#USA #earnings report #Shelton #Edgewell Personal Care #Fiscal Q1 2025

Edgewell Personal Care Reports First Quarter Results for Fiscal Year 2025

Edgewell Personal Care Company has released its financial results for the first fiscal quarter of 2025, which ended on December 31, 2024. The company reported net sales of $478.4 million, witnessing a decline of 2.1% compared to the same period last year. The decrease in sales can be attributed in part to unfavorable currency movements, which detracted approximately $4 million from the total sales figure.

Key Financial Metrics

• - Net Sales: $478.4 million (down 2.1% YoY)
• - Organic Net Sales: Decreased by 1.3% as the organic performance excludes currency impacts.
• - GAAP EPS: Reported at $(0.04), down from $0.09 in the previous year.
• - Adjusted EPS: Came in at $0.07 but would have been higher without the adverse effects of currency fluctuations, which subtracted $0.17 from the adjusted earnings.

The results show a cash reserves total of $176 million, alongside access to an additional $221 million revolving credit facility, giving the company a relatively strong cash position despite the downturn in net earnings. The company also returned $38 million to shareholders through share repurchases and dividends in this quarter.

Segment Performance Overview

The performance varied across the different segments. The Wet Shave segment, comprising products for men's and women's shaving systems, reported a revenue decline of $7.2 million, a 2.4% decrease from the previous year. This segment struggled with volume drops in Shave Preps and Women's Systems primarily due to competitive pressures and promotional activities.

In contrast, Sun and Skin Care products saw a growth of 4.5% in net sales, driven largely by strong performances in brands like Cremo and Billie, although there was a downturn in North America Sun Care products. Conversely, Feminine Care products faced significant challenges, recording an 11.8% drop in sales, highlighting shifts in consumer preferences and increasing competition in that category.

Outlook and Future Expectations

Looking towards the future, Edgewell has updated its full-year financial outlook, now anticipating that currency fluctuations will have a more profound negative impact than previously projected. The company expects organic net sales to remain in the range of 1% to 3%, but the rising dollar is expected to dampen financial reporting, notably affecting earnings per share (EPS).

• - GAAP EPS Outlook: Expected to range between $2.54 to $2.74.
• - Adjusted EPS Outlook: As a result of anticipated currency impacts, this is expected to trend toward the lower end of $3.15 to $3.35.
• - Adjusted EBITDA: Forecasted to be between $356 to $368 million.

Strategic Focus Areas

The company's management emphasizes operational efficiency and solidifying its market position in international markets as key focus areas. They remain committed to their strategic plan, which includes ongoing investment in product development and exploration of new market opportunities to drive growth amidst a challenging financial landscape. Management continues to suggest that while the impacts of external factors such as currency might pose threats, their efforts in productivity improvements should support financial stability.

Despite the bumps along the way, Edgewell remains dedicated to enhancing shareholder value while navigating through complex market dynamics. In summary, the first quarter results illustrate the challenges faced by Edgewell Personal Care as it seeks growth in a competitive environment, all while contending with significantly adverse external currency conditions.