Edgewell Shares Q2 2020 Results

Edgewell Personal Care Company has reported results for its second fiscal quarter ending March 31, 2020. 
 
Net sales were $523.0 million in the quarter, a decrease of 4.3%, as compared to the prior year period. Organic net sales growth in the quarter was largely driven by COVID-19 related increases in the sales of our Feminine Care and Wet Ones products.
 
The Company ended the fiscal second quarter with $309 million in cash on hand, access to an undrawn $425 million credit facility and a net leverage ratio of 1.9 times.
 
“At Edgewell, the health and safety of our teams and customers is our first priority and we have swiftly implemented protocols to protect them. I am so proud of our associates who have gone above and beyond to ensure our operations and supply chain are functioning smoothly and ramping up where necessary to meet the needs of our customers. Our manufacturing and distribution facilities around the world have remained fully operational which is a testament to the resiliency and agility of our team members,” said Rod Little, Edgewell's president and CEO.
 
Segments
 
Wet Shave net sales decreased $13.9 million, or 4.7%, as compared to the prior year period. By region, North America organic net sales decreased 3.4% while International markets decreased 3.6%, in large part due to COVID-19 related impacts across many parts of Asia.
 
Sun and Skin Care net sales increased $11.5 million, or 7.9%, as compared to the prior year period. Sun and Skin Care segment profit increased $3.6 million, or 8.8%, driven by higher gross margin, partly offset by higher A&P expense and higher SG&A expense due to the reallocation of overhead spending resulting from the recent sale of its Infant and Pet Care business.
 
Feminine Care net sales increased $10.4 million, or 13.9%, as compared to the prior year period, primarily driven by volume growth in o.b., Sport Tampons, Carefree Liners and Stayfree Pads, related to a consumer stock up due to COVID-19.
 
Edgewell has withdrawn its previously provided fiscal year 2020 financial outlook due to uncertainties related to the duration and potential impacts of COVID-19.