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Jun 30, 2023
Edgewell Q3 2023 Earnings Report
Delivered strong organic net sales and earnings per share growth, expanded gross margin and generated substantial cash.
Key Takeaways
Edgewell Personal Care announced strong Q3 2023 results, with net sales increasing by 4.2% to $650.0 million and organic net sales increasing by 4.5%. GAAP EPS grew by 77% and Adjusted EPS grew by 14%. The company is on track to deliver organic net sales growth slightly above the mid-point, adjusted EPS at the high-end, and adjusted EBITDA slightly above the high-end of the previously provided ranges.
Net sales were $650.0 million, an increase of 4.2% compared to the prior year quarter, or 4.5% on an organic basis.
GAAP Diluted EPS was $1.01 for the third fiscal quarter compared to $0.57 in the prior year quarter.
Adjusted EPS was $0.98, inclusive of a $0.09 unfavorable impact from currency movements, compared to $0.86 in the prior year quarter.
Ended the third fiscal quarter with $207.4 million in cash on hand.
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 expected to increase slightly above the mid-point of the the range of 2% to 4%.
- Organic net sales are now expected to increase slightly above the mid-point of the range of 3% to 5%
- GAAP EPS is now expected to be in the range of $1.95 to $2.15
- Adjusted EPS is now expected to be at the high end of the range of $2.30 to $2.50
- Adjusted EBITDA is now expected to be slightly above the high end of the range of $320 to $335 million
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 120-basis point (previously 115-basis point) negative impact from currency movements
- Includes: Restructuring charges*, acquisition and integration costs, Sun Care reformulation costs, Canadian Pension wind-up costs, and favorable resolution of legal matters
- Includes an estimated $0.38 EPS (previously $0.43) unfavorable impact from foreign currency movements
- Gross margin is now expected to be flat to the prior year (previously 30-basis point increase)
- Includes an estimated $26 million (previously $29 million) unfavorable impact from foreign currency changes
Revenue & Expenses
Visualization of income flow from segment revenue to net income