Edgewell Personal Care Announces Fourth Quarter and Fiscal 2024 Results; Provides 2025 Outlook
Edgewell Personal Care reported fiscal 2024 results with net sales increasing 0.1% to $2,253.7 million and organic net sales up 0.2%. The company's adjusted EPS grew 18% to $3.05, while GAAP EPS decreased 11% to $1.97. During fiscal 2024, Edgewell returned $90 million to shareholders through $59 million in share repurchases and $31 million in dividends. The company ended Q4 with $209 million cash on hand and a 3.1x net debt leverage ratio.
For fiscal 2025, Edgewell projects 1-3% organic net sales growth and 7% adjusted EPS growth (13% at constant currency). The outlook includes expected share repurchases of approximately $90 million and adjusted EBITDA range of $356-368 million.
Edgewell Personal Care ha riportato i risultati fiscali per il 2024, con vendite nette in aumento dello 0,1% a 2.253,7 milioni di dollari e vendite nette organiche in crescita dello 0,2%. L'EPS rettificato dell'azienda è cresciuto del 18% a 3,05 dollari, mentre l'EPS GAAP è diminuito dell'11% a 1,97 dollari. Durante l'anno fiscale 2024, Edgewell ha restituito 90 milioni di dollari agli azionisti tramite riacquisti di azioni per 59 milioni di dollari e dividendi per 31 milioni di dollari. L'azienda ha chiuso il quarto trimestre con 209 milioni di dollari in contante e un rapporto di leva finanziaria netto di 3,1x.
Per l'anno fiscale 2025, Edgewell prevede una crescita delle vendite nette organiche compresa tra l'1% e il 3% e una crescita dell' EPS rettificato del 7% (13% a valuta costante). Le previsioni includono riacquisti di azioni attesi per circa 90 milioni di dollari e un range di EBITDA rettificato di 356-368 milioni di dollari.
Edgewell Personal Care reportó los resultados fiscales de 2024, con ventas netas que aumentaron un 0,1% a 2.253,7 millones de dólares y ventas netas orgánicas que crecieron un 0,2%. El EPS ajustado de la compañía creció un 18% a 3,05 dólares, mientras que el EPS GAAP disminuyó un 11% a 1,97 dólares. Durante el año fiscal 2024, Edgewell devolvió 90 millones de dólares a los accionistas mediante 59 millones de dólares en recompras de acciones y 31 millones de dólares en dividendos. La empresa cerró el cuarto trimestre con 209 millones de dólares en efectivo y un ratio de apalancamiento de deuda neta de 3,1x.
Para el año fiscal 2025, Edgewell proyecta un crecimiento de ventas netas orgánicas del 1% al 3% y un crecimiento del EPS ajustado del 7% (13% a tipo de cambio constante). Las perspectivas incluyen recompras de acciones esperadas de aproximadamente 90 millones de dólares y un rango de EBITDA ajustado de 356-368 millones de dólares.
엣지웰 퍼스널 케어는 2024 회계연도 결과를 보고하며, 순매출이 0.1% 증가한 22억 5,370만 달러, 유기순매출이 0.2% 상승했다고 발표했습니다. 회사의 조정 EPS는 18% 증가하여 3.05달러에 이르렀고, GAAP EPS는 11% 감소한 1.97달러로 집계되었습니다. 2024 회계연도 동안, 엣지웰은 5,900만 달러의 자사주 매입과 3,100만 달러의 배당금을 통해 주주에게 9,000만 달러를 환원했습니다. 회사는 4분기를 2억 900만 달러의 현금을 보유하고, 3.1배의 순부채 비율로 마감했습니다.
2025 회계연도에 대해 엣지웰은 유기순매출 성장률을 1-3%로, 조정 EPS 성장률을 7% (고정환율 기준으로 13%)로 예측하고 있습니다. 전망에는 약 9,000만 달러의 자사주 매입과 3억 5,600만 달러에서 3억 6,800만 달러의 조정 EBITDA 범위가 포함됩니다.
Edgewell Personal Care a annoncé les résultats fiscaux 2024, avec des ventes nettes en hausse de 0,1 % à 2 253,7 millions de dollars et des ventes nettes organiques en hausse de 0,2 %. Le BPA ajusté de l'entreprise a augmenté de 18 % pour atteindre 3,05 $, tandis que le BPA GAAP a diminué de 11 % pour s'établir à 1,97 $. Au cours de l'exercice fiscal 2024, Edgewell a retourné 90 millions de dollars aux actionnaires grâce à 59 millions de dollars de rachat d'actions et 31 millions de dollars de dividendes. L'entreprise a clôturé le quatrième trimestre avec 209 millions de dollars en liquidités et un ratio d'endettement net de 3,1x.
Pour l'exercice 2025, Edgewell prévoit une croissance des ventes nettes organiques de 1 à 3 % et une croissance du BPA ajusté de 7 % (13 % à taux de change constant). Les prévisions incluent des rachats d'actions prévus d'environ 90 millions de dollars et un éventail de l'EBITDA ajusté de 356 à 368 millions de dollars.
Edgewell Personal Care berichtete über die Ergebnisse des Geschäftsjahres 2024, mit einem Anstieg des Nettoumsatzes um 0,1% auf 2.253,7 Millionen US-Dollar und einem organischen Nettoumsatz von 0,2%. Das bereinigte EPS des Unternehmens wuchs um 18% auf 3,05 US-Dollar, während das GAAP EPS um 11% auf 1,97 US-Dollar zurückging. Im Geschäftsjahr 2024 gab Edgewell 90 Millionen US-Dollar an die Aktionäre zurück, darunter 59 Millionen US-Dollar durch Aktienrückkäufe und 31 Millionen US-Dollar an Dividenden. Das Unternehmen beendete das vierte Quartal mit 209 Millionen US-Dollar an liquiden Mitteln und einem Nettoverschuldungsgrad von 3,1x.
Für das Geschäftsjahr 2025 prognostiziert Edgewell ein organisches Umsatzwachstum von 1-3% und ein bereinigtes EPS-Wachstum von 7% (13% bei konstanten Wechselkursen). Die Prognose beinhaltet voraussichtliche Aktienrückkäufe von etwa 90 Millionen US-Dollar und eine bereinigte EBITDA-Spanne von 356 bis 368 Millionen US-Dollar.
- Fiscal 2024 adjusted EPS increased 18% to $3.05
- Returned $90 million to shareholders via dividends and share repurchases
- Adjusted gross margin increased 140 basis points in FY2024
- Strong cash position with $209 million on hand and $386 million credit facility access
- Projected 1-3% organic sales growth and 13% constant currency adjusted EPS growth for FY2025
- Q4 net sales decreased 3.1% to $517.6 million
- Q4 organic net sales declined 2.8%
- GAAP EPS decreased 11% to $1.97 for fiscal 2024
- North America sales decreased 3.8% in fiscal 2024
- Net debt leverage ratio at 3.1x
Insights
The Q4 and FY2024 results present a mixed picture with some concerning trends. While organic net sales increased marginally by
Key positives include strong international performance with
The FY2025 outlook suggests modest growth with
The competitive landscape and consumer behavior shifts are creating headwinds for Edgewell. The decline in North American sales, particularly in core categories like Wet Ones and Feminine Care, suggests market share challenges and changing consumer preferences. The weather-impacted Sun Care performance highlights vulnerability to external factors.
The company's strategic focus on international markets is paying off, but the domestic market challenges need addressing. The planned consolidation of Mexican operations and cost efficiency programs indicate management's awareness of the need to optimize operations. The
The projected gross margin expansion of
FY 2024 Net Sales increased
FY 2024 GAAP EPS decreased
Returned
Initiates Fiscal 2025 Outlook for growth in Organic Net Sales, Adjusted EPS, Adjusted EBITDA and Free Cash Flow
Executive Summary
- Net sales were
, a decrease of$517.6 million 3.1% compared to the prior year quarter. Full year net sales were , an increase of$2,253.7 million 0.1% compared to the prior year. - Organic net sales decreased
2.8% for the quarter and increased0.2% for the full year. (Organic basis excludes the impact from currency movements.) - GAAP Diluted net Earnings Per Share ("EPS") were
for the quarter and$0.17 for the fiscal year.$1.97 - Adjusted EPS were
, for the quarter, and$0.72 for the fiscal year, inclusive of an$3.05 unfavorable impact from currency movements for the full fiscal year. Adjusted EPS increased$0.08 or$0.46 18% compared to the prior year. - Ended the fiscal fourth quarter with
in cash on hand, access to an additional$209 million revolving credit facility and a net debt leverage ratio of 3.1x.$386 million - Board of Directors declared a cash dividend of
per common share on October 31, 2024, for the fourth fiscal quarter.$0.15 - Returned approximately
to shareholders in the form of$90 million in share repurchases and$59 million of dividends in the fiscal year.$31 million - Fiscal 2025 outlook for approximately
1% to3% growth in organic net sales and7% growth in adjusted EPS, or13% on a constant currency basis, at the midpoint of the outlook range.
The Company reports results on a GAAP and non-GAAP basis and has reconciled non-GAAP results 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 with the same period in the prior fiscal year unless otherwise stated.
"For the fiscal year, we achieved slight organic net sales growth, meaningfully expanded adjusted gross margins and delivered double-digit adjusted earnings per share growth at constant currency for the second consecutive fiscal year. In the face of a heightened competitive landscape and an increasingly cautious consumer, we accelerated organic growth across our international businesses, introduced category-leading innovation in the US Sun Care category and deepened our participation across the men's and women's grooming segments. The strength of our business model was reflected in our healthy earnings growth, substantial cash flow generation and structural de-leveraging of the business," said Rod Little, Edgewell's President and Chief Executive Officer. "As we look to fiscal 2025, with strong momentum across our International businesses, a strengthened leadership team and increased focus on execution across the organization, we anticipate a return to low single-digit organic net sales growth, further margin and profit expansion, and ultimately an increase in value creation for our shareholders."
Fiscal 4Q 2024 Operating Results (Unaudited)
Net sales were
Gross profit was
Selling, general and administrative expense ("SG&A") was
The Company recorded pre-tax restructuring and repositioning expenses of
Advertising and sales promotion expense ("A&P") was
Operating income was
Interest expense associated with debt was
Other (income) expense, net was
The effective tax rate for fiscal 2024 was
GAAP net earnings were
Net cash from operating activities was
Fiscal 4Q 2024 Operating Segment Results (Unaudited)
The following is a summary of fourth quarter results by segment:
Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)
Net sales decreased
Sun and Skin Care (Sun Care, Wet Ones, Bulldog, Jack Black and Cremo)
Net sales decreased
Feminine Care (Tampons, Pads, and Liners)
Net sales decreased
Fiscal 2024 Operating Results (Unaudited)
Net sales were
Gross Profit was
Selling, general and administrative expense ("SG&A") was
The Company recorded pre-tax restructuring and repositioning expenses of
A&P was
Operating income, was
Interest expense associated with debt was
Other (income) expense, net was expense of
GAAP net earnings were
Capital Allocation
On October 31, 2024, the Board of Directors declared a quarterly cash dividend of
During the fourth quarter of fiscal 2024, the Company completed share repurchases of approximately 0.5 million shares at a total cost of
Full Fiscal Year 2025 Financial Outlook
The Company is providing the following outlook assumptions for fiscal 2025:
- Reported net sales are expected to increase in the range of approximately
1.7% to3.7% - Includes an estimated 70-basis point positive impact from foreign currency changes
- Organic net sales are expected to increase approximately
1% to3% - GAAP EPS is expected to be in the range of
to$2.59 $2.79 - Includes: Restructuring and re-positioning charges*, Sun Care reformulation, and Other costs
- Adjusted EPS is expected to be in the range of
to$3.15 $3.35 - Includes an estimated
EPS unfavorable impact from foreign currency changes, including a$0.18 unfavorable impact in Fiscal Q1.$0.10 - Adjusted EPS at constant currency expected to increase approximately
13% at the mid-point of the range - Adjusted gross margin is expected to increase approximately 75-basis points, or 90-basis points at constant currency
- Adjusted operating margin is expected to increase approximately 40-basis points, or 50-basis points at constant currency
- The EPS outlook reflects the impact of expected share repurchases of approximately
$90 million - Expect approximately 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 in the range of
to$356 $368 million - Includes an estimated
unfavorable impact from foreign currency changes$11 million - Adjusted EBITDA at constant currency expected to increase approximately
6% at the mid-point of the range
- Includes an estimated
- Other Expense, net is expected to be approximately
$7 million - Interest expense associated with debt is expected to be approximately
$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
* 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 28, 2023.
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 divided by trailing twelve month adjusted EBITDA.
Basis of Presentation. The financial results included herein represent the most current information available to management and are preliminary until the Company's Annual Report on Form 10-K is filed with the SEC. Actual results may differ from these preliminary results and are subject to the completion of year-end accounting procedures and adjustments and the audit of the Company's consolidated financial statements.
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data)
| |||||||
Three Months Ended | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 517.6 | $ 534.1 | $ 2,253.7 | $ 2,251.6 | |||
Cost of products sold | 304.8 | 305.5 | 1,298.0 | 1,310.8 | |||
Gross profit | 212.8 | 228.6 | 955.7 | 940.8 | |||
Selling, general and administrative expense | 109.2 | 112.4 | 430.1 | 409.6 | |||
Advertising and sales promotion expense | 44.1 | 40.3 | 232.0 | 229.1 | |||
Research and development expense | 16.3 | 15.9 | 58.4 | 58.5 | |||
Restructuring charges | 22.8 | 7.9 | 35.9 | 16.6 | |||
Operating income | 20.4 | 52.1 | 199.3 | 227.0 | |||
Interest expense associated with debt | 17.5 | 18.7 | 76.5 | 78.5 | |||
Other (income) expense, net | (2.5) | 0.1 | 1.9 | 0.8 | |||
Earnings before income taxes | 5.4 | 33.3 | 120.9 | 147.7 | |||
Income tax provision | (3.4) | 3.4 | 22.3 | 33.0 | |||
Net earnings | $ 8.8 | $ 29.9 | $ 98.6 | $ 114.7 | |||
Earnings per share: | |||||||
Basic net earnings per share | $ 0.18 | $ 0.59 | 1.98 | 2.24 | |||
Diluted net earnings per diluted share | $ 0.17 | $ 0.58 | $ 1.97 | $ 2.21 | |||
Weighted-average shares outstanding: | |||||||
Basic | 49.2 | 50.6 | 49.7 | 51.2 | |||
Diluted | 49.9 | 51.3 | 50.1 | 51.8 | |||
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
| |||
September 30, | September 30, | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 209.1 | $ 216.4 | |
Trade receivables, less allowance for doubtful accounts | 109.4 | 106.2 | |
Inventories | 477.3 | 492.4 | |
Other current assets | 140.2 | 147.4 | |
Total current assets | 936.0 | 962.4 | |
Property, plant and equipment, net | 349.1 | 337.9 | |
Goodwill | 1,338.6 | 1,331.4 | |
Other intangible assets, net | 948.5 | 973.8 | |
Other assets | 158.7 | 135.2 | |
Total assets | $ 3,730.9 | $ 3,740.7 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Notes payable | $ 24.5 | $ 19.5 | |
Accounts payable | 219.3 | 194.4 | |
Other current liabilities | 319.8 | 309.5 | |
Total current liabilities | 563.6 | 523.4 | |
Long-term debt | 1,275.0 | 1,360.7 | |
Deferred income tax liabilities | 133.2 | 136.4 | |
Other liabilities | 175.0 | 179.7 | |
Total liabilities | 2,146.8 | 2,200.2 | |
Shareholders' equity | |||
Common shares | 0.7 | 0.7 | |
Additional paid-in capital | 1,586.0 | 1,593.8 | |
Retained earnings | 1,090.1 | 1,022.1 | |
Common shares in treasury at cost | (937.9) | (906.1) | |
Accumulated other comprehensive loss | (154.8) | (170.0) | |
Total shareholders' equity | 1,584.1 | 1,540.5 | |
Total liabilities and shareholders' equity | $ 3,730.9 | $ 3,740.7 | |
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)
| |||
Twelve Months Ended | |||
2024 | 2023 | ||
Cash Flow from Operating Activities | |||
Net earnings | $ 98.6 | $ 114.7 | |
Depreciation and amortization | 88.0 | 91.4 | |
Share-based compensation expense | 26.5 | 27.5 | |
Deferred income taxes | (9.6) | (4.5) | |
Deferred compensation payments | (2.1) | (4.9) | |
Defined benefit settlement loss | — | 7.9 | |
Loss on sale of assets | 0.7 | 2.5 | |
Other, net | (18.7) | (23.5) | |
Changes in current assets and liabilities used in operations | 47.6 | 5.0 | |
Net cash from operating activities | 231.0 | 216.1 | |
Cash Flow from Investing Activities | |||
Capital expenditures | (56.5) | (49.5) | |
Collection of deferred purchase price from accounts receivable sold | 0.7 | 2.7 | |
Other, net | (6.6) | (3.7) | |
Net cash used by investing activities | (62.4) | (50.5) | |
Cash Flow from Financing Activities | |||
Cash proceeds from debt with original maturities greater than 90 days | 813.0 | 841.0 | |
Cash payments on debt with original maturities greater than 90 days | (901.0) | (874.0) | |
Proceeds from debt with original maturities of 90 days or less | 4.2 | — | |
Repurchase of shares | (58.5) | (75.2) | |
Dividends to common shareholders | (30.7) | (31.5) | |
Employee shares withheld for taxes | (7.3) | (9.0) | |
Net financing inflow from the Accounts Receivable Facility | 5.2 | 2.3 | |
Other, net | (4.3) | (0.1) | |
Net cash used by financing activities | (179.4) | (146.5) | |
Effect of exchange rate changes on cash | 3.5 | 8.6 | |
Net (decrease) increase in cash and cash equivalents | (7.3) | 27.7 | |
Cash and cash equivalents, beginning of period | 216.4 | 188.7 | |
Cash and cash equivalents, end of period | $ 209.1 | $ 216.4 | |
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 | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Sales | |||||||
Wet Shave | $ 318.2 | $ 322.9 | $ 1,229.3 | $ 1,230.9 | |||
Sun and Skin Care | 132.7 | 138.0 | 740.8 | 705.5 | |||
Feminine Care | 66.7 | 73.2 | 283.6 | 315.2 | |||
Total net sales | $ 517.6 | $ 534.1 | $ 2,253.7 | $ 2,251.6 | |||
Segment Profit | |||||||
Wet Shave | $ 62.2 | $ 54.9 | $ 203.9 | $ 158.3 | |||
Sun and Skin Care | 14.0 | 22.7 | 131.3 | 137.4 | |||
Feminine Care | 6.2 | 11.6 | 28.8 | 49.7 | |||
Total segment profit | 82.4 | 89.2 | 364.0 | 345.4 | |||
General corporate and other expenses | (18.6) | (20.1) | (65.7) | (68.7) | |||
Restructuring and repositioning expenses | (22.8) | (8.0) | (36.0) | (17.1) | |||
Acquisition and integration costs | (4.0) | (2.4) | (6.1) | (7.5) | |||
SKU Rationalization | — | 1.7 | — | 1.7 | |||
Sun Care reformulation | (2.2) | (0.2) | (4.4) | (1.9) | |||
Wet Ones manufacturing plant fire | (4.2) | — | (12.2) | — | |||
Legal matters | — | — | (3.9) | 6.3 | |||
Loss on investment | — | — | (3.1) | — | |||
Pension settlement expense | — | (0.7) | — | (7.9) | |||
Other projects costs | (2.4) | (0.4) | (5.3) | (0.4) | |||
Amortization of intangibles | (7.8) | (7.7) | (31.1) | (30.8) | |||
Interest and other expense, net | (15.0) | (18.1) | (75.3) | (71.4) | |||
Total earnings before income taxes | $ 5.4 | $ 33.3 | $ 120.9 | $ 147.7 |
Refer to Note 2 - GAAP to Non-GAAP Reconciliations for the income statement location of non-GAAP adjustments to 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 September 30, 2024 | |||||||||||||
Gross | SG&A | Operating | EBIT (1) | Income | Net | Diluted EPS | |||||||
GAAP - Reported | $ 212.8 | $ 109.2 | $ 20.4 | $ 5.4 | $ (3.4) | $ 8.8 | $ 0.17 | ||||||
Restructuring and repositioning expenses | — | — | 22.8 | 22.8 | 5.5 | 17.3 | 0.35 | ||||||
Acquisition and integration costs | 3.3 | 0.7 | 4.0 | 4.0 | 1.0 | 3.0 | 0.06 | ||||||
Sun Care reformulation | — | — | 2.2 | 2.2 | 0.6 | 1.6 | 0.03 | ||||||
Wet Ones manufacturing plant fire | 4.2 | — | 4.2 | 4.2 | 1.0 | 3.2 | 0.07 | ||||||
Other project costs | — | 2.4 | 2.4 | 2.4 | 0.5 | 1.9 | 0.04 | ||||||
Total Adjusted Non-GAAP | $ 220.3 | $ 106.1 | $ 56.0 | $ 41.0 | $ 5.2 | $ 35.8 | $ 0.72 | ||||||
Adjusted Non-GAAP Constant Currency | $ 0.71 | ||||||||||||
GAAP as a percent of net sales | 41.1 % | 21.1 % | 3.9 % | GAAP effective tax rate | (62.9) % | ||||||||
Adjusted as a percent of net sales | 42.6 % | 20.5 % | 10.8 % | Adjusted effective tax rate | 12.8 % | ||||||||
Adjusted Constant Currency as a percent of net sales | 42.8 % | 11.1 % | |||||||||||
Twelve Months Ended September 30, 2024 | |||||||||||||
Gross | SG&A | Operating | EBIT (1) | Income | Net | Diluted EPS | |||||||
GAAP - Reported | $ 955.7 | $ 430.1 | $ 199.3 | $ 120.9 | $ 22.3 | $ 98.6 | $ 1.97 | ||||||
Restructuring and repositioning expenses | — | 0.1 | 36.0 | 36.0 | 8.8 | 27.2 | 0.54 | ||||||
Acquisition and integration costs | 3.3 | 2.8 | 6.1 | 6.1 | 1.5 | 4.6 | 0.09 | ||||||
Sun Care reformulation | — | — | 4.4 | 4.4 | 1.1 | 3.3 | 0.07 | ||||||
Wet Ones manufacturing plant fire | 12.2 | — | 12.2 | 12.2 | 3.0 | 9.2 | 0.18 | ||||||
Legal matters | — | 3.9 | 3.9 | 3.9 | 1.0 | 2.9 | 0.06 | ||||||
Loss on investment | — | — | — | 3.1 | — | 3.1 | 0.06 | ||||||
Other project costs | $ — | $ 5.3 | $ 5.3 | $ 5.3 | $ 1.2 | $ 4.1 | $ 0.08 | ||||||
Total Adjusted Non-GAAP | $ 971.2 | $ 418.0 | $ 267.2 | $ 191.9 | $ 38.9 | $ 153.0 | $ 3.05 | ||||||
Adjusted Non-GAAP Constant Currency | $ 3.13 | ||||||||||||
GAAP as a percent of net sales | 42.4 % | 19.1 % | 8.8 % | GAAP effective tax rate | 18.5 % | ||||||||
Adjusted as a percent of net sales | 43.1 % | 18.5 % | 11.9 % | Adjusted effective tax rate | 20.3 % | ||||||||
Adjusted Constant Currency as a percent of net sales | 43.1 % | 11.9 % | |||||||||||
Three Months Ended September 30, 2023 | |||||||||||||
Gross | SG&A | Operating | EBIT (1) | Income | Net | Diluted EPS | |||||||
GAAP - Reported | $ 228.6 | $ 112.4 | $ 52.1 | $ 33.3 | $ 3.4 | $ 29.9 | 0.58 | ||||||
Restructuring and repositioning expenses | — | 0.1 | 8.0 | 8.0 | 2.0 | 6.0 | 0.12 | ||||||
Acquisition and integration costs | — | 2.4 | 2.4 | 2.4 | 0.6 | 1.8 | 0.04 | ||||||
SKU rationalization | (1.7) | — | (1.7) | (1.7) | (0.4) | (1.3) | (0.03) | ||||||
Sun Care reformulation (2) | (1.4) | — | 0.2 | 0.2 | 0.1 | 0.1 | — | ||||||
Pension settlement expense | — | — | — | 0.7 | 0.2 | 0.5 | 0.01 | ||||||
Other project costs | — | 0.4 | 0.4 | 0.4 | 0.1 | 0.3 | 0.01 | ||||||
Total Adjusted Non-GAAP | $ 225.5 | $ 109.5 | $ 61.4 | $ 43.3 | $ 6.0 | $ 37.3 | $ 0.73 | ||||||
GAAP as a percent of net sales | 42.8 % | 21.0 % | 9.8 % | GAAP effective tax rate | 10.2 % | ||||||||
Adjusted as a percent of net sales | 42.2 % | 20.5 % | 11.5 % | Adjusted effective tax rate | 13.9 % | ||||||||
Twelve Months Ended September 30, 2023 | |||||||||||||
Gross | SG&A | Operating | EBIT (1) | Income | Net | Diluted EPS | |||||||
GAAP - Reported | $ 940.8 | $ 409.6 | $ 227.0 | $ 147.7 | $ 33.0 | $ 114.7 | $ 2.21 | ||||||
Restructuring and repositioning expenses | 0.2 | 0.3 | 17.1 | 17.1 | 4.4 | 12.7 | 0.24 | ||||||
Acquisition and integration costs | — | 7.5 | 7.5 | 7.5 | 1.8 | 5.7 | 0.11 | ||||||
SKU rationalization | (1.7) | — | (1.7) | (1.7) | (0.4) | (1.3) | (0.03) | ||||||
Sun Care reformulation costs (2) | (1.4) | — | 1.9 | 1.9 | 0.5 | 1.4 | 0.03 | ||||||
Legal matters | — | (6.3) | (6.3) | (6.3) | (1.5) | (4.8) | (0.09) | ||||||
Pension settlement expense | — | — | — | 7.9 | 2.1 | 5.8 | 0.11 | ||||||
Other project costs | — | 0.4 | 0.4 | 0.4 | 0.1 | 0.3 | 0.01 | ||||||
Total Adjusted Non-GAAP | $ 937.9 | $ 407.7 | $ 245.9 | $ 174.5 | $ 40.0 | $ 134.5 | $ 2.59 | ||||||
GAAP as a percent of net sales | 41.8 % | 18.2 % | 10.1 % | GAAP effective tax rate | 22.3 % | ||||||||
Adjusted as a percent of net sales | 41.7 % | 18.1 % | 10.9 % | Adjusted effective tax rate | 23.0 % |
(1) EBIT is defined as Earnings (loss) before income taxes. |
(2) Also includes pre-tax R&D costs related to the reformulation, recall, and destruction of certain Sun Care products |
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 fourth quarter and fiscal year 2023, as compared to the corresponding period in the prior year.
Net Sales (In millions - Unaudited) | |||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Total | ||||||||||||
Net Sales - Q4 '23 | $ 322.9 | $ 138.0 | $ 73.2 | $ 534.1 | |||||||||||
Organic | (3.5) | (1.1) % | (4.8) | (3.5) % | (6.4) | (8.7) % | (14.7) | (2.8) % | |||||||
Impact of currency | (1.2) | (0.4) % | (0.5) | (0.3) % | (0.1) | (0.2) % | (1.8) | (0.3) % | |||||||
Net Sales - Q4 '24 | $ 318.2 | (1.5) % | $ 132.7 | (3.8) % | $ 66.7 | (8.9) % | $ 517.6 | (3.1) % | |||||||
Net Sales (In millions - Unaudited) | |||||||||||||||
Twelve Months Ended September 30, 2024 | |||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Total | ||||||||||||
Net Sales - FY '23 | $ 705.5 | $ 315.2 | |||||||||||||
Organic | 3.0 | 0.2 % | 32.8 | 4.6 % | (31.5) | (10.0) % | 4.3 | 0.2 % | |||||||
Impact of currency | (4.6) | (0.3) % | 2.5 | 0.4 % | (0.1) | — % | (2.2) | (0.1) % | |||||||
Net Sales - FY '24 | (0.1) % | $ 740.8 | 5.0 % | $ 283.6 | (10.0) % | 0.1 % | |||||||||
Segment Profit (In millions - Unaudited) | |||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Total | ||||||||||||
Segment Profit - Q4 '23 | $ 54.9 | $ 22.7 | $ 11.6 | $ 89.2 | |||||||||||
Organic | 8.7 | 15.8 % | (8.3) | (36.6) % | (5.4) | (46.6) % | (5.0) | (5.6) % | |||||||
Impact of currency | (1.4) | (2.5) % | (0.4) | (1.7) % | — | — % | (1.8) | (2.0) % | |||||||
Segment Profit - Q4 '24 | $ 62.2 | 13.3 % | $ 14.0 | (38.3) % | $ 6.2 | (46.6) % | $ 82.4 | (7.6) % | |||||||
Segment Profit (In millions - Unaudited) | |||||||||||||||
Twelve Months Ended September 30, 2024 | |||||||||||||||
Wet Shave | Sun and Skin Care | Feminine Care | Total | ||||||||||||
Segment Profit - FY '23 | $ 158.3 | $ 137.4 | $ 49.7 | $ 345.4 | |||||||||||
Organic | 47.4 | 29.9 % | (7.3) | (5.3) % | (20.8) | (41.9) % | 19.3 | 5.6 % | |||||||
Impact of currency | (1.8) | (1.1) % | 1.2 | 0.9 % | (0.1) | (0.2) % | (0.7) | (0.2) % | |||||||
Segment Profit - FY '24 | $ 203.9 | 28.8 % | $ 131.3 | (4.4) % | $ 28.8 | (42.1) % | $ 364.0 | 5.4 % |
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 earnings to EBITDA and Adjusted EBITDA, which are Non-GAAP measures, to improve comparability of results between periods.
September 30, | |||||||
2024 | 2023 | ||||||
Notes payable | $ 24.5 | $ 19.5 | |||||
Long-term debt | 1,275.0 | 1,360.7 | |||||
Gross debt | $ 1,299.5 | $ 1,380.2 | |||||
Less: Cash and cash equivalents | 209.1 | 216.4 | |||||
Net Debt | $ 1,090.4 | $ 1,163.8 | |||||
Three Months Ended | Twelve Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net earnings | $ 8.8 | $ 29.9 | $ 98.6 | $ 114.7 | |||
Income tax provision | (3.4) | 3.4 | 22.3 | 33.0 | |||
Interest expense, net | 16.5 | 17.9 | 73.1 | 76.4 | |||
Depreciation and amortization | 21.4 | 23.2 | 88.0 | 91.3 | |||
EBITDA | $ 43.3 | $ 74.4 | $ 282.0 | $ 315.4 | |||
Restructuring and repositioning expenses | 22.8 | 8.0 | 36.0 | 17.1 | |||
Acquisition and integration planning costs | 4.0 | 2.4 | 6.1 | 7.5 | |||
SKU rationalization | — | (1.7) | — | (1.7) | |||
Sun Care reformulation | 2.2 | 0.2 | 4.4 | 1.9 | |||
Wet Ones manufacturing plant fire | 4.2 | — | 12.2 | — | |||
Legal matters | — | — | 3.9 | (6.3) | |||
Loss on investment | — | — | 3.1 | — | |||
Pension settlement expense | — | 0.7 | — | 7.9 | |||
Other project costs | 2.4 | 0.4 | 5.3 | 0.4 | |||
Adjusted EBITDA | $ 78.9 | $ 84.4 | $ 353.0 | $ 342.2 | |||
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. | 0.60 |
Sun Care reformulation costs | approx. | 0.11 |
Other costs | approx. | 0.06 |
Income taxes(1) | approx. | (0.21) |
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. | 35 |
Interest expense, net | approx. | 70 |
Depreciation and amortization | approx. | 89 |
EBITDA | approx. | |
Restructuring and repositioning costs | approx. | 29 |
Sun Care reformulation costs | approx. | 5 |
Other costs | approx. | 3 |
Fiscal 2025 Adjusted EBITDA | approx. |
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SOURCE Edgewell Personal Care Company
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