ENR - Energizer Battery Business Review

• The alkaline category is healthy, showing much more positive trend than we saw pre-pandemic, and is settling down to modest volume growth.
• Focus on 3-year CAGR growth to take us back to comparisons with pre-pandemic levels at +1.2% annually.
• Pricing has already been announced which should allow maintenance of margins. Significant commodity increases, especially in Zinc, and the increasing general inflation environment will necessitate new pricing by Energizer.
• Energizer has been the leading brand in the U.S. for alkaline since mid-2020. They can have an even bigger margin of win if we include their lithium business, which has cell sizes competitive with alkaline and which can possibly put them in the lead several months earlier.
• The stock has been oversold and should be a good opportunity up to a price of about $39.

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