Energizer 2009 Annual Report Download - page 5

ENERGIZER HOLDINGS INC. 2009 ANNUAL REPORT PAGE 3
rank No. 1 in batteries and No. 2 in razors and blades. In the U.S.
market, we are No. 1 in flashlights, shave prep, sun care, moist
hand wipes, branded household gloves, and infant feeding and
diaper disposal systems, and No. 2 in plastic applicator tampons.
Around the world, consumers use our products on a
daily basis to simplify and enhance their lives. We connect with
consumers and develop insights into their lifestyles, and they
respond by choosing our brands because they offer the best
solutions to their needs.
Segment/geographic breakdown. At fiscal 2009 year-end, our
Household Products segment accounted for 53 percent of total
company sales and 54 percent of profit. The Personal Care seg-
ment accounted for 47 percent of sales and 46 percent of profit.
Our combined Energizer, Schick and Playtex businesses
have commercial and production operations in 50 countries, and
we distribute to the rest of the world from that global footprint.
For 2009, sales were split nearly equally between the U.S. and
international markets.
Geographic expansion of selected product lines remains a
key focus for continued growth. For example, in the six-plus years
since acquiring Schick, we have expanded global distribution from
80 countries to over 140. Today, we see similar opportunities for
international expansion of various Playtex products, primarily in
the sun care category where international sales have climbed
26 percent under our recent ownership.
Household Products
The battery market is a global business with significant scale and
size, where brands matter and considerable growth has been
driven through trade-up in battery performance. Two premium
brands, Energizer® and our primary competitor, account for
approximately 70 percent of the U.S. battery market. While the
category experienced growth trends in the low-single digits from
2005 to 2007, global trends have been negative 2-4 percent over
the past 18 months.
With a comprehensive product portfolio of premium,
performance and price batteries, Energizer covers all consumer
needs – with trade-up opportunities from carbon zinc to alkaline
chemistry, and from alkaline to lithium and rechargeable chemistry.
Although no longer much of a factor in the U.S. market, carbon
zinc batteries continue to sell well in the emerging markets of the
world where nearly 1 billion Eveready® carbon zinc batteries are
sold each year. At the other end of the spectrum, we continue
to drive trade-up with our lithium battery products, which grew
12 percent this fiscal year despite the sluggish economy.
Performance batteries. Our undisputed leadership in lithium
and rechargeables offers the best power solution for high-drain,
high-tech devices.
Lithium battery sales grew 12 percent in fiscal 2009,
bolstered by our introduction of Energizer® Advanced Lithium in
late fiscal 2008, which provides a lower-cost, entry-level option
for consumers to experience lithium technology and performance,
lasting up to four times longer than alkaline in digital cameras.
Energizer® Advanced Lithium joins the original Energizer® Ultimate
Lithium – the world’s longest lasting AA and AAA batteries in
high-tech devices. Weighing one-third less than standard alkaline
batteries, this advanced battery lasts up to eight times longer
in digital cameras compared to Energizer® MAX®, performs in
extreme temperatures from -40ºF to 140ºF and boasts a 15-year
shelf life.
To support the continuing growth of lithium batteries, we
are building a second manufacturing plant in Singapore to supple-
ment our original site in Vermont. This facility is expected to be
completed by the end of calendar 2009 – giving us a production
source in the Eastern Hemisphere as we continue to develop our
lithium business in international markets.
SEGMENT BREAKDOWN
2009 fiscal year-end
SALES
Household Products
Personal Care
PROFIT
Household Products
Personal Care
53% 47% 54% 46%