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Jun 30, 2024
Edgewell Q3 2024 Earnings Report
Net sales decreased slightly, but adjusted EPS increased significantly due to robust gross margin expansion.
Key Takeaways
Edgewell Personal Care reported a slight decrease in net sales but a significant increase in adjusted EPS for Q3 2024. The company benefited from robust gross margin accretion and strong performance in its Right-to-Win portfolio, particularly in Sun Care and Grooming. The company is updating its full year outlook, anticipating sales growth of about 1% and increasing projections for adjusted EPS and EBITDA.
Net sales were $647.8 million, a decrease of 0.3% compared to the prior year quarter.
Organic net sales increased 0.6%.
Adjusted EPS were $1.22, compared to $0.99 in the prior year quarter.
The Board of Directors declared a cash dividend of $0.15 per common share on August 6, 2024 for the third quarter.
Revenue by Segment
Forward Guidance
The Company is providing the following outlook assumptions for fiscal 2024: Organic net sales are now expected to increase approximately 1%, Adjusted EPS is now expected to be approximately $3.00, Adjusted EBITDA is now expected to be approximately $356 million.
Positive Outlook
- Organic net sales are now expected to increase approximately 1%
- Adjusted EPS is now expected to be approximately $3.00
- Adjusted gross margin is now expected to increase approximately 140-basis points to the prior year
- This EPS outlook reflects the impact of share repurchases of approximately $50 million
- Adjusted EBITDA is now expected to be approximately $356 million
Challenges Ahead
- Currency is now expected to negatively impact reported net sales by 35-basis points
- Includes an estimated $0.12 per share unfavorable impact from foreign currency movements
- Includes an estimated $8 million unfavorable impact from foreign currency changes
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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