Net Sales increased 3.7%, or 4.3% Organic for
Fiscal Year 2023
Third Consecutive Year of Mid-Single-Digit Organic Net Sales
Growth
Returned $107 Million to Shareholders via
Dividends and Share Repurchases for Fiscal Year
2023
Initiates Fiscal 2024 Outlook for growth in Organic
Net Sales, Adjusted EPS and Adjusted EBITDA
SHELTON,
Conn., Nov. 9, 2023 /PRNewswire/ --
Edgewell Personal Care Company (NYSE: EPC) today announced
results for its fourth fiscal quarter
2023 and fiscal year ended, September 30,
2023, and provided its financial outlook for
fiscal 2024.
Executive Summary
- Fourth quarter net sales were $534.1
million, a decrease of 0.5% compared to the prior year
period. Full year net sales were $2,251.6 million, an increase of 3.7% compared to
the prior year.
- Organic net sales decreased 1.9% for the quarter and increased
4.3% for the full year. (Organic basis excludes the impact from
currency movements and the impact of the Billie acquisition in the
fiscal first quarter)
- GAAP Diluted net Earnings Per Share ("EPS") were $0.57 for the fourth fiscal quarter and
$2.18 for fiscal year 2023.
- Adjusted EPS were $0.72, for the
fourth quarter, inclusive of a $0.09
unfavorable impact from currency movements, and $2.56 for fiscal year 2023, inclusive of a
$0.38 unfavorable impact from
currency movements, which was up $0.37 or 14% compared to the prior year at
constant currency.
- Ended the fiscal fourth quarter with $216 million in cash on hand, access to an
additional $297 million revolving
credit facility and a net debt leverage ratio of 3.4x.
- Returned $107 million to
shareholders in the form of $75
million in share repurchases and $32
million of dividends in the fiscal year.
- Board of Directors declared a cash dividend of $0.15 per common share on November 2, 2023 for the fourth fiscal
quarter.
- Fiscal 2024 outlook for approximately 2% to 4% growth in
organic net sales and 7% growth in adjusted EPS, or 15% on a
constant currency basis, at the midpoint of the outlook range.
The Company reports results on a GAAP and non-GAAP basis and
has reconciled non-GAAP results to the most directly comparable
GAAP measures later in this release. See non-GAAP Financial
Measures for a more detailed explanation, including definitions of
various non-GAAP terms used in this release. All comparisons
used in this release are with the same period in the prior fiscal
year unless otherwise stated.
"For the fiscal year, we delivered over 4% organic net sales
growth and $2.56 in adjusted earnings
per share, the latter of which exceeded the high-end of the outlook
range we provided at the start of the year. Fiscal 2023
represents the third consecutive year of organic net sales growth
above our algorithm, demonstrating the impact of our stronger
portfolio of brands and meaningfully improved retail presence, and
illustrating successful execution of the strategy we outlined in
2020 and the resulting transformation of Edgewell," said
Rod Little, Edgewell's President and
Chief Executive Officer. "I'm incredibly proud of the entire
Edgewell team, who in the face of enormous external headwinds,
remained focused on commercial and operational execution, and
ultimately delivered constant currency earnings per share growth of
14% this year." Mr. Little continued, "As we look to fiscal
2024, though the macro-environment remains challenging and
uncertain, we expect to deliver another year of double-digit
constant currency adjusted earnings per share growth, underpinned
by an increase in organic net sales and gross margin
expansion. Further, our substantial cash flow generation and
strong capital allocation strategy will allow us to structurally
deleverage the business, and continue to create value for our
shareholders."
Fiscal 4Q 2023 Operating Results (Unaudited)
Net sales were $534.1
million in the quarter, a decrease of 0.5%, including a
$7.6 million favorable impact from
currency movements. Organic net sales decreased 1.9%, as
international markets decreased 2.2% and North America markets decreased 1.8%. The
decline in international markets was largely as a result of
previously announced inventory reduction actions in Wet Shave in
Japan, which more than offset
double digit growth in Sun and Skin Care, while in North America, the decline was largely
attributable to a decline in Sun
Care and Feminine Care.
Gross profit was $228.0
million, inclusive of a $1.7
million unfavorable impact from currency movements, as
compared to $218.8 million in the
prior year quarter. Gross margin as a percent of net sales
was 42.7%, an increase of 190-basis points compared to the
prior year period. Adjusted gross margin increased 135-basis
points, or 225-basis points at constant currency, as productivity
savings of approximately 265-basis points, and the benefit of
higher pricing of approximately 300-basis points, more than offset
gross inflationary pressures of 225-basis points as well as
115-basis points of negative mix and other.
Selling, general and administrative expense
("SG&A") was $112.4
million, or 21.0% of net sales, as compared to $98.2 million, or 18.3% of net sales in the prior
year quarter. Adjusted SG&A as a percent of net sales increased
260-basis points as higher incentive compensation expense, people
costs and the impact of unfavorable currency movements were only
partly offset by savings realized from ongoing operational
efficiency programs.
The Company recorded pre-tax restructuring expenses of
$8.0 million in the quarter,
consisting largely of severance, project implementation and other
exit costs in support of cost efficiency programs and $2.4 million in acquisition and integration costs
related to the Billie acquisition.
Advertising and sales promotion expense
("A&P") was $40.3
million, or 7.5% of net sales, a decrease of $1.0 million, compared to $41.3 million, or 7.7% of net sales in the prior
year quarter.
Operating income was $51.5
million, inclusive of a $3.6
million unfavorable impact from currency movements, compared
to $57.8 million in the prior year
quarter. Adjusted operating income was $60.8
million, or 11.4% of net sales, compared to $66.6 million, or 12.4%, of net sales in the
prior year quarter.
Interest expense associated with debt was
$18.7 million, compared to
$18.1 million in the prior year
period. The increase in interest expense was the result of higher
interest rates on the Company's revolving credit facility compared
to the prior year quarter.
Other expense (income), net was expense of $0.1 million compared to $3.7 million of income in the prior year period.
Currency hedge and remeasurements gains were $1.6 million in the current quarter, compared to
$4.1 million in the prior year
period. Current year expense also reflects higher accounts
receivable factoring costs compared to the prior year quarter.
The effective tax rate for fiscal 2023 was 22.3% compared
to 19.9% in the prior year period. The adjusted effective tax
rate for fiscal 2023 was 22.9%, up from the prior year period
adjusted effective tax rate of 20.9%. The fiscal 2023 adjusted
effective tax rate reflects an unfavorable mix of earnings in
higher tax rate jurisdictions compared to prior year.
GAAP net earnings were $29.5
million or $0.57 per diluted
share compared to $33.7 million or
$0.64 per diluted share in the fourth
quarter of fiscal 2022. Adjusted net earnings were $36.9 million or $0.72 per share, inclusive of a $0.09 unfavorable impact from currency movements,
compared to $41.6 million or
$0.79 per share in the prior year
quarter. Adjusted EBITDA was $83.8
million, inclusive of a $6.1
million unfavorable currency impact, compared to
$94.7 million in the prior year
quarter.
Net cash from operating activities was $216.1 million for the twelve months ending
September 30, 2023 compared to
$102.0 million in the prior year
period. The increase in cash from operating activities was driven
by favorable changes in working capital and increased earnings.
Fiscal 4Q 2023 Operating Segment Results (Unaudited)
The following is a summary of fourth quarter results by
segment:
Wet Shave (Men's Systems, Women's Systems, Disposables,
and Shave Preps)
Net sales decreased $2.2 million,
or 0.7%. Organic net sales decreased $7.5
million or 2.3%, as growth in Women's Systems and
Disposables, was more than offset by declines in Shave Preps and
Men's Systems, in part due to lower volumes related to the
previously announced inventory reduction program in Japan.
Wet Shave segment profit decreased $2.9
million, or 5.1%. Organic segment profit, excluding the
unfavorable impact from currency increased 1.1 million, or 1.9%,
primarily reflecting higher gross profit.
Sun and Skin Care (Sun
Care, Wet Ones, Bulldog, Jack
Black and Cremo)
Net sales increased $3.8 million,
or 2.8%. Organic net sales increased $1.5 million, or 1.1%, with growth in Grooming
and Wet One's partly offset by declines in Sun Care. Organic net sales in
International markets increased 10.1%, led by strong growth across
Sun Care and Grooming, while in
North America, organic net sales
decreased 1.8%, as double digit growth in Grooming and growth in
Wet One's was more than offset by a 14.3% decline in Sun Care, driven by lower replenishment orders
due to unfavorable peak season weather conditions. Segment
profit increased $6.9 million, or
43.4%. Organic segment profit increased $6.0
million, or 37.7%, primarily driven by higher gross profit
and lower marketing expense.
Feminine Care (Tampons, Pads, and Liners)
Net sales decreased $4.4 million,
or 5.7%, and organic net sales decreased $4.4 million, or 5.7%, as growth in Liners was
more than offset by a decline in Tampons, largely reflective of the
impact of competitive product out-of-stocks in the prior year
quarter and retailer inventory reductions this fiscal quarter.
Segment profit decreased $0.8
million, or 6.6%. Organic segment profit decreased
$0.7 million, or 5.8%, as higher
gross profit was more than offset by higher marketing expense.
Fiscal 2023 Operating Results (Unaudited)
Net sales were $2,251.6
million, an increase of 3.7%, including a net benefit of
$12.0 million or 0.6% from the
acquisition of Billie and a $26.1
million, or 1.2% unfavorable impact due to currency
movements. Organic net sales increased 4.3%, reflecting growth in
all segments, as increased pricing was only partly offset by a
slight decrease in volumes. International markets increased
6.2%, reflecting both volume and price gains and driven by strong
double digit growth in Sun and Skin Care and low single digit
growth in Wet Shave. North
America markets increased 3.3%, with growth in Sun Care, Feminine Care, Grooming and Wet One's
partly offset by a slight decline in Wet Shave.
Gross Profit was $938.4
million, inclusive of a $33.7
million unfavorable impact from currency movements, compared
to $879.4 million in the prior year.
Gross margin as a percent of net sales was 41.7%, an
increase of 120-basis points compared to the prior year period.
Adjusted gross margin decreased 20-basis points, or increased
80-basis points at constant currency, as productivity savings of
approximately 230-basis points, and higher pricing of 305-basis
points, more than offset gross inflationary pressures of
approximately 400-basis points and 55-basis points of negative mix
and other.
Selling, general and administrative expense
("SG&A") was $409.6
million, or 18.2% of net sales, as compared to $389.1 million, or 17.9% of net sales in the
prior year. Adjusted SG&A as a percent of net sales increased
50-basis points as higher incentive compensation expense,
people costs and travel expense was only partly offset by the
benefits of leverage, operational efficiency programs and favorable
currency movements.
A&P was $229.1 million,
down $9.2 million from the prior
year. A&P as a percent of net sales decreased to 10.2% from
11.0% in the prior year.
Operating income, was $224.6
million, inclusive of a $26.6
million unfavorable impact from currency movements, compared
to $181.2 million in the prior year.
Adjusted operating income increased 5.7% to $243.5 million, or 10.8% of net sales, compared
to $230.3 million, or 10.6% of net
sales in the prior year. Adjusted operating margins increased
20-basis points, or 130-basis points at constant
currency.
Interest expense associated with debt was
$78.5 million, compared to
$71.4 million in the prior year
period. The increase in interest expense was the result of higher
interest rates and a higher overall average debt balance on the
Company's revolving credit facility compared to the prior year.
Other expense (income), net was expense of $0.8 million compared to income of $13.2 million in fiscal 2022, which included
currency hedge and remeasurement gains of $12.7 million in fiscal 2023 compared to
$11.5 million in fiscal 2022. Current
year expense includes higher accounts receivable factoring expense,
recognition of pension expense in the current year, including the
loss on the Canada Plan of $7.9
million compared to a pension benefit in the prior year. On
an adjusted basis, income was $7.1
million compared to income of $15.0
million in the prior year.
GAAP net earnings were $112.9
million or $2.18 per diluted
share compared to $98.6 million or
$1.84 per diluted share in fiscal
2022. Adjusted net earnings were $132.7
million or $2.56 per share,
inclusive of a $0.38 unfavorable
impact from currency movements, compared to $137.6 million or $2.57 per share in the prior year, an increase of
14% at constant currency. Adjusted EBITDA was $339.8 million, inclusive of a $25.4 million unfavorable currency impact,
compared to $335.1 million in
the prior year, an increase of 9% at constant currency.
Capital Allocation
On November 2, 2023, the Board of
Directors declared a quarterly cash dividend of $0.15 per common share for the fourth fiscal
quarter. The dividend will be payable on January 4, 2024 to shareholders of record as of
the close of business on December 6,
2023. During the fourth quarter of fiscal 2023, the Company
paid dividends totaling $7.7 million
to stockholders.
During the fourth quarter of fiscal 2023, the Company completed
share repurchases of approximately 0.8 million shares at a total
cost of $30.0 million. For fiscal
2023, the Company completed share repurchases of 1.9 million at a
cost of $75.2 million. As of
September 30, 2023 the Company had
4.6 million shares of common stock available for repurchase in
the future under the Board's 2018 authorization.
Full Fiscal Year 2024 Financial Outlook
The Company is providing the following outlook assumptions for
fiscal 2024:
- Reported net sales are expected to increase in the range of
approximately 1% to 3%
- Includes an estimated 60-basis point negative impact from
currency movements
- Organic net sales are expected to increase approximately 2% to
4%
- GAAP EPS is expected to be in the range of $2.20 to $2.40
- Includes: Restructuring re-positioning charges*, Acquisition
and integration costs, Sun Care
reformulation, and Corporate project costs*
- Adjusted EPS is expected to be in the range of $2.65 to $2.85
- Includes an estimated $0.20 EPS
unfavorable impact from foreign currency movements
- Adjusted EPS at constant currency expected to increase 15% at
the mid-point of the range
- Adjusted gross margin is expected to increase approximately
80-basis points to the prior year
- Adjusted operating margin is expected to increase approximately
50-basis points
- The EPS outlook reflects the impact of share repurchases of
approximately $50 million
- Expect approximately 70% of adjusted earnings to be generated
in the 2nd half of the fiscal year.
- Adjusted EBITDA is expected to be in the range of $340 to $352
million
- Includes an estimated $14 million
unfavorable impact from foreign currency changes
- Adjusted EBITDA at constant currency expected to increase 6% at
the mid-point of the range
- Other Expense, net is expected to be approximately $3 million
- Interest expense, net is expected to be approximately
$78 million
- Adjusted effective tax rate is expected to be approximately
22%
- Total depreciation and amortization expense expected to be
approximately $93 million
- Capital expenditures expected to be approximately 2.5% to 3.0%
of net sales
- Free cash flow is expected to be approximately $170 million
* In fiscal 2024, the Company is taking specific actions to
strengthen its operating model, simplify the organization
and improve manufacturing and supply chain efficiency through
restructuring and re-positioning actions. As a result of
these actions, the Company expects to incur pre-tax charges of
approximately $19 million for the
full fiscal year.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 8:00
a.m. Eastern Time today. All interested parties may access a
live webcast of this conference call at www.edgewell.com, under the
"Investors," and "News and Events" tabs or by using the following
link: http://ir.edgewell.com/news-and-events/events
For those unable to participate during the live webcast, a
replay will be available on www.edgewell.com, under the
"Investors," "Financial Reports," and "Quarterly Earnings"
tabs. This release includes references to the Company's
website and references to additional information and materials
found on its website. The Company's website and such information
and materials are not incorporated by reference in, and are not
part of, this release.
About Edgewell
Edgewell is a leading pure-play consumer products company with
an attractive, diversified portfolio of established brand names
such as Schick®, Wilkinson Sword® and Billie® men's and women's
shaving systems and disposable razors; Edge and Skintimate® shave
preparations; Playtex®, Stayfree®, Carefree® and o.b.® feminine
care products; Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack
Black®, and CREMO® sun and skin care products; and Wet Ones®
products. The Company has a broad global footprint and operates in
more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K. and Australia, with approximately 7,000 employees
worldwide.
Forward-Looking Statements. This document contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. You should not place undue reliance on these
statements. Forward-looking statements generally can be identified
by the use of words or phrases such as "believe," "expect,"
"expectation," "anticipate," "may," "could," "intend," "belief,"
"estimate," "plan," "target," "predict," "likely," "will,"
"should," "forecast," "outlook," or other similar words or phrases.
These statements are not based on historical facts, but instead
reflect the Company's expectations, estimates or projections
concerning future results or events, including, without limitation,
the future earnings and performance of Edgewell or any of its
businesses. Many factors outside our control could affect the
realization of these estimates, including the completion of the
audit of the Company's financial statements for the fiscal year
ended September 30, 2023. These
statements are not guarantees of performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that are difficult to predict and could cause the Company's actual
results to differ materially from those indicated by those
statements. The Company cannot assure you that any of its
expectations, estimates or projections will be achieved. The
forward-looking statements included in this document are only made
as of the date of this document and the Company disclaims any
obligation to publicly update any forward-looking statement to
reflect subsequent events or circumstances, except as required by
law. You should not place undue reliance on these
statements.
In addition, other risks and uncertainties not presently known
to the Company or that it presently considers immaterial could
significantly affect the accuracy of any such forward-looking
statements. Risks and uncertainties include those detailed from
time to time in the Company's publicly filed documents, including
in Item 1A. Risk Factors of Part I of the Company's Annual Report
on Form 10-K filed with the Securities and Exchange Commission on
November 16, 2022.
Non-GAAP Financial Measures. While the Company
reports financial results in accordance with generally accepted
accounting principles ("GAAP") in the U.S., this discussion also
includes non-GAAP measures. These non-GAAP measures are referred to
as "adjusted" or "organic" and exclude items such as restructuring
and related costs, acquisition and integration costs, stock keeping
unit ("SKU") rationalization, Sun
Care reformulation, income from resolution of legal matters,
pension settlement expense, value-added tax ("VAT") settlement
costs and at times management excludes other costs or income.
Reconciliations of non-GAAP measures, including reconciliations of
measures related to the Company's fiscal 2024 financial outlook,
are included within the Notes to Condensed Consolidated Financial
Statements included with this release.
This non-GAAP information is provided as a supplement to, not as
a substitute for, or as superior to, measures of financial
performance prepared in accordance with GAAP. The Company uses this
non-GAAP information internally to make operating decisions and
believes it is helpful to investors because it allows more
meaningful period-to-period comparisons of ongoing operating
results. The information can also be used to perform analysis and
to better identify operating trends that may otherwise be masked or
distorted by the types of items that are excluded. This non-GAAP
information is a component in determining management's incentive
compensation. Finally, the Company believes this information
provides a higher degree of transparency. The following provides
additional detail on the Company's non-GAAP measures:
- The Company utilizes "adjusted" non-GAAP measures including
gross profit, SG&A, operating income, income taxes, net
earnings, diluted earnings per share, and EBITDA to internally make
operating decisions. The following items are excluded when
analyzing non-GAAP measures: restructuring and related costs,
acquisition and integration costs, SKU rationalization charges,
Sun Care reformulation, income from
resolution of legal matters, pension settlement expense, VAT
settlement costs, and at times management excludes other costs and
income.
- Constant currency measures are calculated by removing the
impact of translational and transactional foreign currencies
changes net of foreign currency hedges compared to the prior year.
Transactional foreign currency changes are driven by foreign legal
entities transactions not denominated in local currency.
- The Company analyzes its net sales and segment profit on an
organic basis to better measure the comparability of results
between periods. Organic net sales and organic segment profit
exclude the impact of changes in foreign currency and the impact of
acquisitions.
- Organic net sales was unfavorably impacted in October and
November of fiscal 2023 by the Billie acquisition as sales that
were previously reported as third party sales to Billie are now
included as inter-company sales.
- Segment profit will be impacted by fluctuations in translation
and transactional foreign currency. The impact of currency was
applied to segments using management's best estimate.
- Free cash flow is defined as net cash from operating activities
less capital expenditures plus collections of deferred purchase
price of accounts receivable sold and proceeds from sales of fixed
assets. Free cash flow conversion is defined as free cash flow as a
percentage of net earnings adjusted for the net impact of non-cash
impairments.
- Net debt is defined as gross debt less cash. Net debt leverage
ratio is defined as net debt less cash divided by trailing twelve
month adjusted EBITDA.
Basis of Presentation. The financial results
included herein represent the most current information available to
management and are preliminary until the Company's Annual Report on
Form 10-K is filed with the SEC. Actual results may differ from
these preliminary results and are subject to the completion of
year-end accounting procedures and adjustments and the audit of the
Company's consolidated financial statements.
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited, in
millions, except per share data)
|
|
Three Months
Ended
September 30,
|
|
Twelve Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net sales
|
$
534.1
|
|
$
536.9
|
|
$
2,251.6
|
|
$
2,171.7
|
Cost of products
sold
|
306.1
|
|
318.1
|
|
1,313.2
|
|
1,292.3
|
Gross
profit
|
228.0
|
|
218.8
|
|
938.4
|
|
879.4
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
112.4
|
|
98.2
|
|
409.6
|
|
389.1
|
Advertising and sales
promotion expense
|
40.3
|
|
41.3
|
|
229.1
|
|
238.3
|
Research and
development expense
|
15.9
|
|
15.4
|
|
58.5
|
|
55.5
|
Restructuring
charges
|
7.9
|
|
6.1
|
|
16.6
|
|
15.3
|
Operating
income
|
51.5
|
|
57.8
|
|
224.6
|
|
181.2
|
Interest expense
associated with debt
|
18.7
|
|
18.1
|
|
78.5
|
|
71.4
|
Other expense (income),
net
|
0.1
|
|
(3.7)
|
|
0.8
|
|
(13.2)
|
Earnings before
income taxes
|
32.7
|
|
43.4
|
|
145.3
|
|
123.0
|
Income tax
provision
|
3.2
|
|
9.7
|
|
32.4
|
|
24.4
|
Net
earnings
|
$
29.5
|
|
$
33.7
|
|
$
112.9
|
|
$
98.6
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic net earnings per share
|
$
0.58
|
|
$
0.65
|
|
2.21
|
|
1.86
|
Diluted net earnings per diluted share
|
$
0.57
|
|
$
0.64
|
|
$
2.18
|
|
$
1.84
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
50.6
|
|
51.8
|
|
51.2
|
|
53.1
|
Diluted
|
51.3
|
|
52.5
|
|
51.8
|
|
53.6
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited, in
millions)
|
|
September
30,
2023
|
|
September
30,
2022
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
216.4
|
|
$
188.7
|
Trade receivables,
less allowance for doubtful accounts
|
106.2
|
|
136.9
|
Inventories
|
492.4
|
|
449.3
|
Other current
assets
|
147.4
|
|
167.3
|
Total current
assets
|
962.4
|
|
942.2
|
Property, plant and
equipment, net
|
337.9
|
|
345.5
|
Goodwill
|
1,331.4
|
|
1,322.2
|
Other intangible
assets, net
|
973.8
|
|
996.6
|
Other assets
|
135.2
|
|
106.6
|
Total
assets
|
$
3,740.7
|
|
$
3,713.1
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Notes
payable
|
$
19.5
|
|
$
19.0
|
Accounts
payable
|
205.3
|
|
237.3
|
Other current
liabilities
|
308.9
|
|
291.7
|
Total current
liabilities
|
533.7
|
|
548.0
|
Long-term
debt
|
1,360.7
|
|
1,391.4
|
Deferred income tax
liabilities
|
136.4
|
|
140.4
|
Other
liabilities
|
178.6
|
|
173.6
|
Total
liabilities
|
2,209.4
|
|
2,253.4
|
Shareholders'
equity
|
|
|
|
Common
shares
|
0.7
|
|
0.7
|
Additional paid-in
capital
|
1,593.8
|
|
1,604.3
|
Retained
earnings
|
1,012.9
|
|
931.7
|
Common shares in
treasury at cost
|
(906.1)
|
|
(860.9)
|
Accumulated other
comprehensive loss
|
(170.0)
|
|
(216.1)
|
Total shareholders'
equity
|
1,531.3
|
|
1,459.7
|
Total liabilities
and shareholders' equity
|
$
3,740.7
|
|
$
3,713.1
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL
CARE COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
|
|
Twelve Months
Ended
September 30,
|
|
2023
|
|
2022
|
Cash Flow from
Operating Activities
|
|
|
|
Net
earnings
|
$
112.9
|
|
$
98.6
|
Depreciation and
amortization
|
91.4
|
|
89.9
|
Share-based
compensation expense
|
27.5
|
|
23.8
|
Deferred income
taxes
|
(4.5)
|
|
(13.7)
|
Deferred compensation
payments
|
(4.9)
|
|
(7.3)
|
Defined benefit
settlement loss
|
7.9
|
|
—
|
Loss on sale of
assets
|
2.5
|
|
1.5
|
Other, net
|
(23.5)
|
|
(9.8)
|
Changes in current
assets and liabilities used in operations
|
6.8
|
|
(81.0)
|
Net cash from operating
activities
|
216.1
|
|
102.0
|
|
|
|
|
Cash Flow from
Investing Activities
|
|
|
|
Capital
expenditures
|
(49.5)
|
|
(56.4)
|
Acquisitions, net of
cash acquired
|
—
|
|
(309.4)
|
Proceeds from sale of
Infant and Pet Care business
|
—
|
|
5.0
|
Collection of deferred
purchase price from accounts receivable sold
|
2.7
|
|
6.9
|
Other, net
|
(3.7)
|
|
(1.5)
|
Net cash used by
investing activities
|
(50.5)
|
|
(355.4)
|
|
|
|
|
Cash Flow from
Financing Activities
|
|
|
|
Cash proceeds from
debt with original maturities greater than 90 days
|
841.0
|
|
707.0
|
Cash payments on debt
with original maturities greater than 90 days
|
(874.0)
|
|
(552.0)
|
Net decrease in debt
with original maturities of 90 days or less
|
—
|
|
(3.9)
|
Dividends
paid
|
(31.5)
|
|
(32.6)
|
Employee shares
withheld for taxes
|
(9.0)
|
|
(10.7)
|
Repurchase of
shares
|
(75.2)
|
|
(125.3)
|
Net increase
(decrease) from activity for the Accounts Receivable
Facility
|
2.3
|
|
(0.8)
|
Other, net
|
(0.1)
|
|
0.7
|
Net cash used by
financing activities
|
(146.5)
|
|
(17.6)
|
|
|
|
|
Effect of exchange rate
changes on cash
|
8.6
|
|
(19.5)
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
27.7
|
|
(290.5)
|
Cash and cash
equivalents, beginning of period
|
188.7
|
|
479.2
|
Cash and cash
equivalents, end of period
|
$
216.4
|
|
$
188.7
|
See Accompanying
Notes.
|
EDGEWELL PERSONAL CARE COMPANY
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited,
in millions, except per share data)
Note 1 — Segments
The Company conducts its business in the
following three segments: Wet Shave, Sun and Skin Care, and
Feminine Care (collectively, the "Segments," and each individually,
a "Segment"). Segment performance is evaluated based on segment
profit, exclusive of general corporate expenses, share-based
compensation costs, restructuring and related costs, acquisition
and integration costs, stock keeping unit ("SKU") rationalization
charges, Sun Care reformulation,
income from resolution of legal matters, VAT settlement costs,
pension settlement expense, and at times management excludes other
costs and income, and the amortization of intangible assets.
Financial items, such as interest income and expense, are managed
on a global basis at the corporate level. The exclusion of such
charges from segment results reflects management's view on how it
evaluates segment performance.
The Company completed the acquisition of Billie
on November 29, 2021.
Segment net sales and profitability are
presented below:
|
Three Months
Ended
September 30,
|
|
Twelve Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net Sales
|
|
|
|
|
|
|
|
Wet Shave
|
$
322.9
|
|
$
325.1
|
|
$
1,230.9
|
|
$
1,242.5
|
Sun and Skin
Care
|
138.0
|
|
134.2
|
|
705.5
|
|
638.5
|
Feminine
Care
|
73.2
|
|
77.6
|
|
315.2
|
|
290.7
|
Total net
sales
|
$
534.1
|
|
$
536.9
|
|
$
2,251.6
|
|
$
2,171.7
|
|
|
|
|
|
|
|
|
Segment
Profit
|
|
|
|
|
|
|
|
Wet Shave
|
$
54.6
|
|
$
57.4
|
|
$
157.2
|
|
$
174.0
|
Sun and Skin
Care
|
22.8
|
|
15.9
|
|
136.9
|
|
108.5
|
Feminine
Care
|
11.2
|
|
12.1
|
|
48.9
|
|
31.2
|
Total segment
profit
|
88.6
|
|
85.4
|
|
343.0
|
|
313.7
|
General corporate and
other expenses
|
(20.1)
|
|
(11.2)
|
|
(68.7)
|
|
(54.0)
|
Restructuring and
related costs (1)
|
(8.0)
|
|
(6.4)
|
|
(17.1)
|
|
(16.2)
|
Acquisition and
integration costs (2)
|
(2.4)
|
|
(1.9)
|
|
(7.5)
|
|
(9.9)
|
SKU Rationalization
(3)
|
1.7
|
|
—
|
|
1.7
|
|
(22.5)
|
Sun Care reformulation
(4)
|
(0.2)
|
|
(0.5)
|
|
(1.9)
|
|
(4.6)
|
Legal matters, net
income (5)
|
—
|
|
—
|
|
6.3
|
|
7.5
|
Value-added tax
settlement costs (6)
|
—
|
|
—
|
|
—
|
|
(3.4)
|
Pension settlement
(7)
|
(0.7)
|
|
(1.8)
|
|
(7.9)
|
|
(1.8)
|
Other
(8)
|
(0.4)
|
|
—
|
|
(0.4)
|
|
—
|
Amortization of
intangibles
|
(7.7)
|
|
(7.6)
|
|
(30.8)
|
|
(29.4)
|
Interest and other
expense, net
|
(18.1)
|
|
(12.6)
|
|
(71.4)
|
|
(56.4)
|
Total earnings before
income taxes
|
$
32.7
|
|
$
43.4
|
|
$
145.3
|
|
$
123.0
|
|
|
(1)
|
Includes nil and $0.1
included within COGS and $0.1 and $0.2 within SG&A for the
three months ended September 30, 2023 and 2022, respectively, of
restructuring and related costs related to actions to strengthen
our operating model. Also includes $0.2 and $0.1 included within
COGS and $0.3 and $0.8 within SG&A for the twelve months ended
September 30, 2023 and 2022, respectively.
|
(2)
|
Includes SG&A of
$2.4 and $1.9 for the three months ended September 30, 2023
and 2022, respectively, related to integration expenses
associated with acquisitions. Also includes SG&A of $7.5 and
$9.1 for the twelve months ended September 30, 2023 and 2022,
respectively, related to integration expenses associated with
acquisitions and Cost of products sold of nil and $0.8 related to
the valuation of acquired inventory for the twelve months ended
September 30, 2023 and 2022 respectively.
|
(3)
|
We released a reserve
of $1.7 in the three and twelve months ended September 30, 2023,
related to certain accrued expenses associated with the write-off
of inventory related to these SKUs. Wet Ones products are included
within the Sun and Skin Care segment. In the twelve months ended
September 30, 2022, we recorded a charge of $22.5 in COGS sold for
the write-off of certain Wet Ones SKUs and related contract
termination charges.
|
(4)
|
Includes pre-tax
research and development ("R&D") costs of $1.6 and $3.3 for the
three and twelve months ended September 30, 2023. We also released
a reserve of $1.4 in both the three and twelve months ended
September 30, 2023, related to certain accrued expenses associated
with the recall and destruction of certain Sun Care products.
Includes pre-tax R&D of $0.5 and $1.1 for three and twelve
months ended September 30, 2022 and pre-tax COGS of nil and $3.5
for three and twelve months ended September 30, 2022, respectively,
related to the reformulation, recall, and destruction of certain
Sun Care products.
|
(5)
|
Includes pre-tax
SG&A of nil and $6.3 for the three and twelve months
ended September 30, 2023, respectively and nil and $7.5 for the
three and twelve months ended September 30, 2023 and 2022,
respectively, related to the resolution of legal
matters.
|
(6)
|
Includes pre-tax
SG&A of nil and $3.4 for the three and twelve months ended
September 30, 2022, respectively, related to the estimated
settlement of prior years' value-added tax audits in
Germany.
|
(7)
|
Includes pre-tax Other
expense (income), net of 0.7 and 1.8 for the three months ended
September 30, 2023 and 2022, respectively, and $7.9 and $1.8 for
the twelve months ended September 30, 2023 and 2022, respectively,
related to pension settlement expenses.
|
(8)
|
Includes pre-tax
SG&A of $0.4 for the three and twelve months ended September
30, 2023, related to the write off of assets associated with a
prior year divestiture.
|
Note 2 — GAAP to Non-GAAP Reconciliations
The following tables provide a GAAP to Non-GAAP reconciliation
of certain line items from the Condensed Consolidated Statement of
Earnings:
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
Operating
Income
|
|
EBIT
(1)
|
|
Income
Taxes
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP -
Reported
|
$ 228.0
|
|
$ 112.4
|
|
$ 51.5
|
|
$
32.7
|
|
$
3.2
|
|
$ 29.5
|
|
$
0.57
|
Restructuring and
related costs
|
—
|
|
0.1
|
|
8.0
|
|
8.0
|
|
2.0
|
|
6.0
|
|
0.12
|
Acquisition and
integration costs
|
—
|
|
2.4
|
|
2.4
|
|
2.4
|
|
0.6
|
|
1.8
|
|
0.04
|
SKU
rationalization
|
(1.7)
|
|
—
|
|
(1.7)
|
|
(1.7)
|
|
(0.4)
|
|
(1.3)
|
|
(0.03)
|
Sun Care reformulation
(2)
|
(1.4)
|
|
—
|
|
0.2
|
|
0.2
|
|
0.1
|
|
0.1
|
|
—
|
Pension
settlement
|
—
|
|
—
|
|
—
|
|
0.7
|
|
0.2
|
|
0.5
|
|
0.01
|
Other costs
|
—
|
|
0.4
|
|
0.4
|
|
0.4
|
|
0.1
|
|
0.3
|
|
0.01
|
Total Adjusted
Non-GAAP
|
$ 224.9
|
|
$ 109.5
|
|
$ 60.8
|
|
$
42.7
|
|
$
5.8
|
|
$ 36.9
|
|
$
0.72
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
Constant Currency
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as a percent of
net sales
|
42.7 %
|
|
21.0 %
|
|
9.6 %
|
|
GAAP effective tax
rate
|
9.7 %
|
|
|
Adjusted as a percent
of net sales
|
42.1 %
|
|
20.5 %
|
|
11.4 %
|
|
Adjusted effective tax
rate
|
13.8 %
|
|
|
Adjusted Constant
Currency as a percent of net sales
|
43.0 %
|
|
|
|
12.2 %
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
Operating
Income
|
|
EBIT (1)
|
|
Income
Taxes
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP - Reported
|
$
938.4
|
|
$ 409.6
|
|
$ 224.6
|
|
$
145.3
|
|
$
32.4
|
|
$ 112.9
|
|
$
2.18
|
Restructuring and
related costs
|
0.2
|
|
0.3
|
|
17.1
|
|
17.1
|
|
4.4
|
|
12.7
|
|
0.24
|
Acquisition and
integration costs
|
—
|
|
7.5
|
|
7.5
|
|
7.5
|
|
1.8
|
|
5.7
|
|
0.11
|
SKU
rationalization
|
(1.7)
|
|
—
|
|
(1.7)
|
|
(1.7)
|
|
(0.4)
|
|
(1.3)
|
|
(0.03)
|
Sun Care reformulation
costs (2)
|
(1.4)
|
|
—
|
|
1.9
|
|
1.9
|
|
0.5
|
|
1.4
|
|
0.03
|
Legal matters, net
income
|
—
|
|
(6.3)
|
|
(6.3)
|
|
(6.3)
|
|
(1.5)
|
|
(4.8)
|
|
(0.09)
|
Pension settlement
expense
|
—
|
|
—
|
|
—
|
|
7.9
|
|
2.1
|
|
5.8
|
|
0.11
|
Other costs
|
$
—
|
|
$
0.4
|
|
$
0.4
|
|
$
0.4
|
|
$
0.1
|
|
$
0.3
|
|
$
0.01
|
Total Adjusted Non-GAAP
|
$
935.5
|
|
$ 407.7
|
|
$ 243.5
|
|
$
172.1
|
|
$
39.4
|
|
$ 132.7
|
|
$
2.56
|
|
|
|
|
|
|
|
Adjusted Non-GAAP
Constant Currency
|
|
$
2.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as a percent of
net sales
|
41.7 %
|
|
18.2 %
|
|
10.0 %
|
|
GAAP effective tax
rate
|
22.3 %
|
|
|
Adjusted as a percent
of net sales
|
41.5 %
|
|
18.1 %
|
|
10.8 %
|
|
Adjusted effective
tax rate
|
22.9 %
|
|
|
Adjusted Constant
Currency as a percent of net sales
|
42.5 %
|
|
|
|
11.9 %
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
Operating
Income
|
|
EBIT (1)
|
|
Income
Taxes
|
|
Net
Earnings
|
|
Diluted EPS
|
GAAP - Reported
|
$ 218.8
|
|
$
98.2
|
|
$
57.8
|
|
$
43.4
|
|
$
9.7
|
|
$
33.7
|
|
0.64
|
Restructuring and
related charges
|
0.1
|
|
0.2
|
|
6.4
|
|
6.4
|
|
1.7
|
|
4.7
|
|
0.08
|
Acquisition and
integration costs
|
—
|
|
1.9
|
|
1.9
|
|
1.9
|
|
0.5
|
|
1.4
|
|
0.03
|
Sun Care
reformulation
|
—
|
|
—
|
|
0.5
|
|
0.5
|
|
0.1
|
|
0.4
|
|
0.01
|
Pension settlement
expense
|
—
|
|
—
|
|
—
|
|
1.8
|
|
0.4
|
|
1.4
|
|
0.03
|
Total Adjusted Non-GAAP
|
$ 218.9
|
|
$
96.1
|
|
$
66.6
|
|
$
54.0
|
|
$
12.4
|
|
$
41.6
|
|
$
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as a percent of
net sales
|
40.8 %
|
|
18.3 %
|
|
10.8 %
|
|
GAAP effective tax
rate
|
22.4 %
|
|
|
Adjusted as a percent
of net sales
|
40.8 %
|
|
17.9 %
|
|
12.4 %
|
|
Adjusted effective
tax rate
|
23.0 %
|
|
|
Twelve Months Ended September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
SG&A
|
|
Operating
Income
|
|
EBIT (1)
|
|
Income
Taxes
|
|
Net
Earnings
|
|
Diluted
EPS
|
GAAP - Reported
|
$ 879.4
|
|
$ 389.1
|
|
$ 181.2
|
|
$
123.0
|
|
$
24.4
|
|
$
98.6
|
|
$
1.84
|
Restructuring and
related costs
|
0.1
|
|
0.8
|
|
16.2
|
|
16.2
|
|
4.2
|
|
12.0
|
|
0.23
|
Acquisition and
integration costs
|
0.8
|
|
9.1
|
|
9.9
|
|
9.9
|
|
1.3
|
|
8.6
|
|
0.16
|
SKU
rationalization
|
22.5
|
|
—
|
|
22.5
|
|
22.5
|
|
5.5
|
|
17.0
|
|
0.32
|
Sun Care reformulation
costs
|
3.5
|
|
—
|
|
4.6
|
|
4.6
|
|
1.2
|
|
3.4
|
|
0.06
|
Legal matters, net
income
|
—
|
|
(7.5)
|
|
(7.5)
|
|
(7.5)
|
|
(1.8)
|
|
(5.7)
|
|
(0.11)
|
Value-added tax
settlement costs
|
—
|
|
3.4
|
|
3.4
|
|
3.4
|
|
1.1
|
|
2.3
|
|
0.04
|
Pension settlement
expense
|
—
|
|
—
|
|
—
|
|
1.8
|
|
0.4
|
|
1.4
|
|
0.03
|
Total Adjusted Non-GAAP
|
$ 906.3
|
|
$ 383.3
|
|
$ 230.3
|
|
$
173.9
|
|
$
36.3
|
|
$ 137.6
|
|
$
2.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP as a percent of
net sales
|
40.5 %
|
|
17.9 %
|
|
8.3 %
|
|
GAAP effective tax
rate
|
19.9 %
|
|
|
Adjusted as a percent
of net sales
|
41.7 %
|
|
17.6 %
|
|
10.6 %
|
|
Adjusted effective
tax rate
|
20.9 %
|
|
|
|
|
(1)
|
EBIT is defined as
Earnings (loss) before income taxes.
|
(2)
|
Also includes pre-tax
R&D costs of $1.6 and $3.3 related to the reformulation,
recall, and destruction of certain Sun Care products
|
Note 3 - Net Sales and Profit by Segment
Operations for the Company are reported via three Segments. The
impact of acquisition includes the operations of Billie which was
acquired in November 2021 and
included in the Wet Shave segment. The following tables present
changes in net sales and segment profit for the fourth quarter and
fiscal year 2023, as compared to the corresponding period in the
prior year.
Net Sales (In
millions - Unaudited)
|
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
Total
|
Net Sales - Q4
'22
|
$
325.1
|
|
|
|
$
134.2
|
|
|
|
$ 77.6
|
|
|
|
$
536.9
|
|
|
Organic
|
(7.5)
|
|
(2.3) %
|
|
1.5
|
|
1.1 %
|
|
(4.4)
|
|
(5.7) %
|
|
(10.4)
|
|
(1.9) %
|
Impact of
currency
|
5.3
|
|
1.6 %
|
|
2.3
|
|
1.7 %
|
|
—
|
|
— %
|
|
7.6
|
|
1.4 %
|
Net Sales - Q4
'23
|
$
322.9
|
|
(0.7) %
|
|
$
138.0
|
|
2.8 %
|
|
$ 73.2
|
|
(5.7) %
|
|
$
534.1
|
|
(0.5) %
|
Net Sales (In millions -
Unaudited)
|
Twelve Months Ended September 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet Shave
|
|
Sun and Skin Care
|
|
Feminine Care
|
|
Total
|
Net Sales - FY
'22
|
$ 1,242.5
|
|
|
|
$
638.5
|
|
|
|
$
290.7
|
|
|
|
$ 2,171.7
|
|
|
Organic
|
0.6
|
|
— %
|
|
68.1
|
|
10.7 %
|
|
25.3
|
|
8.7 %
|
|
94.0
|
|
4.3 %
|
Impact of
acquisition
|
12.0
|
|
1.0 %
|
|
—
|
|
— %
|
|
—
|
|
— %
|
|
12.0
|
|
0.6 %
|
Impact of
currency
|
(24.2)
|
|
(1.9) %
|
|
(1.1)
|
|
(0.2) %
|
|
(0.8)
|
|
(0.3) %
|
|
(26.1)
|
|
(1.2) %
|
Net Sales - FY
'23
|
$ 1,230.9
|
|
(0.9) %
|
|
$
705.5
|
|
10.5 %
|
|
$
315.2
|
|
8.4 %
|
|
$ 2,251.6
|
|
3.7 %
|
Organic net sales were impacted in fiscal 2023 by the change in
classification of sales from third party to intercompany as a
result of the Billie acquisition in fiscal 2022. The impact of the
Billie acquisition, net is calculated as Billie net third party
sales after the acquisition date less shipments to Billie by the
Company in the comparable prior year period, which totaled
$12.0.
Segment Profit (In
millions - Unaudited)
|
Three Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
Total
|
Segment Profit - Q4
'22
|
$ 57.4
|
|
|
|
$ 15.9
|
|
|
|
$ 12.1
|
|
|
|
$ 85.4
|
|
|
Organic
|
1.1
|
|
1.9 %
|
|
6.0
|
|
37.7 %
|
|
(0.7)
|
|
(5.8) %
|
|
6.4
|
|
7.5 %
|
Impact of
currency
|
(4.0)
|
|
(7.0) %
|
|
0.9
|
|
5.7 %
|
|
(0.1)
|
|
(0.8) %
|
|
(3.2)
|
|
(3.7) %
|
Segment Profit - Q4
'23
|
$ 54.5
|
|
(5.1) %
|
|
$ 22.8
|
|
43.4 %
|
|
$ 11.3
|
|
(6.6) %
|
|
$ 88.6
|
|
3.8 %
|
Segment Profit (In
millions - Unaudited)
|
Twelve Months Ended
September 30, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
Total
|
Segment Profit - FY
'22
|
$
174.0
|
|
|
|
$
108.5
|
|
|
|
$ 31.2
|
|
|
|
$
313.7
|
|
|
Organic
|
8.7
|
|
5.0 %
|
|
28.5
|
|
26.3 %
|
|
18.7
|
|
59.9 %
|
|
55.9
|
|
17.8 %
|
Impact of
currency
|
(25.5)
|
|
(14.7) %
|
|
(0.1)
|
|
(0.1) %
|
|
(1.0)
|
|
(3.2) %
|
|
(26.6)
|
|
(8.5) %
|
Segment Profit - FY
'23
|
$
157.2
|
|
(9.7) %
|
|
$
136.9
|
|
26.2 %
|
|
$ 48.9
|
|
56.7 %
|
|
$
343.0
|
|
9.3 %
|
For all tables, the impact of currency to segment profit
includes both the translational and transactional currency changes
during the quarter.
Note 4 - Net Debt and EBITDA
The Company reports financial results on a GAAP and adjusted
basis. The tables below are used to reconcile Net Debt and Net
earnings to EBITDA and Adjusted EBITDA, which are Non-GAAP
measures, to improve comparability of results between periods.
|
September
30,
2023
|
|
September
30,
2022
|
Notes
payable
|
$
19.5
|
|
$
19.0
|
Long-term
debt
|
1,360.7
|
|
1,391.4
|
Gross debt
|
$
1,380.2
|
|
$
1,410.4
|
Less: Cash and cash
equivalents
|
216.4
|
|
188.7
|
Net Debt
|
$
1,163.8
|
|
$
1,221.7
|
|
Three Months Ended
September 30,
|
|
Twelve Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net earnings
|
$
29.5
|
|
$
33.7
|
|
$
112.9
|
|
$
98.6
|
Income tax
provision
|
3.2
|
|
9.7
|
|
32.4
|
|
24.4
|
Interest expense,
net
|
17.9
|
|
17.9
|
|
76.4
|
|
71.3
|
Depreciation and
amortization
|
23.2
|
|
22.8
|
|
91.3
|
|
89.9
|
EBITDA
|
$
73.8
|
|
$
84.1
|
|
$
313.0
|
|
$
284.2
|
|
|
|
|
|
|
|
|
Restructuring and
related costs
|
8.0
|
|
6.4
|
|
17.1
|
|
16.2
|
Acquisition and
integration costs
|
2.4
|
|
1.9
|
|
7.5
|
|
9.9
|
SKU
Rationalization
|
(1.7)
|
|
—
|
|
(1.7)
|
|
22.5
|
Sun Care
reformulation
|
0.2
|
|
0.5
|
|
1.9
|
|
4.6
|
Legal matters, net
income
|
—
|
|
—
|
|
(6.3)
|
|
(7.5)
|
Value-added tax
settlement costs
|
—
|
|
—
|
|
—
|
|
3.4
|
Pension settlement
expense
|
0.7
|
|
1.8
|
|
7.9
|
|
1.8
|
Other
|
0.4
|
|
—
|
|
0.4
|
|
—
|
Adjusted EBITDA
|
$
83.8
|
|
$
94.7
|
|
$
339.8
|
|
$
335.1
|
Note 5 - Outlook
The following tables provide reconciliations of Adjusted EPS and
Adjusted EBITDA, Non-GAAP measures, included within the Company's
outlook for projected fiscal 2024 results:
Adjusted EPS
Outlook
|
|
|
Fiscal 2024 GAAP
EPS
|
approx
|
$2.20 -
$2.40
|
|
|
|
Restructuring and
repositioning costs
|
approx
|
0.37
|
Acquisition and
integration costs
|
approx
|
0.05
|
Sun Care reformulation
costs
|
approx
|
0.15
|
Other costs
|
approx
|
0.03
|
Income
taxes(1)
|
approx
|
(0.15)
|
|
|
|
Fiscal 2024 Adjusted
EPS Outlook (Non-GAAP)
|
approx
|
$2.65 -
$2.85
|
(1) Income tax effect of the adjustments to Fiscal 2024
GAAP EPS noted above.
|
|
|
|
Adjusted EBITDA
Outlook
|
|
|
Fiscal 2024 GAAP Net
Income
|
approx
|
$109 - $121
|
Income tax
provision
|
approx
|
31
|
Interest expense,
net
|
approx
|
75
|
Depreciation and
amortization
|
approx
|
93
|
EBITDA
|
approx
|
$308 - $320
|
|
|
|
Restructuring and
repositioning costs
|
approx
|
19
|
Acquisition and
integration costs
|
approx
|
3
|
Sun Care reformulation
costs
|
approx
|
8
|
Other costs
|
approx
|
2
|
Fiscal 2024 Adjusted
EBITDA
|
approx
|
$340 - $352
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/edgewell-personal-care-announces-fourth-quarter-and-fiscal-2023-results-provides-2024-outlook-301982820.html
SOURCE Edgewell Personal Care Company