NYSE$EPC

Edgewell Personal Care · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Edgewell's Q2 2023 financial performance was marked by increased net sales and organic growth, driven by strong consumer demand and effective execution.

Edgewell Personal Care announced strong Q2 fiscal 2023 results, featuring a 9.3% increase in net sales and an 11.4% rise in organic net sales. The company's performance was driven by growth across all segments and major geographic regions, reflecting strong consumer demand. Edgewell increased its fiscal year 2023 outlook for organic net sales growth to the high end of the previously provided range.

  • Net sales increased by 9.3% to $598.4 million, with organic net sales up by 11.4%.
  • GAAP diluted EPS was $0.37, compared to $0.43 in the prior year quarter.
  • Adjusted EPS was $0.56, inclusive of a $0.16 unfavorable impact from currency movements, compared to $0.50 in the prior year quarter.
  • The company ended the quarter with $155.2 million in cash on hand and access to an additional $243.1 million revolving credit facility.

Headline financials

Total Revenue

$598M

Previous: $548M+9.3%
EPS (adj)

$0.56

Previous: $0.50+12.0%
Gross Margin

40.4%

Previous: 42.0%-3.8%
Net Income

$19M

Previous: $23.2M-18.1%
Operating Income

$56.2M

Previous: $41.7M+34.8%
Gross Profit

$242M

Previous: $230M+5.0%
Cash & Equivalents

$155M

Previous: $188M-17.5%
Total Assets

$3.8B

Previous: $3.79B+0.1%
Stock-Based Comp

$6.8M

Previous: $6.7M+1.5%

Revenue & EPS history

Edgewell · Revenue · Quarterly

$598M

Q2 2023+9.3%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Edgewell · $518M total across 2 segments · Q2 2023

  • Wet Shave
    $309M+1.2%
  • Sun and Skin Care
    $210M+14.4%

Forward guidance

The Company is providing the following updated outlook assumptions for fiscal 2023:

Tailwinds

  • Reported net sales are now expected to increase at the high end of the range of 2% to 4%
  • Organic net sales are now expected to increase at the high end of the range of 3% to 5%
  • Gross margin is expected to increase approximately 30-basis points, with margin accretion expected in the second half of the fiscal year
  • Operating margin is expected to increase slightly
  • The EPS outlook reflects the impact of estimated share repurchases

Headwinds

  • Includes an estimated 60-basis point inorganic benefit in net sales from the acquisition of Billie, net of prior year Edgewell sales to Billie and an estimated 115-basis point negative impact from currency movements
  • GAAP EPS now expected to be in the range of $1.80 to $2.00
  • Adjusted EPS expected to be in the range of $2.30 to $2.50
  • Includes an estimated $0.43 EPS unfavorable impact from foreign currency movements
  • Adjusted EBITDA expected to be at the high end of the range of $320 to $335 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+20.1%

Q1 2020

Best reaction

-17.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.2%-13.9%-13.1%
Q1 2026-4.6%+5.5%-4.0%
Q4 2025-2.7%-10.8%-8.0%
Q2 2025-10.2%-4.3%-9.9%
Q1 2025-9.5%-5.8%-2.5%
Q4 2024-0.5%-2.8%+1.1%
Q3 2024-0.2%-0.7%+5.8%
Q2 2024+4.4%+7.9%+3.4%
Q1 2024+5.6%+6.6%+2.8%
Q4 2023-2.5%+1.6%-0.7%
Q3 2023-2.8%-2.1%-2.1%
Q2 2023+1.9%+2.6%-2.0%
Q1 2023+4.7%+5.7%-3.8%
Q4 2022+0.9%+2.8%+3.5%
Q3 2022+2.6%+4.0%-3.9%
Q2 2022-11.8%-10.6%-8.8%
Q1 2022-11.0%-15.1%-17.0%
Q4 2021+13.9%+14.6%+17.2%
Q3 2021+8.0%+8.8%+0.6%
Q2 2021+9.1%+10.4%+13.2%
Q1 2021+0.6%-2.7%+1.5%
Q4 2020+9.2%+13.2%+12.1%
Q3 2020-7.8%-5.0%-1.0%
Q2 2020+11.1%+2.7%+22.6%
Q1 2020+20.1%+10.4%-2.1%
Q4 2019-11.4%-15.5%-13.2%
Q3 2019+7.5%+2.2%+2.8%
Q2 2019-17.0%-15.1%-22.8%
Q1 2019+6.6%+10.0%+9.1%
Q4 2018-9.6%-6.1%-11.6%
Q3 2018+2.8%+2.4%-1.3%
Q2 2018-1.4%+2.2%+5.1%
Q1 2018-4.5%-4.4%+0.8%
Q4 2017-6.5%-5.1%-2.8%
Q3 2017+2.5%+3.3%+2.2%
Q2 2017+5.4%+3.6%+3.5%
Q1 2017-1.4%-1.7%-2.4%
Q4 2016+8.2%+8.7%+1.7%
Q3 2016-5.4%-2.9%-5.9%
Q2 2016-3.7%
Q1 2016-0.2%
Q4 2015-3.0%
Q3 2015+0.4%
Q2 2015+0.9%
Q1 2015-1.6%
Q4 2014-0.0%
Q3 2014-0.3%
Q2 2014+3.6%
Q1 2014-0.6%
Q4 2013+1.4%
Q3 2013-2.5%
Q2 2013+3.8%
Q1 2013+2.8%
Q4 2012+0.0%
Q3 2012-13.5%
Q2 2012-2.2%
Q1 2012+2.3%
Q4 2011-1.7%
Q3 2011+1.0%
Q2 2011+0.5%
Q1 2010+0.3%
Q1 2011+0.1%
Q2 2010+1.5%
Q4 2008+1.5%
Q4 2010+1.5%
Q3 2009+4.3%
Q3 2010+4.3%
Q4 2009+4.3%

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