Q2 2024 Edgewell Personal Care Co Earnings Call Transcript
Key Points
- Edgewell Personal Care Co (EPC) reported strong financial results with a 19% year-over-year adjusted EBITDA growth and over 50% adjusted earnings per share growth, both exceeding expectations.
- The company achieved significant gross margin gains of over 300 basis points, driven by accelerated realization of productivity initiatives and strategic revenue management efforts.
- Edgewell Personal Care Co (EPC) saw a double-digit increase in its right to win portfolio, driven by market-leading Sun Care and Grooming businesses and continued growth across international markets.
- The company successfully executed the relaunch of the Wilkinson Sword brand and experienced organic growth in Japan, contributing to a strong international market performance.
- Edgewell Personal Care Co (EPC) increased operating cash flow by $54 million and invested over $111 million in support of its brands, demonstrating a strong commitment to growth and innovation.
- Organic net sales growth was slight and below expectations, primarily due to challenging performance in the right to play categories in North America.
- In North America, category consumption softened, leading to declines in Wet Shave and Sun Care sales.
- The company faced transitory factors such as the cycling of last year's MPD pipeline fill at Costco and retailer efforts to reduce safety stock levels across Sun Care.
- Wet Shave organic net sales were down 4.5%, with declines in men's and women's systems and preps, reflecting challenges in the drug channel and heightened promotional levels.
- Fem Care organic net sales declined by 12% for the quarter, more than expected, impacted by retailer destocking and executional delays in planogram resets.
Good morning, and welcome to Edgewell's second-quarter fiscal year 2024 earnings call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Chris Gough, Vice President of Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us this morning for Edgewell's second-quarter fiscal year 2024 earnings call. With me this morning, are Rod Little, our President and Chief Executive Officer; and Dan Sullivan, our Chief Financial Officer. Rod will kick off the call then hand it over to Dan to discuss our results and full-year fiscal 2024 outlook before we transition to Q&A. This call is being recorded and will be available for replay via our website, www.edgewell.com.
During the call, we may make statements about our expectations, future plans, and performance. This might include future sales, earnings, advertising
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