Edgewell Personal Care(US:EPC)2025-11-13 11:08Financial Performance - Fourth quarter net sales increased by 3.8% to $537.2 million, while full year net sales decreased by 1.3% to $2,223.5 million[5][20] - Organic net sales rose by 2.5% in the fourth quarter but decreased by 1.3% for the full year, with international markets showing organic growth of 3.5%[5][20] - Gross profit for fiscal 2025 was $924.9 million, with a gross margin of 41.6%, a decrease of 80 basis points from the prior year[21] - Operating income for fiscal 2025 was $96.6 million, or 4.3% of net sales, down from $199.3 million, or 8.8% of net sales, in the prior year[25] - The company reported a net loss of $30.6 million for the three months ended September 30, 2025, compared to net earnings of $8.8 million for the same period in 2024[43] - Net earnings for the twelve months ended September 30, 2025, were $25.4 million, down 74.2% from $98.6 million in 2024[49] - The company reported an EBIT of $219.1 million for the twelve months ended September 30, 2025, with a GAAP effective tax rate of (7.3)%[53] - The company reported an EBITDA of $(15.8) million for the three months ended September 30, 2025, compared to $43.3 million in the same period of 2024[59] Shareholder Returns - The company returned $120 million to shareholders through dividends and share repurchases in fiscal 2025, including a new share repurchase authorization for up to $100 million[5][28] Tax and Restructuring - GAAP diluted EPS for fiscal 2025 was $0.53, while adjusted EPS was $2.52, reflecting a $0.48 unfavorable impact from currency movements[5][26] - The effective tax rate for fiscal 2025 was a benefit of (7.3)%, compared to an expense of 18.5% in the prior year[14] - The adjusted effective tax rate is expected to be approximately 21% to 22%[32] - The company incurred restructuring and related costs of $3.5 million during the twelve months ended September 30, 2025, which affected overall profitability[53] - Restructuring and related costs for the three months ended September 30, 2025, were $18.3 million, compared to $22.8 million in the same period of 2024[59] Future Projections - Reported net sales are expected to increase by approximately 0.5% to 3.5%, with a positive impact of 150 basis points from foreign currency changes[32] - Organic net sales are projected to decrease by 1% to increase by 2%[32] - GAAP EPS is anticipated to be in the range of $1.10 to $1.50, including restructuring and related costs[32] - Adjusted EPS is expected to range from $2.15 to $2.55, with an estimated $0.28 per share favorable impact from foreign currency changes[32] - Adjusted EBITDA is projected to be between $290 million and $310 million[32] - Free cash flow is expected to be approximately $115 million to $145 million[32] - Fiscal 2026 Adjusted EBITDA is projected to be between $290 - $310 million, with GAAP Net Income expected to be approximately $51 - $70 million[63] Asset and Liability Management - Total assets increased to $3,756.3 million as of September 30, 2025, compared to $3,730.9 million in 2024, reflecting a growth of 0.7%[46] - Total liabilities rose to $2,203.2 million, an increase of 2.6% from $2,146.8 million in 2024[46] - The company’s total shareholders' equity decreased to $1,553.1 million as of September 30, 2025, from $1,584.1 million in 2024, a decline of 2.0%[46] - Net debt increased to $1,187.1 million as of September 30, 2025, compared to $1,090.4 million in 2024, representing an increase of approximately 8.9%[59] Segment Performance - Segment profit for Wet Shave decreased to $190.3 million for the twelve months ended September 30, 2025, down 6.5% from $203.9 million in 2024[51] - The Wet Shave segment experienced a decline in organic sales of 1.2% for the twelve months ended September 30, 2025, while the Fem Care segment saw a decline of 7.7%[57] - The total segment profit for the twelve months ended September 30, 2025, was $304.3 million, down 16.4% year-over-year, primarily due to adverse currency impacts[57] Impairment and Charges - The company recorded pre-tax restructuring costs of $53.1 million in fiscal 2025, aimed at improving cost efficiency[24] - The company reported impairment charges of $51.1 million for the twelve months ended September 30, 2025[51]