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Mar 31, 2022
Edgewell Q2 2022 Earnings Report
Net sales increased, driven by strong demand and market share gains, but profitability was impacted by inflationary pressures and supply chain disruptions.
Key Takeaways
Edgewell Personal Care announced its second quarter fiscal 2022 results, with net sales increasing by 5.5% and organic net sales increasing by 2.1%. GAAP EPS was $0.43, while adjusted EPS was $0.50. The company repurchased $51 million of its common stock and paid $8.2 million of dividends. The company is increasing organic net sales outlook to reflect continued strong demand and incremental pricing, while lowering adjusted EPS and adjusted EBITDA estimates to reflect increased inflationary pressure.
Net sales increased by 5.5%, or 2.1% on an organic basis.
GAAP EPS was $0.43, compared to $0.26 in the prior year period.
Adjusted EPS was $0.50, compared to $0.70 in the prior year period.
The Company repurchased $51 million of its common stock and paid $8.2 million of dividends.
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 is updating its previously provided outlook assumptions for fiscal 2022 to reflect the impact of fiscal second quarter results and projected increases in cost inflation.
Positive Outlook
- Reported net sales expected to increase mid-single digits
- Includes an estimated 400-basis point increase from the acquisition of Billie, net of Edgewell sales to Billie
- Organic sales expected to increase approximately 400-basis points (previously low-single digits)
- Adjusted effective tax rate expected to be in the range of 21% to 22% (previously 22% to 23%)
- Free cash flow expected to be above 100% of GAAP net earnings
Challenges Ahead
- Updated to include a 200-basis point negative impact from currency translation (previously 160-basis point negative impact)
- GAAP EPS expected to be in the range of $1.93 to $2.21 (previously $2.23 to $2.51)
- Includes: Restructuring charges,* acquisition and integration costs, Sun Care reformulation costs, and value added tax settlement costs
- Adjusted EPS expected to be in the range of $2.38 to $2.66 (previously $2.74 to $3.02)
- Adjusted EBITDA expected to be in the range of $330 to $345 million (previously $357 to $377)
Revenue & Expenses
Visualization of income flow from segment revenue to net income