Energizer 2012 Annual Report Download - page 48

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ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
impact of currencies of $31.4. On an organic basis, net sales increased $15.0, or 0.6%. The year-to-date net sales growth was
due to:
• Net sales in Wet Shave, inclusive of the ASR impact, increased approximately 3%, or approximately $50, on a
reported basis, and approximately 5% excluding unfavorable currencies. This growth was driven by increased sales
of Schick Hydro, and the launches of Schick Hydro 5 Power Select and Hydro Silk women's systems, partially offset by
lower sales of legacy branded men's and women's systems,
• Net sales in Skin Care increased approximately $5, on a reported basis, on higher sales of Sun Care products in
international markets,
• In Infant Care, net sales decreased approximately $18 on a reported basis, due to category softness and competitive
activity, and
• Net sales in Feminine Care decreased approximately $10 on a reported basis, as Playtex Gentle Glide declines were
partially offset by continued growth in Playtex Sport.
Net sales for fiscal 2011 were $2,449.7, up $401.1 or 19.6%, as compared to fiscal 2010. This increase included 4.5% of
organic sales growth and the remainder was driven by the inclusion of ASR and favorable currencies. The full year net sales
growth was driven primarily by:
• Net sales in Wet Shave increased approximately 29% including the impact of ASR and favorable currencies, offset by
a net sales decline in Venezuela. Organic sales grew approximately 6% in Wet Shave due to the launch of Schick
Hydro men's systems and shave preparations, and higher sales of disposable razors, which were partially offset by
lower sales of legacy men's systems, and
• Skin Care net sales increased approximately 9% (7% organic and 2% currencies) due to the favorable impact of lower
prior year sun care returns and higher shipments for the current sun care season.
Segment Profit - Personal Care Products
For the years ended September 30,
2012 % Chg 2011 % Chg 2010
Segment profit - prior year $ 408.4 $ 366.6 $ 341.1
Operations 68.3 16.8 % (11.9) (3.2)% (25.1)
Impact of currency (6.0)(1.5)% 26.9 7.3 % 24.9
Change in VZ - post devaluation ——% (1.2) (0.3)% 3.2
Incremental impact of acquisitions ——% 28.0 7.6 % 22.5
Segment profit - current year $ 470.7 15.3 % $ 408.4 11.4 % $ 366.6
Segment profit for fiscal 2012 was $470.7, up $62.3, or 15.3%. This increase was driven by lower A&P as spending levels
reduced in comparison to fiscal 2011 as the Schick Hydro launch continues to mature. In addition, gross profit increased due to
higher sales as noted above and improved gross margin as a percentage of net sales due primarily to favorable pricing and
product costs. These segment profit gains were partially offset by the unfavorable impact of currencies and higher overheads
due, in part, to the full year ownership of ASR.
Segment profit for fiscal 2011 was $408.4, up $41.8, or 11.4%, due to the favorable impacts of the inclusion of ASR and
currencies. This was partially offset by lower operational results of approximately $12, or 3%, due to increased A&P as the
Schick Hydro launch continued, partially offset by higher gross proft from the organic sales growth noted above.
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