Net Sales for Edgewell Personal Care Increase 8.7% in Q3 Results

Net sales for the Edgewell Personal Care Company were $623.8 million, an increase of 8.7% compared to the prior-year period, the company reported.

 

Organic net sales increased 9.0% compared to the prior-year period and excludes the impact of the Billie, Inc. acquisition and the negative translational impact from currency.

 

The company repurchased $35 million of its common stock and paid $8 million of dividends in the third fiscal quarter in support of its capital allocation strategy.

 

Board of Directors declared a cash dividend of $0.15 per common share on July 29 for the third fiscal quarter.

 

“Our fiscal third-quarter results reflect the continued execution of our strategy with strong organic net sales growth and solid earnings, both of which exceeded our expectations despite the volatile macro environment,” said Rod Little, Edgewell's president and CEO. “Growth in the quarter was driven by strong volume growth and price, and was broad-based, with increases across both our North America and International markets, as well as in all segments, with accelerated growth in sun care and feminine care. Importantly, we delivered another quarter of market share gains in the US, further evidence that our brand building efforts are being well received by consumers. Looking ahead, we are firmly on track to deliver a second consecutive year of mid-single-digit organic net sales growth.”

Net sales for the wet shave category increased $21.4 million, or 7.0%. Organic net sales increased $19.1 million or 6.3%, driven by increases in men's and women's systems, disposables and shave preps. Organic net sales in North America increased 5.2%, reflecting higher volumes and price, while international organic net sales increased 7.1%, primarily driven by higher volumes. Wet shave segment profit decreased $5.6 million, or 13.0%. Organic segment profit, excluding the negative impact from currency translation and the acquisition of Billie was essentially flat, reflecting lower gross profit, offset by lower spending.

Net sales for the sun and skin care categories increased $21.0 million, or 10.8%. Organic net sales increased $24.6 million, or 12.6%, largely driven by sun care growth of about 15%, reflecting distribution and market share gains in North America, stronger than expected early season consumption and the continued recovery in international travel. Additionally, grooming organic net sales increased 7.5%, driven by 14% growth in International, while Wet Ones organic net sales returned to growth, increasing 7.4%. Segment profit increased $1.6 million, or 3.6%. Organic segment profit increased $2.2 million, or 4.9%, driven largely by higher sales.