Edgewell Personal Care Announces First Quarter Fiscal 2025 Results
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.
- 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
- 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
Three critical areas stand out:
- Market Performance Divergence: While international markets grew
2.0% , North American sales declined3.9% , highlighting concerning regional disparities. The Feminine Care segment's11.8% 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
Net Sales decreased
GAAP EPS decreased
Updates Full Year Outlook to reflect Foreign Currency Changes
Executive Summary
- Net sales were
, a decrease of$478.4 million 2.1% compared to the prior year quarter. - Organic net sales decreased
1.3% (Organic basis excludes the impact from currency movements.) - GAAP Diluted Net (Loss) Earnings Per Share ("EPS") were
, compared to$(0.04) in the prior year quarter.$0.09 - Adjusted EPS were
, inclusive of a$0.07 unfavorable impact from currency movements, as compared to$0.17 in the prior year quarter.$0.24 - Ended the first quarter with
in cash on hand, access to an additional$176 million revolving credit facility and a net debt leverage ratio of 3.8x.$221 million - Returned
to shareholders in the form of$38 million in share repurchases and$30 million of dividends in the first quarter.$8 million - The Board of Directors declared a cash dividend of
per common share on February 6, 2025 for the first quarter.$0.15
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
Gross profit was
Advertising and sales promotion expense ("A&P") was
Selling, general and administrative expense ("SG&A") was
The Company recorded pre-tax restructuring and re-positioning expenses and costs in support of cost efficiency and effectiveness programs of
Operating income, was
Interest expense associated with debt was
Other expense, net was
The effective tax rate for the first three months of fiscal 2025 was (21.7)% compared to
GAAP net (loss) earnings were a loss of
Net cash used for operating activities was
Capital Allocation
On February 6, 2025, the Board of Directors declared a quarterly cash dividend of
Fiscal 1Q 2025 Operating Segment Results (Unaudited)
Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)
Net sales a decrease
Sun and Skin Care (Sun Care, Wet Ones, Bulldog, Jack Black and Cremo)
Net sales increased
Feminine Care (Tampons, Pads, and Liners)
Net sales decreased
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% to3% - 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
to$2.54 (previously in the range of$2.74 to$2.59 )$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
to$3.15 , reflecting increased anticipated negative foreign currency changes$3.35 - Includes an estimated
per share unfavorable impact from foreign currency changes (previously$0.36 per share unfavorable impact)$0.18 - 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.
- Includes an estimated
- Adjusted EBITDA is expected to be towards the lower end of in the range of
to$356 $368 million - Includes an estimated
unfavorable (previously$23 million unfavorable) impact from foreign currency changes$11 million
- Includes an estimated
- Other Expense (Income), net is now expected to be income of approximately
(previously expense of$1 million ), inclusive of interest income of$7 million $3 million - Interest expense associated with debt is now expected to be approximately
(previously$74 million )$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% to3.0% of net sales - Free cash flow is expected to be approximately
$185 million
* This outlook does not reflect potential impact from
** 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
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
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
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 |
|
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
| |||
December 31, | September 30, | ||
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 |
|
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)
| |||
Three Months Ended | |||
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 |
|
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 | |||
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 | EBIT (1) | Income | Net (Loss) | 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 | EBIT (1) | Income | Net | 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, | September 30, | ||
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. | |
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. |
(1) Income tax effect of the adjustments to Fiscal 2025 GAAP EPS noted above. |
Adjusted EBITDA Outlook | ||
Fiscal 2025 GAAP Net Income | approx. | |
Income tax provision | approx. | 34 |
Interest expense, net | approx. | 71 |
Depreciation and amortization | approx. | 89 |
EBITDA | approx. | |
Restructuring and repositioning costs | approx. | 29 |
Sun Care reformulation costs | approx. | 5 |
Other costs | approx. | 6 |
Fiscal 2025 Adjusted EBITDA | approx. |
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SOURCE Edgewell Personal Care Company