Benzinga | Aug 9, 2021 06:52AM EDT

Energizer Holdings Reaffirms FY21 Guidance; Sees Adj. EPS $3.30-$3.50 vs $3.47 Est.

Financial Outlook and Assumptions for Fiscal Year 2021(1)

We are updating our full year fiscal 2021 outlook for the following key metrics:

* Net sales growth is now expected to be between 8% to 9%, attributed to distribution gains, elevated demand and favorable currency impacts;

* Adjusted gross margin rate is expected to decrease 80 to 110 basis points on a year over year basis as inflationary cost pressures continue to increase. Additional productivity management efforts, synergies and the impacts of favorable currency are expected to help offset some of the increased operational costs.

* Adjusted free cash flow is now expected to exceed $225 million. As noted above, this is a result of our investment in inventory to support the upcoming peak battery season and to ensure we maintain high service levels for our customers. We believe the steps we are taking to make these investments are prudent given the potential disruptions which continue to persist in the global supply network. We view this investment as short-term in nature, and expect our inventory balances to normalize in 2022.

We are maintaining our previously communicated full year outlook ranges for Adjusted earnings per share of $3.30 to $3.50 and Adjusted EBITDA of $620 to $640 million.