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Mar 31, 2023
Edgewell Q2 2023 Earnings Report
Edgewell's Q2 2023 financial performance was marked by increased net sales and organic growth, driven by strong consumer demand and effective execution.
Key Takeaways
Edgewell Personal Care announced strong Q2 fiscal 2023 results, featuring a 9.3% increase in net sales and an 11.4% rise in organic net sales. The company's performance was driven by growth across all segments and major geographic regions, reflecting strong consumer demand. Edgewell increased its fiscal year 2023 outlook for organic net sales growth to the high end of the previously provided range.
Net sales increased by 9.3% to $598.4 million, with organic net sales up by 11.4%.
GAAP diluted EPS was $0.37, compared to $0.43 in the prior year quarter.
Adjusted EPS was $0.56, inclusive of a $0.16 unfavorable impact from currency movements, compared to $0.50 in the prior year quarter.
The company ended the quarter with $155.2 million in cash on hand and access to an additional $243.1 million revolving 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
The Company is providing the following updated outlook assumptions for fiscal 2023:
Positive Outlook
- Reported net sales are now expected to increase at the high end of the range of 2% to 4%
- Organic net sales are now expected to increase at the high end of the range of 3% to 5%
- Gross margin is expected to increase approximately 30-basis points, with margin accretion expected in the second half of the fiscal year
- Operating margin is expected to increase slightly
- The EPS outlook reflects the impact of estimated share repurchases
Challenges Ahead
- Includes an estimated 60-basis point inorganic benefit in net sales from the acquisition of Billie, net of prior year Edgewell sales to Billie and an estimated 115-basis point negative impact from currency movements
- GAAP EPS now expected to be in the range of $1.80 to $2.00
- Adjusted EPS expected to be in the range of $2.30 to $2.50
- Includes an estimated $0.43 EPS unfavorable impact from foreign currency movements
- Adjusted EBITDA expected to be at the high end of the range of $320 to $335 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income