Net Sales Increase of 5.5%, or 2.1% Organic
Exclusive Launch of Billie Brand at Walmart
Company Updates Previously Provided Outlook for Fiscal 2022
SHELTON, Conn., May 10, 2022 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its second fiscal quarter 2022 ended March 31, 2022.
Executive Summary
The Company reports and forecasts results on a GAAP and non-GAAP basis and has reconciled non-GAAP results and outlook 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.
"In Q2, we delivered another quarter of solid growth reflecting strong demand for our products, continued market share gains and improving trends across many key brands, despite a higher-than-expected inflationary environment and significant supply chain disruptions," said Rod Little, Edgewell's President and Chief Executive Officer. "Looking ahead, we believe the supply chain disruptions are largely behind us, as evidenced by signs of a normalization within our product flow and an improvement of our on-shelf position; however, we expect increased commodity and transportation-related cost headwinds to persist, which is reflected in our revised outlook."
Little continued, "Encouragingly, our results demonstrate the continued progress we are making in executing against our strategic priorities to transform Edgewell amidst a dynamic operating environment, while also maintaining our returns-focused investment stance – returning to shareholders over $59 million in the quarter."
Fiscal 2Q 2022 Operating Results (Unaudited)
Net sales were $547.7 million in the quarter, an increase of 5.5% including a net impact of $27.4 million or 5.3% from the acquisition of Billie and a $10.1 million or 1.9% negative impact from currency. Organic net sales increased 2.1%, reflecting strong Sun Care, Grooming and Women's Shave performance across both North America and International markets, partially offset by the impact of supply constraints on Feminine Care and certain Wet Shave brands, and lower consumption in Wet Ones.
Gross profit was $230.1 million, as compared to $241.7 million in the prior year period. Gross margin as a percent of net sales for the second quarter of fiscal 2022 was 42.0%. Adjusted gross margin decreased 450-basis points compared to the prior year quarter, as 110-basis points of favorable pricing and 200-basis points of productivity gains were more than offset by a 560-basis point impact from higher commodity costs and increased transportation and air-freight costs, and a 140-basis point impact from negative mix and higher non-trade spend, and a 60-basis inorganic impact from Billie and unfavorable foreign exchange.
Advertising and sales promotion expense ("A&P") increased $1.5 million to $69.9 million, or 12.8% of net sales, as compared to $68.4 million, or 13.2% of net sales in the prior year quarter, primarily reflecting increases in support of sun season execution, the Schick Masterbrand launch and continued investments behind commercial activation in Japan and the U.K.
Selling, general and administrative expense ("SG&A") was $101.3 million, or 18.5% of net sales, as compared to $93.4 million, or 18.0% of net sales in the prior year quarter. Adjusted SG&A increased 90-basis points as a percent of net sales driven by higher compensation expense and the additional costs associated with the Billie acquisition, including increased amortization expense.
The Company recorded pre-tax restructuring and other non-recurring expenses of $3.7 million in the quarter in support of restructuring programs, consisting largely of severance and outplacement, as well as $1.1 million in acquisition and integration costs related to the Billie acquisition.
Operating income was $41.7 million compared to $62.9 million in the prior year quarter. Adjusted operating income was $46.7 million, or 8.5% of net sales compared to $68.7 million in the prior year quarter.
The effective tax rate for the first six months of fiscal 2022 was 20.5% compared to 28.4% in the prior year period. The adjusted effective tax rate for the first six months of fiscal 2022 was 20.5%, down from the prior year quarter's adjusted effective tax rate of 26.5%. The fiscal 2022 effective and adjusted tax rates reflects a favorable mix of earnings in low tax jurisdictions combined with a favorable impact of a change in prior estimates.
GAAP net earnings for the quarter were $23.2 million or $0.43 per share compared to $14.4 million or $0.26 per share in the second quarter of fiscal 2021. Adjusted net earnings in the quarter were $27.0 million or $0.50 per share, compared to $38.5 million or $0.70 per share in the prior year period, and adjusted EBITDA was $73.7 million compared to $90.9 million in the prior year period.
Net cash used by operating activities was $39.9 million for the six months ending March 31, 2022 compared to $18.8 million used in the prior year period, driven by lower adjusted net earnings.
Capital Allocation
On May 6, 2022, the Board of Directors declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter. The dividend will be payable on July 7, 2022 to shareholders of record as of the close of business on June 2, 2022. During the second quarter of fiscal 2022, the Company paid dividends totaling $8.2 million to stockholders.
During the second quarter of fiscal 2022, the Company completed share repurchases of approximately 1.4 million shares at a total cost of $50.9 million. The Company has 7.8 million shares of common stock available for repurchase in the future under the Board's 2018 authorization as of March 31, 2022.
Fiscal 2Q 2022 Operating Segment Results (Unaudited)
Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)
Net sales increased $12.3 million, or 4.2%. Organic net sales decreased $6.1 million or 2.1%, driven by declines in Men's systems primarily from lower volumes and unfavorable trade promotional spend in North America, partially offset by growth in Women's Systems in North America and International. Organic Net Sales in North American were impacted by supply constraints and resultant out of stocks in certain Women's Systems and Men's and Women's Shave Preps products. Wet Shave segment profit decreased $18.3 million, or 39.9%, as commodity inflation and increased transportation and air freight costs were partially offset by favorable pricing across all markets.
Sun and Skin Care (Sun Care, Wet Ones, Bulldog, Jack Black and Cremo)
Net sales increased $23.8 million, or 14.9%. Organic net sales increased $24.8 million, or 15.5%, primarily driven by Sun Care growth of over 28%, reflecting distribution and market share gains in North America and continued category recovery in certain International markets. Additionally, Grooming grew 5.7%, primarily in North America. Wet Ones organic net sales declined 24.5%, reflecting the impact of reduced demand cycling last year's COVID-19 driven demand. Sun and Skin Care segment profit increased $6.1 million, as higher sales in Sun Care were partially offset by inflationary cost pressures, higher A&P spend and sales declines in Wet Ones.
Feminine Care (Tampons, Pads, and Liners)
Net sales decreased $7.7 million, or 11.5%. The decrease in net sales reflected the impact of supply constraints due to manufacturing labor shortages and certain ingredient shortages. Consumption increased approximately 9% driven by higher pricing, while market share increased slightly in the quarter. Feminine Care segment profit decreased $3.7 million, driven by driven by the aforementioned supply chain constraints and increased commodity and transportation costs.
Full Fiscal Year 2022 Financial Outlook
The Company is updating its previously provided outlook assumptions for fiscal 2022 to reflect the impact of fiscal second quarter results and projected increases in cost inflation.
*In Fiscal 2022, the Company expects to take specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency and productivity. As a result of these actions, the Company expects to incur one-time charges of approximately $15 million, inclusive of $5.9 million incurred in the first six months of fiscal 2022.
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.
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 6,900 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, and the integration of the Billie acquisition and expected benefits from this transaction, including growth opportunities and cost savings. Many factors outside our control could affect the realization of these estimates. 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 ("SEC") on November 19, 2021.
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 costs, acquisition and integration costs and non-standard items. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2022 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:
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data) |
|||||||
Quarter Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net sales |
$ 547.7 |
$ 519.3 |
$ 1,011.0 |
$ 970.4 |
|||
Cost of products sold |
317.6 |
277.6 |
591.0 |
535.4 |
|||
Gross profit |
230.1 |
241.7 |
420.0 |
435.0 |
|||
Selling, general and administrative expense |
101.3 |
93.4 |
198.2 |
186.5 |
|||
Advertising and sales promotion expense |
69.9 |
68.4 |
116.1 |
109.6 |
|||
Research and development expense |
13.7 |
14.3 |
26.5 |
28.0 |
|||
Restructuring charges |
3.5 |
2.7 |
5.7 |
6.4 |
|||
Operating income |
41.7 |
62.9 |
73.5 |
104.5 |
|||
Interest expense associated with debt |
18.0 |
17.3 |
35.3 |
34.7 |
|||
Cost of early retirement of long-term debt |
— |
26.1 |
— |
26.1 |
|||
Other income, net |
(3.4) |
— |
(5.1) |
(1.0) |
|||
Earnings before income taxes |
27.1 |
19.5 |
43.3 |
44.7 |
|||
Income tax provision |
3.9 |
5.1 |
8.9 |
12.6 |
|||
Net earnings |
$ 23.2 |
$ 14.4 |
$ 34.4 |
$ 32.1 |
|||
Earnings per share: |
|||||||
Basic net earnings per share |
0.43 |
0.26 |
0.64 |
0.59 |
|||
Diluted net earnings per diluted share |
0.43 |
0.26 |
0.63 |
0.58 |
|||
Weighted-average shares outstanding: |
|||||||
Basic |
53.6 |
54.3 |
54.0 |
54.4 |
|||
Diluted |
54.3 |
54.9 |
54.6 |
54.9 |
|||
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions) |
|||
March 31, |
September 30, |
||
Assets |
|||
Current assets |
|||
Cash and cash equivalents |
$ 188.1 |
$ 479.2 |
|
Trade receivables, less allowance for doubtful accounts |
183.8 |
150.7 |
|
Inventories |
429.1 |
345.7 |
|
Other current assets |
167.7 |
160.1 |
|
Total current assets |
968.7 |
1,135.7 |
|
Property, plant and equipment, net |
355.4 |
362.6 |
|
Goodwill |
1,340.6 |
1,162.8 |
|
Other intangible assets, net |
1,024.2 |
906.4 |
|
Other assets |
104.4 |
107.1 |
|
Total assets |
$ 3,793.3 |
$ 3,674.6 |
|
Liabilities and Shareholders' Equity |
|||
Current liabilities |
|||
Notes payable |
25.8 |
26.5 |
|
Accounts payable |
224.7 |
209.5 |
|
Other current liabilities |
293.7 |
300.8 |
|
Total current liabilities |
544.2 |
536.8 |
|
Long-term debt |
1,414.3 |
1,234.2 |
|
Deferred income tax liabilities |
139.1 |
129.0 |
|
Other liabilities |
180.2 |
190.3 |
|
Total liabilities |
2,277.8 |
2,090.3 |
|
Shareholders' equity |
|||
Common shares |
0.7 |
0.7 |
|
Additional paid-in capital |
1,597.2 |
1,631.1 |
|
Retained earnings |
883.5 |
865.7 |
|
Common shares in treasury at cost |
(814.6) |
(776.3) |
|
Accumulated other comprehensive loss |
(151.3) |
(136.9) |
|
Total shareholders' equity |
1,515.5 |
1,584.3 |
|
Total liabilities and shareholders' equity |
$ 3,793.3 |
$ 3,674.6 |
|
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) |
|||
Six Months Ended |
|||
2022 |
2021 |
||
Cash Flow from Operating Activities |
|||
Net earnings |
$ 34.4 |
$ 32.1 |
|
Depreciation and amortization |
44.6 |
44.4 |
|
Share-based compensation expense |
12.2 |
12.0 |
|
Loss on sale of assets |
0.4 |
0.4 |
|
Deferred compensation payments |
(7.1) |
(8.8) |
|
Deferred income taxes |
(10.5) |
(0.8) |
|
Cost of early retirement of long-term debt |
— |
26.1 |
|
Other, net |
(0.9) |
(1.6) |
|
Changes in operating assets and liabilities |
(113.0) |
(122.6) |
|
Net cash used by operating activities |
(39.9) |
(18.8) |
|
Cash Flow from Investing Activities |
|||
Capital expenditures |
(25.0) |
(22.2) |
|
Acquisition of Billie |
(309.4) |
— |
|
Proceeds from sale of Infant and Pet Care business |
5.0 |
7.5 |
|
Acquisition of Cremo |
— |
(0.3) |
|
Collection of deferred purchase price on accounts receivable sold |
4.7 |
2.2 |
|
Other, net |
(1.0) |
(0.8) |
|
Net cash used by investing activities |
(325.7) |
(13.6) |
|
Cash Flow from Financing Activities |
|||
Cash proceeds from the issuance of Senior Notes due 2029 |
— |
500.0 |
|
Cash payments on Senior Notes due 2022 |
— |
(500.0) |
|
Cash proceeds from debt with original maturities greater than 90 days |
399.0 |
— |
|
Cash payments on debt with original maturities greater than 90 days |
(220.0) |
— |
|
Net increase in debt with original maturities of 90 days or less |
0.7 |
0.7 |
|
Debt issuance costs for Senior Notes due 2029 |
— |
(5.9) |
|
Cost of early retirement of long-term debt |
— |
(26.5) |
|
Dividends to common shareholders |
(16.7) |
(8.4) |
|
Repurchase of shares |
(75.4) |
(9.2) |
|
Net financing (outflow) inflow from the Accounts Receivable Facility |
(0.2) |
0.7 |
|
Employee shares withheld for taxes |
(9.7) |
(3.0) |
|
Other, net |
0.6 |
(0.5) |
|
Net cash from (used by) financing activities |
78.3 |
(52.1) |
|
Effect of exchange rate changes on cash |
(3.8) |
1.9 |
|
Net decrease in cash and cash equivalents |
(291.1) |
(82.6) |
|
Cash and cash equivalents, beginning of period |
479.2 |
364.7 |
|
Cash and cash equivalents, end of period |
$ 188.1 |
$ 282.1 |
|
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 |
|||||||
The Company completed the acquisition of Billie on November 29, 2021. As a result, Net Sales and Segment Profit |
|||||||
Segment net sales and profitability are presented below: |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net Sales |
|||||||
Wet Shave |
$ 305.0 |
$ 292.7 |
$ 591.1 |
$ 571.8 |
|||
Sun and Skin Care |
183.3 |
159.5 |
288.1 |
262.5 |
|||
Feminine Care |
59.4 |
67.1 |
131.8 |
136.1 |
|||
Total net sales |
$ 547.7 |
$ 519.3 |
$ 1,011.0 |
$ 970.4 |
|||
Segment Profit |
|||||||
Wet Shave |
$ 27.6 |
$ 45.9 |
$ 79.1 |
$ 98.5 |
|||
Sun and Skin Care |
42.3 |
36.2 |
46.0 |
41.4 |
|||
Feminine Care |
1.9 |
5.6 |
10.3 |
14.4 |
|||
Total segment profit |
71.8 |
87.7 |
135.4 |
154.3 |
|||
General corporate and other expenses |
(17.2) |
(13.4) |
(28.0) |
(25.5) |
|||
Restructuring and related costs |
(3.7) |
(5.5) |
(5.9) |
(9.9) |
|||
Acquisition and integration costs |
(1.1) |
(0.3) |
(7.1) |
(3.3) |
|||
Value added tax settlement costs |
— |
— |
(3.4) |
— |
|||
Sun Care reformulation costs |
(0.2) |
— |
(3.5) |
— |
|||
Cost of early retirement of long-term debt |
— |
(26.1) |
— |
(26.1) |
|||
Amortization of intangibles |
(7.9) |
(5.6) |
(14.0) |
(11.1) |
|||
Interest and other expenses, net |
(14.6) |
(17.3) |
(30.2) |
(33.7) |
|||
Total earnings before income taxes |
$ 27.1 |
$ 19.5 |
$ 43.3 |
$ 44.7 |
|||
Refer to Note 2 GAAP to Non-GAAP Reconciliations for the income statement location of non-GAAP adjustments to |
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 |
|||||||||||||
Three Months Ended March 31, 2022 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 230.1 |
$ 101.3 |
$ 41.7 |
$ 27.1 |
$ 3.9 |
$ 23.2 |
$ 0.43 |
||||||
Restructuring and related costs |
— |
0.2 |
3.7 |
3.7 |
1.0 |
2.7 |
0.05 |
||||||
Acquisition and integration costs |
0.5 |
0.6 |
1.1 |
1.1 |
0.2 |
0.9 |
0.02 |
||||||
Sun Care reformulation costs |
0.2 |
— |
0.2 |
0.2 |
— |
0.2 |
— |
||||||
Total Adjusted Non-GAAP |
$ 230.8 |
$ 100.5 |
$ 46.7 |
$ 32.1 |
$ 5.1 |
$ 27.0 |
$ 0.50 |
||||||
GAAP as a percent of net sales |
42.0% |
18.5% |
7.6% |
GAAP effective tax rate |
14.4% |
||||||||
Adjusted as a percent of net sales |
42.1% |
18.3% |
8.5% |
Adjusted effective tax rate |
16.0% |
||||||||
Three Months Ended March 31, 2021 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 241.7 |
$ 93.4 |
$ 62.9 |
$ 19.5 |
$ 5.1 |
$ 14.4 |
$ 0.26 |
||||||
Restructuring and related costs |
— |
2.8 |
5.5 |
5.5 |
1.3 |
4.2 |
0.08 |
||||||
Acquisition and integration costs |
— |
0.3 |
0.3 |
0.3 |
0.1 |
0.2 |
— |
||||||
Cost of early retirement of long- |
— |
— |
— |
26.1 |
6.4 |
19.7 |
0.36 |
||||||
Total Adjusted Non-GAAP |
$ 241.7 |
$ 90.3 |
$ 68.7 |
$ 51.4 |
$ 12.9 |
$ 38.5 |
$ 0.70 |
||||||
GAAP as a percent of net sales |
46.6% |
18.0% |
12.1% |
GAAP effective tax rate |
26.6% |
||||||||
Adjusted as a percent of net sales |
46.6% |
17.4% |
13.2% |
Adjusted effective tax rate |
25.3% |
||||||||
Six Months Ended March 31, 2022 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 420.0 |
$ 198.2 |
$ 73.5 |
$ 43.3 |
$ 8.9 |
$ 34.4 |
$ 0.63 |
||||||
Restructuring and related costs |
— |
0.2 |
5.9 |
5.9 |
1.6 |
4.3 |
0.08 |
||||||
Acquisition and integration costs |
0.8 |
6.3 |
7.1 |
7.1 |
0.5 |
6.6 |
0.12 |
||||||
Value added tax settlement costs |
— |
3.4 |
3.4 |
3.4 |
1.1 |
2.3 |
0.04 |
||||||
Sun Care reformulation costs |
3.5 |
— |
3.5 |
3.5 |
0.9 |
2.6 |
0.05 |
||||||
Total Adjusted Non-GAAP |
$ 424.3 |
$ 188.3 |
$ 93.4 |
$ 63.2 |
$ 13.0 |
$ 50.2 |
$ 0.92 |
||||||
GAAP as a percent of net sales |
41.5% |
19.6% |
7.3% |
GAAP effective tax rate |
20.5% |
||||||||
Adjusted as a percent of net sales |
42.0% |
18.6% |
9.2% |
Adjusted effective tax rate |
20.5% |
||||||||
Six Months Ended March 31, 2021 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 435.0 |
$ 186.5 |
$ 104.5 |
$ 44.7 |
$ 12.6 |
$ 32.1 |
$ 0.58 |
||||||
Restructuring and related costs |
0.1 |
3.4 |
9.9 |
9.9 |
2.5 |
7.4 |
0.14 |
||||||
Acquisition and integration costs |
1.3 |
2.0 |
3.3 |
3.3 |
0.7 |
2.6 |
0.05 |
||||||
Cost of early retirement of long- |
— |
— |
— |
26.1 |
6.4 |
19.7 |
0.36 |
||||||
Total Adjusted Non-GAAP |
$ 436.4 |
$ 181.1 |
$ 117.7 |
$ 84.0 |
$ 22.2 |
$ 61.8 |
$ 1.13 |
||||||
GAAP as a percent of net sales |
44.8% |
19.2% |
10.8% |
GAAP effective tax rate |
28.4% |
||||||||
Adjusted as a percent of net sales |
45.0% |
18.7% |
12.1% |
Adjusted effective tax rate |
26.5% |
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 |
|||||||||||||||
Net Sales |
|||||||||||||||
Quarter Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Net Sales - Q2 FY21 |
$ 292.7 |
$ 159.5 |
$ 67.1 |
$ 519.3 |
|||||||||||
Organic |
(6.1) |
(2.1)% |
24.8 |
15.5% |
(7.6) |
(11.4)% |
11.1 |
2.1% |
|||||||
Impact of Billie acquisition, net |
27.4 |
9.4% |
— |
—% |
— |
—% |
27.4 |
5.3% |
|||||||
Impact of currency |
(9.0) |
(3.1)% |
(1.0) |
(0.6)% |
(0.1) |
(0.1)% |
(10.1) |
(1.9)% |
|||||||
Net Sales - Q2 FY22 |
$ 305.0 |
4.2% |
$ 183.3 |
14.9% |
$ 59.4 |
(11.5)% |
$ 547.7 |
5.5% |
|||||||
Net Sales |
|||||||||||||||
Six Months Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Net Sales - Q2 FY21 |
$ 571.8 |
$ 262.5 |
$ 136.1 |
$ 970.4 |
|||||||||||
Organic |
(0.1) |
—% |
26.8 |
10.2% |
(4.3) |
(3.2)% |
22.4 |
2.3% |
|||||||
Impact of Billie acquisition, net |
34.2 |
6.0% |
— |
—% |
— |
—% |
34.2 |
3.5% |
|||||||
Impact of currency |
(14.8) |
(2.6)% |
(1.2) |
(0.4)% |
— |
—% |
(16.0) |
(1.6)% |
|||||||
Net Sales - Q2 FY22 |
$ 591.1 |
3.4% |
$ 288.1 |
9.8% |
$ 131.8 |
(3.2)% |
$ 1,011.0 |
4.2% |
|||||||
Organic net sales were unfavorably impacted in fiscal 2022 by the change in classification of sales from third party to |
|||||||||||||||
Segment Profit |
|||||||||||||||
Quarter Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Segment Profit - Q2 FY21 |
$ 45.9 |
$ 36.2 |
$ 5.6 |
$ 87.7 |
|||||||||||
Organic |
(10.9) |
(23.7)% |
6.0 |
16.6% |
(3.7) |
(66.1)% |
(8.6) |
(9.8)% |
|||||||
Impact of Billie acquisition, net |
(5.2) |
(11.3)% |
— |
—% |
— |
—% |
(5.2) |
(5.9)% |
|||||||
Impact of currency |
(2.2) |
(4.9)% |
0.1 |
0.3% |
— |
—% |
(2.1) |
(2.4)% |
|||||||
Segment Profit - Q2 FY22 |
$ 27.6 |
(39.9)% |
$ 42.3 |
16.9% |
$ 1.9 |
(66.1)% |
$ 71.8 |
(18.1)% |
|||||||
Segment Profit |
|||||||||||||||
Six Months Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Segment Profit - Q2 FY21 |
$ 98.5 |
$ 41.4 |
$ 14.4 |
$ 154.3 |
|||||||||||
Organic |
(7.7) |
(7.8)% |
4.7 |
11.4% |
(4.2) |
(29.2)% |
(7.2) |
(4.7)% |
|||||||
Impact of Billie acquisition, net |
(7.6) |
(7.7)% |
— |
—% |
— |
—% |
(7.6) |
(4.9)% |
|||||||
Impact of currency |
(4.1) |
(4.2)% |
(0.1) |
(0.3)% |
0.1 |
0.7% |
(4.1) |
(2.7)% |
|||||||
Segment Profit - Q2 FY22 |
$ 79.1 |
(19.7)% |
$ 46.0 |
11.1% |
$ 10.3 |
(28.5)% |
$ 135.4 |
(12.3)% |
|||||||
Segment profit will be unfavorably impacted in fiscal 2022 as a result of the Billie acquisition due to timing of profit |
Note 4 - EBITDA |
|||||||
The Company reports financial results on a GAAP and adjusted basis. The table below is used to reconcile Net earnings to |
|||||||
Three Months Ended March 31, |
Six Months Ended March 31, |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net earnings |
$ 23.2 |
$ 14.4 |
$ 34.4 |
$ 32.1 |
|||
Income tax provision |
3.9 |
5.1 |
8.9 |
12.6 |
|||
Interest expense, net |
18.4 |
17.3 |
35.6 |
34.7 |
|||
Depreciation and amortization |
23.2 |
22.2 |
44.6 |
44.4 |
|||
EBITDA |
$ 68.7 |
$ 59.0 |
$ 123.5 |
$ 123.8 |
|||
Restructuring and related costs |
3.7 |
5.5 |
5.9 |
9.9 |
|||
Acquisition and integration costs |
1.1 |
0.3 |
7.1 |
3.3 |
|||
Value added tax settlement costs |
— |
— |
3.4 |
— |
|||
Sun Care reformulation costs |
0.2 |
— |
3.5 |
— |
|||
Cost of early retirement of long-term debt |
— |
26.1 |
— |
26.1 |
|||
Adjusted EBITDA |
$ 73.7 |
$ 90.9 |
$ 143.4 |
$ 163.1 |
Note 5 - Outlook |
||
The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within |
||
Adjusted EPS Outlook |
||
Fiscal 2022 GAAP EPS |
$1.93 - $2.21 |
|
Restructuring and related costs |
approx. |
0.27 |
Acquisition and integration costs |
approx. |
0.17 |
Value added tax settlement costs |
approx. |
0.06 |
Sun Care reformulation costs |
approx. |
0.06 |
Income taxes(1) |
approx. |
(0.11) |
Fiscal 2022 Adjusted EPS Outlook (Non-GAAP) |
$2.38 - $2.66 |
|
(1) Income tax effect of the adjustments to Fiscal 2022 GAAP EPS noted above. |
||
Adjusted EBITDA Outlook |
||
Fiscal 2022 GAAP Net Income |
approx. |
$105 - $120 |
Income tax provision |
approx. |
32 |
Interest expense, net |
approx. |
71 |
Depreciation and amortization |
approx. |
92 |
EBITDA |
approx. |
$300 - $315 |
Restructuring and related costs |
approx. |
15 |
Acquisition and integration costs |
approx. |
9 |
Value added tax settlement costs |
approx. |
3 |
Sun Care reformulation costs |
approx. |
3 |
Fiscal 2022 Adjusted EBITDA |
approx. |
$330 - $345 |
SOURCE Edgewell Personal Care Company
Чистый рост продаж составил 5,5%, или 2,1% органического
Эксклюзивный запуск бренда Billie в Walmart
Компания Обновляет Ранее предоставленные прогнозы на 2022 финансовый год
ШЕЛТОН, Коннектикут, 10 мая 2022 г. /PRNewswire/ -- Компания Edgewell Personal Care (NYSE: EPC) сегодня объявила результаты за второй финансовый квартал 2022 года, закончившийся 31 марта 2022 года.
основные положения
Компания отчитывается и прогнозирует результаты на основе GAAP и не-GAAP, а также согласовала результаты и перспективы, не связанные с GAAP, с наиболее непосредственно сопоставимыми показателями GAAP позже в этом выпуске. Более подробное объяснение см. в разделе Финансовые показатели, не относящиеся к GAAP, включая определения различных терминов, не относящихся к GAAP, используемых в этом выпуске. Все сравнения, используемые в этом выпуске, относятся к тому же периоду предыдущего финансового года, если не указано иное.
"Во втором квартале мы обеспечили еще один квартал уверенного роста, что отражает высокий спрос на нашу продукцию, продолжающийся рост доли рынка и улучшение тенденций во многих ключевых брендах, несмотря на более высокую, чем ожидалось, инфляционную среду и значительные сбои в цепочках поставок", - сказал Род Литтл, президент и главный исполнительный директор Edgewell. "Заглядывая в будущее, мы считаем, что сбои в цепочке поставок в значительной степени позади, о чем свидетельствуют признаки нормализации нашего потока продукции и улучшения наших позиций на полке; однако мы ожидаем, что рост издержек, связанных с сырьевыми товарами и транспортировкой, сохранится, что отражено в нашем пересмотренном прогнозе".
Литтл продолжил: "Обнадеживает то, что наши результаты демонстрируют продолжающийся прогресс, которого мы добиваемся в реализации наших стратегических приоритетов по преобразованию Edgewell в динамичной операционной среде, сохраняя при этом нашу инвестиционную позицию, ориентированную на доходность, - вернув акционерам более 59 миллионов долларов за квартал".
Операционные результаты за 2 квартал 2022 финансового года (Неаудированные)
Чистые продажи за квартал составили 547,7 млн долларов, увеличившись на 5,5%, включая чистый эффект в размере 27,4 млн долларов или 5,3% от приобретения Billie и негативное влияние валюты в размере 10,1 млн долларов или 1,9%. Чистые продажи органических продуктов выросли на 2,1%, что отражает высокие показатели средств по уходу за солнцем, Уходу за волосами и женскому бритью как на рынках Северной Америки, так и на международных рынках, что частично компенсируется влиянием ограничений на поставки средств по уходу за женщинами и некоторых марок средств для влажного бритья, а также снижением потребления средств для влажного бритья.
Валовая прибыль составила $230,1 млн по сравнению с $241,7 млн за аналогичный период прошлого года. Валовая прибыль в процентах от чистых продаж за второй квартал 2022 финансового года составила 42,0%. Скорректированная валовая прибыль снизилась на 450 базисных пунктов по сравнению с предыдущим кварталом, поскольку благоприятные цены на 110 базисных пунктов и рост производительности на 200 базисных пунктов были более чем компенсированы влиянием на 560 базисных пунктов более высоких цен на сырьевые товары и увеличением расходов на транспортировку и авиаперевозки, а также 140 базисных пунктов точечный эффект от отрицательного баланса и более высоких неторговых расходов, а также неорганическое влияние на 60 базисных пунктов от Billie и неблагоприятной иностранной валюты.
Расходы на рекламу и стимулирование сбыта ("A&P") увеличились на 1,5 млн долларов до 69,9 млн долларов, или 12,8% от чистых продаж, по сравнению с 68,4 млн долларов, или 13,2% от чистых продаж в предыдущем квартале, что в первую очередь отражает увеличение поддержки sun season execution, мастербренда Schick запуск и продолжение инвестиций в коммерческую эксплуатацию в Японии и Великобритании.
Коммерческие, общие и административные расходы ("SG&A") составили 101,3 млн долларов, или 18,5% от чистых продаж, по сравнению с 93,4 млн долларов, или 18,0% от чистых продаж в предыдущем квартале. Скорректированный SG & A увеличился на 90 базисных пунктов в процентах от чистых продаж, что обусловлено более высокими компенсационными расходами и дополнительными расходами, связанными с приобретением Billie, включая увеличение расходов на амортизацию.
Компания зафиксировала реструктуризацию до налогообложения и другие единовременные расходы в размере 3,7 млн долларов США за квартал в поддержку программ реструктуризации, состоящих в основном из выходных пособий и увольнений, а также 1,1 млн долларов США на приобретение и интеграцию, связанные с приобретением Billie.
Операционная прибыль составила 41,7 млн долларов по сравнению с 62,9 млн долларов в предыдущем квартале. Скорректированный операционный доход составил 46,7 млн долларов, или 8,5% от чистых продаж, по сравнению с 68,7 млн долларов в предыдущем квартале.
Эффективная налоговая ставка за первые шесть месяцев 2022 финансового года составила 20,5% по сравнению с 28,4% в предыдущем году. Скорректированная эффективная налоговая ставка за первые шесть месяцев 2022 финансового года составила 20,5%, по сравнению с скорректированной эффективной налоговой ставкой предыдущего квартала в 26,5%. Эффективные и скорректированные налоговые ставки на 2022 финансовый год отражают благоприятное сочетание доходов в юрисдикциях с низкими налогами в сочетании с благоприятным влиянием изменения предыдущих оценок.
Чистая прибыль по ОПБУ за квартал составила 23,2 млн долларов, или 0,43 доллара на акцию, по сравнению с 14,4 млн долларов, или 0,26 доллара на акцию, во втором квартале 2021 финансового года. Скорректированная чистая прибыль за квартал составила $27,0 млн, или $0,50 на акцию, по сравнению с $38,5 млн, или $0,70 на акцию за аналогичный период прошлого года, а скорректированная EBITDA составила $73,7 млн по сравнению с $90,9 млн за аналогичный период прошлого года.
Чистые денежные средства, использованные в операционной деятельности, составили 39,9 млн долларов США за шесть месяцев, закончившихся 31 марта 2022 года, по сравнению с 18,8 млн долларов США, использованных в предыдущем году, что обусловлено более низкой скорректированной чистой прибылью.
Распределение капитала
6 мая 2022 года Совет директоров объявил о выплате ежеквартальных денежных дивидендов в размере 0,15 доллара на одну обыкновенную акцию за второй финансовый квартал. Дивиденды будут выплачены 7 июля 2022 года акционерам record по состоянию на закрытие бизнеса 2 июня 2022 года. Во втором квартале 2022 финансового года Компания выплатила акционерам дивиденды на общую сумму 8,2 миллиона долларов.
Во втором квартале 2022 финансового года Компания завершила выкуп акций примерно на 1,4 миллиона акций общей стоимостью 50,9 миллиона долларов. Компания располагает 7,8 миллионами обыкновенных акций, доступных для выкупа в будущем в соответствии с разрешением Совета директоров на 2018 год по состоянию на 31 марта 2022 года.
Результаты операционного сегмента за 2 квартал 2022 финансового года (Неаудированные)
Влажное бритье (Мужские системы, Женские системы, Одноразовые средства и Средства для бритья)
Чистый объем продаж увеличился на 12,3 миллиона долларов, или на 4,2%. Чистый объем продаж снизился на 6,1 млн долларов, или на 2,1%, что обусловлено сокращением продаж мужских систем, главным образом из-за снижения объемов и неблагоприятных расходов на продвижение торговых услуг в Северной Америке, что частично компенсируется ростом продаж женских систем в Северной Америке и за рубежом. На чистые продажи органических продуктов в Северной Америке повлияли ограничения поставок и, как следствие, отсутствие запасов в некоторых женских системах, а также в средствах для бритья для мужчин и женщин. Прибыль сегмента влажного бритья снизилась на 18,3 млн долларов, или на 39,9%, поскольку инфляция цен на сырьевые товары и увеличение транспортных и авиационных расходов были частично компенсированы благоприятными ценами на всех рынках.
Уход за Солнцем и кожей (Уход за Солнцем, Влажные, Бульдог, Джек Блэк и Кремо)
Чистый объем продаж увеличился на 23,8 млн долларов, или на 14,9%. Чистые продажи органических продуктов выросли на 24,8 млн долларов, или на 15,5%, в основном за счет роста солнцезащитных средств более чем на 28%, что отражает увеличение дистрибуции и доли рынка в Северной Америке, а также продолжающееся восстановление категории на некоторых международных рынках. Кроме того, услуги груминга выросли на 5,7%, в основном в Северной Америке. Чистые продажи органической продукции Wet Ones снизились на 24,5%, что отражает влияние снижения спроса на фоне прошлогоднего спроса, вызванного COVID-19. Прибыль в сегменте солнцезащитных средств и средств по уходу за кожей увеличилась на 6,1 млн долларов, поскольку рост продаж в сегменте солнцезащитных средств был частично компенсирован инфляционным давлением затрат, более высокими расходами на A&P и снижением продаж в сегменте влажных средств.
Женский уход (Тампоны, прокладки и прокладки)
Чистый объем продаж снизился на 7,7 млн долларов, или на 11,5%. Снижение чистых продаж отразило влияние ограничений поставок из-за нехватки рабочей силы на производстве и нехватки некоторых ингредиентов. Потребление увеличилось примерно на 9% из-за более высоких цен, в то время как доля рынка за квартал немного увеличилась. Прибыль сегмента женского ухода снизилась на 3,7 миллиона долларов, что было вызвано вышеупомянутыми ограничениями в цепочке поставок и увеличением расходов на товары и транспортировку.
Финансовый прогноз на Весь 2022 Финансовый год
Компания обновляет свои ранее предоставленные прогнозные допущения на 2022 финансовый год, чтобы отразить влияние результатов второго квартала финансового года и прогнозируемого увеличения инфляции затрат.
* В 2022 финансовом году Компания планирует предпринять конкретные действия по укреплению своей операционной модели, упрощению организации и повышению эффективности и производительности производства и цепочки поставок. В результате этих действий Компания ожидает единовременных расходов в размере примерно 15 миллионов долларов, включая 5,9 миллиона долларов, понесенных за первые шесть месяцев 2022 финансового года.
Информация о веб-трансляции
В связи с этим объявлением Компания проведет телефонную конференцию с инвесторами, которая начнется сегодня в 8:00 утра по восточному времени. Все заинтересованные стороны могут получить доступ к прямой трансляции этой телефонной конференции по адресу www.edgewell.com , на вкладках "Инвесторы" и "Новости и события" или по следующей ссылке: http://ir.edgewell.com/news-and-events/events
Для тех, кто не сможет принять участие во время прямой трансляции, повтор будет доступен на www.edgewell.com , на вкладках "Инвесторы", "Финансовые отчеты" и "Квартальная прибыль".
Edgewell - ведущая компания по производству потребительских товаров pure-play с привлекательным диверсифицированным портфелем известных брендов, таких как мужские и женские бритвенные системы Schick®, Wilkinson Sword® и Billie®, а также одноразовые бритвы; средства для бритья Edge и Skintimate®; Playtex®, Stayfree®, Carefree® и o.b.® средства по уходу за женщинами; Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack Black® и CREMO® средства по уходу за солнцем и кожей; и продукты Wet Ones®. Компания имеет широкое глобальное присутствие и работает на более чем 50 рынках, включая США, Канаду, Мексику, Германию, Японию, Великобританию и Австралию, с примерно 6900 сотрудниками по всему миру.
Прогнозные Заявления. Этот документ содержит "прогнозные заявления" по смыслу Раздела 27A Закона о ценных бумагах 1933 года и Раздела 21E Закона об обмене ценными бумагами 1934 года. Вы не должны чрезмерно полагаться на эти заявления. Прогнозные заявления обычно можно идентифицировать с помощью таких слов или фраз, как "полагать", "ожидать", "ожидать", "предвидеть", "может", "мог бы", "намереваться", "убеждение", "оценка", "план", "цель,""прогнозировать", "вероятно", "будет", "должен", "прогноз", "прогноз" или другие подобные слова или фразы. Эти заявления не основаны на исторических фактах, а вместо этого отражают ожидания, оценки или прогнозы Компании в отношении будущих результатов или событий, включая, помимо прочего, будущие доходы и результаты деятельности Edgewell или любого из ее предприятий, а также интеграцию приобретения Billie и ожидаемые выгоды от этой сделки, включая рост возможности и экономия средств. Многие факторы, находящиеся вне нашего контроля, могут повлиять на реализацию этих оценок. Эти заявления не являются гарантией эффективности и по своей сути подвержены известным и неизвестным рискам, неопределенностям и допущениям, которые трудно предсказать и которые могут привести к тому, что фактические результаты Компании будут существенно отличаться от тех, которые указаны в этих заявлениях. Компания не может заверить вас в том, что какие-либо из ее ожиданий, оценок или прогнозов будут достигнуты. Заявления прогнозного характера, включенные в этот документ, сделаны только на дату этого документа, и Компания отказывается от каких-либо обязательств по публичному обновлению любого заявления прогнозного характера для отражения последующих событий или обстоятельств, за исключением случаев, предусмотренных законом. Вы не должны чрезмерно полагаться на эти заявления.
Кроме того, другие риски и неопределенности, которые в настоящее время неизвестны Компании или которые она в настоящее время считает несущественными, могут существенно повлиять на точность любых таких прогнозных заявлений. Риски и неопределенности включают те, которые время от времени подробно описываются в общедоступных документах Компании, в том числе в пункте 1А. Факторы риска Части I Годового отчета Компании по форме 10-K, поданного в Комиссию по ценным бумагам и биржам ("SEC") 19 ноября 2021 года.
Финансовые показатели, Не относящиеся к ОПБУ. В то время как Компания отчитывается о финансовых результатах в соответствии с общепринятыми принципами бухгалтерского учета ("GAAP") в США, это обсуждение также включает показатели, не относящиеся к GAAP. Эти показатели, не относящиеся к GAAP, называются "скорректированными" или "органическими" и исключают такие статьи, как затраты на реструктуризацию, затраты на приобретение и интеграцию, а также нестандартные статьи. Выверка показателей, не относящихся к GAAP, включая выверку показателей, связанных с финансовыми перспективами Компании на 2022 финансовый год, включена в Примечания к Сокращенной консолидированной финансовой отчетности, прилагаемой к настоящему выпуску.
Эта информация, не относящаяся к GAAP, предоставляется в качестве дополнения, а не в качестве замены или превосходства показателей финансовых результатов, подготовленных в соответствии с GAAP. Компания использует эту информацию, не относящуюся к GAAP, внутри компании для принятия операционных решений и считает, что она полезна для инвесторов, поскольку позволяет проводить более значимые сравнения текущих операционных результатов от периода к периоду. Эта информация также может быть использована для проведения анализа и лучшего выявления операционных тенденций, которые в противном случае могут быть замаскированы или искажены типами исключаемых элементов. Эта информация, не относящаяся к GAAP, является компонентом при определении поощрительной компенсации руководства. Наконец, Компания считает, что эта информация обеспечивает более высокую степень прозрачности. Ниже приводится дополнительная информация о показателях Компании, не относящихся к GAAP:
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data) |
|||||||
Quarter Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net sales |
$ 547.7 |
$ 519.3 |
$ 1,011.0 |
$ 970.4 |
|||
Cost of products sold |
317.6 |
277.6 |
591.0 |
535.4 |
|||
Gross profit |
230.1 |
241.7 |
420.0 |
435.0 |
|||
Selling, general and administrative expense |
101.3 |
93.4 |
198.2 |
186.5 |
|||
Advertising and sales promotion expense |
69.9 |
68.4 |
116.1 |
109.6 |
|||
Research and development expense |
13.7 |
14.3 |
26.5 |
28.0 |
|||
Restructuring charges |
3.5 |
2.7 |
5.7 |
6.4 |
|||
Operating income |
41.7 |
62.9 |
73.5 |
104.5 |
|||
Interest expense associated with debt |
18.0 |
17.3 |
35.3 |
34.7 |
|||
Cost of early retirement of long-term debt |
— |
26.1 |
— |
26.1 |
|||
Other income, net |
(3.4) |
— |
(5.1) |
(1.0) |
|||
Earnings before income taxes |
27.1 |
19.5 |
43.3 |
44.7 |
|||
Income tax provision |
3.9 |
5.1 |
8.9 |
12.6 |
|||
Net earnings |
$ 23.2 |
$ 14.4 |
$ 34.4 |
$ 32.1 |
|||
Earnings per share: |
|||||||
Basic net earnings per share |
0.43 |
0.26 |
0.64 |
0.59 |
|||
Diluted net earnings per diluted share |
0.43 |
0.26 |
0.63 |
0.58 |
|||
Weighted-average shares outstanding: |
|||||||
Basic |
53.6 |
54.3 |
54.0 |
54.4 |
|||
Diluted |
54.3 |
54.9 |
54.6 |
54.9 |
|||
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions) |
|||
March 31, |
September 30, |
||
Assets |
|||
Current assets |
|||
Cash and cash equivalents |
$ 188.1 |
$ 479.2 |
|
Trade receivables, less allowance for doubtful accounts |
183.8 |
150.7 |
|
Inventories |
429.1 |
345.7 |
|
Other current assets |
167.7 |
160.1 |
|
Total current assets |
968.7 |
1,135.7 |
|
Property, plant and equipment, net |
355.4 |
362.6 |
|
Goodwill |
1,340.6 |
1,162.8 |
|
Other intangible assets, net |
1,024.2 |
906.4 |
|
Other assets |
104.4 |
107.1 |
|
Total assets |
$ 3,793.3 |
$ 3,674.6 |
|
Liabilities and Shareholders' Equity |
|||
Current liabilities |
|||
Notes payable |
25.8 |
26.5 |
|
Accounts payable |
224.7 |
209.5 |
|
Other current liabilities |
293.7 |
300.8 |
|
Total current liabilities |
544.2 |
536.8 |
|
Long-term debt |
1,414.3 |
1,234.2 |
|
Deferred income tax liabilities |
139.1 |
129.0 |
|
Other liabilities |
180.2 |
190.3 |
|
Total liabilities |
2,277.8 |
2,090.3 |
|
Shareholders' equity |
|||
Common shares |
0.7 |
0.7 |
|
Additional paid-in capital |
1,597.2 |
1,631.1 |
|
Retained earnings |
883.5 |
865.7 |
|
Common shares in treasury at cost |
(814.6) |
(776.3) |
|
Accumulated other comprehensive loss |
(151.3) |
(136.9) |
|
Total shareholders' equity |
1,515.5 |
1,584.3 |
|
Total liabilities and shareholders' equity |
$ 3,793.3 |
$ 3,674.6 |
|
See Accompanying Notes. |
EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) |
|||
Six Months Ended |
|||
2022 |
2021 |
||
Cash Flow from Operating Activities |
|||
Net earnings |
$ 34.4 |
$ 32.1 |
|
Depreciation and amortization |
44.6 |
44.4 |
|
Share-based compensation expense |
12.2 |
12.0 |
|
Loss on sale of assets |
0.4 |
0.4 |
|
Deferred compensation payments |
(7.1) |
(8.8) |
|
Deferred income taxes |
(10.5) |
(0.8) |
|
Cost of early retirement of long-term debt |
— |
26.1 |
|
Other, net |
(0.9) |
(1.6) |
|
Changes in operating assets and liabilities |
(113.0) |
(122.6) |
|
Net cash used by operating activities |
(39.9) |
(18.8) |
|
Cash Flow from Investing Activities |
|||
Capital expenditures |
(25.0) |
(22.2) |
|
Acquisition of Billie |
(309.4) |
— |
|
Proceeds from sale of Infant and Pet Care business |
5.0 |
7.5 |
|
Acquisition of Cremo |
— |
(0.3) |
|
Collection of deferred purchase price on accounts receivable sold |
4.7 |
2.2 |
|
Other, net |
(1.0) |
(0.8) |
|
Net cash used by investing activities |
(325.7) |
(13.6) |
|
Cash Flow from Financing Activities |
|||
Cash proceeds from the issuance of Senior Notes due 2029 |
— |
500.0 |
|
Cash payments on Senior Notes due 2022 |
— |
(500.0) |
|
Cash proceeds from debt with original maturities greater than 90 days |
399.0 |
— |
|
Cash payments on debt with original maturities greater than 90 days |
(220.0) |
— |
|
Net increase in debt with original maturities of 90 days or less |
0.7 |
0.7 |
|
Debt issuance costs for Senior Notes due 2029 |
— |
(5.9) |
|
Cost of early retirement of long-term debt |
— |
(26.5) |
|
Dividends to common shareholders |
(16.7) |
(8.4) |
|
Repurchase of shares |
(75.4) |
(9.2) |
|
Net financing (outflow) inflow from the Accounts Receivable Facility |
(0.2) |
0.7 |
|
Employee shares withheld for taxes |
(9.7) |
(3.0) |
|
Other, net |
0.6 |
(0.5) |
|
Net cash from (used by) financing activities |
78.3 |
(52.1) |
|
Effect of exchange rate changes on cash |
(3.8) |
1.9 |
|
Net decrease in cash and cash equivalents |
(291.1) |
(82.6) |
|
Cash and cash equivalents, beginning of period |
479.2 |
364.7 |
|
Cash and cash equivalents, end of period |
$ 188.1 |
$ 282.1 |
|
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 |
|||||||
The Company completed the acquisition of Billie on November 29, 2021. As a result, Net Sales and Segment Profit |
|||||||
Segment net sales and profitability are presented below: |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net Sales |
|||||||
Wet Shave |
$ 305.0 |
$ 292.7 |
$ 591.1 |
$ 571.8 |
|||
Sun and Skin Care |
183.3 |
159.5 |
288.1 |
262.5 |
|||
Feminine Care |
59.4 |
67.1 |
131.8 |
136.1 |
|||
Total net sales |
$ 547.7 |
$ 519.3 |
$ 1,011.0 |
$ 970.4 |
|||
Segment Profit |
|||||||
Wet Shave |
$ 27.6 |
$ 45.9 |
$ 79.1 |
$ 98.5 |
|||
Sun and Skin Care |
42.3 |
36.2 |
46.0 |
41.4 |
|||
Feminine Care |
1.9 |
5.6 |
10.3 |
14.4 |
|||
Total segment profit |
71.8 |
87.7 |
135.4 |
154.3 |
|||
General corporate and other expenses |
(17.2) |
(13.4) |
(28.0) |
(25.5) |
|||
Restructuring and related costs |
(3.7) |
(5.5) |
(5.9) |
(9.9) |
|||
Acquisition and integration costs |
(1.1) |
(0.3) |
(7.1) |
(3.3) |
|||
Value added tax settlement costs |
— |
— |
(3.4) |
— |
|||
Sun Care reformulation costs |
(0.2) |
— |
(3.5) |
— |
|||
Cost of early retirement of long-term debt |
— |
(26.1) |
— |
(26.1) |
|||
Amortization of intangibles |
(7.9) |
(5.6) |
(14.0) |
(11.1) |
|||
Interest and other expenses, net |
(14.6) |
(17.3) |
(30.2) |
(33.7) |
|||
Total earnings before income taxes |
$ 27.1 |
$ 19.5 |
$ 43.3 |
$ 44.7 |
|||
Refer to Note 2 GAAP to Non-GAAP Reconciliations for the income statement location of non-GAAP adjustments to |
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 |
|||||||||||||
Three Months Ended March 31, 2022 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 230.1 |
$ 101.3 |
$ 41.7 |
$ 27.1 |
$ 3.9 |
$ 23.2 |
$ 0.43 |
||||||
Restructuring and related costs |
— |
0.2 |
3.7 |
3.7 |
1.0 |
2.7 |
0.05 |
||||||
Acquisition and integration costs |
0.5 |
0.6 |
1.1 |
1.1 |
0.2 |
0.9 |
0.02 |
||||||
Sun Care reformulation costs |
0.2 |
— |
0.2 |
0.2 |
— |
0.2 |
— |
||||||
Total Adjusted Non-GAAP |
$ 230.8 |
$ 100.5 |
$ 46.7 |
$ 32.1 |
$ 5.1 |
$ 27.0 |
$ 0.50 |
||||||
GAAP as a percent of net sales |
42.0% |
18.5% |
7.6% |
GAAP effective tax rate |
14.4% |
||||||||
Adjusted as a percent of net sales |
42.1% |
18.3% |
8.5% |
Adjusted effective tax rate |
16.0% |
||||||||
Three Months Ended March 31, 2021 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 241.7 |
$ 93.4 |
$ 62.9 |
$ 19.5 |
$ 5.1 |
$ 14.4 |
$ 0.26 |
||||||
Restructuring and related costs |
— |
2.8 |
5.5 |
5.5 |
1.3 |
4.2 |
0.08 |
||||||
Acquisition and integration costs |
— |
0.3 |
0.3 |
0.3 |
0.1 |
0.2 |
— |
||||||
Cost of early retirement of long- |
— |
— |
— |
26.1 |
6.4 |
19.7 |
0.36 |
||||||
Total Adjusted Non-GAAP |
$ 241.7 |
$ 90.3 |
$ 68.7 |
$ 51.4 |
$ 12.9 |
$ 38.5 |
$ 0.70 |
||||||
GAAP as a percent of net sales |
46.6% |
18.0% |
12.1% |
GAAP effective tax rate |
26.6% |
||||||||
Adjusted as a percent of net sales |
46.6% |
17.4% |
13.2% |
Adjusted effective tax rate |
25.3% |
||||||||
Six Months Ended March 31, 2022 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 420.0 |
$ 198.2 |
$ 73.5 |
$ 43.3 |
$ 8.9 |
$ 34.4 |
$ 0.63 |
||||||
Restructuring and related costs |
— |
0.2 |
5.9 |
5.9 |
1.6 |
4.3 |
0.08 |
||||||
Acquisition and integration costs |
0.8 |
6.3 |
7.1 |
7.1 |
0.5 |
6.6 |
0.12 |
||||||
Value added tax settlement costs |
— |
3.4 |
3.4 |
3.4 |
1.1 |
2.3 |
0.04 |
||||||
Sun Care reformulation costs |
3.5 |
— |
3.5 |
3.5 |
0.9 |
2.6 |
0.05 |
||||||
Total Adjusted Non-GAAP |
$ 424.3 |
$ 188.3 |
$ 93.4 |
$ 63.2 |
$ 13.0 |
$ 50.2 |
$ 0.92 |
||||||
GAAP as a percent of net sales |
41.5% |
19.6% |
7.3% |
GAAP effective tax rate |
20.5% |
||||||||
Adjusted as a percent of net sales |
42.0% |
18.6% |
9.2% |
Adjusted effective tax rate |
20.5% |
||||||||
Six Months Ended March 31, 2021 |
|||||||||||||
Gross |
SG&A |
Operating |
EBIT |
Income |
Net |
Diluted |
|||||||
GAAP — Reported |
$ 435.0 |
$ 186.5 |
$ 104.5 |
$ 44.7 |
$ 12.6 |
$ 32.1 |
$ 0.58 |
||||||
Restructuring and related costs |
0.1 |
3.4 |
9.9 |
9.9 |
2.5 |
7.4 |
0.14 |
||||||
Acquisition and integration costs |
1.3 |
2.0 |
3.3 |
3.3 |
0.7 |
2.6 |
0.05 |
||||||
Cost of early retirement of long- |
— |
— |
— |
26.1 |
6.4 |
19.7 |
0.36 |
||||||
Total Adjusted Non-GAAP |
$ 436.4 |
$ 181.1 |
$ 117.7 |
$ 84.0 |
$ 22.2 |
$ 61.8 |
$ 1.13 |
||||||
GAAP as a percent of net sales |
44.8% |
19.2% |
10.8% |
GAAP effective tax rate |
28.4% |
||||||||
Adjusted as a percent of net sales |
45.0% |
18.7% |
12.1% |
Adjusted effective tax rate |
26.5% |
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 |
|||||||||||||||
Net Sales |
|||||||||||||||
Quarter Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Net Sales - Q2 FY21 |
$ 292.7 |
$ 159.5 |
$ 67.1 |
$ 519.3 |
|||||||||||
Organic |
(6.1) |
(2.1)% |
24.8 |
15.5% |
(7.6) |
(11.4)% |
11.1 |
2.1% |
|||||||
Impact of Billie acquisition, net |
27.4 |
9.4% |
— |
—% |
— |
—% |
27.4 |
5.3% |
|||||||
Impact of currency |
(9.0) |
(3.1)% |
(1.0) |
(0.6)% |
(0.1) |
(0.1)% |
(10.1) |
(1.9)% |
|||||||
Net Sales - Q2 FY22 |
$ 305.0 |
4.2% |
$ 183.3 |
14.9% |
$ 59.4 |
(11.5)% |
$ 547.7 |
5.5% |
|||||||
Net Sales |
|||||||||||||||
Six Months Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Net Sales - Q2 FY21 |
$ 571.8 |
$ 262.5 |
$ 136.1 |
$ 970.4 |
|||||||||||
Organic |
(0.1) |
—% |
26.8 |
10.2% |
(4.3) |
(3.2)% |
22.4 |
2.3% |
|||||||
Impact of Billie acquisition, net |
34.2 |
6.0% |
— |
—% |
— |
—% |
34.2 |
3.5% |
|||||||
Impact of currency |
(14.8) |
(2.6)% |
(1.2) |
(0.4)% |
— |
—% |
(16.0) |
(1.6)% |
|||||||
Net Sales - Q2 FY22 |
$ 591.1 |
3.4% |
$ 288.1 |
9.8% |
$ 131.8 |
(3.2)% |
$ 1,011.0 |
4.2% |
|||||||
Organic net sales were unfavorably impacted in fiscal 2022 by the change in classification of sales from third party to |
|||||||||||||||
Segment Profit |
|||||||||||||||
Quarter Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Segment Profit - Q2 FY21 |
$ 45.9 |
$ 36.2 |
$ 5.6 |
$ 87.7 |
|||||||||||
Organic |
(10.9) |
(23.7)% |
6.0 |
16.6% |
(3.7) |
(66.1)% |
(8.6) |
(9.8)% |
|||||||
Impact of Billie acquisition, net |
(5.2) |
(11.3)% |
— |
—% |
— |
—% |
(5.2) |
(5.9)% |
|||||||
Impact of currency |
(2.2) |
(4.9)% |
0.1 |
0.3% |
— |
—% |
(2.1) |
(2.4)% |
|||||||
Segment Profit - Q2 FY22 |
$ 27.6 |
(39.9)% |
$ 42.3 |
16.9% |
$ 1.9 |
(66.1)% |
$ 71.8 |
(18.1)% |
|||||||
Segment Profit |
|||||||||||||||
Six Months Ended March 31, 2022 |
|||||||||||||||
Wet Shave |
Sun and Skin Care |
Feminine Care |
Total |
||||||||||||
Segment Profit - Q2 FY21 |
$ 98.5 |
$ 41.4 |
$ 14.4 |
$ 154.3 |
|||||||||||
Organic |
(7.7) |
(7.8)% |
4.7 |
11.4% |
(4.2) |
(29.2)% |
(7.2) |
(4.7)% |
|||||||
Impact of Billie acquisition, net |
(7.6) |
(7.7)% |
— |
—% |
— |
—% |
(7.6) |
(4.9)% |
|||||||
Impact of currency |
(4.1) |
(4.2)% |
(0.1) |
(0.3)% |
0.1 |
0.7% |
(4.1) |
(2.7)% |
|||||||
Segment Profit - Q2 FY22 |
$ 79.1 |
(19.7)% |
$ 46.0 |
11.1% |
$ 10.3 |
(28.5)% |
$ 135.4 |
(12.3)% |
|||||||
Segment profit will be unfavorably impacted in fiscal 2022 as a result of the Billie acquisition due to timing of profit |
Note 4 - EBITDA |
|||||||
The Company reports financial results on a GAAP and adjusted basis. The table below is used to reconcile Net earnings to |
|||||||
Three Months Ended March 31, |
Six Months Ended March 31, |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net earnings |
$ 23.2 |
$ 14.4 |
$ 34.4 |
$ 32.1 |
|||
Income tax provision |
3.9 |
5.1 |
8.9 |
12.6 |
|||
Interest expense, net |
18.4 |
17.3 |
35.6 |
34.7 |
|||
Depreciation and amortization |
23.2 |
22.2 |
44.6 |
44.4 |
|||
EBITDA |
$ 68.7 |
$ 59.0 |
$ 123.5 |
$ 123.8 |
|||
Restructuring and related costs |
3.7 |
5.5 |
5.9 |
9.9 |
|||
Acquisition and integration costs |
1.1 |
0.3 |
7.1 |
3.3 |
|||
Value added tax settlement costs |
— |
— |
3.4 |
— |
|||
Sun Care reformulation costs |
0.2 |
— |
3.5 |
— |
|||
Cost of early retirement of long-term debt |
— |
26.1 |
— |
26.1 |
|||
Adjusted EBITDA |
$ 73.7 |
$ 90.9 |
$ 143.4 |
$ 163.1 |
Note 5 - Outlook |
||
The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within |
||
Adjusted EPS Outlook |
||
Fiscal 2022 GAAP EPS |
$1.93 - $2.21 |
|
Restructuring and related costs |
approx. |
0.27 |
Acquisition and integration costs |
approx. |
0.17 |
Value added tax settlement costs |
approx. |
0.06 |
Sun Care reformulation costs |
approx. |
0.06 |
Income taxes(1) |
approx. |
(0.11) |
Fiscal 2022 Adjusted EPS Outlook (Non-GAAP) |
$2.38 - $2.66 |
|
(1) Income tax effect of the adjustments to Fiscal 2022 GAAP EPS noted above. |
||
Adjusted EBITDA Outlook |
||
Fiscal 2022 GAAP Net Income |
approx. |
$105 - $120 |
Income tax provision |
approx. |
32 |
Interest expense, net |
approx. |
71 |
Depreciation and amortization |
approx. |
92 |
EBITDA |
approx. |
$300 - $315 |
Restructuring and related costs |
approx. |
15 |
Acquisition and integration costs |
approx. |
9 |
Value added tax settlement costs |
approx. |
3 |
Sun Care reformulation costs |
approx. |
3 |
Fiscal 2022 Adjusted EBITDA |
approx. |
$330 - $345 |
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