Energizer 2012 Annual Report Download - page 42

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
Wet Ones hands and face wipes and Playtex household gloves, both of which are leading branded products in their respective
categories in the U.S.
In Feminine Care, we believe Playtex is the second largest selling tampon brand overall in the U.S. We offer plastic applicator
tampons under the Playtex Gentle Glide and Playtex Sport brands, and Playtex Personal Cleansing Cloths, a pre-moistened
wipe for feminine hygiene.
In Infant Care, we market a broad range of products including bottles, cups, and mealtime products under the Playtex brand
name. We also offer a line of pacifiers, including the Ortho-Pro and Binky pacifiers. We believe our Playtex Diaper Genie
brand of diaper disposal systems leads the U.S. diaper pail category. The Diaper Genie brand consists of the diaper pail unit
and refill liners. The refill liners individually seal diapers in an odor-proof plastic film. Recently, we extended this technology,
including the pail and oder-proof plastic film refills via the launch of Litter Genie, a product designed to provide a more
convenient and effective way for cat owners to dispose of litter.
Energizer's Household Products division manufactures and markets one of the most extensive product portfolios in household
batteries, specialty batteries and portable lighting. Energizer is the successor to over 100 years of expertise in the battery and
portable lighting products industry. Its brand names Energizer and Eveready have worldwide recognition for quality and
dependability, and are marketed and sold around the world.
In household batteries, we offer batteries using carbon zinc, alkaline, rechargeable and lithium technologies. These products are
marketed and sold in the price, premium and performance segments. This allows us to penetrate a broad range of the market
and meet most consumer needs. We distribute our portfolio of household and specialty batteries and portable lighting products
through a global distribution network, which also provides a platform for the distribution of our personal care products.
Unless we indicate otherwise, we base the information concerning our industry contained or incorporated by reference herein
on our general knowledge of and expectations concerning the industry. Our market position, market share and industry market
size is based on our estimates using our internal data and estimates based on data from various industry sources, our internal
research and adjustments and assumptions that we believe to be reasonable. We have not independently verified data from
industry sources and cannot guarantee their accuracy or completeness. In addition, we believe that data regarding the industry,
market size and our market position and market share within such industry provide general insights but are inherently
imprecise. Further, our estimates and assumptions involve risks and uncertainties and are subject to change based on various
factors, including those discussed in the “Risk Factors” section of this Annual Report on Form 10-K. These and other factors
could cause results to differ materially from those expressed in the estimates and assumptions.
Fiscal 2012 Summary
In fiscal 2012, the Company delivered net earnings of $408.9 and earnings per diluted share of $6.22 (adjusted earning per
diluted share of $6.20 as shown in the reconciliation below), which was in line with the Company's earnings outlook for fiscal
2012, following a year of investment in fiscal 2011.
Personal Care net sales grew 1.2% including the negative impact of unfavorable currencies, which partially offset the increase
due to the full year ownership of ASR. While organic sales growth in Personal Care was modest in fiscal 2012, this followed a
year of mid-single digit growth in fiscal 2011 driven by the continuation of Schick Hydro launch activities. From a segment
profit standpoint, Personal Care segment profit increased to $470.7, up 15.3% as gross margins improved post-launch and
advertising and sales promotional spending returned closer to pre-launch levels.
We continue to face difficult category and competitive pressures in Household Products, which was evident in a decline in
organic sales of more than 3%. However, despite the net sales decline, segment profit, excluding the negative impact of
currencies of $22.5, increased somewhat due to improved product costs due primarily to savings generated from the 2011
Household Products manufacturing footprint restructuring and disciplined cost containment initiatives.
Key highlights for fiscal 2012 included:
• Earnings per diluted share of $6.22, and net earnings of $408.9,
• Gross margin of 46.8%, up 60 basis points from fiscal 2011, and up 100 basis points excluding the unfavorable impact
of currencies, due to improved product costs including the impact of the 2011 battery manufacturing footprint
restructuring, and reduced promotional activity, and favorable pricing and product costs in Personal Care, as the
Schick Hydro launch further matures,
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