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By Dhirendra Tripathi
Investing.com – Energizer Holdings stock (NYSE:ENR) traded 2.4% higher Monday after the company maintained its annual outlook despite rising cost pressures.
First-quarter sales fell slightly to $846 million while costs rose.
“We continue to see escalating input cost pressures in transportation, labor and materials, and remain focused on offsetting them through additional pricing and ongoing cost controls,” Chief Executive Officer Mark LaVigne said in a company statement.
Higher operating costs including transportation, material and labor eroded the gross margin by 3.2 percentage points to 37.5% from a year ago. Price increases in battery and auto, elimination of prior-year Covid-19 costs and cost savings helped contain the margin erosion to some extent. Advertising and promotion expenses rose.
Adjusted profit per share in the fiscal first quarter was $1.03 compared to $1.17 last year but was ahead of estimates.
The company booked $2.75 billion in net sales last year and expects current-year sales to be roughly flat. Adjusted profit per share is seen between $3 and $3.30 compared to $3.48 last year. Adjusted EBITDA is expected to be $575 million at midpoint of its guidance range.
