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Mar 31, 2021
Edgewell Q2 2021 Earnings Report
Edgewell's financial performance was impacted by COVID-19, but benefited from strategic investments and innovation, resulting in a mixed second quarter.
Key Takeaways
Edgewell Personal Care reported a slight decrease in net sales, but experienced growth in the Wet Shave segment. The company is maintaining its financial outlook for fiscal year 2021, focusing on organic sales growth and strategic investments.
Net sales decreased by 0.7% to $519.3 million compared to the prior year period.
GAAP diluted earnings per share were $0.26, down from $0.36 in the prior year period.
Adjusted EPS were $0.70, compared to $0.92 in the prior year period.
The company ended the quarter with $282 million in cash and access to an undrawn $425 million credit facility.
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
Edgewell is maintaining its previously provided outlook assumptions for fiscal 2021.
Positive Outlook
- Reported net sales to increase mid-single digits
- Includes: 160 basis-point net benefit from the Cremo acquisition and the Infant and Pet Care divestiture and a 160 basis-point benefit from currency translation
- Organic sales to increase low-single digits
- Adjusted operating profit margin to be consistent with fiscal 2020
- Project Fuel Gross Savings of $50 to $60 million
Challenges Ahead
- Project Fuel costs of $25 to $30 million
- GAAP EPS in the range of $1.80 to $2.00 (Previously $2.18 to $2.38)
- Includes: Project Fuel restructuring charges, cost of early retirement of long-term debt, IT enablement costs, acquisition and integration costs
- Adjusted EPS in the range of $2.62 to $2.82
- Adjusted EBITDA in the range of $345 to $360 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income