of

our paid by points, XXX adjusted good quarter. results growth, and of Let batteries start total for Care Highlights the X.X% expansion debt down leverage earnings pay Auto generated to gross million to summarizing throughout me consecutive include XX% a basis the very organic net out quarter, bringing year-to-date P&L. Both margin $XXX eighth and reducing debt great net adjusted and third Xx. growth sales

basis and roughly were by fundamentals category gains. Starting XX points, solid net up with distribution Organic sales batteries. supported

in We the data. healthy volume category basis continues quarter. in grew Value roughly latest X% drove demand. In both increased declined as And profit, in in global value the category X% and as XX the and also expansion driving points volume the battery promotional perform well latest segment improving to investments U.S., by over the are X-month overall pricing XXX weeks.

Consumers in we we positive in are nontracked in In brands in digital select globally globally continuing the and softness, share seeing last channels, in and sharing measured began are trends spring are Private XX declined category. the value months last declining the X in label which commerce addition to quarter trends share in volume of in X volume lap with as of declining the year. XX. value to improving now the the channels last

points. complemented This segment an our up the we momentum, is X% the profit by in refrigerant XXX internationally, replenishment a heat increased nearly the margin quarter plans. wave basis business. net where a Care, in in seeing organic expansion continue June Auto as drove business by strong increased impressive And organically continued to Moving as we are sales was This XX% our strong hitting quarter U.S. stride.

We since our organic ownership, fiscal X segment line XX% first expanded grown relative quarters points profit over delivered by top full the over of by basis have XXX and consecutive for year XXXX. growth to

healthy and The generate just that one have in time, during the of margin Auto success years both in Care are to reasons accretive confident future. we strongest U.S. about we the innovation, growth Also a so many international developed markets. pipeline seen have in is the we of the

at have years, few balance stated restoring tremendous over sustainable progress term. our flow the strengthening our sheet, all business and margins, we over As in investing the top cash also deliver rebuilding to growth our past made our while call, long the of I the free

we to I where If only are we've headed why not we step take like over long we a are been, the in ability confident back, are and shareholder deliver so term. but reflect value on our and would to we where today, growth where

summarize me let are. First, where we

resilient. categories proven to be healthy Our have and

organic in the achieve the of year, beginning This outlook growth the even with our the consumer. growth and are half expect with caution at quarter, to delivered seeing the back we we we provided

date, XXX delivered expansion fiscal margins 'XX. to points has XX trailing of in execution gross XX.X% Our basis million of the adjusted compared when $XXX to to Momentum driving nearly in an months, Project savings

generation for We expect have fiscal top-tier to between consecutive also free year. resumed the XX% second XX% deliver to cash and flow

debt as Having the leverage a consecutive to we driver key cash have on full reduction debt paid investment under $XXX in by to flow year over thesis. in our quarters X track years in a reduced prioritized We X allocating have net million, end the remain turn and totaling down over last Xx leverage.

flexibility of progress All this us creation. long-term value growth in the with provides to invest and

areas highlight emerging where to some order are healthy and turn we where to future consistently. we see There invest of As will I going, have to where growth it we opportunities. we want areas are in drive

us accelerate growth strategically expand and Energizer's network number to in broad expansion. of identify can First, a where globe the markets market across global platform distribution developing our position and we business.

Auto shown to out have continue the have aggressively, mentioned growth we Care improved we as margins. more that international expect that our healthy in we particularly roll to now and addition, before, business In

Second, innovation.

the With industry-leading have plans health to we of of pipeline, innovation across investments categories. deliver our each innovation and our

We couple customers we expect to generate healthy to growth consumers. products the of as our years over next these introduce and

to strong In areas addition, invested even already accelerate to foundational have in areas Several further. we growth highlight. and

new grow This America importance, both and in we international First, North channel commerce platforms in digital to structure continues investment enhance organizational and increasing commerce. growth markets. our our size and in and are to accelerate realign and to digital existing

while aggressively also as There investing pursuing opportunities. the of strength white space are are in a new also to distribution improve mix opportunities core we this and existing customers placement organization,

we so investments do fueled compromising transformation, in enhanced management, drive digital quickly, focus analytic by identify us mix leveraging mix will We more capabilities on our maintaining management. enabling without and action through to opportunities our growth margins. improved pricing healthy finally, are to And and

tell, you are are As pleased ahead. and we what's can very excited with we about where

more to our Now third let John call quarter quarter fourth detail to the on turn outlook. me and provide the over

John Drabik

and of good everyone. full I our more for on fourth the and some expectations the Momentum will morning, additional on summary Project year. Mark, quarter detailed color a quarter and update Thanks, provide and

gains battery of America XX within of category an and organic investments organic the driving primarily warmer distribution X.X%. were offset X.X%, by We sales net points quarter, strategic the of business contributed and planned volume with improved battery promotional trends, basis increase to weather growth refrigerant and up For North pricing lights. X.X%,

and For investments category. the healthy in in little battery promotional X pricing over the business. back a of been into the last We these we've have believe very basis successful volume quarters, points investments to drive growth invested continuing XXX

consistent the including total line pricing coming season. the in and this averages largely are to In expect for levels remain current the of the addition, ahead, quarters holiday promotion we and in historical category, with in relatively

Adjusted were lower gross XX.X%, partially commodities as the approximately savings investments. million XXX to lower and basis planned margin input by strategic material increased $XX as pricing pricing Momentum including and ocean by costs, freight. and offset well of promotional improved These benefits driven Project points

Mark a heading anticipate to which restoring gross margins will tailwind over next generate future mixed slightly As our be year as continue savings, to reasonably momentum to a trends material for into ability made freight have due our positive the additional last positive well cost stable earlier, QX been invest raw gross to margin, progress in We costs. growth. for contributor mentioned and significant and overall as we us has key cash X years, but

of sales our by by prior transformation savings. and in investing $X.X business. increase X.X%, and higher year versus initiatives, expense Momentum flat and related SG&A costs, an on consistent brands primarily offset behind depreciation Adjusted with a travel increased benefit focus as A&P percentage million, and Project expense to our digital driven increased partially the was labor our

$X.X average decreased continued due million expense lower of reflecting the debt Interest reduction. benefits debt to outstanding

Our operational performances by savings $X.XX $XXX.X and of in resulted adjusted Care earnings significant and line per top improving and both million Auto EBITDA momentum in strong per share driven battery margin recovery performance, and share. adjusted

X generated cash $XXX This last outlook the X.X% represents we we sales. free a Throughout fiscal the have first quarter. XX% net increase provided million well months or year-over-year, in adjusted ahead earnings of of flow of 'XX, of

of down year. $XXX X during has hitting quarters to the of debt cash Our low pay end range beginning generation already first provided we the full that year at free strong the flow enabled us million the of the

great focus on significant benefits. continues structure to debt and shape, in remains Our drive our repayment capital debt

and of is December current maturities Our cost X.X% weighted until fixed no average debt with XX% XXXX. meaningful

our intangible battery impairment release with in noted press certain charge noncash recorded we business. $XXX acquisition this associated Spectrum's the of on As onetime morning, million assets a

components acquired of plans not charge our as portfolio, these view business. on battery our have this assets to broader accounting for an continue does impact these noncash brands vital or strategic and We our

to year additional to our fourth volumes like and continue be expectations. expect performance, although QX, would offset activity. pricing I In of Lastly, we quarter positive and to provide partially promotional full color driver some by a for

transformation improve investments and growth significant earnings quarter [indiscernible] some basis margin When year-over-year a our organic XXX we digital the anticipate fourth and per in plan the quarter we sales make initiatives which expect with by sales $X.XX. the heat-related adjusted we of as in activity, to experienced be combine shifted the strategic the also flat. $X.XX range third. defensive share in We higher roughly gross of consumer, refrigerant generally posture the We SG&A in out and quarter points roughly to be to on into and net

revenue the For be year, roughly we expect down fiscal to organic full X%.

margin primarily Project incremental by our costs. Momentum points, of savings XXX over expect driven We improved XXX basis points, over an call improvement adjusted and prior increase input from gross of basis

of end high $X.XX share, over in original respectively. EBITDA We delivery to to our per million $X.XX drive to and the us the $XXX margin ranges million $XXX expect EPS guided gross adjusted to and to

As for up of we our comments, and achieve million significant continues of across driver $XXX Mark and between a previous organization. the expect million, Due savings earlier to guide. to million noted our Momentum in Project efficiencies program, continued be benefits progress to $XXX his from now $XX

expectations to full And pay for of range year. at down generation debt be finally, to our us strong enable cash the will $XXX $XXX end million expected our million year to for originally high between guided the

remarks. With that, I it closing for over Mark will turn to

Mark LaVigne

a In a gross growth strong strong in and margins, progress resulting John. closing, return quarter third growth. rebuilding Thanks, continued earnings in organic with we to delivered

X our strategic our years that, investment our for questions. of Our over objectives creation priorities call the advancement past and has for set value growth decisive for in let's the With the shareholders. open and long-term foundation actions

Operator

question line from Our the first from comes UBS. of Peter Instructions] [Operator Grom

Peter Grom

the the maybe would but perspective for of line see we what kind health seen, of we've seeing expecting specifically you're And out here. maybe can the think confidence understand specifically, help of categories. top longer the to context love growth have the think a the to recognizing of looking in 'XX just exit on that get of your just in about what and in I at you can kind And you trends from performance rate, kind So us of track Energizer then about some you line degree When we quarter. in and flattish delivered how maybe delivering the this stage. top growth you X% term? growth consumer,

Mark LaVigne

Peter. Thanks,

consumer, make the operate that promotional and that We've sure smart made to a cautious time on in of we we clear taking outlook highlighted we a the in the when develop environment. way at toll engage areas were our investments think plans them. state that consumers could to We that in along very about I November, time the consumer. were for the provided we

And the so in year, international I deliver anticipated. of half we're the growth U.S. out like to back expected, markets over over year, growth of the think and half returned and the both back year largely as the and . we laid to we volume has financial just going the we've

looking think optimism this. ahead, I about gone in real us terms for we've Peter, there's how of

to haven't had that have type chase in we we of executed to time. debt. plenty us in believe there's the couple find. cash don't a think right that of the restored project ability that reinvest does I exactly the in paid P&L. We free down us the interested growth business in we of we because last to We've given growth that, flow. We're of not momentum and health after we years. for at actually chasing the a way opportunities restored that It's

that. through how of you talk kind about me let we're thinking And

of of of continue business. We at one higher. the looking business, think use our focused And just to look areas that we're be and could is our on areas the for certain the we're at build emerging about higher-growth of out results the coverage, One we markets. XX% to platform is market really the want scope financial in the at expanding to consolidated you're you that if

If since compounded about for X% 'XX. and you growth like us an annual Brazil at XX%. rate markets Brazil, is look Mexico at has Mexico

perspective. expand So can we additional our markets continue Energizer, as to coverage out it a we for tailwind build from and growth create think that

it's We geographic business different Auto with the where in think innovation. strategy within multiple about we also deeper can will we platforms. it's have And on commerce. we element our expanding look that going category invest forward. tailwind. where spoke that I penetration a also in operate at And think And channel we can a strategy, digital I area think and call you of a that's provide a can get Care

few We momentum. we have of deep a years executing pipeline when the innovation last were over

We also we're really what bringing last couple way the repopulated of years. next market hasn't are couple the and it in that that been about pipeline of years in to a excited over

more investments to to informing expand ROI and a geographic around you're to mix That's spaces in pricing a done a better And making. growth on then of digital lot distribution. and of Care, how seeing that down the get retailers you management, work the batteries, the in you're basic including fundamentals higher is our approach Auto get some white we've terms to

new these a really algorithm all want momentum to forward. we growth come that and So see of together line the that things restore project below meant line, where health restored financial is initiative this lot going of to top consolidated top the

time lot last growth to think spent is forward. together individual So couple rebuilding line opportunities then financial the put years. that 'XX, over pretty you've rate those we exit within as algorithm top X% of of into I really and back this taking a going an about going basis generating X% about areas the on consistent a all And the

So good as exiting in feel and 'XX, we're sitting about a heading where a honestly, really business. we -- 'XX we're as from

Operator

comes of Lauren from question Barclays. from next the Our Lieberman line

Lauren Lieberman

mentioned be the Great. made since actually I the quarter. thought ask would during about Brazil to acquisition that this, it interesting you just you

So of just yes. existing share hear about manufacturing curious Brazil, kind in that footprint to you that, anything can

following the, Belgium with on acquisition curious Brazil So just battery earlier. I'm that, secondly, guess, kind then of acquisition. I And the the

about that think made local just capacity come in? the does expansion, should about kind that growth? Where how pieces infrastructure scope the does comments expanding think going with after as So international where on you we and you've into the come go of

Mark LaVigne

the Brazil optimism one the previous highlight to our continuing in helped as well of build by Belgian this have both say quarters some recent as would acquisition really most I Lauren. out platform. we from Thanks,

If manufacturing you forward. to gives region, us which the recall, going chain insulates the us from acquisition, region in a Belgian advantage lot a produce allows a us acquisition was of cost for largely now supply disruption

were weeks just we is with very benefits, really operating one, couple particularly that the that a for facility great European and So and well in business. ago of

you local Similarly, to the for Auto have the Brazilian Brazil products go manufacturing business, down market. Care now in you in

You that we have going and drive are that's batteries that where with forward. have we can have Brazil, down platform growth, both resonated and Auto consumers in and really local brands emerging really think there. an in Care we

have really source we're becoming we looks position where So back in And now. we if of scale. a it's strength you where look were that of where in right now and a market different XXXX, kind entire

manufacturing and We both local have of Auto battery Care.

That gives a you strategic advantage.

We brands. local have

a to we in to there. this be because global have market point, lot think of at for growth push really there's And we're going growth had that We brands.

Operator

comes of line Bill Our the Securities. question Truist from Chappell next from

William Chappell

talk into I lot we're of going to chance from CPG as especially pricing, little is next hearing CPG talk move about your category a bit and that but year. a into companies increased understand less little different want or Just one, businesses we about promotion the price guess, year, some next a categories. bit I more maybe to

you're in the So this seeing bake-offs overall done of on category some with incurring pricing upcoming for the then of of you're imagine you just what I color kind environment and the some you for us kind your in for give what mind, U.S. but you've thinking holiday not and or for from season. primarily that also, Can

Unknown Executive

Bill. Sure,

pricing about the what So in in and QX P&L. QX, promotion XXX is basis I'd say we've of points and seen

around environment. volume as as still to a 'XX, pricing that we'll into of we we for see we promotion forward, think be look Our plan relatively kind season through don't little as significant it driving go then growth. the be you you looked at similar, QX holiday and change And

to in engage the the the point, at pretty to invest So volumes it's category. with drive we and consumers this that think we'll continue stable and

William Chappell

Okay.

that? of are in terms what timing of any terms and or hearing So from of you're update the -- upcoming how like looking and orders retailers holidays stuff in

Mark LaVigne

Bill, and season for early holiday say a seeing in. we'll how to season. retailer progresses. make a ready any I terms normal holiday And end and up as heading of typical will the would It say, where any late we're are dialogue happen from shopping that we're of planning planning they early or be an the the holiday watch had then back would going shipments displays and . sitting typically as into us respond is it season, for doesn't we're today, not We've in now, needs being then that. may that signs need. walk I we're would to good what

John Drabik

Yes. Last QX pretty was us. a quarter year, strong for

I couple percent. a think we were up

Our plan that. now comp right is to

seeing a from trend. not lot significant we're that So of changes

William Chappell

Got it.

And FX sorry, you impact XQ? one housekeeping. was line expect similar be top Would than the in XQ to it on in

Unknown Executive

Yes, roughly. think so, I

Operator

Our of the from next comes Robert Ottenstein question ISI. Evercore line from

Robert Ottenstein

hear comments in I detail going A to number terms number to what having in them on Number what there. gaps extent with there? you've gains of channel touch couple And that what's the about timing was about strategy to of the will I two, look interested impact more label your when one, Rayovac, then things And of distribution private any wanted one. just an really any hit to your that gotten, like, So strategy that's has results? your on. the of do that

on X you points. let So those touch

Mark LaVigne

Robert. Sure,

I value which provided were down you commentary maybe I label, has it I is that's story a it where becomes was a very with in been. label international dig as it into us remarks now, perspective, you're volume But which think on private global right a think both a is upon and or think we the for discussing. prepared we -- it different market, mean, think largely -- private the it, then consistent what the I U.S. from depending perspective retailer becomes I

it's where seeing You areas, pockets little a slight has coming a is private -- are label in uptick down bit. other

far. think watch I of at do, has perspective is Robert, don't I balance, try -- Bay anticipate thus us held sort -- And share a on to And But for that changing. is don't it what it think from carefully. been too we we

from to react seeing And question. got share And a anything private now, a us shifts bit label first a touched hopefully really little and we've perspective. cause. think give the to on root your more I we're not right I that understand I would

John Drabik

Distribution.

Mark LaVigne

the gains. on Oh, distribution Yes.

if international out price So additional on those recall well, losses increases, as about into gotten distribution, have is have international price we last that in some rolling that and it we retailers, a market reengaged increases get you been they've we the side, effort when of doing. teams lot broad-based talked the distribution settled as year had were successful a teams behalf of to been back on international back with the out the really

worth team international business, a did pieces job there's points from growth a calling any and back piece of great around, that In that's quarter. one not lot of battery and So sort they out. by getting we restoring the basis the It's back. markets little distribution in XX the grew

a team. job by was the nice it international So

Operator

Our next Teixeira question from the Andrea comes from of line JPMorgan.

Andrea Teixeira

and of would what And comment on gains track there just you share Auto on a FX-related performance holiday should discussed thinking a channels? also holiday little other shift that in wondering into bit can towards pricing. you're season. like say, may that you anything [indiscernible] I be been in season we Understandably, about, that the non-track in has and than, of pricing back in distribution you and batteries the terms Care. you both be seeing the terms obviously into of the seeing can spoke we Anything So

Mark LaVigne

to a and capturing again perspective, versus channel the one looking U.S. think if a think what's typical changing of try on provide sets the little business. just of set, be these to the of bit getting more XX% I the seem days things nontrack data you're Andrea, a is back kind our set because that using of data you're probably data bit to we're that little Nielsen track to I discussion,

business So XX% that's of XX% roughly. our of

remember of set, I our the the would if in is data and U.S. growth that standpoint, battery of business. points business U.S. shoes, even you a XX% U.S. now international you coverage, standing data, with to If business. basis trying you're OEM in assume, so scanner that the just getting -- bridge mentioned mean of XX% probably [ BP of what is I be the But Auto International Care. and club sets, XX% out some I'm and X.X% visibility the be using center online, And as What data leaving those may data the is growth you in the you're [indiscernible] your seeing. well. in from international want, growth I'm you then And to ] may I XX so to had XX% home growth

So probably up. that the not picking growth of that's you're some

terms and I QX, flat. of As in growth are good. feeling from delivering we would it overemphasize not X.X% look we're When for the going still in flat forward we we I half. call back think holiday, to

We're think the delivering in growth. fiscal I position. we're a very exiting strong year still the

about. on talked based initiatives 'XX the we in growth all expect We

got when So to growth, you've it look going from you're at have you modeling financial a standpoint, improvement. margin gross

to 'XX we're we when in that have talking we're in the we You're A&P to running want we investments to going sure growth -- in to and investing ground in you're deliver going hit because the those SG&A make want QX some about. because

Andrea Teixeira

as we thinking now. normalized to helpful, 'XX, be -- super long-term a I alluded think So on you algorithm can as should we

Mark LaVigne

of falls algorithm top the and of I think that's gross the improvement to deliver rest place. into then kind margin I again, line, the on intention. the growth back mean, get

John Drabik

the objective. always It's

Operator

JPMorgan. comes question the from of next Casella Our line Carla from

Carla Casella

a dictating and you more us channels the and questions half? how lot environment. target got back seeing shift going can a the if promotions I color a But to You've if of you're on you promotional more value little of by out give into it's bit kind channel wonder

Mark LaVigne

can more always strategic seeing tend being meet are the Carl, we I tailor it migrate dollar. do and trying you their particularly consumers, investments in value conscious club, in think objectives. low can to our does middle It be in retailers that online. with promotional be to income

in benefit our the it get that that is so we we retailer every distribution we're every And have from just decorous or channel. in -- where

with don't overly consumers we incent to So sort product. our need to of engage

retailers, think back those gross do out we drive But with them against, while are with connecting we're strategy improvement. standpoint, That's we still with top are I look our we line I and growth from margin to drive dollars. and But and investing with drive meeting We're our guardrails and Momentum, be think to teams we're -- it a making promotional the gross looking going invest at improve. there. comes and sure to, going now -- again, our are always growth to investments that's that go that, that's and always decisions flexibility we have margin that the to Project letting to

Carla Casella

key remaining can to Project savings, just us of on you that kind baskets Momentum, I the Or Can you any program? that a the do increase follow-up basket? expected $XX million, change give the in

John Drabik

the SG&A, to find continue to versus think optimize. gross percentage heavily opportunities is within I No, network little margin just a our

it we program. X-year up for So $XX fully took the million

Carla Casella

coming for . leverage since debt the your Okay. Great. mostly reduction the And reduction? bit you're little a now that year, on from EBITDA ahead is

John Drabik

is the there continue we expectation Carla, to pay down quarter. fourth No, is debt in our --

If you to $XXX saw down million we million. debt pay to call raised for our $XXX

the So top end that's at our of original guide.

we pay should some in QX. So down have incremental debt

Operator

comes line from Reuter the Bank of America. of Our question next William from

William Reuter

be do of last given repurchases your a it is than that picture? would Does does to over significantly, expected. you time, while the that quickly I don't maintain coming in similar My Last asked question had change leverage more M&A share you'd Xx it make sooner sense maybe . had previously target, either would than into leverage sense, said improving is quarter, your to you Xx? terms it. that leverage Or previously which you makes one you That's capital quarter, plans down allocation is come expected. is at

John Drabik

debt. Xx going focus options much think that evaluate We'll other debt good down. earlier, got you've opportunities, but is get look to but into a that categories down and think to talked like if on what do they at I paydown. the we're the say Mark think that would things, still neutral. I of level target very always want I'd mean hope paying and we for about I us, really I debt Well, we'll kind M&A in, to other close prioritize would we're that we And be leverage very I

of nothing So significant.

continue down going debt strive while. we'll a forward pay for So to to

William Reuter

can I Got one it. And then if have follow-up. just

the In value? you've on buy weakness, any consumer spend attain packs terms they to greater reduce increase consumers period. trying focused are dollars the seen of they batteries they Or more that either better expect of that of in do would size and try to when periods you the of that

so maybe higher you have packs, move which to And margins. may smaller some

Mark LaVigne

short the answer both. is Bill,

larger to to packs fortunately, choice. We migration say for packs, of them you our are they lower do to see And packs but that hit greater well larger up now, Right out. lower pack as both as seeing to migrating price to . a the point. smaller the down than make would and is size allow playing I consumers migrate some dynamics migration slightly offerings consumers

Operator

the We from line of McNamara have our next question Brian coming from Canaccord Genuity.

Brian McNamara

for to it's improvement as view for don't suppliers in in into from a that thoughts channel fiscal any home contemplated I'm the calendar other as there? relative So HX. guidance -- curious we've in given really optimistic heard XXXX what's HX your have centers an and do recently QX, untracked that

Mark LaVigne

are would would outlook the provided. for then we've all play that had in say down obviously the by center. of about that back call I don't we we've into the home terms flat of it break growth half. but say trends in in delivering the the seeing you talked customers We QX, improving I factors external

but BXB in You're are of life battery consumer. X% what's in is But seeing category of channels you seeing growth your X%. healthy up the OEM terms terms some the of U.S., there of and up the in caution state the the signs volume volume it's measured globally in is in

growth there had. So to there's be

sort got club You've growth of of is growth. which a online, in source

signs. So I think we are seeing those

just gives baked channel We're deliver we're of all so providing. And that that into overly the not behold outlook in, growth. one us to

Brian McNamara

we've gross that margin And secondly, seen. on Great. nice then recovery this

that fact does the still correct to the fiscal on start . line should leverage imagine Or to I'm I I have? have top get 'XX would this that some if I this me how into cooperating mean think continue you've like to would much wrong. line? alluded legs

John Drabik

and we fourth quarter year heading have year, that's of going to momentum benefit into still you next look, full think if Well, a about then gross margin.

material like 'XX. us like But of think input this positive increases a on costs freight into reasonably I'd like been I manganese bit of trend. hedged zinc last raw couple over we're We've like were things a They've Our gone little should for very rates contracts lot trend of seen year. going with and we're bit. a be positive that back spot pretty our say months. still a And favorable. have a the rates favorable still but net-net, in

So to we're optimistic that there's run gross room on Brian. line. the continued margin Thanks,

Operator

comments. Q&A for LaVigne over you. now closes portion turn final call I'd back closing like Mark of the to today's Mr. call. This Thank to the

Mark LaVigne

to and Hope Thanks your us today the Energizer. interest great operator. of all Thanks, a in for day. rest has everyone you of joining

Operator

for We conference lines. Ladies lovely sir. and today. disconnect and participating gentlemen, you for your concludes ask that thank please day. you, your a call Thank you Have this

Energizer (ENR) 6 Aug 242024 Q3 Earnings call transcript