Edgewell Personal Care(EPC) - 2024 Q4 - Annual Results

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]