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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.
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 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
- Other Expense, net is expected to be approximately zero
- Capital expenditures expected to be approximately 2.5% of net sales
Revenue & Expenses
Visualization of income flow from segment revenue to net income