Energizer 2007 Annual Report Download - page 5

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3
Looking ahead, we see innovation in our products and
performance in our operations. We see momentum in our
businesses and continued growth in shareholder value.
Financial Performance
For the fiscal year ended September 30, 2007,
Energizer’s net earnings were $321.4 million com-
pared to $260.9 million the prior year and earnings
per share climbed to $5.51 from $4.14 the year before.
Net sales for the year reached a record $3.4 billion,
up from $3.1 billion the previous year.
Growth in earnings per share continued strong and
steady, fueled by the profitability of our operations and
share repurchase program. We are committed to a goal
of at least 10 percent growth in earnings per share and
have consistently surpassed that target with a com-
pounded annual growth rate of 24 percent over the last
six years. Reflecting this consistent growth in earnings per
share, our share price over that period has appreciated
265 percent with a year-end price of $110.85 per share.
From our spin-off through the end of fiscal 2007, a
$100 investment in Energizer would have grown to
$522 at a compounded annual rate of 25 percent com-
pared to 9 percent for the S&P MidCap 400 Index.
Cash flow and priorities. Generating strong, stable cash
flows continues as a major focus as we strive to build our
business, maintain and enhance financial flexibility, and
increase shareholder value. Including free cash flow of
$356.7 million in fiscal 2007, we have generated $2.03
billion in free cash flow since our spin-off in 2000.
Our priorities for the use of cash flow include funding
innovation in our products, acquiring companies and
brands to complement our existing businesses and repur-
chasing shares. Prioritization depends on which uses are
expected to generate the highest shareholder returns.
Last year, we were active and successful on all fronts.
Product Innovation
Innovation in products and technology helps Energizer
better meet the needs of today’s consumers. In our
battery business, we provide portable power solutions
To Our Shareholders:
Fiscal 2007 was another strong year for Energizer Holdings as we overcame
significant challenges, gained momentum and market share, and expanded our
consumer products portfolio with the acquisition of market-leading brands –
achieving double-digit earnings growth and strengthening our businesses. In
just seven full years as a stand-alone company, we have grown into a $2 billion
battery company and $1 billion razor company – and with the addition of Playtex
Products, Inc., we eagerly enter fiscal 2008 as a $4 billion enterprise.
Ward M. Klein
Chief Executive Officer
David P. Hatfield
President and Chief Executive Officer,
Energizer Personal Care
Joseph W. McClanathan
President and Chief Executive Officer,
Energizer Household Products