Edgewell Personal Care Announces First Quarter Fiscal 2026 Results

Core Insights - Edgewell Personal Care Company reported a solid start to fiscal Q1 2026, with performance exceeding expectations for organic net sales, adjusted EPS, and adjusted EBITDA [1][2] - The company successfully completed the divestiture of its Feminine Care business for $340 million, which is expected to enhance portfolio focus and strengthen the balance sheet [1][2] - The full-year outlook for continuing operations remains consistent with prior expectations, despite the divestiture [2] Financial Performance - Net sales for Q1 2026 were $422.8 million, a 1.9% increase year-over-year, with organic net sales decreasing by 0.5% [4][5] - Adjusted EPS for the quarter was $0.03, down from $0.07 in the prior year, while GAAP diluted EPS was $(0.63), compared to $(0.21) in the previous year [5][15] - Gross profit was $161.0 million, with a gross margin of 38.1%, reflecting a decrease of 350 basis points from the prior year [7] Segment Performance - The Wet Shave segment saw a net sales decrease of $3.2 million, or 1.1%, with organic net sales down 3.9% [19] - The Sun and Skin Care segment experienced a net sales increase of $10.9 million, or 9.0%, driven by a 19.5% growth in Sun Care [20] Cost Management - Advertising and sales promotion expenses were $45.6 million, or 10.8% of net sales, a slight decrease from the prior year [8] - Selling, general and administrative expenses increased to $102.4 million, or 24.2% of net sales, primarily due to higher personnel costs [9] Cash Flow and Capital Allocation - Net cash used for operating activities was $125.9 million for the quarter, compared to $115.6 million in the prior year [16] - The company declared a quarterly cash dividend of $0.15 per common share, payable on April 8, 2026 [17] Full Year Outlook - The company expects net sales to increase by approximately 0.5% to 3.5%, with organic net sales projected to range from a 1.0% decrease to a 2% increase [21] - Adjusted EBITDA is anticipated to be in the range of $245 to $265 million, reflecting a reduction due to the divestiture of the Feminine Care business [21]