Home / News / US firm Edgewell Personal Care’s net sales surge 3.7% in FY23

US firm Edgewell Personal Care's net sales surge 3.7% in FY23

13 Nov '23

3 min read

Pic: Edgewell Personal Care/Carefree

Insights

Edgewell Personal Care announced a 3.7 per cent rise in fiscal 2023 net sales, reaching $2,251.6 million.
Gross profit increased to $938.4 million.
However, Q4 FY23 saw a slight 0.5 per cent dip in net sales to $534.1 million, with a 1.9 per cent drop in organic sales.
The feminine care segment experienced a 5.7 per cent decrease in Q4 FY23 sales.

Edgewell Personal Care, a leading US-based company in personal care products, has reported net sales of $2,251.6 million in fiscal 2023 (FY23), marking a 3.7 per cent increase from the previous year. This rise includes a net benefit of $12 million, with organic net sales showing a stronger growth of 4.3 per cent. This increase reflects growth across all segments, with international markets rising by 6.2 per cent and North American markets by 3.3 per cent.

The company's gross profit stood at $938.4 million, despite a $33.7 million unfavourable impact from currency movements. This figure is an improvement over the previous year's $879.4 million. Gross margin as a percentage of net sales also increased to 41.7 per cent, up by 120 basis points from the prior year.

Selling, general, and administrative expenses were reported at $409.6 million, which is 18.2 per cent of net sales, slightly higher than the 17.9 per cent of net sales ($389.1 million) in the previous year. Operating income saw a significant rise to $224.6 million, compared to $181.2 million in the prior year. Adjusted operating income also increased by 5.7 per cent to $243.5 million, or 10.8 per cent of net sales, compared to $230.3 million or 10.6 per cent of net sales in the previous year, the company said in a press release.

GAAP net earnings were $112.9 million, or $2.18 per diluted share, an improvement from $98.6 million or $1.84 per diluted share in fiscal 2022.

"For the fiscal, we delivered over 4 per cent 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.

In Q4 FY23, net sales slightly decreased by 0.5 per cent to $534.1 million. Organic net sales decreased by 1.9 per cent, with international markets and North American markets decreasing by 2.2 per cent and 1.8 per cent, respectively. Gross profit for the quarter was $228 million, up from $218.8 million in the prior year's quarter, with gross margin as a percent of net sales at 42.7 per cent, a 190-basis-point increase.

Selling, general, and administrative expenses in Q4 FY23 rose to $112.4 million, or 21 per cent of net sales. Operating income was reported at $51.5 million, with adjusted operating income at $60.8 million, or 11.4 per cent of net sales. GAAP net earnings were $29.5 million, or $0.57 per diluted share.

In the feminine care segment, comprising tampons, pads, and liners, net sales decreased by $4.4 million, or 5.7 per cent, with organic net sales mirroring this decrease. Despite growth in liners, there was a decline in tampons. Segment profit decreased by $0.8 million, or 6.6 per cent, with organic segment profit down by $0.7 million, or 5.8 per cent, due to higher gross profit being offset by increased marketing expenses, the release added.

Fibre2Fashion News Desk (DP)