Core Insights - Edgewell Personal Care Company reported a decrease in net sales by 2.1% to $478.4 million for the first fiscal quarter of 2025, with organic net sales down 1.3% [1][5][13] - The company updated its full-year outlook, reflecting the impact of foreign currency changes, with GAAP EPS expected to range from $2.54 to $2.74 [1][19][21] Financial Performance - Gross profit for the quarter was $191.6 million, down from $197.7 million in the prior year, with a gross margin of 40.1%, a decrease of 30 basis points [6][10] - Adjusted EBITDA was reported at $45.9 million, down from $57.2 million in the prior year, impacted by an unfavorable currency effect of $11.2 million [14][39] - The company recorded a net loss of $2.1 million or $0.04 per diluted share, compared to a profit of $4.8 million or $0.09 per diluted share in the prior year [13][39] Segment Performance - Wet Shave segment net sales decreased by $7.2 million or 2.4%, while organic net sales decreased by $4.0 million or 1.3% [16][41] - Sun and Skin Care segment net sales increased by $5.2 million or 4.5%, with organic net sales up by $5.9 million or 5.1% [17][41] - Feminine Care segment net sales decreased by $8.5 million or 11.8%, with organic segment profit down by 53.4% [18][41] Cost and Expenses - Advertising and sales promotion expenses increased to $50.3 million, representing 10.5% of net sales, up from 9.9% in the prior year [7] - Selling, general and administrative expenses were $102.9 million, or 21.5% of net sales, slightly up from 21.1% in the prior year [8] - The company incurred restructuring and repositioning expenses of $4.2 million during the quarter [9] Cash Flow and Capital Allocation - The company ended the quarter with $176 million in cash and a net debt leverage ratio of 3.8x [13] - During the first quarter, Edgewell returned $38 million to shareholders through share repurchases and dividends [15] Outlook - The company expects organic net sales growth in the range of 1% to 3% for fiscal 2025, with adjusted EPS anticipated to be towards the lower end of $3.15 to $3.35 [21][45] - Adjusted EBITDA is projected to be in the range of $356 to $368 million, reflecting increased anticipated negative foreign currency changes [21][46]

Core Viewpoint - Analysts forecast a significant decline in Edgewell Personal Care's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming financial report [1]. Financial Performance Estimates - The expected earnings per share (EPS) for Edgewell Personal Care is $0.13, reflecting a year-over-year decline of 45.8% [1]. - Anticipated revenues are projected to be $480.06 million, which represents a decrease of 1.8% compared to the same quarter last year [1]. Earnings Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments during this period [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Forecast - Analysts predict 'Net Sales- Feminine Care' to reach $69.21 million, indicating a decline of 3.6% from the prior-year quarter [5]. - 'Net Sales- Wet Shave' is expected to be $295.40 million, reflecting a decrease of 2.1% year-over-year [5]. - The consensus for 'Net Sales- Sun and Skin Care' is projected at $115.41 million, suggesting no change compared to the previous year [5]. Market Performance - Over the past month, Edgewell Personal shares have returned -1.6%, contrasting with the Zacks S&P 500 composite's increase of +1.7% [5]. - With a Zacks Rank of 3 (Hold), Edgewell Personal is expected to perform in line with the overall market in the near future [5].

Financial Results Announcement - Edgewell Personal Care Company will report its financial results for the first quarter of fiscal year 2025 before the market opens on February 10, 2025 [1] - An investor conference call will be held on the same day at 8:00 a.m. Eastern Time to discuss the results [1] Access to Webcast - Interested parties can access a live webcast of the conference call through the company's website under the "Investors" and "News and Events" tabs [2] - A replay of the webcast will also be available for those unable to participate live [2] Company Overview - Edgewell is a leading pure-play consumer products company with a diversified portfolio of established brand names including Schick®, Wilkinson Sword®, Playtex®, and Banana Boat® [3] - The company operates in over 50 markets globally, including the U.S., Canada, Mexico, Germany, Japan, the U.K., and Australia, employing approximately 6,700 people worldwide [3]

Core Viewpoint - The article discusses the investment strategy of selecting stocks based on their price-to-earnings (P/E) ratios, emphasizing that both low and rising P/E stocks can yield strong returns [1][2]. Group 1: P/E Ratio Insights - A low P/E ratio suggests that a stock's market price does not reflect its earnings potential, indicating growth opportunities [1]. - Rising P/E ratios can also indicate strong demand for a stock as earnings expectations increase, leading to higher stock prices [3][4]. - Stocks can experience P/E ratio increases of over 100% from their breakout points, presenting significant investment opportunities if identified early [5]. Group 2: Stock Screening Criteria - The article outlines specific criteria for selecting stocks with increasing P/E ratios, including: - Current year EPS growth estimates should be greater than or equal to the previous year's actual growth [7]. - Price changes over shorter timeframes should exceed those over longer timeframes, indicating consistent price increases [7][8]. - A minimum 20% price increase from the breakout point is preferred, but should not exceed 100% to avoid potential reversals [8]. Group 3: Selected Stocks - The screening process narrowed down potential stocks to 53, with notable mentions including: - Constellation Brands (Zacks Rank 2) with an average four-quarter earnings surprise of 5.30% [9][10]. - Edgewell Personal Care (Zacks Rank 2) with an average four-quarter earnings surprise of 86.79% [10]. - Rent the Runway (Zacks Rank 2) with an average four-quarter earnings surprise of 9.20% [10]. - Medpace (Zacks Rank 2) with an average four-quarter earnings surprise of 14.68% [11]. - Canoo (Zacks Rank 2) with an average four-quarter earnings surprise of 14.76% [11].

Core Insights - The article emphasizes the importance of value investing and highlights Edgewell Personal Care (EPC) as a strong candidate for value investors due to its favorable financial metrics [2][4][7] Company Overview - Edgewell Personal Care (EPC) has a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating strong potential for value investors [4][7] - The stock has a P/E ratio of 9.86, significantly lower than the industry average of 21.05, suggesting it may be undervalued [4] - EPC's Forward P/E has fluctuated between 9.86 and 14.03 over the past year, with a median of 12.55, indicating a stable valuation range [4] Valuation Metrics - The P/S ratio for EPC is 0.69, compared to the industry average of 0.87, further supporting the notion of undervaluation [5] - EPC's P/CF ratio stands at 8.59, well below the industry average of 15.10, which highlights its strong cash flow outlook [6] - Over the past year, EPC's P/CF has ranged from 8.27 to 10.23, with a median of 9.40, indicating consistent cash flow performance [6] Investment Outlook - The combination of EPC's strong value metrics and positive earnings outlook positions it as an attractive investment opportunity for value-focused investors [7]

FORM 10-K or Unless the context requires otherwise, references to "Edgewell Personal Care Company," "Edgewell," "we," "us," "our" and "the Company" refer to Edgewell Personal Care Company, and its consolidated subsidiaries. Trademarks and Trade Names Industry and Market Data ____________________________________ For the fiscal year ended September 30, 2024 For the transition period from _______________ to _______________ Commission File Number 001-15401 6 Research Drive (203) 944-5500 Shelton, CT 06484 (Regi ...

Financial Data and Key Metrics - The company achieved slight organic net sales growth in fiscal 2024, with adjusted gross margins expanding meaningfully and double-digit adjusted earnings per share growth at constant currency for the second consecutive year [7] - Organic net sales for fiscal 2024 increased by 0.2%, with international markets growing over 7% and now representing about 40% of total revenue [8][30] - Adjusted gross margin rate increased by 140 basis points year-on-year, driven by productivity savings of 280 basis points and favorable price and strategic revenue management of 115 basis points [31] - Adjusted operating profit increased by $21.3 million, or approximately 9%, with adjusted operating margin for the year at 11.9%, up about 100 basis points [32] - Free cash flow generation for the year was $175 million, enabling the company to fund the business, support capital allocation strategies, and delever to just over 3x [18] Business Line Performance - The international business grew over 7%, with Greater China and distributor markets experiencing double-digit growth and Oceania seeing high single-digit growth [21] - The right-to-win portfolio in North America grew over 3%, with Sun Care and Grooming portfolios both growing mid-single digits [9] - The Billie brand gained 260 basis points of share in women's shave and began expanding into select women's grooming categories with Walmart [9] - Wet Shave organic net sales in North America declined 5.5%, impacted by sluggish category and channel dynamics, particularly in the highly promotional drug channel [22] - Fem Care organic net sales were down about 9%, with performance well below expectations, particularly in tampons and liners [25] Market Performance - International markets organic net sales increased just over 7%, equally driven by both volume and price gains [30] - North America organic net sales decreased by about 4%, with gains in pricing offset by volume declines [31] - Sun Care category consumption in the U.S. declined about 6% in the quarter due to unfavorable weather, impacting final seasonal replenishment orders from retailers [24] - Wet Ones organic net sales declined about 22%, with share at approximately 73%, impacted by production challenges following a fire at the production facility [24] Company Strategy and Industry Competition - The company is focused on strengthening its right-to-play in shave and fem care categories in the U.S., with a renewed focus on leadership and innovation [11][12] - The company is accelerating consumer-centric innovation, with a robust near-term pipeline including the expansion of Wilkinson Sword in Europe and the launch of Schick First in Japan [13] - The company is committed to driving 200 to 300 basis points per year in productivity savings and returning to pre-COVID gross margin levels of 45-plus percent [15] - The company is focused on becoming a world-class supply chain organization and improving service levels to become a preferred partner for customers [15] Management Commentary on Operating Environment and Future Outlook - The consumer remains cautious, with consumption across categories slowing in the U.S. due to unfavorable weather and heightened promotional activity [19] - Inflation, though moderating, remains a challenge, driven by labor costs and modest increases in commodities, with currency volatility expected to be a headwind in 2025 [19] - The company anticipates low single-digit organic top-line growth for fiscal 2025, with further gross margin and profit expansion, supported by strong momentum in international markets and the right-to-win portfolio in the U.S. [17][33] - Adjusted EPS for fiscal 2025 is expected to be in the range of $3.15 to $3.35, representing a year-over-year increase of about 7% at the midpoint of the range or 13% growth in constant currency [35] Other Important Information - The company paid down $88 million on its revolver during the fiscal year, prioritizing deleveraging as part of its disciplined capital allocation strategy [28] - Share repurchases totaled $18.3 million in the quarter, with $25.7 million returned to shareholders during the quarter through dividends and buybacks [29] - The company expects free cash flow for fiscal 2025 to be approximately $185 million, with about two-thirds of adjusted EPS expected to be generated in the second half of the fiscal year [36] Q&A Session Summary Question: Confidence in organic sales growth for fiscal 2025 - The company expressed high confidence in mid-single-digit growth in international markets, driven by brand activation, innovation, and strong team performance [42][46] - In the U.S., tailwinds are expected from a healthier Sun Care season, innovation in grooming, and the expansion of the Billie brand [43][44] - The company is confident in stabilizing the North America business, with a focus on improving trends in Shave and Fem Care, supported by new leadership and retailer backing [47][48] Question: Sun Care category health and expectations - The Sun Care category is expected to return to a 2% to 4% growth profile, with the company's innovation and leadership in the category providing confidence for fiscal 2025 [56][57] - The company highlighted the importance of the fourth quarter for Sun Care, which represents one-third of the category in the U.S., and expects a more solid year in terms of consumption [53][56] Question: Fiscal 2025 sales outlook and drivers - The company expects sequential improvement throughout fiscal 2025, with growth driven by innovation, particularly in the Wilkinson Sword and Schick First brands, and a step-up in Fem Care performance [63][68] - The company is confident in its ability to deliver growth through its local innovation model, which has already shown success in Europe and Japan [64][67] Question: Gross margin outlook and COGS inflation - The company expects to achieve 75 basis points of year-over-year gross margin accretion in fiscal 2025, driven by accelerated productivity gains and price management [75] - COGS inflation is expected to be around 115 basis points, with low single-digit inflation on raw materials, mid-single-digit inflation on labor, and deflationary pressures in warehouse and distribution [76] Closing Remarks - The company expressed appreciation for investor interest and confidence in its ability to deliver consistent growth and value creation in the coming years [79]

Company Performance - Edgewell Personal Care (EPC) reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.67 per share, and matching the earnings from the previous year [1] - The company achieved an earnings surprise of 7.46% for the quarter, and previously, it had a surprise of 20.79% when it reported earnings of $1.22 per share against an expectation of $1.01 per share [1][2] - Over the last four quarters, Edgewell has surpassed consensus EPS estimates four times [2] Revenue Analysis - For the quarter ended September 2024, Edgewell posted revenues of $517.6 million, which fell short of the Zacks Consensus Estimate by 3.79% and decreased from $534.1 million in the same quarter last year [2] - The company has only topped consensus revenue estimates once in the last four quarters [2] Stock Performance and Outlook - Edgewell Personal shares have declined approximately 0.8% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $493.35 million, while for the current fiscal year, the estimate is $3.19 on revenues of $2.32 billion [7] Industry Context - The Consumer Products - Staples industry, to which Edgewell belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, indicating potential challenges ahead [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Performance - FY 2024 net sales were $2,253.7 million, an increase of 0.1% compared to the prior year, while Q4 net sales were $517.6 million, a decrease of 3.1%[2][10] - Organic net sales increased by 0.2% for the full year but decreased by 2.8% in Q4, with a 7.3% growth in international markets offset by a 3.8% decline in North America[2][10] - GAAP diluted EPS for FY 2024 was $1.97, down 11% year-over-year, while adjusted EPS increased by 18% to $3.05[2][14] - Net earnings for Q3 2024 were $98.6 million, a decrease of 13.5% compared to $114.7 million in Q3 2023[28] - Total net sales for Q3 2024 were $517.6 million, down 3.4% from $534.1 million in Q3 2023[31] - Net earnings for 2024 were $8.8 million, a decrease from $29.9 million in 2023, while total net earnings for the year were $98.6 million compared to $114.7 million in 2023[48] Shareholder Returns - The company returned approximately $90 million to shareholders in FY 2024, consisting of $59 million in share repurchases and $31 million in dividends[2][15] Future Outlook - The fiscal 2025 outlook anticipates organic net sales growth of approximately 1% to 3% and a 7% increase in adjusted EPS, or 13% on a constant currency basis[2][4] - Reported net sales for fiscal 2025 are expected to increase by approximately 1.7% to 3.7%, with an estimated 70-basis point positive impact from foreign currency changes[16] - Organic net sales are projected to increase approximately 1% to 3%[16] - GAAP EPS is expected to be in the range of $2.59 to $2.79, reflecting restructuring and repositioning charges[16] - Adjusted EPS is anticipated to be in the range of $3.15 to $3.35, with an estimated $0.18 unfavorable impact from foreign currency changes[16] - Adjusted EBITDA is expected to be in the range of $356 to $368 million, including an estimated $11 million unfavorable impact from foreign currency changes[16] - Free cash flow is projected to be approximately $185 million[16] - The company expects approximately two-thirds of adjusted net earnings to be generated in the second half of the fiscal year[16] Expenses and Costs - SG&A expenses for FY 2024 were $430.1 million, or 19.1% of net sales, compared to 18.2% in the prior year[10][12] - The company recorded pre-tax restructuring expenses of $36.0 million, primarily related to operational efficiency programs and the Billie acquisition[11][12] - Total depreciation and amortization expense is expected to be approximately $89 million[16] - Interest expense for 2024 was $16.5 million, slightly lower than $17.9 million in 2023, with an estimated interest expense of approximately $70 million for fiscal 2025[48][51] - Depreciation and amortization for 2024 totaled $21.4 million, down from $23.2 million in 2023, with an estimated depreciation and amortization of approximately $89 million for fiscal 2025[48][51] - Sun Care reformulation costs were approximately $2.2 million in 2024, compared to $0.2 million in 2023, with an estimated $5 million for fiscal 2025[48][51] - The company reported a legal matters expense of $3.9 million in 2023, which was not present in 2024[48] Cash Flow and Liquidity - The company ended Q4 2024 with $209 million in cash and a net debt leverage ratio of 3.1x[2][4] - Cash flow from operating activities for Q3 2024 was $231.0 million, an increase from $216.1 million in Q3 2023[28] - The company reported a total cash and cash equivalents of $209.1 million at the end of Q3 2024, down from $216.4 million at the end of Q3 2023[28] - Net cash used by investing activities was $62.4 million in Q3 2024, up from $50.5 million in Q3 2023[28] Segment Performance - Segment profit for Wet Shave increased to $62.2 million in Q3 2024, up 13.2% from $54.9 million in Q3 2023[31] - Total segment profit for Q3 2024 was $82.4 million, down from $89.2 million in Q3 2023[31] - The company experienced a 10.0% decline in net sales for the Feminine Care segment for the twelve months ended September 30, 2024, totaling $283.6 million[42] - Segment profit for the Wet Shave category for the three months ended September 30, 2024, was $62.2 million, representing a 13.3% increase year-over-year[43] Taxation - The effective tax rate for GAAP was (62.9)% for Q3 2024[33] - The company reported a GAAP effective tax rate of 10.2% for the three months ended September 30, 2023, and an adjusted effective tax rate of 13.9%[37] - The adjusted effective tax rate is expected to be approximately 22%[16]

Core Insights - Edgewell Personal Care Company reported a slight increase in net sales for FY 2024, with a 0.1% rise to $2,253.7 million, while organic net sales saw a 0.2% increase [2][16] - The company experienced a decrease in GAAP EPS by 11% to $1.97, but adjusted EPS increased by 18% to $3.05, reflecting strong operational performance [2][24] - The company returned approximately $90 million to shareholders through dividends and share repurchases during FY 2024 [2][25][26] - For FY 2025, the company anticipates growth in organic net sales between 1% to 3% and adjusted EPS growth of 7%, or 13% on a constant currency basis [2][27] Financial Performance - In Q4 FY 2024, net sales were $517.6 million, a decrease of 3.1% compared to the prior year quarter, with organic net sales down 2.8% [2][5] - Gross profit for Q4 FY 2024 was $212.8 million, with a gross margin of 41.1%, down 170 basis points from the prior year [6][35] - Selling, general and administrative expenses (SG&A) were $109.2 million, representing 21.1% of net sales, which is relatively flat compared to the previous year [7][18] - The company recorded pre-tax restructuring and repositioning expenses of $22.8 million in Q4 FY 2024, primarily for cost efficiency programs [8][19] Segment Performance - The Wet Shave segment saw a net sales decrease of 1.5% in Q4 FY 2024, while the Sun and Skin Care segment experienced a 3.8% decline [14][15] - Feminine Care net sales decreased by 8.9%, with growth in tampons offset by declines in pads and liners [16] - For the full fiscal year, international markets showed a 7.3% growth in organic net sales, while North America saw a 3.8% decline [16][17] Cash Flow and Capital Allocation - Net cash from operating activities for the twelve months ended September 30, 2024, was $231.0 million, an increase from $216.1 million in the previous year [14][38] - The company declared a cash dividend of $0.15 per common share for Q4 FY 2024, payable in January 2025 [25] - Share repurchases totaled approximately 1.6 million shares at a cost of $58.5 million for FY 2024 [26] Outlook - The company expects reported net sales growth of approximately 1.7% to 3.7% for FY 2025, with adjusted EBITDA projected between $356 million to $368 million [27][28] - Adjusted gross margin is anticipated to increase by approximately 75 basis points, with free cash flow expected to be around $185 million [27]