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Mar 31, 2024
Edgewell Q2 2024 Earnings Report
Net sales increased slightly, gross margin expanded, and EPS increased significantly.
Key Takeaways
Edgewell Personal Care announced its second quarter fiscal 2024 results, with net sales increasing by 0.2% to $599.4 million. The company reported a significant increase in gross margin and adjusted EBITDA, leading to a substantial rise in both GAAP and adjusted EPS. The company has updated its full-year outlook, expecting sales at the lower end of the previous range but raising its outlook for adjusted EPS and EBITDA.
Net sales increased by 0.2% to $599.4 million.
GAAP EPS increased to $0.72, compared to $0.37 in the prior year quarter.
Adjusted EPS increased to $0.88, compared to $0.56 in the prior year quarter.
Gross margin increased by 260-basis points to 43.1%.
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 outlook assumptions for fiscal year 2024: Organic net sales are now expected to increase at the lower end of the previous range of 2% to 4%. Adjusted EPS is now expected to be in the range of $2.80 to $3.00. Adjusted EBITDA is now expected to be in the range of $348 to $360 million.
Positive Outlook
- Organic net sales are now expected to increase at the lower end of the previous range of 2% to 4%
- Adjusted EPS is now expected to be in the range of $2.80 to $3.00
- Adjusted gross margin is now expected to increase approximately 120-basis points to the prior year
- Adjusted EBITDA is now expected to be in the range of $348 to $360 million
- Free cash flow is expected to be approximately $170 million
Challenges Ahead
- Currency is not expected to impact reported results
- GAAP EPS is unchanged and expected to be in the range of $2.20 to $2.40
- Includes: Restructuring and re-positioning charges*, Acquisition and integration costs, Sun Care reformulation, costs related to the Wet One’s manufacturing plant fire, a Legal matter charge, and Other costs
- Includes an estimated $0.17 EPS unfavorable impact from foreign currency movements
- Includes an estimated $11 million unfavorable impact from foreign currency changes
Revenue & Expenses
Visualization of income flow from segment revenue to net income