02.08.23
Net sales for Edgewell Personal Care were $469.1 million, an increase of 1.3% compared to the prior-year period, for its first fiscal quarter 2023 ended Dec. 31, 2022.
Organic net sales increased 3.0%; organic basis excludes the impact of the Billie acquisition through November and the negative translational impact from currency, the company said.
The company ended the first fiscal quarter with $184 million in cash on hand, access to an additional $164 million revolving credit facility and a net debt leverage ratio of 4.0 times. Edgewell returned $23.3 million to shareholders in the form of $15.0 million in share repurchases and $8.3 million of dividends in the first fiscal quarter. The board of directors declared a cash dividend of $0.15 per common share on February 3, 2023 for the first fiscal quarter.
"We had a good start to the fiscal year as we delivered our seventh consecutive quarter of growth, and our team continued to perform well in a challenging environment,” said Rod Little, Edgewell's president and CEO. “International growth was a highlight, driven by volume and price gains, and reflective of a strong start to the sun season. In North America, we successfully implemented further pricing across the portfolio and broadly held US share in the period. In addition to the benefits from higher pricing, our focus on productivity initiatives and good cost control reinforced gross and operating margins, while we maintained a high level of brand investment. Looking to the remainder of the year, while the macro environment remains volatile and uncertain, our strategies position us to deliver growth and value creation, and we are on track to deliver on our previous constant currency outlook for both the top and bottom line."
Wet Shave
Net sales decreased $10.8 million, or 3.8%. Organic net sales decreased $5.3 million or 1.9%, driven by unit declines, partly offset by higher pricing. Organic net sales in international markets decreased 0.7%, as growth in Europe and Latin America was offset by declines in Japan, which cycled last year's Men's Hydro relaunch. North America organic net sales decreased 3.2%, as growth in men's systems, disposables and shave preps, were more than offset by lower women's systems volumes. Wet Shave segment profit decreased $16.1 million, or 31.3%. Organic segment profit, excluding the negative impact from currency decreased $8.2 million, reflecting lower organic net sales, higher cost of goods sold and increased brand investment.
Sun and Skin Care
Net sales increased $8.1 million, or 7.7%. Organic net sales increased $10.6 million, or 10.1%, with 68% growth in international markets, driven by a strong start to the sun season in Oceania and Latin America. North America sun care organic net sales decreased 6.5%. Additionally, grooming organic net sales increased 4.3% and Wet Ones organic net sales decreased 1.5%. Segment profit increased $9.4 million, or 254.1%. Organic segment profit increased $10.0 million, or 270.3%, driven largely by higher sales and stronger gross profit, in part as a result of increased pricing.