Energizer 2010 Annual Report Download - page 6

opportunistic acquisitions. With our wet
shave platform in place, we extended it in
2003 with the introduction of Intuition, a
totally new product for women, and the
Quattro® family of shaving products.
Our October 2007 acquisition of
Playtex broadened our Personal Care
presence by bringing us leading brands
and products in the skin care, feminine
care and infant care markets. The Edge®
and Skintimate® shave preparation
business, acquired in 2009 at the height
of the recession, strengthened our shaving
business.
And, we continued to drive internal
growth through innovation, most recently
with the Schick Hydro® launch in 2010.
The Values Behind the Brand
I am proud of the changes at Energizer,
but I am even more proud of the things
that haven’t changed. We remain true
to our mission – through innovation, to
simplify and enhance the lives of our
customers and consumers better than
anyone else. And we have never wavered
from our focus on encouraging innovation
and agility through decentralization
of decision-making, or from our values,
which include integrity and teamwork.
Throughout our organization, we are
committed to doing the right thing.
I am also proud of our sustainability
program, which rests on three pillars.
The first is environmental sustainability,
embodied in our emphasis on efficient
resource use and emission reduction to
ensure the availability of natural resources
for future generations. In 2007, we
established 5-year goals for reducing
water by 23%, waste by 19%, greenhouse
gases by 18% and energy by 18%. By the
end of fiscal 2010, we exceeded these
goals for waste and greenhouse gases and
are well on our way to meeting our water
and energy reduction goals. The second is
social sustainability, which commits us to
providing a safe, healthy work environment
while making a positive contribution to the
communities in which we operate. And the
third is economic sustainability, reflecting
our understanding that we must meet the
expectations of our shareholders while
delivering on our environmental and social
commitments.
2010 Financial Results
Our fiscal 2010 results reflect a strong
rebound from 2009, as revenues increased
approximately 6% and earnings per share
increased approximately 21% to $5.72.
Favorable currencies, excluding Venezuela,
of approximately $100 million; approxi-
mately $90 million from a full year of
ownership of the Edge® and Skintimate®
shave preparation brands; and the launch
of Schick Hydro® were the main drivers
behind the top-line growth.
With sales in over 160 countries, our
international business continued to be a
strong contributor to our performance,
representing nearly 50% of revenues. Our
battery business has had a long history in
many of these markets, and we have been
able to leverage our distribution network
to extend our wet shave and sun care
products into new markets. When we
acquired Schick in 2003, its wet shave
products were distributed in 80 markets.
Now, our wet shave products can be found
in over 140 countries, with international
sales of these products having grown 28%
since 2004. In addition, we have been able
to expand the presence of Banana Boat®
and Hawaiian Tropic® sun care products
internationally and grow sales by 62%
since acquiring these brands as part of
the Playtex acquisition in October 2007.
In addition to the top- and bottom-line
growth we saw this year, we were also able
to improve our debt-to-EBITDA ratio from
3.14 to 1.00 at the beginning of the year
to 2.70 to 1.00 at the end of year, and this
does not include cash of $630 million.
This improvement increases our financial
flexibility going forward.
Our Businesses: Leading Brands,
Leading Market Shares
Every day, families around the world bring
Energizer products into their homes and
into their lives. Customers know and trust
our market-leading brands, and, through
our two businesses, Household Products
and Personal Care, we are well positioned
in growing geographic regions and market
segments. We rank first in batteries and
second in wet shave both in the U.S. and
around the world, and in the U.S. market
we rank first in flashlights, shave prep,
sun care, moist hand wipes, branded
household gloves, infant feeding and
diaper disposal systems, and second
in plastic applicator tampons.
Household Products In fiscal 2010, our
Household Products segment achieved
solid financial results, with gains in sales,
up 4% to $2.2 billion, and segment profit,
which increased 13% to $451 million.
These results reflected favorable curren-
cies, higher sales and lower raw material
prices.
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EN ER GI ZE R HO LD IN GS , IN C. 2010 A NN UA L RE PO RT
D I S C I P L I N E
% OF GOAL
GOAL BY ACHIEVED
REDUCE 2012 IN FY 2010
Water 23% 65%
Waste 19% +100%
Greenhouse gases 18% +100%
Energy 18% 83%