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US' Edgewell Personal Care's net sales rise 4.2% in Q3 FY23

07 Aug '23
3 min read
Pic: Edgewell Personal Care/Playtex
Pic: Edgewell Personal Care/Playtex

Insights

  • Edgewell Personal Care's Q3 FY23 results show a 4.2 per cent growth in net sales at $650 million, and a gross profit of $279.7 million, a 16.3 per cent YoY rise.
  • Operating income surged to $85.6 million.
  • The company reported GAAP net earnings of $52.5 million or $1.01 per diluted share.
  • Robust growth was seen across metrics despite minor currency headwinds.
Edgewell Personal Care, a global firm with leading brands in feminine care, has reported a 4.2 per cent increase in net sales for the third quarter of fiscal 2023 (Q3 FY23), reaching $650 million, despite an unfavourable impact of $1.7 million due to currency fluctuations. This robust performance reflects a 4.5 per cent boost in organic net sales, with an 8.7 per cent uptick in international markets and a 2.3 per cent rise in North America.

The increase in organic net sales was primarily driven by enhanced pricing across the board. Meanwhile, the company's gross profit stood at $279.7 million in Q3 FY23, which included a $7.2 million unfavourable impact from currency movements. This figure was a significant improvement from $240.6 million gross profit posted in the previous year.

Gross margin as a percent of net sales was reported at 43 per cent, marking a 440-basis point increase year-on-year (YoY). Even after adjusting, the gross margin still showed a rise of 80-basis points, or 185-basis points when accounting for constant currency, the company said in a press release.

Edgewell's advertising and sales promotion expense for the quarter was $80 million or 12.3 per cent of net sales, a slight decrease from $80.9 million or 13 per cent of net sales in the prior year quarter. Meanwhile, selling, general and administrative expense was $96.3 million or 14.8 per cent of net sales, slightly less as a percentage of sales compared to last year's $92.7 million or 14.9 per cent of net sales.

Operating income for Q3 FY23 came in at $85.6 million, showing a stark rise from $49.9 million in Q3 FY22. When adjusted, operating income showed an 18.8 per cent increase to $83.5 million, or 12.8 per cent of net sales, as compared to $70.3 million, or 11.3 per cent of net sales in the prior year quarter.

The company reported GAAP net earnings of $52.5 million or $1.01 per diluted share in Q3 FY23, a significant jump from $30.5 million or $0.57 per diluted share in Q3 FY22. Adjusted net earnings were $50.8 million or $0.98 per share, compared to $45.8 million or $0.86 per share in the prior year quarter. Adjusted EBITDA was $109.1 million, up from $97.1 million YoY.

In the feminine care segment, including tampons, pads, and liners, net sales marginally decreased by $0.3 million or 0.4 per cent. However, organic net sales remained in-line with the previous year, thanks to higher pricing offsetting lower volumes. Segment profit for this area saw a substantial increase of $5.1 million, with organic segment profit surging by 59.1 per cent to $5.2 million, driven primarily by a higher gross margin.

"Our results this quarter continued to demonstrate the success of our transformation, as we delivered strong organic net sales and earnings per share growth, expanded gross margin, and generated substantial cash," said Rod Little, Edgewell's president and chief executive officer.  "These results reflect the underlying strength of our business, our broad portfolio of consumer centric brands, and the breadth of our global business. Notably, we remain focused on executing against our strategic priorities which position us to deliver sustained growth and value creation."

Fibre2Fashion News Desk (DP)

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