April Calender

Internet Gross sales Enhance of 8.7%, with 9.0% Natural Development

Reiterates Natural Internet Gross sales Outlook, Narrows Vary for Adjusted EPS and EBITDA for Fiscal 2022

SHELTON, Conn., Aug. 4, 2022 /PRNewswire/ — Edgewell Private Care Firm (NYSE: EPC) right now introduced outcomes for its third fiscal quarter 2022 ended June 30, 2022. 

Govt Abstract

• Internet gross sales have been $623.8 million, a rise of 8.7% in comparison with the prior 12 months interval.

• Natural web gross sales elevated 9.0% in comparison with the prior 12 months interval. (Natural foundation excludes the affect of the Billie acquisition and the unfavorable translational affect from forex.)

• GAAP Diluted Earnings Per Share (“EPS”) have been $0.57 for the third fiscal quarter in comparison with $0.74 within the prior 12 months interval.

• Adjusted EPS have been $0.86 for the third quarter, in comparison with $0.89 within the prior 12 months interval.

• Ended the third fiscal quarter with $182 million in money available, entry to a further $298 million revolving credit score facility and a web debt leverage ratio of three.5x.

• Repurchased $35 million of its frequent inventory and paid $8 million of dividends within the third fiscal quarter in help of its capital allocation technique.

• Board of Administrators declared a money dividend of $0.15 per frequent share on July 29, 2022 for the third fiscal quarter.

• Maintains natural web gross sales outlook, reflecting continued good demand and incremental pricing, and narrows the vary for adjusted EPS and EBITDA.

The Firm reviews and forecasts outcomes on a GAAP and non-GAAP foundation and has reconciled non-GAAP outcomes and outlook to essentially the most instantly comparable GAAP measures later on this launch.  See non-GAAP Monetary Measures for a extra detailed rationalization, together with definitions of varied non-GAAP phrases used on this launch.  All comparisons used on this launch are with the identical interval within the prior fiscal 12 months except in any other case said.

“Our fiscal third-quarter outcomes mirror the continued execution of our technique with sturdy natural web gross sales development and stable earnings, each of which exceeded our expectations regardless of the risky macro setting,” mentioned Rod Little, Edgewell’s President and Chief Govt Officer. “Development within the quarter was pushed by sturdy quantity development and value, and was broad-based, with will increase throughout each our North America and Worldwide markets, in addition to in all segments, with accelerated development in Solar Care and Female Care. Importantly, we delivered one other quarter of market share positive factors within the U.S., additional proof that our model constructing efforts are being effectively obtained by shoppers. Trying forward, we’re firmly on monitor to ship a second consecutive 12 months of mid-single-digit natural web gross sales development.”

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Fiscal 3Q 2022 Working Outcomes (Unaudited)

Internet gross sales have been $623.8 million within the quarter, a rise of 8.7% together with a web affect of $21.1 million or 3.7% from the acquisition of Billie and a $22.4 million or 4.0% unfavorable affect from forex.  Natural web gross sales elevated 9.0%, reflecting elevated volumes and better pricing within the quarter.  North America natural web gross sales elevated 9.3% whereas Worldwide markets elevated 8.4%.

Gross revenue was $240.6 million, as in comparison with $270.3 million within the prior 12 months interval. Gross margin as a p.c of web gross sales for the third quarter of fiscal 2022 was 38.6% as in comparison with 47.1%. Adjusted gross margin was 42.2% in comparison with 47.2%, lowering 500-basis factors in comparison with the prior 12 months quarter, as a 440-basis level web affect from greater commodity and transportation associated prices web of productiveness financial savings, and a 190-basis level mixed affect from unfavorable combine, greater commerce spend and unfavorable forex, was solely partly offset by the profit from pricing.

The Firm recorded a pre-tax cost to value of products offered of $22.5 million for the write off of stock of sure Moist Ones SKUs and a associated manufacturing contract termination cost which has been excluded from Adjusted gross margin.

Promoting and gross sales promotion expense (“A&P”) decreased $1.0 million to $80.9 million, or 13.0% of web gross sales, as in comparison with $81.9 million, or 14.3% of web gross sales within the prior 12 months quarter, as elevated spending in help of Billie, Female Care and solar season execution was offset by decrease spending in Worldwide markets as a consequence of COVID, and a shift in spend in North America to commerce associated spend.

Promoting, basic and administrative expense (“SG&A”) was $92.7 million, or 14.9% of web gross sales, as in comparison with $97.5 million, or 17.0% of web gross sales within the prior 12 months quarter. Adjusted SG&A decreased 40-basis factors as a p.c of web gross sales, as improved gross sales leverage, advantages from operational effectivity packages, and favorable forex translation greater than offset the affect of the Billie acquisition, together with amortization, and better compensation expense.

The Firm recorded pre-tax restructuring and different non-recurring bills of $3.9 million within the quarter, consisting largely of severance and outplacement, in addition to $0.9 million in acquisition and integration prices associated to the Billie acquisition. The Firm additionally recorded a $7.5 million achieve associated favorable authorized settlement which has been excluded from adjusted SG&A.

Working revenue was $49.9 million in comparison with $71.1 million within the prior 12 months quarter. Adjusted working revenue was $70.3 million, or 11.3% of web gross sales in comparison with $80.6 million within the prior 12 months quarter.

Curiosity expense related to debt for the third quarter of fiscal 2022 was $18.0 million, in comparison with $16.4 million within the prior 12 months quarter. The rise in curiosity expense was the results of greater total debt stability from attracts on the Revolving Credit score Facility in fiscal 2022 primarily to finance the acquisition of Billie.

Different (revenue) expense, web was revenue of $4.4 million within the third quarter of fiscal 2022, in comparison with an expense of $0.8 million within the prior 12 months quarter. The rise in revenue was pushed by favorable international forex hedge settlements in comparison with the prior 12 months interval, which helped to offset different unfavorable operational impacts from forex.

The efficient tax charge for the primary 9 months of fiscal 2022 was 18.5% in comparison with 26.1% within the prior 12 months interval.  The adjusted efficient tax charge for the primary 9 months of fiscal 2022 was 20.0%, down from the prior 12 months nine-month  adjusted efficient tax charge of 24.8%.  The fiscal 2022 efficient and adjusted tax charges mirror a good mixture of earnings in low tax jurisdictions mixed with a good affect of a change in prior estimates.

GAAP web earnings for the quarter have been $30.5 million or $0.57 per share in comparison with $40.8 million or $0.74 per share within the third quarter of fiscal 2021. Adjusted web earnings within the quarter have been $45.8 million or $0.86 per share, in comparison with $49.2 million or $0.89 per share within the prior 12 months interval, and adjusted EBITDA was $97.1 million in comparison with $101.2 million within the prior 12 months interval.

Internet money from working actions was $72.4 million for the 9 months ending June 30, 2022 in comparison with $155.9 million within the prior 12 months interval, pushed by a bigger web working capital construct.

Capital Allocation

On July 29, 2022, the Board of Administrators declared a quarterly money dividend of $0.15 per frequent share for the third fiscal quarter. The dividend shall be payable on October 5, 2022 to shareholders of document as of the shut of enterprise on September 2, 2022.  Through the third quarter of fiscal 2022, the Firm paid dividends totaling $8.0 million to stockholders.

Through the third quarter of fiscal 2022, the Firm accomplished share repurchases of roughly 1.0 million shares at a complete value of $34.7 million. For the primary 9 months of fiscal 2022, the Firm accomplished share repurchases of roughly 2.9 million shares at a complete value of $110.1 million. As of June 30, 2022 The Firm has 6.9 million shares of frequent inventory out there for repurchase sooner or later underneath the Board’s 2018 authorization.

Fiscal 3Q 2022 Working Section Outcomes (Unaudited)

Moist Shave (Males’s Methods, Ladies’s Methods, Disposables, and Shave Preps)

Internet gross sales elevated $21.4 million, or 7.0%. Natural web gross sales elevated $19.1 million or 6.3%, pushed by will increase in Males’s and Ladies’s Methods, Disposables, and Shave Preps.  Natural web gross sales in North America elevated 5.2%, reflecting greater volumes and value, whereas Worldwide natural web gross sales elevated 7.1%, primarily pushed by greater volumes.  Moist Shave section revenue decreased $5.6 million, or 13.0%. Natural section revenue, excluding the unfavorable affect from forex translation and the acquisition of Billie was primarily flat, reflecting decrease gross revenue, offset by decrease spending.

Solar and Pores and skin Care (Solar Care, Moist Ones, Bulldog, Jack Black and Cremo)

Internet gross sales elevated $21.0 million, or 10.8%.  Natural web gross sales elevated $24.6 million, or 12.6%, largely pushed by Solar Care development of about 15%, reflecting distribution and market share positive factors in North America, stronger than anticipated early season consumption and the continued restoration in Worldwide journey. Moreover, Grooming natural web gross sales elevated 7.5%, pushed by 14% development in Worldwide, whereas Moist Ones natural web gross sales returned to development, growing 7.4%. Section revenue elevated $1.6 million, or 3.6%. Natural section revenue elevated $2.2 million, or 4.9%, pushed largely by greater gross sales.

Female Care (Tampons, Pads, and Liners)

Internet gross sales elevated $7.7 million, or 10.5%, reflecting greater class consumption and pricing, and the affect of improved product availability and shelf replenishment.  Section revenue decreased $4.9 million or 35.8%. Natural section revenue decreased $4.8 million or 35.1%, largely pushed by decrease gross revenue, reflecting greater commodity and transportation associated prices, in addition to elevated A&P help.

Full Fiscal Yr 2022 Monetary Outlook

The Firm is updating its beforehand offered outlook assumptions for fiscal 2022 to mirror the affect of third fiscal quarter outcomes and projected impacts of the strengthening of the U.S. greenback in opposition to most main currencies.

• Reported web gross sales anticipated to extend roughly 4%

• Natural gross sales anticipated to extend roughly 4%

• GAAP EPS anticipated to be within the vary of $1.83 to $1.93 (beforehand $1.93 to $2.21)

• Adjusted EPS anticipated to be within the vary of $2.50 to $2.60 (beforehand $2.38 to $2.66)

• Adjusted EBITDA anticipated to be within the vary of $335 to $340 million (beforehand $330 to $345)

• Adjusted efficient tax charge anticipated to be within the vary of 21% to 22%

• Complete depreciation and amortization expense anticipated to be $91 million (beforehand $91.5 million)

• Anticipated capital expenditures anticipated to be roughly 2.7% to three.0% of web gross sales

• Free money circulate anticipated to be above 100% of GAAP web earnings

*In Fiscal 2022, the Firm is taking particular actions to strengthen its working mannequin, simplify the group and enhance manufacturing and provide chain effectivity and productiveness.  Because of these actions, the Firm expects to incur one-time expenses of roughly $15 million, inclusive of $9.8 million incurred within the first 9 months of fiscal 2022.

Webcast Info

Along with this announcement, the Firm will maintain an investor convention name starting at 8:00 a.m. Japanese Time right now. All events could entry a reside webcast of this convention name at www.edgewell.com, underneath the “Buyers,” and “Information and Occasions” tabs or by utilizing the next hyperlink:  http://ir.edgewell.com/news-and-events/occasions

For these unable to take part throughout the reside webcast, a replay shall be out there on www.edgewell.com, underneath the “Buyers,” “Monetary Studies,” and “Quarterly Earnings” tabs.  This launch consists of references to the Firm’s web site and references to extra data and supplies discovered on its web site. The Firm’s web site and such data and supplies are usually not integrated by reference in, and are usually not a part of, this launch.

About Edgewell

Edgewell is a number one pure-play shopper merchandise firm with a beautiful, diversified portfolio of established model names equivalent to Schick®, Wilkinson Sword® and Billie® males’s and girls’s shaving programs and disposable razors; Edge and Skintimate® shave preparations; Playtex®, Stayfree®, Carefree® and o.b.® female care merchandise; Banana Boat®, Hawaiian Tropic®, Bulldog®,  Jack Black®, and CREMO® solar and skincare merchandise; and Moist Ones® merchandise. The Firm has a broad international footprint and operates in additional than 50 markets, together with the U.S., Canada, Mexico, Germany, Japan, the U.Ok. and Australia, with roughly 6,900 staff worldwide.

Ahead-Trying Statements. This doc accommodates “forward-looking statements” throughout the that means of Part 27A of the Securities Act of 1933 and Part 21E of the Securities Alternate Act of 1934. You shouldn’t place undue reliance on these statements. Ahead-looking statements usually might be recognized by means of phrases or phrases equivalent to “imagine,” “anticipate,” “expectation,” “anticipate,” “could,” “may,” “intend,” “perception,” “estimate,” “plan,” “goal,” “predict,” “doubtless,” “will,” “ought to,” “forecast,” “outlook,” or different comparable phrases or phrases. These statements are usually not based mostly on historic info, however as an alternative mirror the Firm’s expectations, estimates or projections regarding future outcomes or occasions, together with, with out limitation, the long run earnings and efficiency of Edgewell or any of its companies, and the combination of the Billie acquisition and anticipated advantages from this transaction, together with development alternatives and price financial savings.  Many components exterior our management  may have an effect on the conclusion of those estimates. These statements are usually not ensures of efficiency and are inherently topic to recognized and unknown dangers, uncertainties and assumptions which might be troublesome to foretell and will trigger the Firm’s precise outcomes to vary materially from these indicated by these statements. The Firm can not guarantee you that any of its expectations, estimates or projections shall be achieved. The forward-looking statements included on this doc are solely made as of the date of this doc and the Firm disclaims any obligation to publicly replace any forward-looking assertion to mirror subsequent occasions or circumstances, besides as required by legislation.  You shouldn’t place undue reliance on these statements.

As well as, different dangers and uncertainties not presently recognized to the Firm or that it presently considers immaterial may considerably have an effect on the accuracy of any such forward-looking statements. Dangers and uncertainties embrace these detailed on occasion within the Firm’s publicly filed paperwork, together with in Merchandise 1A. Threat Components of Half I of the Firm’s Annual Report on Kind 10-Ok filed with the Securities and Alternate Fee (“SEC”) on November 19, 2021.

Non-GAAP Monetary Measures.  Whereas the Firm reviews monetary ends in accordance with usually accepted accounting rules (“GAAP”) within the U.S., this dialogue additionally consists of non-GAAP measures. These non-GAAP measures are known as “adjusted” or “natural” and exclude gadgets equivalent to restructuring prices, acquisition and integration prices and non-standard gadgets.  Reconciliations of non-GAAP measures, together with reconciliations of measures associated to the Firm’s fiscal 2022 monetary outlook, are included throughout the Notes to Condensed Consolidated Monetary Statements included with this launch.

This non-GAAP data is offered as a complement to, not as an alternative choice to, or as superior to, measures of monetary efficiency ready in accordance with GAAP. The Firm makes use of this non-GAAP data internally to make working choices and believes it’s useful to traders as a result of it permits extra significant period-to-period comparisons of ongoing working outcomes. The knowledge may also be used to carry out evaluation and to raised establish working developments which will in any other case be masked or distorted by the forms of gadgets which might be excluded. This non-GAAP data is a part in figuring out administration’s incentive compensation. Lastly, the Firm believes this data supplies a better diploma of transparency. The next supplies extra element on the Firm’s non-GAAP measures:

• The Firm analyzes its web gross sales and section revenue on an natural foundation to raised measure the comparability of outcomes between intervals. Natural web gross sales and natural section revenue exclude the affect of adjustments in international forex and the affect of the Billie acquisition.

• The Firm makes use of “adjusted” non-GAAP measures together with gross revenue, SG&A, working revenue, revenue taxes, web earnings, diluted earnings per share, and EBITDA to internally make working choices. The next gadgets are excluded when analyzing non-GAAP measures: restructuring and associated prices, acquisition and integration prices, inventory retaining unit (“SKU”) rationalization expenses, authorized settlement and non-standard gadgets.

• Free money circulate is outlined as web money from working actions much less capital expenditures plus collections of deferred buy value of accounts receivable offered and proceeds from gross sales of fastened belongings. Free money circulate conversion is outlined as free money circulate as a share of web earnings adjusted for the online affect of non-cash impairments.

• Internet debt leverage ratio is outlined as complete debt much less money divided by adjusted EBITDA.