Energizer Holdings Inc (ENR) 2024 Q1 法說會逐字稿

Good morning, and welcome to Energizer's first-quarter fiscal 2024 conference call. Joining me today are Mark LaVigne, President and Chief Executive Officer; and John Drabik, Executive Vice President and Chief Financial Officer. A replay of this call will be available on the Investor Relations section of our website, energizerholdings.com. In addition, a slide deck providing detailed financial results for the quarter is also posted on our website.

早安，歡迎參加 Energizer 2024 財年第一季電話會議。今天與我一起出席的有總裁兼執行長馬克‧拉維涅 (Mark LaVigne)；執行副總裁兼財務長 John Drabik。本次電話會議的重播將在我們網站 energizerholdings.com 的投資者關係部分提供。此外，我們的網站上也發布了提供本季詳細財務表現的幻燈片。

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

在電話會議期間，我們將就公司未來的業務和財務績效等事項做出前瞻性陳述。這些陳述是基於管理層目前的預期，並受到風險和不確定性的影響，可能導致實際結果與這些陳述有重大差異。我們不承諾更新這些前瞻性陳述。我們向 SEC 提交的報告中包含了可能導致實際結果與這些聲明有重大差異的其他因素。

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

我們也在演示中提到非公認會計準則財務指標。我們今天稍早發布的新聞稿顯示了非公認會計原則財務指標與可比公認會計原則財務指標的調節表，該新聞稿可在我們的網站上找到。

Information concerning our categories and estimated market share discussed on this call relates to the categories where we compete and is based on Energizer's internal data, data from industry analysis, and estimates we believe to be reasonable. The battery category information includes both brick-and-mortar and e-commerce retail sales. Unless otherwise noted, all comments regarding the quarter and year pertain to Energizer's fiscal year, and all comparisons to prior year relate to the same period in fiscal 2023.

本次電話會議中討論的有關我們的類別和估計市場份額的資訊與我們競爭的類別相關，並且基於勁量的內部數據、行業分析數據以及我們認為合理的估計。電池類別資訊包括實體零售額和電商零售額。除非另有說明，所有有關季度和年度的評論均適用於 Energizer 的財年，所有與上一年的比較均適用於 2023 財年的同期。

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

說到這裡，我想把電話轉給馬克。

Good morning, everyone, and thank you for joining us on our fiscal 2024 first-quarter earnings call. We started the fiscal year with the same priorities as we had in FY23: improving margins, generating free cash flow, and paying down debt. In our first quarter, we delivered on our outlook and made great progress in each of these areas. Gross margin improved to 39.5% for the quarter as a result of the benefits from Project Momentum. We generated free cash flow of over 21% of net sales and paid down $78 million in debt, solidifying our path to achieve below five times debt to EBITDA by the end of the fiscal year.

大家早安，感謝您參加我們的 2024 財年第一季財報電話會議。我們在本財年開始時的優先事項與 2023 財年相同：提高利潤率、產生自由現金流和償還債務。在第一季度，我們兌現了我們的展望，並在每個領域都取得了巨大進展。受惠於 Project Momentum，本季毛利率提高至 39.5%。我們產生了超過淨銷售額 21% 的自由現金流，並償還了 7,800 萬美元的債務，鞏固了我們在本財年末實現 EBITDA 債務低於五倍的目標。

In addition to the strong execution against our main priorities, we are seeing healthy indicators across our business, including an excellent response to our investments to drive improved consumer engagement without impeding margin improvement, steadily improving category trends, share gains in batteries across key customers and markets around the world, and improving consumer sentiment. When you combine the momentum of our strategic priorities with these trends, we are positioned to deliver both top- and bottom-line growth over the balance of the year.

除了對我們的主要優先事項的強有力執行之外，我們還看到了整個業務的健康指標，包括對我們的投資做出了出色的反應，以在不妨礙利潤率提高的情況下推動消費者參與度的提高，類別趨勢的穩定改善，主要客戶在電池方面的分享收益以及世界各地的市場，並改善消費者信心。當您將我們的策略重點的勢頭與這些趨勢結合起來時，我們就能夠在今年餘下的時間裡實現營收和利潤的成長。

Turning to a review of the first quarter, globally, battery category volume and value performed as expected, with both down low single digits. This was largely driven by ongoing elasticity impacts from international price increases, which occurred later than in the US, as well as comping the energy crisis in Europe last fall, which caused a surge in category demand in our first quarter of 2023. When you narrow the view to the US, category, volumes increased roughly 6% in the quarter. We expect international category trends to follow roughly the same recovery pattern as the US as they cycle through the impact of price increases, with positive global volume trends in the back half of the year.

回顧第一季度，全球電池類別銷售和價值表現符合預期，均下降了低個位數。這主要是由於國際價格上漲的持續彈性影響（發生時間晚於美國）以及去年秋天歐洲的能源危機導致 2023 年第一季的品類需求激增。當您將視野縮小到美國時，該類別的銷量在本季度增長了約 6%。我們預期國際品類趨勢將遵循與美國大致相同的復甦模式，因為它們將經歷價格上漲的影響，並在今年下半年出現積極的全球銷售趨勢。

We are achieving these results while maintaining a prudent approach to pricing and promotion. These strategically important investments have been designed to engage and bridge consumers to higher price points after multiple rounds of pricing in the category. On a year-over-year basis, the percent sold on promotion for the category was up in the quarter, but the depth of that promotion was meaningfully less than the prior year. Importantly, the investments are having the intended impact without sacrificing gross margin. We drove volume in the category and for our brands, while preserving our pricing and expanding gross margin in the quarter. As we look ahead, we will be disciplined in our pricing and promotion strategy with a focus on driving the overall health of the category and our brand.

我們在取得這些成果的同時保持審慎的定價和促銷方式。這些具有重要戰略意義的投資旨在吸引消費者，並在該類別的多輪定價後將消費者拉向更高的價格點。與去年同期相比，該類別的促銷銷售額百分比在本季有所上升，但促銷的深度明顯低於去年。重要的是，這些投資在不犧牲毛利率的情況下產生了預期的影響。我們提高了該類別和我們品牌的銷量，同時保持了我們的定價並擴大了本季的毛利率。展望未來，我們將嚴格製定定價和促銷策略，重點關注推動該類別和品牌的整體健康發展。

Moving to auto care. While the December quarter is the smallest in terms of sales for our auto business, we are entering the critical peak season with a fast start, growing organic sales by nearly 5% versus the prior year. We saw growth across three of our four subcategories: appearance, refrigerants, and fragrance, and delivered double-digit growth internationally. Importantly, we are set up well to deliver low single-digit organic growth for the full year in auto care, while also expanding margins.

轉向汽車護理。雖然 12 月季度是我們汽車業務銷售額最小的季度，但我們正在快速進入關鍵的旺季，有機銷售額比上一年增長了近 5%。我們看到了四個子類別中三個子類別的成長：外觀、冷媒和香料，並在國際上實現了兩位數的成長。重要的是，我們已經做好準備，可以在汽車護理領域全年實現低個位數的有機成長，同時擴大利潤率。

And finally, Project Momentum is delivering. The program generated over $20 million in savings in the quarter, taking total program savings to over $75 million to date. As we announced today, we continue to find areas of opportunity and we increased the total program savings target by $30 million, taking our savings range to $160 million to $180 million.

最後，Project Momentum 正在發揮作用。該計劃在本季度節省了超過 2000 萬美元，使迄今為止的計劃節省總額超過 7500 萬美元。正如我們今天宣布的，我們將繼續尋找機會領域，並將計劃節省總額目標增加了 3,000 萬美元，使我們的節省範圍達到 1.6 億至 1.8 億美元。

Our strong free cash flow has also been a bright spot. The combination of margin improvement and continued progress on working capital management helped to generate free cash flow of over 21% of net sales, up nearly 150 basis points from the prior year. As John will expand on in a moment, our free cash flows have allowed us to make significant progress towards reducing debt and strengthening our balance sheet.

我們強勁的自由現金流也是一個亮點。利潤率的提高和營運資金管理的持續進步相結合，產生了佔淨銷售額21%以上的自由現金流，比前一年增加了近150個基點。正如約翰稍後將詳細闡述的那樣，我們的自由現金流使我們能夠在減少債務和加強資產負債表方面取得重大進展。

Let's turn it over to John for more details on the quarter and the full-year outlook.

讓我們將其交給約翰，以了解有關本季度和全年展望的更多詳細資訊。

Thanks, Mark, and good morning, everyone. I will provide a more detailed summary of the quarter, an update on Project Momentum, and some additional color for our expectations for the rest of fiscal '24.

謝謝，馬克，大家早安。我將提供本季度更詳細的摘要、項目動量的最新信息，以及我們對 24 財年剩餘時間的預期的一些額外信息。

For the quarter, reported net sales were down 6.3%, with organic revenue down 7.4%. The results for the quarter were within our initial outlook for organic sales to decline between 6% and 8%. As we called out in our last call, the largest driver of the decline was earlier holiday shipments, which benefited our fourth-quarter and fiscal 2023. Our sales were further impacted this quarter by continued weaker performance in non-tracked channels.

本季報告的淨銷售額下降 6.3%，有機收入下降 7.4%。本季的業績符合我們有機銷售額下降 6% 至 8% 的最初預期。正如我們在上次電話會議中指出的那樣，下降的最大推動因素是假期發貨提前，這使我們在第四季度和 2023 財年受益。由於非追蹤管道的業績持續疲軟，本季我們的銷售受到進一步影響。

Adjusted gross margin increased 50 basis points to 39.5%, mainly driven by Project Momentum. Pricing was relatively flat on a year-over-year basis, but mix impacts and modestly increased product costs were slight headwinds in the quarter. Adjusted SG&A increased $3.7 million, primarily related to labor and benefit costs as well as factoring fees in a rising rate environment, partially offset by Project Momentum savings.

調整後毛利率成長 50 個基點至 39.5%，主要受到專案動能的推動。定價與去年同期相比相對持平，但混合影響和產品成本適度增加是本季的輕微阻力。調整後的 SG&A 增加了 370 萬美元，主要與勞動力和福利成本以及利率上升環境下的保理費用有關，部分被專案動量節省所抵消。

A&P as a percentage of sales was 6.6%, consistent with our efforts to focus investments during the critical holiday season. Interest expense decreased $2.2 million due to lower average debt outstanding as we have continued to prioritize debt paydown.

A&P 佔銷售額的百分比為 6.6%，這與我們在關鍵假日季節集中投資的努力一致。由於我們繼續優先償還債務，平均未償債務減少，利息支出減少了 220 萬美元。

As noted in our press release issued earlier this morning, we also recorded a non-cash exchange loss of $21 million in the quarter, recognizing the devaluation of the Argentine peso in December. The devaluation was a result of broad economic reforms introduced by the newly elected administration, in which the peso was devalued by 50% in the month. Given the extraordinary nature of the devaluation, the impact was excluded from our adjusted earnings per share.

正如我們在今天早上早些時候發布的新聞稿中指出的，我們在本季度還記錄了 2,100 萬美元的非現金匯兌損失，這是由於 12 月份阿根廷比索貶值所致。比索貶值是新當選政府推行廣泛經濟改革的結果，其中比索當月貶值50%。鑑於貨幣貶值的特殊性，我們的調整後每股盈餘排除了其影響。

We delivered adjusted EBITDA and adjusted earnings per share of $132.9 million and $0.59. We also generated $153 million of free cash flow in the quarter through a combination of margin improvement and continued progress on working capital management. We directed these strong cash flows to pay down $78 million of debt during the first quarter, and we've continued this progress by paying off an additional $58 million subsequent to quarter end for a total of $136 million in the first four months of the fiscal year.

我們的調整後 EBITDA 和調整後每股盈餘分別為 1.329 億美元和 0.59 美元。透過利潤率的提高和營運資本管理的持續進步，我們在本季也創造了 1.53 億美元的自由現金流。我們在第一季利用這些強勁的現金流償還了7800 萬美元的債務，並且我們在季度末後額外還清了5800 萬美元，在本財年的前四個月中總共還清了1.36 億美元，從而繼續取得這一進展。年。

Since the fourth quarter of fiscal '22, we have paid off over $400 million of debt to date or almost 12% of our total outstanding debt. As rates stay higher for longer, our debt capital structure remains a valuable asset as we have a weighted average cost of debt of around 4.7%, which is 94% fixed, and no meaningful maturities until 2027. As Mark noted earlier, Project Momentum continues to be an important focus for us and contributed approximately $22 million of savings in the quarter.

自 22 財年第四季以來，我們迄今已償還了超過 4 億美元的債務，幾乎佔未償債務總額的 12%。隨著利率在較長時間內保持較高水平，我們的債務資本結構仍然是一項寶貴的資產，因為我們的加權平均債務成本約為4.7%，其中94% 是固定的，並且在2027 年之前沒有有意義的到期日。正如 Mark 之前指出的，Project Momentum 仍然是我們的一個重要關注點，並在本季度節省了約 2,200 萬美元。

As we look forward, we've identified additional opportunities to drive savings, including by leveraging production assets we were able to opportunistically acquire last quarter in Belgium. Based on our latest estimates, we are calling up our full program outlook by $30 million for total program savings of $160 million to $180 million. We also expect one-time cash cost for the program to run at roughly 80% to 90% of the projected savings.

展望未來，我們已經確定了更多節省成本的機會，包括利用我們上季度在比利時伺機收購的生產資產。根據我們的最新估計，我們將整個計劃前景調高了 3,000 萬美元，計劃總節省額為 1.6 億至 1.8 億美元。我們也預計該計劃的一次性現金成本將約為預計節省的 80% 至 90%。

And finally, I would like to provide some additional color on our outlook for the remainder of the year. For the second quarter, we expect organic net sales to be down between 2% and 3% as we cycle through softness in non-tracked channels. We also anticipate gross margin in the quarter to improve by 150 basis points year over year, and for adjusted EPS to be in the range of $0.65 to $0.70, up mid-single digits at the midpoint versus the same quarter in the prior year.

最後，我想對我們今年剩餘時間的展望提供一些額外的資訊。對於第二季度，隨著我們經歷非追蹤通路的疲軟週期，我們預計有機淨銷售額將下降 2% 至 3%。我們也預期本季的毛利率將年增 150 個基點，調整後每股盈餘將在 0.65 美元至 0.70 美元之間，較上年同期中點上升中個位數。

Over the back half of the year, we expect to return to top-line growth driven by a few key factors. First, we expect volumes to continue to improve in the category as consumers adjust to the pricing taken over the previous two years, especially in international markets where pricing actions occurred later than in the US. We also expect recovery in some of the non-tracked channels, which should begin to comp large declines that began last spring. And finally, we expect distribution wins across both battery and auto to help drive back half sales.

今年下半年，我們預計在幾個關鍵因素的推動下，營收將恢復成長。首先，隨著消費者適應前兩年的定價，我們預期該類別的銷售量將持續增加，特別是在定價行動晚於美國的國際市場。我們也預期一些非追蹤管道將出現復甦，這應該會開始彌補去年春季開始的大幅下滑。最後，我們預計電池和汽車領域的分銷勝利將有助於推動一半的銷售額。

For the full fiscal year, we continue to expect Project Momentum savings of $55 million to $65 million. We also expect to pay down $150 million to $200 million of debt for the year and end fiscal '24 below five times leverage. We are reaffirming our outlook for organic net sales to be flat to down 2%, adjusted gross margin improvement of 100 basis points with improvement across both battery and auto care, adjusted EBITDA in the range of $600 million to $620 million, and adjusted earnings per share of $3.10 to $3.30.

對於整個財年，我們仍然預計 Project Momentum 可以節省 5,500 萬至 6,500 萬美元。我們也預計今年將償還 1.5 億至 2 億美元的債務，並在 24 財年結束時槓桿率低於五倍。我們重申，有機淨銷售額將持平至下降2%，調整後毛利率將提高100 個基點，電池和汽車護理業務均有所改善，調整後EBITDA 在6 億至6.2 億美元之間，調整後每股收益將維持在6 億美元至6.2 億美元之間。份額為 3.10 美元至 3.30 美元。

With that, I'll turn it back over to Mark for closing remarks.

至此，我將把它轉回給馬克做結束語。

In summary, our first-quarter performance sets us up well for the remainder of the year. We have the flexibility and discipline to navigate the market conditions, particularly in light of the strong momentum across our cost savings and cash generation initiatives. We will remain laser-focused on delivering growth, advancing our strategic priorities, and delivering shareholder value.

總而言之，我們第一季的業績為我們今年剩餘時間奠定了良好的基礎。我們擁有應對市場狀況的靈活性和紀律性，特別是考慮到我們成本節約和現金生成計劃的強勁勢頭。我們將繼續專注於實現成長、推進我們的策略重點和創造股東價值。

Now, let's open the call for questions.

現在，讓我們開始提問。

(Operator Instructions) Lauren Lieberman, Barclays.

（操作員說明）Lauren Lieberman，巴克萊銀行。

Great. Thanks so much. First thing I was hoping is if you could just tell us a little bit more about the Belgium facility you acquired and kind of anything you can offer on that and how much of that was really what was driving the uptick in Momentum savings? Or is that something that's still maybe more to be evaluated as we move forward?

偉大的。非常感謝。我希望的第一件事是，您能否告訴我們更多有關您收購的比利時工廠的信息，以及您可以提供的任何信息，以及其中有多少真正推動了 Momentum 節省的增長？或者說，隨著我們的前進，這是否仍然需要評估？

Laura, we continue to evaluate Project Momentum. And as you've seen, as we've gotten further in the program, we've been able to take the ranges up. $160 million to $180 million is our current call based on everything we know today, including the acquisition of the Belgium facility, and that was an opportunistic opportunity that came across late last year. It allows us to pivot and do in region for region manufacturing, it's driving great working capital improvements, cost savings improvements, and it was a relatively low level of investment. The purchase price for the assets was roughly EUR3.5 million.

勞拉，我們繼續評估專案動力。正如您所看到的，隨著我們在該計劃中取得進一步進展，我們已經能夠提高範圍。根據我們今天所知的一切，包括收購比利時工廠，我們目前的估值為 1.6 億至 1.8 億美元，這是去年年底遇到的機會。它使我們能夠在區域內進行區域製造，它推動了營運資本的巨大改善，成本節約的改善，而且投資水平相對較低。資產的購買價格約為 350 萬歐元。

Thank you. And then just on auto care, constructive commentary on top line, but margins did take a step-back this quarter. So just kind of curious if anything that was discrete to the quarter and how we should be thinking about kind of gross margin opportunity for the full year?

謝謝。然後就汽車護理而言，頂線有建設性評論，但本季利潤率確實有所下降。因此，我有點好奇本季是否有什麼離散的事情，以及我們應該如何考慮全年的毛利率機會？

Yes. I would say, Lauren, the first quarter was not reflective of what we expect for the full year. We're still anticipating gross margin improvement as we go throughout the year, pretty significant, and that should help us deliver bottom-line performance on a segment profit perspective as well.

是的。我想說，勞倫，第一季並沒有反映我們對全年的預期。我們仍然預計全年的毛利率會出現相當大的改善，這也應該有助於我們從部門利潤的角度實現底線業績。

Okay. And is there anything within there that you just -- I guess, I'm sure, still partially Project Momentum, but like operational changes that are being made in auto versus raw mats and pricing kind of stuff. I'm curious what's sort of in your control versus the macro, if you will.

好的。裡面有沒有什麼東西你只是 - 我想，我確信，仍然部分是動力項目，但就像汽車與原始墊子和定價之類的東西正在發生的操作變化。如果你願意的話，我很好奇你的控制與宏觀相比是什麼樣的。

It's obviously the smallest quarter by far. So when you come into the year and look at [rolling] standards, you've got some indirect costs that you allocate to the business. It's really not reflective of the full-year run rate.

這顯然是迄今為止最小的季度。因此，當您進入這一年並查看[滾動]標準時，您會發現一些分配給企業的間接成本。這實際上並不能反映全年的運行率。

And Lauren, just to build on that, I think from a gross margin standpoint in auto care, we're expecting improvement this year. And then I think one of the questions that's out there is when will we get that business back to where we were when we acquired it. And our anticipation is with continued gross margin improvement, including a lot of the plans we have under Project Momentum, is we'll achieve that level in '25.

勞倫，在此基礎上，我認為從汽車護理毛利率的角度來看，我們預計今年會有所改善。然後我認為存在的問題之一是我們什麼時候才能讓該業務回到我們收購時的狀態。我們的預期是，隨著毛利率的持續改善，包括我們在「動力項目」下制定的許多計劃，我們將在 25 年達到這一水平。

All right. Thanks. I'll pass it on and come back on.

好的。謝謝。我會把它傳遞出去然後再回來。

Bill Chappell, Truist Securities.

比爾‧查普爾 (Bill Chappell)，Truist 證券公司。

Thanks. Good morning. Could you just talk a little bit more about your commentary or maybe your visibility into battery volumes picking up? And I'm just trying to understand kind of the elasticity commentary in terms of the businesses has always been kind of impulse/commodity in terms of you and Duracell are line priced. You haven't seen Rayovac really pick up in share, even though it's a lower-priced product or private label. So trying to understand how consumers adjust if they haven't already and volumes start to pick back up. Or is it more -- or if there's something else I'm missing.

謝謝。早安.您能否多談談您的評論，或者您對電池容量上升的看法？我只是想了解業務方面的彈性評論一直是一種衝動/商品，就您和金霸王的定價而言。儘管 Rayovac 是價格較低的產品或自有品牌，但您還沒有看到其市場份額真正上升。因此，試著了解消費者如何調整（如果他們還沒有調整並且銷售量開始回升）。或者更多——或者我是否還缺少其他東西。

No, Bill, let me start. So I would say from a overall standpoint on the category, we really like where we are from a category trends. I think we're positioned very well to deliver the year. Let me start by kind of breaking it down into component parts of the overall category. So in the US, when you talk track channels, volume is consistently improving. You saw us go from kind of down high single digits, down 1.5% year over year. And then the latest numbers have been down [0.5%] in volume, and even the numbers that came out this morning were positive.

不，比爾，讓我開始吧。所以我想說，從該類別的整體角度來看，我們真的很喜歡我們所處的類別趨勢。我認為我們已經做好了迎接這一年的準備。讓我先將其分解為整個類別的組成部分。因此，在美國，當你談論軌道頻道時，音量一直在增加。你看到我們從高個位數下降到年減 1.5%。然後最新的數據成交量下降了 [0.5%]，甚至今天早上公佈的數據也是正面的。

So you are seeing that inflection point in tracked channels to positive volume growth. That's a great sign in terms of working through the elasticity impacts, working through the pandemic surge in demand, and all of the factors that have gone into that.

因此，您會看到追蹤管道中出現了銷量正成長的轉折點。就應對彈性影響、應對疫情需求激增以及所有影響因素而言，這是一個很好的跡象。

Then you break it down into sort of the online channel, both pure play as well as omni. That's been a consistent source of growth over the last couple of quarters and we expect that to continue. And when you get into non-tracked channels with home center and OEM, we expect those trends to stabilize. If you recall, it was kind of last April, May, when we saw some of the declines that we saw in home center. We expect to work our way through those, and so those trends should stabilize.

然後你將其分解為線上管道，包括純粹的管道和全方位的管道。這是過去幾個季度的持續成長來源，我們預計這種情況將持續下去。當您進入家居中心和 OEM 的非追蹤管道時，我們預計這些趨勢將穩定下來。如果你還記得的話，那是去年四月、五月，當時我們看到了家居中心的一些下降。我們希望能夠解決這些問題，因此這些趨勢應該會穩定下來。

International, you have elasticity impacts from pricing, which occurred later in the US, we expect to work through those. We're already seeing signs that you are. Latin America, Asia Pacific, in particular in Europe you had a bit of an anomaly with the energy crisis there last year. So all in all, those trends are positive just from a category standpoint.

在國際上，定價會產生彈性影響，這種影響後來在美國發生，我們希望能夠解決這些問題。我們已經看到了你的跡象。拉丁美洲、亞太地區，特別是歐洲，去年的能源危機有點異常。總而言之，從類別的角度來看，這些趨勢是正面的。

And then specific to our business, on top of just basic execution, we are seeing some distribution wins in both batteries as well as in auto, which we expect to take hold in the back half of the year. So all of those factors, both from a category as well as our business specifically, give us great confidence in the back half of the year returning to growth.

然後具體到我們的業務，除了基本執行之外，我們還看到電池和汽車領域的一些分銷勝利，我們預計這將在今年下半年佔據主導地位。因此，所有這些因素，無論是來自一個類別還是我們的業務，都讓我們對今年下半年恢復成長充滿信心。

Okay. So just to follow up, is your thought that it's greater on the normalization post COVID? Or is it elasticity? It seems like it's more of the former. Whereas pricing -- I guess adjusting the pricing is more of a relative type thing, it seems like you're more comfortable that we're getting back to a normal consumer behavior.

好的。那麼，接下來，您認為新冠疫情後的正常化效果會更好嗎？或者說是有彈性？看來前者比較多。雖然定價——我想調整定價更多的是一個相對類型的事情，但你似乎對我們回到正常的消費者行為感到更放心。

I think we are getting back to a more normal consumer behavior. It's very difficult to parse that. I wouldn't want to blame some of the current trends on COVID related. I mean, you did have a long cycle of working through that, and then you had the pricing impacts from two fairly significant price increases over the last couple of years. So there was a lot there for consumers to work through, plus just the overall backdrop impacts as well. So I would say you are back to more normal category patterns as we work our way through -- into Q3 is when you're really going to see that inflection point from a volume standpoint in the US.

我認為我們正在回歸更正常的消費者行為。解析它非常困難。我不想將當前的一些趨勢歸咎於新冠病毒相關的問題。我的意思是，你確實經歷了一個很長的周期來解決這個問題，然後你受到了過去幾年兩次相當大的價格上漲的影響。因此，消費者需要解決許多問題，此外還有整體背景影響。所以我想說，當我們努力進入第三季時，你會回到更正常的類別模式，從美國的銷售角度來看，你真的會看到這個轉折點。

Consumers are reacting accordingly. Your question on Rayovac, I mean, we are seeing interest in Rayovac, sort of increased interest in Rayovac as we've talked to retailers. You have seen some share gains in Rayovac as some of the more value-oriented offerings and retailers are leaning in with consumers. So there is an opportunity there, and we've been able to capture some of that. Obviously, we want the bulk of our business to stay at the premium end with Energizer, and that's where it continues to be.

消費者正在做出相應的反應。你關於 Rayovac 的問題，我的意思是，我們看到了人們對 Rayovac 的興趣，當我們與零售商交談時，人們對 Rayovac 的興趣增加。隨著一些更注重價值的產品和零售商向消費者傾斜，Rayovac 的份額有所增長。所以那裡有一個機會，我們已經能夠抓住其中的一些機會。顯然，我們希望我們的大部分業務能夠保持在 Energizer 的高端市場，而這也將繼續保持下去。

Great. Thanks for the color.

偉大的。謝謝你的顏色。

Thanks, Bill.

謝謝，比爾。

Nik Modi, RBC Capital Markets.

尼克莫迪，加拿大皇家銀行資本市場。

Thank you. Good morning, everyone. So just a couple of questions. Just wanted to clarify that the non-tracked weakness, that was fully the home centers, like it was last quarter, right? Was there anything else?

謝謝。大家，早安。所以只有幾個問題。只是想澄清一下，非跟踪弱點完全是主場中心，就像上個季度一樣，對嗎？還有別的事嗎？

That's the majority of it.

這就是大部分。

Okay. And then I guess following up on Lauren's question, just on Project Momentum. Obviously, you're getting some benefits out of this plant, but what else is driving the upside in the program? If you could just provide some context on that, and I have just one follow-up.

好的。然後我想跟進勞倫的問題，只是關於“動力項目”。顯然，您從這個工廠中獲得了一些好處，但是還有什麼因素推動了該計劃的好處？如果您能提供一些相關背景信息，我只有一個後續行動。

Sure, Nik. I mean, look, Project Momentum has been an incredibly successful program for us. We launched it, and since then, the organization has really dug in and been able to just drive savings throughout the organization. Right now, if you take the $160 million to $180 million as the savings range, it breaks down to 55%, roughly, in sort of network distribution footprint, 15% procurement, and then 30% SG&A. Those ranges have moved around a little bit. As we've continued to uncover SG&A, we found additional opportunities as we work through the program.

當然，尼克。我的意思是，看，動力計劃對我們來說是一個非常成功的計劃。我們推出了它，從那時起，該組織就真正投入並能夠在整個組織內推動節約。目前，如果您將 1.6 億至 1.8 億美元作為節省範圍，那麼大致可分為 55%，其中網絡分銷足跡佔 15%，採購佔 15%，SG&A 佔 30%。這些範圍發生了一些變化。隨著我們不斷發現 SG&A，我們在執行該計劃時發現了更多機會。

But the same has been true with the network design, with the inclusion of the new facility in Belgium. So I would say it's very broad-based in terms of where the additional savings are coming from. And it's just been tremendous work by the organization to be able to hit $160 million to $180 million in savings over a three-year period.

但網路設計也是如此，包括比利時的新設施。所以我想說，就額外節省的來源而言，它的基礎非常廣泛。該組織付出了巨大的努力才能夠在三年內節省 1.6 億至 1.8 億美元。

Helpful color, Mark. And then just on the consumer. Last quarter, you had much more cautionary commentary, and I'm sensing a little bit more optimism now. Am I reading that correctly? Have you seen things really improve? Are you feeling better about where the consumer is?

有用的顏色，馬克。然後就是消費者。上個季度，大家發表了更多謹慎的評論，而我現在感覺到更樂觀了。我讀得正確嗎？你看到事情真的有改善了嗎？您對消費者的位置感覺更好嗎？

I think we are. I think you are seeing improving consumer sentiment. I think you're seeing the volume trends in our categories, both from an auto and battery, has exceeded our expectations and continue to have the right trajectory. I think it's dangerous in this environment to go too all in in sort of one direction.

我想我們是。我認為您看到了消費者情緒的改善。我認為您看到我們類別的銷售趨勢，無論是汽車還是電池，都超出了我們的預期，並且繼續保持正確的軌跡。我認為在這種環境下，過度專注於一個方向是危險的。

So I would say improving consumer sentiment, still some caution out there and you still need to be very choiceful in terms of how you engage and how you invest to make sure that the consumers continue to staying engaged with their categories and your products. We're doing that, we're doing it successfully, but it is an improving backdrop compared to what we expected back in November.

因此，我想說的是，要改善消費者信心，仍然需要謹慎行事，您仍然需要在參與方式和投資方式方面做出非常有選擇的選擇，以確保消費者繼續與他們的類別和您的產品保持互動。我們正在這樣做，我們正在成功地做到這一點，但與我們 11 月的預期相比，這是一個正在改善的背景。

Thanks so much, Mark.

非常感謝，馬克。

Rob Ottenstein, Evercore.

羅布·奧滕斯坦，Evercore。

Great. Thank you very much. I just wanted to follow up a little bit in terms of your confidence in the second half of the year. I think you mentioned one of the key drivers of that is the increased distribution for both auto and batteries. Can you give us a sense of how much of the improvement is from the increased distribution? And then more details on that increased distribution in terms of channel, products. Any particular color around that would be helpful. Thank you.

偉大的。非常感謝。我只是想跟進你們對下半年的信心。我認為您提到的關鍵驅動因素之一是汽車和電池的分配增加。您能否讓我們了解一下，有多少改進來自於分配的增加？然後是有關通路和產品方面增加分銷的更多詳細資訊。周圍任何特定的顏色都會有幫助。謝謝。

Well, let me just start, Robert. I think on the sort of the confidence, it really breaks down into how I laid it out before, which is improving trends across the category [in] tracked. You have nice growth potential online. You have a stabilization in non-tracked. So that's kind of the foundation. And then on top of that, we have been able to gain incremental distribution in auto care with some of our key retailers, with some partnerships that we're driving that you're going to hear more about as the year progresses.

好吧，讓我開始吧，羅伯特。我認為就這種信心而言，它確實可以分解為我之前的佈局，即所追蹤類別的趨勢正在改善。你在網路上有很大的發展潛力。您在非追蹤狀態下具有穩定性。這就是基礎。除此之外，我們已經能夠與一些主要零售商在汽車護理領域獲得增量分銷，以及我們正在推動的一些合作夥伴關係，隨著時間的推移，您將聽到更多關於這些合作夥伴關係的資訊.

And then in batteries, we continue to push for additional distribution across our footprint, both existing retailers as well as some new retailers. That's true in both the US and international. We called out international distribution on the last call, I would say the teams have aggressively moved to claw back some of those distribution losses.

然後在電池方面，我們繼續推動在我們的足跡中進行更多分銷，包括現有零售商和一些新零售商。在美國和國際上都是如此。我們在最後一次電話會議中呼籲國際發行，我想說的是，各團隊已經積極採取行動，以彌補部分發行損失。

And so as you look to the balance of the back half of the year, we expect distribution wins to be a tailwind and not a headwind as we get into Q3 and Q4. So a lot of hard work [in] the distribution. I don't want to get into specific customers and certain products, but you'll see them hit shelves here in Q3 and Q4.

因此，當你審視今年下半年的平衡時，我們預計進入第三季和第四季時，分銷勝利將是順風而不是逆風。因此，在分發過程中需要付出很多努力。我不想談論特定的客戶和某些產品，但你會看到它們在第三季和第四季上架。

Thank you very much.

非常感謝。

Thanks, Robert.

謝謝，羅伯特。

Andrea Teixeira, JP Morgan.

安德里亞·特謝拉，摩根大通。

Thank you. Good morning, everyone. So can you comment on your online channel performance for batteries? You mentioned just recently that you saw an opportunity online, but that, by the same token, is also the most fragmented channel. And I remember in the past few quarters, it was one of the areas where you had the most deceleration or in a way some sort of like [increase -- obviously increased] competition against private label. So if you can comment on how your share stands right now and how you're thinking in your model. Thank you.

謝謝。大家，早安。您能否評價一下您的電池線上通路表現？您剛才提到，您在網路上看到了一個機會，但同樣的道理，這也是最分散的管道。我記得在過去的幾個季度中，這是減速最嚴重的領域之一，或者以某種方式（增加——顯然增加了）與自有品牌的競爭。因此，您是否可以評論一下您目前的份額以及您在模型中的想法。謝謝。

Good morning, Andrea. I think the best way to describe it -- and a lot of this has limited the information that we receive from an online standpoint. But what we're seeing is we're continuing to see healthy volume growth in online. You're continuing to see healthy value growth online. In the past quarter, in the October, November, December quarter, we were able to match online growth, both in terms of volume and value. So our share from our estimates is probably flat. We're not losing share. We're not gaining share at this moment, but I think a really solid quarter for us in the online channel in holiday, which was, as you know, a very critical quarter for us.

早安，安德里亞。我認為最好的描述方式是——其中許多都限制了我們從線上角度收到的資訊。但我們看到的是，我們繼續看到線上銷售的健康成長。您將繼續看到在線價值的健康成長。在過去的一個季度，即 10 月、11 月、12 月季度，我們在數量和價值方面都能夠與線上成長相匹配。因此，我們的估計份額可能持平。我們並沒有失去份額。目前我們的份額還沒有增加，但我認為假期線上管道對我們來說是一個非常穩定的季度，正如你所知，這對我們來說是一個非常關鍵的季度。

That's encouraging. And then if I can just, like, go back to the Project Momentum as you raised $30 million, and I believe in August, you had included 2025 into the program. So number one, where did the $30 million come from? The additional? And when should we -- I think you didn't change the amount that is going to be in 2024. But I was wondering if you can mention where it came from and where we should be thinking of the extra $30 million lending. I'm assuming that is '25.

這令人鼓舞。然後，如果我可以回到專案動力，因為您籌集了 3000 萬美元，我相信您在 8 月已將 2025 年納入該計劃。那麼第一，這3000萬美元從哪裡來？額外的？我們什麼時候應該——我認為你們沒有改變 2024 年的金額。但我想知道你是否可以提及它的來源以及我們應該在哪裡考慮額外的 3000 萬美元貸款。我假設那是'25。

So the extra, certainly in '25. We did keep '24 between $55 million and $65 million of savings, the balance of the program to hit in '25. As I mentioned on one of the previous questions, it's really broad based across the program. It's 70, 30 split gross margin, SG&A. That's a little different than when the program started, which was 80, 20.

所以額外的，當然在 25 年。我們確實在 24 年節省了 5500 萬至 6500 萬美元，該計劃的餘額將在 25 年達到。正如我在之前的一個問題中提到的，它在整個計劃中具有廣泛的基礎。SG&A 毛利率為 70、30。這與專案開始時略有不同，當時是 80、20。

We did add a third year as we continue to find additional opportunities throughout the program, but really excited about the benefit it's going to provide for us in our ability to sort of deliver ongoing earnings momentum in the business. And so tremendous work. It's broad-based. The teams continue to work hard and execute against the program. I would say, 70% gross margin, 30% in SG&A, and with the $55 million and $65 million in '24, with the balance next year.

我們確實增加了第三年，因為我們在整個計劃中繼續尋找更多機會，但我們對它將為我們提供的好處感到非常興奮，因為我們有能力在業務中提供持續的盈利動力。以及如此巨大的工作。它的基礎廣泛。團隊繼續努力工作並執行該計劃。我想說，毛利率為 70%，SG&A 為 30%，24 年為 5,500 萬美元和 6,500 萬美元，明年剩下。

That's great. And then if I can just squeeze a bit of the Rayovac kind of repositioning and as you gain more shelf space in bricks, do you see the need for pushing? Because obviously, when you're growing and the market was [premiumizing], do you see the need of positioning Rayovac as an entry-level for you, which has always been, but just to see if you're looking at this additional shelf space to be positioning and to protect the entry-level battery market or not?

那太棒了。然後，如果我可以擠壓一點 Rayovac 類型的重新定位，當你獲得更多的磚塊貨架空間時，你認為有必要推動嗎？因為顯然，當您在成長且市場[高端化]時，您是否認為有必要將 Rayovac 定位為您的入門級產品（一直以來都是這樣），但只是為了看看您是否正在考慮這個額外的貨架入門電池市場還有空間定位和保護嗎？

Well, Andrea, I think we're perfectly positioned in the battery category to really lean in with retailers and solve any of the strategies or issues that they're trying to connect with consumers on. And I would say our full portfolio, the fact that we go from value offerings all the way up to super premium with lithium is a unique advantage that we bring. I would say the goal is to source Rayovac volume from private label and to make sure that we continue to keep consumers in the branded side of that business. That's an important element that Rayovac plays.

嗯，安德里亞，我認為我們在電池類別中處於完美的位置，可以真正與零售商合作，並解決他們試圖與消費者建立聯繫的任何策略或問題。我想說的是，我們的完整產品組合，我們從價值產品一直到超優質鋰產品，這是我們帶來的獨特優勢。我想說，我們的目標是從自有品牌購買 Rayovac 銷量，並確保我們繼續讓消費者留在該業務的品牌方面。這是 Rayovac 發揮的重要作用。

Obviously, our flagship Energizer brand will continue to be our emphasis and continue to be the bulk of the distribution that we see. But it plays an important role. I don't think it will have an outsized impact on our overall share or our financials, but it is a key asset that we have, that we leverage very tactically as we work with retailers to solve any of the issues that they're looking to solve.

顯然，我們的旗艦 Energizer 品牌將繼續成為我們的重點，並繼續成為我們所看到的分銷的主體。但它發揮著重要作用。我認為這不會對我們的整體份額或財務狀況產生太大影響，但它是我們擁有的關鍵資產，我們在與零售商合作解決他們正在尋找的任何問題時非常有策略地利用它來解決。

Thank you. I'll pass it on.

謝謝。我會把它傳遞下去。

Hale Holden, Barclays.

黑爾·霍頓，巴克萊銀行。

Could you give us any change or update to what you're seeing on input prices and overall inflationary market or environment -- or a deflationary environment and how it may fall out from [year to year]?

您能否告訴我們您對投入價格和整體通膨市場或環境（或通貨緊縮環境）的看法有何變化或最新情況，以及它可能如何演變？[年復一年]？

For the rest of the year, specifically the materials, it was slightly negative in this quarter, but we're looking for a pretty consistent improvement going forward. We're calling for about 80 basis points of gross margin full-year improvement. And the biggest benefits really come in from lithium, zinc, steel in our 134a. So we do have some tailwinds coming in from direct input costs.

對於今年剩餘時間，特別是材料，本季度略有下降，但我們正在尋求未來相當一致的改善。我們預計全年毛利率將提高約 80 個基點。最大的好處實際上來自我們 134a 中的鋰、鋅、鋼。因此，我們確實有一些來自直接投入成本的推動力。

Thank you very much.

非常感謝。

Carla Casella, JP Morgan.

卡拉‧卡塞拉，摩根大通。

I like to focus on debt paydown. And just wondering, what's the debt that you paid down in the quarter and [after all term loan]? And is that what you expect to target going forward? Or would you look for that bond as well given that they're trading at discount?

我喜歡關注債務償還。只是想知道，您在本季償還的債務是多少？[畢竟是定期貸款]？這是您未來的目標嗎？或者考慮到該債券的折價交易，您是否也會尋找該債券？

Yeah, it was all term loan so far this year. I mean, we'll continue to evaluate what's the best option for us to pay down going forward. But we'll continue, I think, to go after that term loan as much as we can over the next couple of years.

是的，今年到目前為止都是定期貸款。我的意思是，我們將繼續評估什麼是我們未來還款的最佳選擇。但我認為，我們將在未來幾年內繼續盡可能爭取定期貸款。

Great, thanks.

萬分感謝。

(Operator Instructions) Lauren Lieberman, Barclays.

（操作員說明）Lauren Lieberman，巴克萊銀行。

I'm sorry. I'm actually all set because I was going to ask about the incremental distribution and the outlook in the back half but you ended up answering it. So I am all set. Thank you.

對不起。其實我已經準備好了，因為我本來想問後半部的增量分配和前景，但你最終回答了。所以我已經準備好了。謝謝。

Great. Thanks, Lauren.

偉大的。謝謝，勞倫。

Brian McNamara, Canaccord Genuity.

麥克納馬拉 (Brian McNamara)，Canaccord Genuity。

Hey, guys, thanks for taking the question. I believe that you expected flat year-over-year volume pretty much throughout the year with Q4 earnings back in November, excluding the impact of the earlier holiday shipments in Q1. Is that still the case broadly for the year?

嘿，夥計們，謝謝你提出問題。我相信您預計全年銷量將基本持平，而 11 月份的第四季度收益則不包括第一季早些時候假期發貨的影響。今年的情況仍然普遍如此嗎？

Yes, we're still looking for the full year to be roughly flat from a volume perspective. I think if you look at it, obviously, it was down about 700 basis points in the first quarter. We expect it to be kind of flattish in Q2 and then see a turnaround in the back half of the year to get us back to flat.

是的，我們仍然認為從銷售角度來看，全年將大致持平。我認為如果你看一下，很明顯，第一季下降了約 700 個基點。我們預計第二季將持平，然後在下半年看到好轉，使我們恢復持平。

Great. And then secondly, on debt paydown, you guys have paid down a good amount of debt over the last several quarters; it's kind of the sticking point with any investors we speak to to kind of get involved in the name that aren't already. I'm just curious, is there anything you guys can do to kind of hasten that process, whether it be divestitures of maybe smaller brands, things like that, that you're considering and what's on the table?

偉大的。其次，在償還債務方面，你們在過去幾季已經償還了大量債務；對於我們採訪過的任何尚未參與該名稱的投資者來說，這都是癥結所在。我只是很好奇，你們能做些什麼來加快這一進程，無論是剝離可能較小的品牌，還是諸如此類的事情，你們正在考慮以及正在討論什麼？

No, I think we'll continue to focus on the operational performance. So back at the end of '22, we started to talk about momentum. We really went after working capital as part of that. We've been able to generate significant cash flow over the last six quarters through operations. I think we'll focus there and then we'll continue to look to pay down debt going forward as our primary capital allocation.

不，我認為我們將繼續專注於營運績效。所以早在 22 年底，我們就開始談論動力。作為其中的一部分，我們確實追求營運資金。在過去的六個季度中，我們已經能夠透過營運產生大量現金流。我認為我們將重點關注這一點，然後我們將繼續尋求償還未來的債務作為我們的主要資本配置。

Thank you. Best of luck.

謝謝。祝你好運。

Thank you.

謝謝。

Thank you. And currently, there are no further questions in the queue at this time. So I'll hand the floor back to Mark for the closing comments.

謝謝。目前，隊列中沒有其他問題。因此，我將把發言權交還給馬克，讓他發表結束語。

Thanks, everyone, for joining us this morning. Hope everyone has a great rest of day, and thanks for your interest in Energizer.

謝謝大家今天早上加入我們。希望大家有個愉快的一天，感謝您對 Energizer 的關注。

This now concludes the conference. Thank you all very much for attending. You may now disconnect your lines.

會議現在結束。非常感謝大家的出席。現在您可以斷開線路。