Energizer 2013 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2013 Energizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

PAGE 5
ENERGIZER HOLDINGS, INC. 2013 ANNUAL REP O R T
which brought us leading brands in the skin care, feminine care and infant care categories.
Next, we continued to broaden our Personal Care business with complementary additions
to our wet shave portfolio with the acquisitions of the Edge®/Skintimate® brand shave
preps and American Safety Razor in 2009 and 2011, respectively. More recently, we
expanded our presence in feminine hygiene through the acquisition of three well-known
brands in the U.S., Canada and the Caribbean: Stayfree®, Carefree® and o.b.® products.
is acquisition, announced in the latter part of scal 2013 and closed in early scal 2014,
provides a solid complement to our existing Playtex® feminine care business, providing
greater scale and synergies in the feminine care space.
We have also expanded into new categories by leveraging existing technologies.
For example, we introduced Litter Genie®, a new waste disposal solution for cat owners
originating from the Diaper Genie® technology. Litter Genie® addresses the real needs
of cat owners, while creating an opportunity for the company to capitalize on a market
potential even larger than the current diaper disposal market.
Optimizing our cost and operating structure continues to be a focus for the
organization. We believe that cash realized from cost savings initiatives will provide the
nancial exibility needed to invest in our brands and generate bottom-line growth. As
an example, the 2013 Restructuring program has been extremely successful in identifying
opportunities to eliminate costs and provide meaningful savings. is multi-year program
is on track to deliver approximately $225 million in savings by the end of scal 2015. We
will continue our eort to identify savings that may be used to invest in our brands and
generate bottom-line growth.
Maximizing free cash ow is also critical to ensuring success. Strong free cash ow has
provided a tremendous amount of nancial exibility, enabling Energizer to return cash to
shareholders, reduce our debt levels, and invest in our business. e success of our initiative
to reduce working capital has provided a signicant boost to our cash ow performance.
We have outpaced our initial project goals by reducing average managed working capital as
a percentage of net sales by 480 basis points, which translates to more than a $250 million
reduction in average managed working capital since the start of our initiative at the end of
scal 2011. We continue to identify additional opportunities to further reduce our working
capital investment as this remains an area of focus for the organization.
As a result of our recent success in execution behind these four pillars, we have been
able to create and deliver value to our shareholders by:
• the initiation of the company’s rst quarterly dividend in 2012 followed by a 25%
increase in 2013,
• the repayment of nearly $300 million in debt,
• nancing our recent acquisition, and
• delivering record earnings per share.
2013 Segment Results
e Household Products segment played a signicant role in this year’s record adjusted
EPS, driven by our successful restructuring program, as cost savings in this division totaled
$79 million, surpassing our original total company goal established at the beginning of the
scal year. As a result, segment prot rose 10%. Going forward, Household Products will
continue to serve a critical role for the organization by generating strong cash ows through
BANANA BOAT®
Protect & Hydrate
Sunscreen Lotions SPF
15, 30 & 50: Lightweight
2-in-1 sunscreen and
moisturizer lotion
combines Broad Spectrum
UVA/UVB protection with
Aloe and antioxidants.
LITTER GENIE®
Litter Genie® cat litter disposal system
is the ultimate, hassle-free solution for
controlling cat litter odors. Its unique
air-tight design helps keep smells in
even when you open the lid.
SKINTIMATE®
New Skintimate Skin
Therapy Lotionized Skin
Moisturizing Shave Gel
combines a unique
moisture-rich lotionized
gel with Shea Butter and a
special Triple Moisturizing
Complex of Vitamin E,
Olive Butter and Sunower
Seed Oil to help replenish
skin’s natural moisture
and provide unbeatable
razor protection for a
close, comfortable shave
and healthy feeling,
smooth skin.
PLAYTEX ®
Playtex® Sport® – the only tampons
with 360°™ design and FlexFit™
technology – grew 1.5 share points to
a record high market share of 11.2%.