Edgewell Personal Care Company (NYSE:EPC) FY Conference Summary Company Overview - **Company**: Edgewell Personal Care Company - **Date**: March 04, 2026 - **Key Speakers**: Rod Little (President and CEO), Francesca Weissman (CFO) Strategic Changes - **Portfolio Simplification**: The sale of the feminine care business to Essity has allowed the company to focus on its core areas: shave, grooming, sun, and skincare [3][4] - **Operational Reset**: The company is undergoing an operational reset to simplify its structure and improve agility, including a consolidation of manufacturing in North America [4][5] North American Business - **Leadership Changes**: A new leadership team has been established in North America, leading to improved brand campaigns and consumer response [8][9] - **Unit Share Growth**: The company has experienced 18 consecutive weeks of unit share growth across its North American business, with all categories participating [9][10] - **Distribution Improvements**: Significant distribution gains have been noted, particularly in grooming and wet shave categories, with new planogram resets enhancing shelf space [10][11] International Business - **Growth Expectations**: The international segment accounts for about half of sales, with expectations of mid-single digit growth driven primarily by the shave business [12][13] - **Market Performance**: The company has seen strong performance in international markets, particularly in Europe and Greater China, with share gains in most markets [14][15] Financial Performance - **Gross Margin Expansion**: The company expects a gross margin expansion of about 60 basis points in fiscal 2026, despite facing tariffs and inflation [16][17] - **Productivity Improvements**: Over the past four years, the company has achieved 200-250 basis points of productivity improvements through supply chain efficiency and effective procurement [16][17] Operating Margins - **A&P Support**: The company has increased its advertising and promotion (A&P) spending to over 12%, which is expected to support top-line growth without diluting operating margins [22][23] - **SG&A Focus**: There is a focus on aligning selling, general, and administrative expenses (SG&A) with the streamlined portfolio post-feminine care exit [24] Consumer Value Initiatives - **Pricing Strategy**: The company has not increased prices domestically despite tariff impacts, maintaining a focus on value for consumers [25][26] - **Promotional Strategy**: The company is targeting promotions and price execution to enhance consumer value perception [27][28] Market Dynamics - **Competitive Environment**: The promotional intensity in the U.S. market has increased, but the company is leveraging targeted promotions and brand investments to maintain competitiveness [30] Future Outlook - **Second Half Confidence**: The company anticipates stronger performance in the second half of fiscal 2026, driven by innovation and distribution gains [31][32] - **Shave Business Stabilization**: The U.S. shave business is expected to stabilize and return to growth, with specific focus on women's brands [33][34] Capital Allocation - **Debt Reduction Focus**: Post-feminine care exit, the company is prioritizing balance sheet strengthening and debt reduction, aiming for a leverage ratio around 3x by year-end [42][43] Conclusion - **Long-term Confidence**: The company expresses confidence in its ability to compete and win in the long term due to improved brand marketing, structural cost flexibility, and a focused portfolio strategy [44][45]