Edgewell Personal Care(US:EPC)2026-02-09 18:35Financial Performance - Net sales for the three months ended December 31, 2025, were $422.8 million, an increase of 1.6% compared to $415.1 million in the same period of 2024[14]. - Gross profit decreased to $161.0 million, down 6.5% from $172.5 million year-over-year[14]. - The company reported a net loss of $65.7 million, compared to a net loss of $2.1 million in the prior year[14]. - Basic loss per share for continuing operations was $0.63, compared to a loss of $0.21 in the same quarter of the previous year[14]. - Operating loss for the quarter was $18.9 million, compared to operating income of $9.3 million in the prior year[14]. - Edgewell Personal Care Company reported a net loss of $65.7 million for the quarter ending December 31, 2025, compared to a net loss of $2.1 million for the same period in 2024[23]. - The company reported a loss from continuing operations before income taxes of $36.9 million in Q4 2025, compared to a loss of $12.7 million in Q4 2024[100]. Assets and Liabilities - Total current assets increased to $1,057.1 million from $995.5 million as of September 30, 2025[16]. - Long-term debt rose to $1,520.8 million, up from $1,383.3 million[16]. - Cash and cash equivalents at the end of the period were $223.3 million, slightly down from $225.7 million[16]. - As of December 31, 2025, total shareholders' equity was $1,486.2 million, down from $1,501.0 million as of December 31, 2024[23]. - Edgewell's total assets as of December 31, 2025, were approximately $1,560.6 million, reflecting a decrease from $1,561.8 million as of December 31, 2024[23]. - Total current liabilities decreased to $247.9 million as of December 31, 2025, from $311.1 million as of September 30, 2025[60]. Restructuring and Impairment - The company incurred restructuring charges of $18.1 million, significantly higher than $4.1 million in the same quarter last year[14]. - The company experienced a significant impairment charge of $37.4 million during the quarter[19]. - The company recorded a goodwill impairment loss of $37.4 million related to the Feminine Care segment prior to its sale[35]. - Total restructuring and related charges for the three months ended December 31, 2025, amounted to $12.7 million, compared to $1.8 million for the same period in 2024[44]. - The company expects to incur restructuring and related charges of approximately $7 million in fiscal 2026[41]. - The company anticipates incurring restructuring charges of $33 million related to the consolidation of its Mexico facilities, expected to be completed by the third quarter of fiscal 2026[43]. - The company plans to consolidate its Wet Shave operations, expecting to incur restructuring charges of $25 million, with completion anticipated by the first quarter of fiscal 2028[47]. Sales and Segment Performance - For the three months ended December 31, 2025, the Feminine Care segment generated net sales of $64.0 million, with a gross profit of $16.0 million[36]. - Wet Shave segment net sales were $291.3 million, down from $294.5 million, while Sun and Skin Care segment net sales increased to $131.5 million from $120.6 million[100]. - Total cost of products sold increased to $254.4 million in Q4 2025 from $240.4 million in Q4 2024, reflecting a rise in production costs[100]. - Total segment profit decreased to $38.6 million in Q4 2025 from $43.2 million in Q4 2024, primarily due to higher costs in the Wet Shave segment[100]. Dividends and Share Repurchase - The company declared dividends of $7.0 million during the quarter ending December 31, 2025[23]. - Dividends declared during the three months ended December 31, 2025, totaled $7.0 million, with payments made amounting to $7.4 million[71]. - The Company has authorized a share repurchase program of up to $100.0 million, with no shares repurchased during the three months ended December 31, 2025[69]. Accounting and Compliance - The company is currently assessing the impact of new accounting standards on its financial statements, including ASU No. 2023-09, effective for fiscal years beginning after December 15, 2024[32]. - The effective tax rate for the three months ended December 31, 2025, was 20.9%, compared to 20.6% for the same period in 2024[51]. Inventory and Capital Expenditures - Inventories increased from $433.8 million as of September 30, 2025, to $461.2 million as of December 31, 2025[55]. - Capital expenditures totaled $11.2 million in Q4 2025, down from $15.4 million in Q4 2024, indicating a reduction in investment spending[100]. - Capital expenditures from discontinued operations for the three months ended December 31, 2025, were $0.4 million, down from $1.4 million in 2024[37]. Currency and Hedging - The Company had unrealized pre-tax gains of $0.8 million and unrealized pre-tax losses of $1.4 million on forward currency contracts as of December 31, 2025, compared to September 30, 2025[80]. - The Company’s cash flow hedging program related to foreign currency risk has been deemed highly effective for accounting purposes[79]. - The Company’s foreign subsidiaries are primarily exposed to the U.S. dollar, impacting their balance sheet positions due to currency fluctuations[77].