Energizer Q4 gains driven by personal care acqusitions

By Simon Pitman contact

- Last updated on GMT

Energizer Q4 gains driven by personal care acqusitions

Related tags: Personal care, Business

Energizer Holdings, which is soon to be restructured as two separate business units, has reported significant fourth quarter gains on the back of rising personal care sales.

For the fourth quarter, net sales were up 7.1% to $1.14bn, which represented an organic sales increase of 1.5% when taking in to consideration the negative impact of currency translations.

For the full financial year, sales were down 0.4% to $4.45bn, and down 4.1% on an organic base after negative currency translations.

Personal care sees gains on acquisitions

For the personal care division, fourth quarter like-for-like sales were down 0.6% to $592.5m, whereas full year sales were down 1.4% to $2.45bn.

The contrast between the last quarter and full year personal care sales figures underlined the incremental benefits of feminine brand acquisitions within the personal care division that totaled around $78m.

Net earnings for the full year were down from $407.0m in 2013, compared to $356.1m, while for the fourth quarter they were down from $105.1m in 2013 to $85.2m for the current quarter, figures that reflect restructuring and acquisition costs.

Outlook is stronger on restructuring

"Looking toward fiscal 2015, we remain committed to investing behind our businesses in order to drive long-term growth and profitability,”​ said Ward Klein, Chief Executive Officer. 

“In addition, we look to continue our positive momentum with our restructuring efforts and maintain the excellent progress we have made with the working capital initiative.  We believe that our strong finish in fiscal 2014 and the continued execution of our core strategies will position both businesses for future success as stand-alone companies."

The company announced back in April this year that it is on track to split its business into two stand alone companies – a personal care operation and a household division focused on the Energizer battery brand.

Separation of business divisions

The company says that the separation is expected to be finalized by the second quarter of financial year 2015, which could ultimately make the two companies a takeover target for investors.

For many industry experts the company’s two divisions have looked incongruous as part of the same operation, and it is widely thought that the split will give the two businesses better focus.

The household products division reported sales of $2.02bn in the 12 months up ending in September this year, whereas the $2.45 personal care sales for the same period came off the back of brands such as Hawaiian Tropic sunscreen and Schick razors.

Related topics: Business & Financial

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