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Strong sales of lithium batteries, rechargeables and chargers propelled Energizer Holdings' North American battery business to a net profit growth of 31 percent in the second quarter to $67.4 million.
Net sales were up 22 percent to $266.5 million, due to higher volume which contributed $34.5 million, and general price increases set in January to counter what CEO Ward Klein called "unprecedented material cost increases," adding $13.4 million.
Sales of lithium batteries grew more than 30 percent while rechargeables and chargers experienced a 15 percent growth rate over the previous year's Q2.
Gross profit for the quarter increased $18 million as the contribution of higher sales was partially offset by higher product costs. Overall product cost rate for the quarter was an unfavorable $10.9 million, including higher material cost of $12.2 million, partially offset by other cost savings. Segment profit increased $16.0 million as higher gross profit was partially offset by higher selling, general and administrative expenses.
For the previous six months, sales increased $68.3 million, or 11 percent.
Gross profit increased $22.8 million for the six months as higher sales were partially offset by higher product costs, primarily due to the increased cost of zinc, Energizer said.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.