Energizer profit jumps 43% in Q3
Energizer Holdings Inc. posted a profit of $104 million in its third fiscal quarter, up 43 percent from $72.7 million a year earlier.
Net sales for the quarter ended June 30 increased 8 percent to nearly $1.1 billion from $997.5 million, thanks to a favorable impact of currencies totaling $18 million, the launch of the new Schick Hydro shaving razor and the inclusion of Edge and Skintimate shaving products, which added $41 million to net sales for the quarter, the Town and Country, Mo.-based company (NYSE: ENR) said.
Earlier this year, Energizer Chief Executive Ward Klein unveiled the Schick Hydro — the company’s most advanced razor yet — after five years and $150 million in research and development.
The product launch is an escalation of its razor war with market leader Procter & Gamble, which also has operations in St. Louis.
"We are pleased with the initial launch results of the new Schick Hydro men's shaving system," Klein said in the earnings release Tuesday. "Our distribution build was the fastest we have ever executed, and this true innovation in men's shaving is being well received by consumers No teletrack payday loans."
But negative trends continue in the battery category, prompting Energizer to start a "thorough review of our household products division," Klein said.
An increasing number of devices are using built-in rechargeable battery systems, particularly in developed markets, hurting demand for primary batteries. "This trend, coupled with aggressive competitive activity in the U.S. and other markets, could put additional pressure on segment results going forward," Energizer said in its earnings release Tuesday. "In light of this trend, the company is evaluating a number of initiatives to better position its Household Product business including options related to capacity requirements, the mix of product offerings, go-to-market strategies and investment initiatives. We expect this evaluation to continue for the next three to six months."