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Edgewell Personal Care Announces First Quarter Fiscal 2025 Results

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Edgewell Personal Care (NYSE: EPC) reported Q1 fiscal 2025 results with net sales of $478.4 million, down 2.1% year-over-year, while organic net sales decreased 1.3%. The company posted a GAAP net loss of $0.04 per share, compared to earnings of $0.09 in the prior year quarter.

Key financial metrics include gross profit of $191.6 million with a 40.1% margin, and adjusted EBITDA of $45.9 million, impacted by an $11.2 million unfavorable currency effect. The company returned $38 million to shareholders through $30 million in share repurchases and $8 million in dividends.

By segment, Wet Shave sales decreased 2.4%, Sun and Skin Care increased 4.5%, and Feminine Care declined 11.8%. The company updated its fiscal 2025 outlook, expecting organic net sales growth of 1-3% and adjusted EPS towards the lower end of $3.15-$3.35 range, reflecting increased currency headwinds.

Edgewell Personal Care (NYSE: EPC) ha riportato i risultati del primo trimestre fiscale 2025 con vendite nette di 478,4 milioni di dollari, in calo del 2,1% rispetto all'anno precedente, mentre le vendite nette organiche sono diminuite dell'1,3%. L'azienda ha registrato una perdita netta GAAP di 0,04 dollari per azione, rispetto a un utile di 0,09 dollari nello stesso trimestre dell'anno scorso.

I principali indicatori finanziari includono un utile lordo di 191,6 milioni di dollari con un margine del 40,1% e un EBITDA rettificato di 45,9 milioni di dollari, influenzato da un effetto negativo delle valute di 11,2 milioni di dollari. L'azienda ha restituito 38 milioni di dollari agli azionisti attraverso 30 milioni di dollari in riacquisti di azioni e 8 milioni di dollari in dividendi.

Per segmento, le vendite di Wet Shave sono diminuite del 2,4%, quelle di Sun e Skin Care sono aumentate del 4,5% e quelle di Feminine Care sono diminuite dell'11,8%. L'azienda ha aggiornato le sue previsioni per il fiscale 2025, prevedendo una crescita delle vendite nette organiche dell'1-3% e un utile per azione rettificato verso il limite inferiore dell'intervallo di 3,15-3,35 dollari, riflettendo aumentati venti sfavorevoli delle valute.

Edgewell Personal Care (NYSE: EPC) reportó los resultados del primer trimestre fiscal de 2025 con ventas netas de 478,4 millones de dólares, una disminución del 2,1% en comparación con el año anterior, mientras que las ventas netas orgánicas disminuyeron un 1,3%. La compañía registró una pérdida neta GAAP de 0,04 dólares por acción, en comparación con ganancias de 0,09 dólares en el mismo trimestre del año pasado.

Las métricas financieras clave incluyen una utilidad bruta de 191,6 millones de dólares con un margen del 40,1% y un EBITDA ajustado de 45,9 millones de dólares, impactado por un efecto negativo de cambio de 11,2 millones de dólares. La empresa devolvió 38 millones de dólares a los accionistas a través de 30 millones de dólares en recompras de acciones y 8 millones de dólares en dividendos.

Por segmentos, las ventas de Wet Shave disminuyeron un 2,4%, las de Sun y Skin Care aumentaron un 4,5% y las de Feminine Care cayeron un 11,8%. La empresa actualizó sus previsiones para el fiscal 2025, esperando un crecimiento de las ventas netas orgánicas del 1-3% y una EPS ajustada hacia el límite inferior del rango de 3,15-3,35 dólares, reflejando un aumento en los vientos en contra de las divisas.

Edgewell Personal Care (NYSE: EPC)는 2025 회계연도 1분기 실적을 보고하며 순 매출 4억 7840만 달러를 기록했으며, 이는 전년 대비 2.1% 감소한 수치입니다. 유기적 순 매출은 1.3% 감소했습니다. 회사는 주당 0.04달러의 GAAP 순 손실을 기록했으며, 이는 지난해 같은 분기 수익 0.09달러와 비교됩니다.

주요 재무 지표로는 1억 9160만 달러의 총 이익과 40.1%의 마진, 4590만 달러의 조정 EBITDA가 있으며, 1120만 달러의 불리한 환율 영향이 반영되었습니다. 회사는 3000만 달러의 자사주 매입과 800만 달러의 배당금을 통해 주주에게 3800만 달러를 환원했습니다.

부문별로 Wet Shave 매출은 2.4% 감소했으며, Sun 및 Skin Care는 4.5% 증가했고, Feminine Care는 11.8% 감소했습니다. 회사는 2025 회계연도 전망을 업데이트하며, 유기적 순 매출 성장률을 1-3%로 예상하고, 조정된 주당순이익은 3.15-3.35달러 범위의 하한선에 가까워질 것으로 보이며, 이는 증가한 환율 압박을 반영합니다.

Edgewell Personal Care (NYSE: EPC) a annoncé les résultats du premier trimestre de l'exercice 2025 avec un chiffre d'affaires net de 478,4 millions de dollars, en baisse de 2,1 % par rapport à l'année précédente, tandis que les ventes nettes organiques ont diminué de 1,3 %. L'entreprise a enregistré une perte nette GAAP de 0,04 dollar par action, comparé à des bénéfices de 0,09 dollar au trimestre de l'année précédente.

Les principaux indicateurs financiers incluent un bénéfice brut de 191,6 millions de dollars avec une marge de 40,1 % et un EBITDA ajusté de 45,9 millions de dollars, impacté par un effet de change défavorable de 11,2 millions de dollars. La société a restitué 38 millions de dollars aux actionnaires à travers 30 millions de dollars de rachats d'actions et 8 millions de dollars de dividendes.

Par segment, les ventes de Wet Shave ont diminué de 2,4 %, celles de Sun et Skin Care ont augmenté de 4,5 % et celles de Feminine Care ont diminué de 11,8 %. L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant à une croissance des ventes nettes organiques de 1 à 3 % et un bénéfice par action ajusté vers la limite inférieure de la fourchette de 3,15 à 3,35 dollars, reflétant une augmentation des vents contraires liés aux devises.

Edgewell Personal Care (NYSE: EPC) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 mit Nettoumsätzen von 478,4 Millionen US-Dollar veröffentlicht, was einem Rückgang von 2,1% im Vergleich zum Vorjahr entspricht, während die organischen Nettoumsätze um 1,3% gesunken sind. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 0,04 US-Dollar pro Aktie, verglichen mit einem Gewinn von 0,09 US-Dollar im Vorjahresquartal.

Wichtige Finanzkennzahlen beinhalten einen Bruttogewinn von 191,6 Millionen US-Dollar mit einer Marge von 40,1% sowie ein bereinigtes EBITDA von 45,9 Millionen US-Dollar, das von einem ungünstigen Währungsumrechnungseffekt in Höhe von 11,2 Millionen US-Dollar beeinträchtigt wurde. Das Unternehmen gab 38 Millionen US-Dollar an die Aktionäre zurück, durch 30 Millionen US-Dollar in Aktienrückkäufen und 8 Millionen US-Dollar in Dividenden.

Nach Segmenten gingen die Umsätze im Bereich Wet Shave um 2,4% zurück, während Sun und Skin Care um 4,5% zunahmen und Feminine Care um 11,8% zurückging. Das Unternehmen hat seinen Ausblick für das Geschäftsjahr 2025 aktualisiert und erwartet ein organisches Umsatzwachstum von 1-3% sowie einen bereinigten Gewinn je Aktie im unteren Bereich der Spanne von 3,15-3,35 US-Dollar, was die gestiegenen Währungsrisiken widerspiegelt.

Positive
  • Returned $38 million to shareholders via buybacks and dividends
  • Sun and Skin Care segment sales grew 4.5%
  • International markets showed 2.0% growth
  • Productivity savings of 340 basis points achieved
  • Maintains organic net sales growth guidance of 1-3% for FY2025
Negative
  • Net sales declined 2.1% to $478.4 million
  • GAAP EPS decreased from $0.09 to -$0.04
  • Feminine Care sales dropped 11.8%
  • Operating income decreased to $20.3 million from $26.1 million
  • Increased negative currency impact on adjusted EPS forecast ($0.36 vs previous $0.18)

Insights

The Q1 FY2025 results reveal significant operational challenges and deteriorating financial metrics that require careful investor attention. The 2.1% decline in net sales, coupled with a shift to negative earnings, signals underlying weakness in core markets.

Three critical areas stand out:

  • Market Performance Divergence: While international markets grew 2.0%, North American sales declined 3.9%, highlighting concerning regional disparities. The Feminine Care segment's 11.8% revenue decline is particularly troubling, suggesting potential market share losses or category weakness.
  • Margin Pressure: Despite productivity savings of 340 basis points, increased promotional spending and inflationary pressures are eroding margins. The adjusted gross margin declined 60 basis points, indicating challenges in maintaining pricing power.
  • Financial Position: The net debt leverage ratio of 3.8x combined with negative operating cash flow of $115.6 million (versus $72.9 million last year) suggests deteriorating financial flexibility. While the company maintains $176 million in cash and access to credit facilities, the increased cash burn rate merits monitoring.

The updated guidance suggesting 70% of adjusted earnings will be generated in H2 creates significant execution risk, especially given the increased foreign currency headwinds now expected to impact EPS by $0.36 per share. The company's continued share repurchases ($30.3 million in Q1) amid operational challenges and negative cash flow raises questions about capital allocation priorities.

Net Sales decreased 2.1%, Organic Net Sales decreased 1.3%
GAAP EPS decreased $0.13, Adjusted EPS decreased $0.17, or flat at constant currency
Updates Full Year Outlook to reflect Foreign Currency Changes

SHELTON, Conn., Feb. 10, 2025 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its first fiscal quarter 2025 ended December 31, 2024. 

Executive Summary

  • Net sales were $478.4 million, a decrease of 2.1% compared to the prior year quarter.
  • Organic net sales decreased 1.3% (Organic basis excludes the impact from currency movements.)
  • GAAP Diluted Net (Loss) Earnings Per Share ("EPS") were $(0.04), compared to $0.09 in the prior year quarter.
  • Adjusted EPS were $0.07, inclusive of a $0.17 unfavorable impact from currency movements, as compared to $0.24 in the prior year quarter.
  • Ended the first quarter with $176 million in cash on hand, access to an additional $221 million revolving credit facility and a net debt leverage ratio of 3.8x.
  • Returned $38 million to shareholders in the form of $30 million in share repurchases and $8 million of dividends in the first quarter.
  • The Board of Directors declared a cash dividend of $0.15 per common share on February 6, 2025 for the first quarter.

The Company reports and forecasts results on a GAAP and non-GAAP basis and has reconciled non-GAAP results and outlook to the most directly comparable GAAP measures later in this release. See non-GAAP Financial Measures for a more detailed explanation, including definitions of various non-GAAP terms used in this release. All comparisons used in this release are for the same period in the prior fiscal year unless otherwise stated. 

"We started the fiscal year with solid first quarter results that were operationally as we expected. We saw continued top line growth across our international markets and further momentum in our Right to Win businesses, and we exceeded our gross margin expectations, driven by further productivity savings. This resulted in better than expected constant currency adjusted EBITDA and earnings per share.  Our performance continues to demonstrate traction against our broader strategic priorities though the strengthening US dollar significantly impacted our top and bottom-line results for the quarter, and we expect further additional headwinds for the year. As we look ahead, we will focus on driving operational performance and executing in areas within our control. We continue to expect to deliver organic net sales, adjusted EBITDA and adjusted EPS within our previously provided range, and the latter despite these greater than anticipated foreign currency headwinds."

Fiscal 1Q 2025 Operating Results (Unaudited)
Net sales were $478.4 million in the quarter, a decrease of 2.1%, including a $4.0 million unfavorable impact from currency movements. Organic net sales decreased 1.3%. Growth in international markets was 2.0%, driven by both price and volume gains, and seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 3.9%, due to declines in Wet Shave and Feminine Care.  Globally, by segment, growth in Sun and Skin care, led by double-digit increases in Wet One's and Grooming, was offset by declines in Feminine Care and Wet Shave.  In aggregate, organic net sales decreased as a result of slightly lower volumes and lower price, due to increased promotional levels.   

Gross profit was $191.6 million, as compared to $197.7 million in the prior year quarter. Gross margin as a percent of net sales decreased 30-basis points, to 40.1% in the quarter, inclusive of approximately 140-basis points of negative foreign currency. Adjusted gross margin, as a percent of net sales, decreased 60-basis points, or increased 80-basis points at constant currency.  Productivity savings of approximately 340-basis points were more than offset by increased promotional levels (net of pricing) of approximately 40-basis points, core inflation and lower volume absorption of approximately 200-basis points and unfavorable mix and other of approximately 20-basis points.

Advertising and sales promotion expense ("A&P") was $50.3 million, or 10.5% of net sales, an increase of $2.1 million, compared to $48.2 million, or 9.9%, of net sales in the prior year quarter.     

Selling, general and administrative expense ("SG&A") was $102.9 million, or 21.5% of net sales, as compared to $103.3 million, or 21.1% of net sales in the prior year quarter. Adjusted SG&A was 21.2% of net sales, an increase of 20-basis points, primarily driven by higher people and consulting expenses and the impact of lower net sales, partially offset by lower incentive compensation expense, lower bad debt and favorable currency impacts.  

The Company recorded pre-tax restructuring and re-positioning expenses and costs in support of cost efficiency and effectiveness programs of $4.2 million in the quarter and acquisition and integration costs related to the Billie acquisition of $0.5 million.

Operating income, was $20.3 million, or 4.2% of net sales, inclusive of a $7.8 million unfavorable currency movement, compared to $26.1 million in the prior year quarter. Adjusted operating income was $27.0 million, or 5.6% of net sales, compared to $35.7 million, or 7.3% of net sales in the prior year quarter.     

Interest expense associated with debt was $18.8 million, compared to $19.8 million in the prior year quarter. The decrease in interest expense was the result of a lower overall debt balance on the Company's revolving credit facility.

Other expense, net was $3.2 million compared to $0.3 million in the prior year quarter. Currency hedge and remeasurements losses were $2.0 million in the current quarter, compared to gains of $1.3 million in the prior year quarter.  

The effective tax rate for the first three months of fiscal 2025 was (21.7)% compared to 20.1% in the prior year period. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items on a pretax (loss) and the unfavorable mix of earnings in higher tax rate jurisdictions. The adjusted effective tax rate for the first three months of fiscal 2025 was 43.6%, up from the prior year period adjusted effective tax rate of 22.8%.

GAAP net (loss) earnings were a loss of $2.1 million or $0.04 per diluted share compared to earnings of $4.8 million or $0.09 per diluted share in the prior year quarter. Adjusted net earnings were $3.3 million or $0.07 per share, inclusive of a $0.17 unfavorable currency impact, compared to $12.0 million or $0.24 per share in the prior year quarter. Adjusted EBITDA was $45.9 million, inclusive of a $11.2 million unfavorable currency impact, compared to $57.2 million in the prior year quarter. 

Net cash used for operating activities was $115.6 million for the three months ending December 31, 2024, compared to $72.9 million in the prior year period. The increase in cash used for operating activities was largely driven by changes in net working capital and lower earnings.

Capital Allocation

On February 6, 2025, the Board of Directors declared a quarterly cash dividend of $0.15 per common share for the first fiscal quarter of fiscal 2025. The dividend will be payable on April 9, 2025 to shareholders of record as the close of business on March 5, 2025. During the first quarter of fiscal 2025, the Company paid dividends totaling $7.9 million to stockholders and completed share repurchases of approximately 0.8 million shares at a total cost of $30.3 million. As of December 31, 2024, the Company had 2.2 million shares of common stock available for repurchase in the future under the Board's 2018 authorization.

Fiscal 1Q 2025 Operating Segment Results (Unaudited)

Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)

Net sales a decrease $7.2 million, or 2.4%. Organic net sales decreased $4.0 million or 1.3%, as growth in international markets, driven by both higher volumes and price, was more than offset by volume declines in Shave Preps and Women's Systems in North America. Wet Shave segment profit decreased $7.1 million, or 13.2%. Organic segment profit, excluding the unfavorable impact from currency decreased $0.2 million, or 0.4%, as higher gross margins were primarily offset by higher marketing and SG&A expenses. 

Sun and Skin Care (Sun Care, Wet Ones, Bulldog, Jack Black and Cremo)

Net sales increased $5.2 million, or 4.5%. Organic net sales increased $5.9 million, or 5.1%, driven by strong performance in Grooming, led by Cremo and Billie, as well as Wet One's, partly offset by declines in North America Sun Care.  Organic segment profit decreased $2.1 million, or 161.5%, with minimal currency impact, driven by lower gross margin and higher SG&A expenses.

Feminine Care (Tampons, Pads, and Liners)

Net sales decreased $8.5 million, or 11.8% with minimal currency impact, largely driven by a decline in Pads and to a lesser extent, Tampons, partly offset by growth in Liners. Segment profit decreased $4.1 million, or 56.1%. Organic segment profit decreased $3.9 million, or 53.4%, primarily driven by lower sales and gross profit and was partially offset lower SG&A expenses.

Full Fiscal Year 2025 Financial Outlook

The Company is providing the following outlook assumptions for fiscal 2025*:

  • Organic net sales are expected to be in the range of 1% to 3%
    • Currency is now expected to negatively impact reported net sales by 160-basis points (previously, 70-basis points positive)
  • GAAP EPS is now expected to be in the range of $2.54 to $2.74 (previously in the range of $2.59 to $2.79)
    • Includes: Restructuring and re-positioning charges**, Sun Care reformulation, Other costs.
  • Adjusted EPS is now expected to be towards the lower end of the range of $3.15 to $3.35, reflecting increased anticipated negative foreign currency changes
    • Includes an estimated $0.36 per share unfavorable impact from foreign currency changes (previously $0.18 per share unfavorable impact)
    • Adjusted gross margin is expected to increase approximately 55-basis points (previous 75-basis points), or 90-basis points (unchanged) at constant currency
    • Adjusted operating margin is expected to increase approximately 10 basis points (previously increase 40-basis points), or increase 50-basis points at constant currency
    • The EPS outlook reflects the impact of expected share repurchases of approximately $90 million
    • Expect approximately 70% (previously two-thirds) of adjusted net earnings to be generated in the 2nd half of the fiscal year.
  • Adjusted EBITDA is expected to be towards the lower end of in the range of $356 to $368 million
    • Includes an estimated $23 million unfavorable (previously $11 million unfavorable) impact from foreign currency changes
  • Other Expense (Income), net is now expected to be income of approximately $1 million (previously expense of $7 million), inclusive of interest income of $3 million
  • Interest expense associated with debt is now expected to be approximately $74 million (previously $73 million)
  • Adjusted effective tax rate is expected to be approximately 22%
  • Total depreciation and amortization expense expected to be approximately $89 million
  • Capital expenditures expected to be approximately 2.5% to 3.0% of net sales
  • Free cash flow is expected to be approximately $185 million

* This outlook does not reflect potential impact from U.S. or retaliatory tariffs given their rapidly evolving nature.

** In fiscal 2025, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the organizational and operational changes in Mexico. As a result of these actions, the Company expects to incur pre-tax charges of approximately $29 million for the full fiscal year.

Webcast Information

In conjunction with this announcement, the Company will hold an investor conference call beginning at 8:00 a.m. Eastern Time today. All interested parties may access a live webcast of this conference call at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link:  http://ir.edgewell.com/news-and-events/events

For those unable to participate during the live webcast, a re-play will be available on www.edgewell.com under the "Investors," "Financial Reports," and "Quarterly Earnings" tabs. This release includes references to the Company's website and references to additional information and materials found on its website. The Company's website and such information and materials are not incorporated by reference in, and are not part of, this release.

About Edgewell

Edgewell is a leading pure-play consumer products company with an attractive, diversified portfolio of established brand names such as Schick®, Wilkinson Sword® and Billie® men's and women's shaving systems and disposable razors; Edge and Skintimate® shave preparations; Playtex®, Stayfree®, Carefree® and o.b.® feminine care products; Banana Boat®, Hawaiian Tropic®, Bulldog®,  Jack Black®, and CREMO® sun and skin care products; and Wet Ones® products. The Company has a broad global footprint and operates in more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K. and Australia, with approximately 6,700 employees worldwide.

Forward-Looking Statements. This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. Forward-looking statements generally can be identified by the use of words or phrases such as "believe," "expect," "expectation," "anticipate," "may," "could," "intend," "belief," "estimate," "plan," "target," "predict," "likely," "will," "should," "forecast," "outlook," or other similar words or phrases. These statements are not based on historical facts, but instead reflect the Company's expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of Edgewell or any of its businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause the Company's actual results to differ materially from those indicated by those statements. The Company cannot assure you that any of its expectations, estimates or projections will be achieved. The forward-looking statements included in this document are only made as of the date of this document and the Company disclaims any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.

In addition, other risks and uncertainties not presently known to the Company or that it presently considers immaterial could significantly affect the accuracy of any such forward-looking statements. Risks and uncertainties include those detailed from time to time in the Company's publicly filed documents, including in Item 1A. Risk Factors of Part I of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 14, 2024.

Non-GAAP Financial Measures. While the Company reports financial results in accordance with generally accepted accounting principles ("GAAP") in the U.S., this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as "adjusted" or "organic" and exclude items which are considered by the Company as unusual or non-recurring and which may have a disproportionate positive or negative impact on the Company's financial results in any particular period. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2025 financial outlook, are included within the Notes to Condensed Consolidated Financial Statements included with this release.

This non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The Company uses this non-GAAP information internally to make operating decisions and believes it is helpful to investors because it allows more meaningful period-to-period comparisons of ongoing operating results. The information can also be used to perform analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is a component in determining management's incentive compensation. Finally, the Company believes this information provides a higher degree of transparency. The following provides additional detail on the Company's non-GAAP measures:

  • The Company utilizes "adjusted" non-GAAP measures including gross profit, SG&A, operating income, income taxes, net earnings, diluted earnings per share, and EBITDA to internally make operating decisions.
    • Constant currency measures are calculated by removing the impact of translational and transactional foreign currencies changes, net of foreign currency hedges compared to the prior year. Transactional foreign currency changes are driven by foreign legal entities' transactions not denominated in local currency.
  • The Company analyzes its net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency and the impact of acquisitions.
    • Segment profit will be impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management's best estimate.
  • Free cash flow is defined as net cash from operating activities, less capital expenditures plus collections of deferred purchase price of accounts receivable sold and proceeds from sales of fixed assets. Free cash flow conversion is defined as free cash flow as a percentage of net earnings adjusted for the net impact of non-cash impairments.
  • Net debt is defined as Gross debt less cash. Net debt leverage ratio is defined as net debt less cash divided by trailing twelve month adjusted EBITDA.

Basis of Presentation.  Please refer to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 14, 2024, as amended by the Company on November 21, 2024.

 

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in millions, except per share data)

 


Three Months Ended

December 31,


2024


2023

Net sales

$             478.4


$             488.9

Cost of products sold

286.8


291.2

Gross profit

191.6


197.7





Selling, general and administrative expense

102.9


103.3

Advertising and sales promotion expense

50.3


48.2

Research and development expense

13.9


13.3

Restructuring charges

4.2


6.8

Operating income

20.3


26.1

Interest expense associated with debt

18.8


19.8

Other expense, net

3.2


0.3

(Loss) earnings before income taxes

(1.7)


6.0

Income tax provision

0.4


1.2

Net (loss) earnings

$               (2.1)


$                 4.8





(Loss) earnings per share:




    Basic net (loss) earnings per share

$             (0.04)


$               0.10

    Diluted net (loss) earnings per share

$             (0.04)


$               0.09





Weighted-average shares outstanding:




     Basic

48.7


50.1

     Diluted

48.7


50.5


                                           See Accompanying Notes                     .

 

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)  

 


December 31,
2024


September 30,
2024

Assets




Current assets




Cash and cash equivalents

$               175.5


$               209.1

Trade receivables, less allowance for doubtful accounts

120.5


109.4

Inventories

501.6


477.3

Other current assets

147.6


140.2

Total current assets

945.2


936.0

Property, plant and equipment, net

342.7


349.1

Goodwill

1,328.7


1,338.6

Other intangible assets, net

934.3


948.5

Other assets

151.5


158.7

Total assets

$            3,702.4


$            3,730.9





Liabilities and Shareholders' Equity




Current liabilities




Notes payable

$                 27.2


$                 24.5

Accounts payable

203.8


219.3

Other current liabilities

228.0


319.8

Total current liabilities

459.0


563.6

Long-term debt

1,440.6


1,275.0

Deferred income tax liabilities

132.6


133.2

Other liabilities

169.2


175.0

Total liabilities

2,201.4


2,146.8

Shareholders' equity




Common shares

0.7


0.7

Additional paid-in capital

1,561.8


1,586.0

Retained earnings

1,080.9


1,090.1

Common shares in treasury at cost

(944.7)


(937.9)

Accumulated other comprehensive loss

(197.7)


(154.8)

Total shareholders' equity

1,501.0


1,584.1

Total liabilities and shareholders' equity

$            3,702.4


$            3,730.9


                                                                      See Accompanying Notes.

 

EDGEWELL PERSONAL CARE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)  

 


Three Months Ended
December 31,


2024


2023

Cash Flow from Operating Activities




Net (loss) earnings

$               (2.1)


$                 4.8

Depreciation and amortization

21.7


22.5

Share-based compensation expense

6.1


7.0

Loss on sale of assets

1.4


0.1

Deferred compensation payments

(0.2)


(0.4)

Deferred income taxes

0.2


(0.2)

Other, net

2.3


(0.6)

Changes in current assets and liabilities used in operations

(145.0)


(106.1)

Net cash used for operating activities

$           (115.6)


$             (72.9)





Cash Flow from Investing Activities




Capital expenditures

$             (16.8)


$               (6.5)

Collection of deferred purchase price on accounts receivable sold

1.1


Other, net


0.5

Net cash used for investing activities

$             (15.7)


$               (6.0)





Cash Flow from Financing Activities




Cash proceeds from debt with original maturities greater than 90 days

$             369.0


$             216.0

Cash payments on debt with original maturities greater than 90 days

(204.0)


(125.0)

Proceeds from debt with original maturities of 90 days or less

3.7


4.1

Repurchase of shares

(30.3)


(15.0)

Dividends to common shareholders

(7.9)


(7.6)

Net financing (outflow) inflow from the Accounts Receivable Facility

(13.3)


4.8

Employee shares withheld for taxes

(7.3)


(7.0)

Other, net


(0.5)

Net cash provided by financing activities

$             109.9


$               69.8





Effect of exchange rate changes on cash

(12.2)


6.9





Net decrease in cash and cash equivalents

(33.6)


(2.2)

Cash and cash equivalents, beginning of period

209.1


216.4

Cash and cash equivalents, end of period

$             175.5


$             214.2


                                                                            See Accompanying Notes.

 

EDGEWELL PERSONAL CARE COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except per share data)

Note 1 —  Segments

The Company conducts its business in the following three segments: Wet Shave, Sun and Skin Care, and Feminine Care (collectively, the "Segments," and each individually, a "Segment"). Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, items which are considered by the Company to be unusual or non-recurring and which may have a disproportionate positive or negative impact on the Company's financial results in any particular period and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management's view on how it evaluates segment performance.

Segment net sales and profitability are presented below:


Three Months Ended
December 31,


2024


2023

Net Sales




Wet Shave

$          294.5


$             301.7

Sun and Skin Care

120.6


115.4

Feminine Care

63.3


71.8

Total net sales

$          478.4


$             488.9





Segment Profit




Wet Shave

$            46.6


$               53.7

Sun and Skin Care

(3.4)


(1.3)

Feminine Care

3.2


7.3

Total segment profit

46.4


59.7

General corporate and other expenses

(11.6)


(16.2)

Amortization of intangibles

(7.8)


(7.8)

Interest and other expense, net

(21.1)


(20.1)

Restructuring and repositioning expenses

(4.2)


(6.8)

Acquisition and integration costs

(0.5)


(0.7)

Sun Care reformulation costs

(1.0)


(0.5)

Wet Ones manufacturing plant fire


(1.5)

Gain on investment

0.9


Other project and related costs

(2.8)


(0.1)

Total (loss) earnings before income taxes

$             (1.7)


$                 6.0

Refer to Note 2 - GAAP to Non-GAAP Reconciliations for the income statement location of non-GAAP adjustments to (loss) earnings before income taxes.

Note 2 — GAAP to Non-GAAP Reconciliations

The following tables provide a GAAP to Non-GAAP reconciliation of certain line items from the Condensed Consolidated Statement of Earnings:


Three Months Ended December 31, 2024


Gross Profit


SG&A


Operating
Income


EBIT (1)


Income
taxes


Net (Loss)
Earnings


Diluted EPS

GAAP — Reported

$     191.6


$     102.9


$       20.3


$          (1.7)


$            0.4


$       (2.1)


$        (0.04)

Restructuring and repositioning expenses



4.2


4.2


1.0


3.2


0.07

Acquisition and integration costs


0.5


0.5


0.5


0.1


0.4


0.01

Sun Care reformulation costs



1.0


1.0


0.3


0.7


0.01

Gain on investment




(0.9)



(0.9)


(0.02)

Other project and related costs


1.0


1.0


2.8


0.8


2.0


0.04

Total Adjusted Non-GAAP

$     191.6


$     101.4


$       27.0


$            5.9


$            2.6


$         3.3


$          0.07






















Adjusted Non-GAAP Constant Currency


$          0.24















GAAP as a percent of net sales

40.1 %


21.5 %


4.2 %


GAAP effective tax rate

(21.7) %



Adjusted as a percent of net sales

40.1 %


21.2 %


5.6 %


Adjusted effective tax rate

43.6 %



Adjusted Constant Currency as a percent of net sales

41.5 %




7.2 %









 


Three Months Ended December 31, 2023


Gross Profit


SG&A


Operating
Income


EBIT (1)


Income
taxes


Net
Earnings


Diluted EPS

GAAP — Reported

$      197.7


$     103.3


$       26.1


$            6.0


$            1.2


$         4.8


$          0.09

Restructuring and repositioning expenses



6.8


6.8


1.7


5.1


0.11

Acquisition and integration costs


0.7


0.7


0.7


0.2


0.5


0.01

Sun Care reformulation costs



0.5


0.5


0.1


0.4


0.01

Wet Ones manufacturing plant fire

1.5



1.5


1.5


0.4


1.1


0.02

Other project and related costs


0.1


0.1


0.1



0.1


Total Adjusted Non-GAAP

$      199.2


$     102.5


$       35.7


$          15.6


$            3.6


$       12.0


$          0.24















GAAP as a percent of net sales

40.4 %


21.1 %


5.3 %


GAAP effective tax rate

20.1 %



Adjusted as a percent of net sales

40.7 %


21.0 %


7.3 %


Adjusted effective tax rate

22.8 %



(1) EBIT is defined as Earnings before Income taxes.

Note 3 - Net Sales and Profit by Segment

Operations for the Company are reported via three Segments. The following tables present changes in net sales and segment profit for the three months ended December 31, 2024, as compared to the corresponding period in the prior year quarter.

Net Sales

Quarter ended December 31, 2024

 


Wet

Shave


Sun and Skin

Care


Feminine

Care


Total

Net Sales - Q1 2024

$   301.7




$   115.4




$     71.8




$   488.9



Organic

(4.0)


(1.3) %


5.9


5.1 %


(8.4)


(11.7) %


(6.5)


(1.3) %

Impact of currency

(3.2)


(1.1) %


(0.7)


(0.6) %


(0.1)


(0.1) %


(4.0)


(0.8) %

Net Sales - Q1 2025

$   294.5


(2.4) %


$   120.6


4.5 %


$     63.3


(11.8) %


$   478.4


(2.1) %

 

Segment Profit

Quarter Ended December 31, 2024


















Wet

Shave


Sun and Skin

Care


Feminine

Care


Total

Segment Profit (Loss) - Q1 2024

$     53.7




$      (1.3)




$       7.3




$     59.7



Organic

(0.2)


(0.4) %


(1.4)


107.7 %


(3.9)


(53.4) %


(5.5)


(9.2) %

Impact of currency

(6.9)


(12.8) %


(0.7)


53.8 %


(0.2)


(2.7) %


(7.8)


(13.1) %

Segment Profit (Loss) - Q1 2025

$     46.6


(13.2) %


$      (3.4)


161.5 %


$       3.2


(56.1) %


$     46.4


(22.3) %

 

For all tables, the impact of currency to segment profit includes both the translational and transactional currency changes during the quarter.

Note 4 - Net Debt and EBITDA

The Company reports financial results on a GAAP and adjusted basis. The tables below are used to reconcile Net Debt and Net (loss) earnings to EBITDA and Adjusted EBITDA, which are non-GAAP measures, to improve comparability of results between periods.


December 31,
2024


September 30,
2024

Notes payable

$                 27.2


$                 24.5

Long-term debt

1,440.6


1,275.0

Gross debt

$            1,467.8


$            1,299.5

Less: Cash and cash equivalents

175.5


209.1

Net debt

$            1,292.3


$            1,090.4

 


Three Months Ended

December 31,


2024


2023

Net (loss) earnings

$                 (2.1)


$                   4.8

Income tax provision

0.4


1.2

Interest expense, net 

18.3


19.1

Depreciation and amortization

21.7


22.5

EBITDA

$                 38.3


$                 47.6





Restructuring and repositioning expenses

4.2


6.8

Acquisition and integration costs

0.5


0.7

Sun Care reformulation costs

1.0


0.5

Wet Ones manufacturing plant fire


1.5

Gain on investment

(0.9)


Other project and related costs

2.8


0.1

Adjusted EBITDA

$                 45.9


$                 57.2





Adjusted EBITDA Constant Currency

$                 57.1



 

Note 5 - Outlook

The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within the Company's outlook for projected fiscal 2025 results:

Adjusted EPS Outlook



Fiscal 2025 GAAP EPS

approx.

$2.54 - $2.74




Restructuring and repositioning costs

approx.

0.61

Sun Care reformulation costs

approx.

0.11

Other costs

approx.

0.11

Income taxes(1)

approx.

(0.22)




Fiscal 2025 Adjusted EPS Outlook (Non-GAAP)

approx.

$3.15 - $3.35

(1)      Income tax effect of the adjustments to Fiscal 2025 GAAP EPS noted above.

 

Adjusted EBITDA Outlook



Fiscal 2025 GAAP Net Income

approx.

$123 - $133

Income tax provision

approx.

34

Interest expense, net

approx.

71

Depreciation and amortization

approx.

89

EBITDA

approx.

$316 - $328




Restructuring and repositioning costs

approx.

29

Sun Care reformulation costs

approx.

5

Other costs

approx.

6

Fiscal 2025 Adjusted EBITDA

approx.

$356 - $368

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/edgewell-personal-care-announces-first-quarter-fiscal-2025-results-302371932.html

SOURCE Edgewell Personal Care Company

FAQ

What was Edgewell's (EPC) Q1 2025 revenue and how did it compare to last year?

Edgewell's Q1 2025 revenue was $478.4 million, representing a 2.1% decrease compared to the same quarter last year, with organic net sales declining 1.3%.

How much did Edgewell (EPC) return to shareholders in Q1 2025?

Edgewell returned $38 million to shareholders in Q1 2025, consisting of $30 million in share repurchases and $8 million in dividends.

What is Edgewell's (EPC) adjusted EPS guidance for fiscal 2025?

Edgewell expects adjusted EPS to be towards the lower end of $3.15 to $3.35 range, including an estimated $0.36 per share unfavorable impact from foreign currency changes.

How did Edgewell's (EPC) different segments perform in Q1 2025?

In Q1 2025, Edgewell's Sun and Skin Care segment grew 4.5%, while Wet Shave decreased 2.4% and Feminine Care declined 11.8%.

What is Edgewell's (EPC) dividend payment for Q1 2025?

Edgewell declared a quarterly cash dividend of $0.15 per common share, payable on April 9, 2025, to shareholders of record as of March 5, 2025.
Edgewell Pers Care Co

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Household & Personal Products
Perfumes, Cosmetics & Other Toilet Preparations
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