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Sep 30, 2020
Edgewell Q4 2020 Earnings Report
Edgewell reported a decrease in net sales but an increase in gross margin and cash from operating activities.
Key Takeaways
Edgewell Personal Care announced its fourth quarter and fiscal year 2020 results, showing a decrease in net sales compared to the prior year, but highlighted improvements in organic net sales trends and gross margin. The company also provided its financial outlook for fiscal year 2021, initiating net sales, organic sales, and adjusted EBITDA growth outlook.
Net sales decreased by 7.4% in Q4 2020 to $488.8 million, with organic net sales down 3.5%.
GAAP EPS for Q4 was $0.38, and adjusted EPS was $0.59.
Gross margin rate increased by 180 basis points to 45.4%.
The company ended the quarter with $365 million in cash on hand and access to an undrawn $425 million credit facility.
Revenue by Segment
Forward Guidance
The Company is providing the following outlook assumptions for fiscal 2021:
Positive Outlook
- Reported net sales to increase mid-single digits
- Includes: 160 basis-point net benefit from the Cremo acquisition and the Infant and Pet Care divestiture and a 90 basis-point benefit from currency translation
- Organic sales to increase low-single digits
- Adjusted operating profit margin expected to be consistent with fiscal 2020
- Project Fuel Gross Savings of $50 to $60 million
Challenges Ahead
- Project Fuel one-time costs of $25 to $30 million
- GAAP EPS in the range of $2.18 to $2.38
- Includes: Project Fuel restructuring charges, IT enablement costs, acquisition and integration costs, the gain on sale of the Infant and Pet Care business and Sun Care Monograph costs
- Adjusted EPS in the range of $2.62 to $2.82
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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