Edgewell Personal Care Announces First Quarter Fiscal 2025 Results

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]