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Dec 31, 2019
Edgewell Q1 2020 Earnings Report
Edgewell's Q1 2020 results were announced, featuring flat organic net sales growth and a 49% increase in adjusted earnings per share.
Key Takeaways
Edgewell Personal Care reported net sales of $454.0 million, a decrease of 0.7% compared to the prior year period, with organic net sales consistent with the prior year. GAAP EPS was $0.41, compared to a loss of $0.01 in the prior year, and adjusted EPS was $0.55, compared to $0.37 in the prior year. The company completed the sale of its Infant and Pet Care business for $122.5 million and terminated its merger agreement with Harry's, Inc.
Net sales decreased by 0.7% to $454.0 million, with flat organic net sales growth.
GAAP EPS increased to $0.41 from a loss of $0.01 in the prior year, and adjusted EPS increased to $0.55 from $0.37 in the prior year.
The sale of the Infant and Pet Care business was completed for $122.5 million.
The merger agreement with Harry's, Inc. was terminated.
Edgewell
Edgewell
Edgewell Revenue by Segment
Revenue by Segment
Wet Shave Revenue
CapyFin.comSun and Skin Care Revenue
CapyFin.comFeminine Care Revenue
CapyFin.com Forward Guidance
The Company has updated its financial outlook for fiscal 2020 solely to reflect the impact of the Infant and Pet Care divestiture and an adjustment to the Company's estimated effective tax rate for the full year. The financial outlook provided today does not include potential one-time costs associated with the Harry's transaction.
Positive Outlook
- Organic net sales growth is expected to be in the range of down 1% to flat compared to the prior year, unchanged from the previous outlook.
- Adjusted EPS is now in the range of $2.95 to $3.15
- The adjusted effective tax rate for fiscal 2020 is estimated to be in the range of 20.0% to 22.0%.
- Project Fuel is expected to generate approximately $70 million in incremental gross savings.
- The Company anticipates that fiscal 2020 free cash flow will be above 100% of GAAP net earnings.
Challenges Ahead
- Total net sales to be in the range of down 5% to down 4% compared to the prior year.
- The outlook for GAAP EPS is now estimated to be in the range of $2.40 to $2.60
- Adjusted EPS reflecting an estimated $0.15 reduction for the impact of the Infant and Pet Care divestiture, including associated stranded costs, partly offset by a lower estimated full year adjusted effective tax rate.
- Adjusted EBITDA to be in the range of $350 to $360 million
- Project Fuel related restructuring charges are expected to be approximately $35 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income