EPC - Earnings call transcript Q1 2025 | Edgewell Personal Care Company

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Operator

Good day, and welcome to Edgewell's First Quarter 2025 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Chris Gough, Vice President, Investor Relations. Please go ahead.

Chris Gough

Good morning, everyone, and thank you for joining us this morning for Edgewell's First Quarter Fiscal Year 2025 Earnings Call. With me this morning are Rod Little, our President and Chief Executive Officer; Dan Sullivan, our Chief Operating Officer; and Fran Weissman; our Chief Financial Officer. our the first hand highlights, quarter Fran, will off Dan over followed kick XXXX who discuss and to commercial discuss will call outlook. it then to by full Rod year results financial and operational

to via We replay is being available website, www.edgewell.com. This recorded will Q&A. call will and then be transition our for

reflect obligation as or the or events on different except We prospects. These by subject any including required with various Risk Any promotional savings statements. include to our as value, amended SEC. working plans XX, may plans our September Securities statements and future our are inflation, future materially November fluctuations, costs forward-looking this which we future described events, implied any plans XXXX assumptions of statements statements amended on circumstances, by XX, the earnings, such Form for uncertainties, reports Form restructuring caption with costs, annual these in the actions, During and from sales, and for not currency Factors and call, forward-looking launches, maybe current to revise purposes and filed the based XX-Q, or may under be more. Act the impacts acquisitions to expectations Harbor make Reform recent for risks our spending, advertising reflect to related update report assume Private statements year and law. future the our commodity and our to of This developments, provisions metrics, ended changes do and results under and views from expressed statements those of might are in product other capital our risks on new cause to about actual category XXXX, for repositioning These are those return to of capital Safe performance. Litigation forward-looking XX-K and tariffs, to or shareholders XXXX, integrations, quarterly as respect

During financial financial in shown accepted directly accordance certain non-GAAP to this reconciliation the measures comparable non-GAAP These the are call, generally we will GAAP accounting most in our non-GAAP press refer principles. measures not provided of accordance available release as of measures which website. issued measures to earlier is A prepared with with or measures. the not at substitute of Relations today, prepared to, performance as supplement information financial non-GAAP in superior Investor GAAP. a to is a as section This is our

measures trends non-GAAP information provide call business. With with investors the over I'd these believes Rod. to on management underlying the that, valuable However, like to of turn our

Rod Little

the fiscal Good year strengthening to Thank than Organic quarter, our ready solid volatile joining for Fran but environment dollar. to were results recent new in last slightly everyone, her us down uncertain, earnings more an this trend. expanded a despite the sequential CFO largely that you, morning. with call. increasingly U.S. well, first is Fran with sales has knows the pleased our improvement driven this 'XX by net become delivered morning, our business expectations versus line our over external of thanks on Weissman, Chris. for and welcome quarter and I'm call responsibilities. We more and

discuss brand year-over-year operational growth Importantly, macro constant margin Care, Fran reflects deliver in Sun the the also markets, served quarter, adjusted was saw portfolio. Gross do our share within again an performance, outlook per current year as driving still in Grooming, our as provided for expect It in staying worse full than the EBITDA organic the at and disciplined Right we This investments Wet controlling international to assumes Despite later and on and and previously headwinds, the we catalyst incremental growth cost conditions management Shave, of earnings net Win for materially planned adjusted continued and across controllables. important gains currency to in with not ranges. sales, call, foreign investments. continued will in strong our focus our the global exchange deteriorate. and

Importantly, as the we priorities in quarter our gives in for believe business. Putting our and full further underpin themes X ongoing performance us demonstrates broader our that the context performance important against year. confidence broader are our broader traction outlook of there well first our the as to our strategy, efforts to-date, performance strategic transform the

line we First, compete expectations. with mostly the categories remain in in trends our are consumption and healthy

Though have said a competitive mostly and result remains remain Having behavior. in growth material non-discretionary, in highly related promotional. use categories no Wet sentiment and see Consumers hesitancy, the to gains positive. spend our resilient everyday that, and cautious. be nor experiential which we are many purchasing While markets same care the of of volume Shave continues in personal and signs price, fem mostly returned time remain at trade organic down categories, U.S. to and consumer travel

markets. Importantly, we have across similar a no material indications trend of international

actively our and support expansion, margin even gross stance We productivity on of more important outsized remain in an participate investment as commercially. our brands needed to it savings will in to ability as our continue shelf, unlocks making

international relates of discuss, performance our further our Dan underlying I The results to growth. extremely the make top comment the with our will business. of am drivers second line as here. I reinforce And would pleased our durability

the absence XXth international quarters, not of for in as organic the growth, visible, X%. of was data, X-year last consecutive delivering readily scanner CAGR nearly the our success but weekly XX of first is quarter fifth quarter a the and course, in Of sales

and in like strong, also markets Care Mexico, especially and Wet growth leading Shave Importantly, were markets high also results like Sun share China. Australia

a increasingly position confident seeing Now never initial rebuilt of representing the our platform. benefits we we've business. Relatedly, in XX% this are I'm business, our of global been in the and internationally, innovation of future better also

centric, year the of organizational appropriate consumer a locally to committed necessary these more steps to objectives. driven product deliver we much and I've model, shared, new taking As last on development we spent are

work new some are products having bringing focused we're locally impact. While market, faster of better, insights already in consumer our which we're an are to and remains, and more informed,

Our contribution Bulldog disruptive this to the forms new strong in formats Australia Sun of FIRST results our penetration launch in supported in quarter Mexico. successful that broadening Schick share of and include highly our Japan, and strong Skin and meaningful from deepen TOKYO range Europe, international gains the in Care and Care

not continues I've and beginning, our we a transformation other. a one the without Third both business be and most committed from will transformation as equally business finally, talented the said to cultural our dependent to on people. are have we

motivated work excellence with environment. Having face efforts best talent attract the and top is our an out highly XXX is ranked, and continues being as our for a key our externally, company team retain to catalyst ability to been of recognized continued perform to strong are #X clearly of mid-sized for Our recently and the in challenging increasingly recognized performance.

begun Business. the a quarter, Dan improvements Spence designed In across to appointment portfolio, pace I announced while and already to role strong performance changes U.S. confirm are portfolio America noted At the I with and business. We've strengthen and and the notable Jess performance. top I'm For organizational desire X equally model, baseline path the in our that team to and saw We're moving will enhance this North both our American operating the operational more our our early share Right opportunity the of Play have North time capabilities in quarter improve better to continue Jess talent accelerating my clarity to excited Right partners. to enterprise about very commercial excited commercial series changes Win profile to with our of we recovery our shortly. Last forward President leadership the in for months, strategic we of U.S. about the are execution. and our past we forward announced market, path the the of in streamline and our the the here. and our connected we've about market. decision making retail for progress.

our portfolio, I'm the and ability have team our plans be improved in I are expect coming and Jess our impact confident will Finally, on bar team's activations brand significantly raising to the over and the quarters. building Jess brand and value in-market as pleased and across and summary, year. our as categories in American move North the with fiscal create continued lot business I'm our quarter, we a we move the forward. In performance in through more stability of broadly expect

controllables, highlights. through winning and love, the consumers I'd committed and our ask Dan products shelf the controlling performance to at success. Our global strategy remain clear remains stay of And we environment our challenging, our macro on online. And with that on to is we our Dan? a now and to take while you the delivering successful like focused execution core teammates operational will ultimately

Daniel Sullivan

Thanks Rod, everyone. good morning and

net than planned, the As as organic a with the operational stronger in U.S. sales solid international across line constant well the businesses Rod expectations, year, start mentioned, brands our was our margins and market this Billie currency solid as in to gross with Cremo share and performance execution, improved

continuing our retailers, share service improving in momentum we of our macro in focus and categories, and are market. to the brands productivity growth strengthening behind levels markets, on drive areas volatile, grew Win to Right under on commercial business environment As international our in increasingly to the our with global initiatives, focused highly remained maintaining that execution direct enterprise drive efficiency partnerships and gains and executing with control,

that are quarter right healthy. demonstrated innovation our have is largely pipeline categories we the our This and place, in leadership broader robust,

This our priority to commitment and we in provide believe enterprise. and of better organizational forward, all as role will value of that's that execute we be a relentless do. operational unlock we for strategic and why executional excellence move we as and forward my commercial going continue priorities is is me across COO, a underpinning we everything the execution, deep it will further to key As on in

international Shave of Japan. International better Right rate highlights the Wet quarter. to price as Fem operational decreased reflecting to America surge growth volume strong Now move than with expectations. markets businesses: commercial trend, and X% line slightly declined a last period both our Organic was and about North our was Care. growth year's Growth was X.X%, This in by in X%, expected, in in globally. than year Play sales our Right ahead lapped let's net gains. international Win related in sales Organic we in the largely to growth slightly the driven to declines and of ago, driven businesses and for holiday by orders lower

me quarter. share, with range America, Cremo across organic Grooming market Billie retail and was shave execution. The growing the saw We a an offer strongest portfolio Before discussing additional also and segment of basis highlights strength growth stands nationally. in Walmart, double-digit brands. gaining a let specifics, a good was the in Cremo with by quarter, organic now share at in some and driven particular the growth share our points category the segment commercial and XX%, expansion brand XX% over in In North XX% XXX women's

Importantly, in in women's is consumer a of brand sign noteworthy its now dollars retailer #X as the in brand and the is business clear top loyalty, the landscape. across growing strength of refills in Billie refills units #X X

the share performance, terms market we Cremo while share results saw performance organic Fem year. line behind delivered X% in the discussed, largely and for accelerated trends. Internationally, growth as XX% with of portfolio our cycling growth and Care U.S. solid Shave The last business remainder we growth gains for Billie brand. of In were in meaningful Grooming

achieved last to and the fifth consecutive across XXth strong August Commercial our our has its Japan our Schick Hydro this of was and quarter were XXX% As quickly growth, First since a very out launch year, both almost of in its strong, markets scaled was share XX. execution brand results. in distribution to the and in organic targeted and innovation activation Rod of X the last has category. core mentioned,

men's organic our in year Our brand were Grooming in Hydro a in Aldi be new relaunch and brand Europe, key Sun as category and across the brand the Lidl. Market across share sits #X Grooming part business fueled continues where including growth X Wilkinson across now best Care disruptive retailers, where solid, business Australia also product meaningful including brands noteworthy Bulldog the private competitive performance category, U.K. gains double-digit and Europe, to both was the of with posting good by in in awarded Razor the X in Mexico, many we in grooming international advantage, remains honors, Sword the and new the

Systems. Women's North innovation Shave to America, just activation. gains turning Wet organic to with both highly continued promotional Shave and Now and Systems continued Wet be basis X.X%. declines weakening and than performance. Shave the category by in in grew in-market quarter, XX disposables sales negatively In and strong Systems ] and Women's our volume X%, more health, [ net Men's by International impacted competitive U.S. impactful a dynamics razors Preps in net were was were sales segment category Consumption declined and X%, Wet Shave gains, heightened down offset down the points in reflecting the declines channel. price as under and with blades direct channel continue in organic environment.

was season noteworthy most sun Our Care and market Wet and gains our quarter, growth volume net in better each most Body stock as sales approximately with XX%. consistent markets, Fem collection largely where the penetration continued was growth U.S. category, fueled our pads, Gap] in to X%, pads lowest. Care from Carefree. Consumption Mexico. Grooming in categories performance quarter. in consumption X% sales Cremo, the driven finally, operational down Care. much of in Skin was In decreased lightest where increased and performance about to excellence cost of a in for XX-week share sales organic XXX approximately reflects share were basis quarter. Productivity increased accretion the savings net sales currency both broader Overall, compete conversion XX%, continuation market in positions. points Sun highly Stayfree basis saw the net across e-commerce and and X.X% we market from notably XX points programs, XX paired of promotional. And improvements driven in what and provided by the mostly in from XX%. was In global quarter, savings, the slightly. turning strong our margin organic plant down category stock improved and XX% decline our our The and X% X the led and and basis is tailwinds to and continues organic national constant up of net business, share mentioned by growth is we value X% XX% Ones' sourcing with we of organic brand including in share our levels realized international our the Australia efforts. as approximately respectively. gross ramp meaningful by the increased up remains consumption points, with in down growth our strengths, rollout in [Audio indirect Productivity savings sales quarter increased tampons category the mostly our though year. liners, XXX net service labor full organic led sales approximately trends. Sun automation positions, Care were and broader were Billie's a with be QX was to efficiency In sales the increased by by the and

last supply fill also rates across saw challenges and we unit Skin the gains, markets, referenced Grooming, addressed Preps and service meaningful businesses. above and in categories quarter most levels Importantly, delivered target our

Lastly, the Northern the supply positions markets. prepare and as season in Latin critical U.S. in-stock sun very we for and we pleased American levels our with were

labor inflationary While on driven continue modest largely front. material change our cannot in full there same to inflation more pressures, we expectations see is and FX said for modest be commodities, year. The some the to the increases by no

point the quarter gross currency Given was basis, of basis gross year an against a expected be incremental major XX a margin. On now by to basis incremental points significant an FX most in impacted the headwind dollar is to currencies, margin full of strengthening negatively XX headwinds.

in a the challenging that more I'm pleased certainly the in progress operating are external of areas control, for factors we're direct our the make environment. these business with So while making

will and proactive, to executing and our the forward, with lead be strategies to business and of prioritize and elements act continue Going we on discipline operational durable urgency focusing value creation. broader the growth will that

full over let year turn outlook. financial it and our Now the to me Fran, results to the quarter discuss for

Francesca Weissman

morning, here months Good Dan. excited to in many new Thank and I of to in forward to you and you, know the getting look role ahead. everyone. my weeks be I'm

quarter, review of updated jump first Now a the by quick followed fiscal outlook our for let's 'XX. into

net sale were points and Overall, last of SG&A decreased net which price and favorable Rate Wet Fem approximately XXX $XX promotions entirely increased in of basis the of North in due approximately As price to inflation in International sales quarter. Adjusted outside lower points, increase higher unfavorable XX was was approximately offset points mix organic Shave. Adjusted by to exceeding last Adjusted bad expense, costs increased We growth from currency points constant year. unfavorable expenses by XX services debt X.X% in basis expectations. previously lower than in and of compensation by were basis America, gross core impacted by margin lower rate currency. people the of versus of XX.X% by net from due productivity up offset was offset margin rate our Care driven headwinds. A&P savings, million sales, currencies, more lower net XX.X% Adjusted of other XXX and volume year. operating up points incentive approximately X% almost discussed, $XX sales X.X%. were impacts. year. income million points of gains, a basis X% XX of growth sales, basis to absorption, and compared decreased was both basis volume basis points, last XXX points, and impact XX operating net volumes and decreased basis XX decline realized but partially

million earnings an in $X.XX. 'XX, of the Currency had per inclusive to profit compared constant the adjusted currency year. Adjusted accretion. GAAP earnings Importantly, of compared unfavorable inventory constant seasonal drove operating in of Shifts first to flat year. within ended brand share prior other in $X.XX of EBITDA for prior We quarter X.Xx. In adjusted the currency, use unfavorable gross by cash was of movements million fiscal and last share impact increased quarter, in to were and of flat $X.XX on our and driven in impact, cash income million incremental credit hedge per prior period. prior the were the due compared used balance share the $XX earnings margin adjusted repurchases share $XXX net was remeasurement quarter. basis, and in sheet hand, were quarter, investments, was to operating builds $X.XX, leverage as At At to currency share access of to net was a higher versus to cash loss by translational million $XX.X nearly a flat $XX.X cash flow million. year. Net quarter, million undrawn profit losses million our approximately quarter despite currency, totaled EBITDA currency diluted on $XXX.X anticipated margin per constant due to expense. headwinds in the $XXX earnings year-over-year debt per adjusted our strong ratio and million facility, seasonality, year an $XX portion with to the the $XX.X activities year the

We returned $X.XX $XX In another to million our quarter. share during continued quarter. total, declared shareholders approximately we of for dividend the dividend per payout and quarterly the cash first

fiscal for outlook our to turning 'XX. Now

on we with underlying our provided continue outlook deliver execute As are and Rod fundamentals we place in mentioned to and our to previously strong in operational performance Dan ranges. quarter, the and pleased have earlier,

outlook. a such, our markets. currency essentially the compared However, year we have our from reflect ago. our outlook to On currency movements, a impact as updated the the And challenging, to quarter full remains basis, unfavorable across outlook for currency constant current of prior unchanged particularly primarily is environment macro

in organic range year, net of fiscal provided growth to sales anticipate the to previously be For X%. we the X% still

negatively a now XX assumptions ahead, by Looking second sales expectation approximately an orders X%, positive basis, is prior of are in basis growth expected versus impact quarter. On our shift XXX reflecting expected to impact. our a Sun currency basis third reported reported Care quarter points points for into now

points, point adjusted points basis basis in now of While constant a a full our of expect of XX XX XX accretion FX is year gross we headwinds, increase inclusive our margin margin basis outlook points basis currency than unchanged, gross for basis worse XX previous on outlook.

Our now Adjusted our to including of headwinds, now $X.XX EBITDA basis, net versus year, the headwinds respective towards be million be FX end towards our favorable XX% are in partly anticipated a essentially end increase On headwinds, to line expectations improved $XXX of for outlook. Adjusted expected outlook. the the to earnings share of be of the to slightly $X.XX currency fiscal million range, outlook our higher contemplated towards to EBITDA of the slightly to our lower inclusive HX and lower essentially million expect to FX now unchanged. per adjusted expected of offset $XX adjusted constant our inclusive pension now $X.XX also currency in ranges, HX our of are of $X.XX the generated is be through approximately approximately headwinds a and approximately are earnings previous range, EPS revised $XX of incremental we by $XXX million true-up. the below half end our expectations, lower second in flowing prior currency than prior items, versus outlook their phasing per outlook share an the outlook. Due currency

release, As does outlined tariffs U.S. from our their reflect outlook evolving nature. rapidly or this not earnings retaliatory given potential in the impact

to For information this the refer operator, like release to to related the session. now the our the call fiscal outlook, over I turn press morning. And would earlier I'd issued you to 'XX more Q&A we for that

Operator

The from Barclays. Instructions] Kate with [Operator today comes first Grafstein question

Katie Grafstein

like there's So the and another you've quarter, But about do. it Fem to some talked took back and still brand work Care the and this Stayfree consolidating sales portfolio simplifying portfolio. with seems Carefree step

little this maybe spring if could and resets around? the so time about business a why So talk you still help will just the is bit if weak,

Rod Little

and in the if category driven look, Care the Fem and most that's where quarter, at on is is, category in overall, the recent it's So look the moment. at healthy pads growth challenged by we're the most you being where

back and to ago, step the X you go pads if our look master back months so or Carefree consolidate we and liners so, under brand. And

had And being base Are pads. So had making the taking longer we Stayfree transition to in pads are. we it's consumers we Carefree today Absolutely, Stayfree don't have anticipated we progress? we from that. shipped, than into us and

So is if expected, as we're convert we're throughout in can, you Playtex performed slightly continue. want pads. improve Dan, we Sport expected. say, we see we on nothing here year, compares. weaker That's that story. Final results will to as performed you Liners our thing from the the sequentially from comment I'll will easier else if to you journey. as go work And then doing the and consumers

So here. anything. I we you've get don't think better if I Dan, know from had But

Daniel Sullivan

Carefree's I only with we're performance. pleased Yes, add would actually

actual we So terms in liners, pads. saw saw we're low itself. growth the We in mid-single-digit brand seeing here of in single-digit growth traction

We'll and As continue takes is in the along. bringing line late that quarter. this what marketing Rod in activate QX. We is the pointed the above the challenge, out, time, certainly consumer did Stayfree

will it time. remains, work the So take

that's which have think focused. I performance, the and on, we're seeing the where consumer, work helpful. on which we'll of actually traction we remains Stayfree to sort stay But Carefree obviously separate is

Operator

Chris The next Wells Fargo. Carey question with comes from

Christopher Carey

going seeing can know, It's in those performance? to and start just I context are difficult, of difficult rest of, businesses acceleration acceleration atypically embedded your atypically you guess the the Shave about business make been be cycle, the And performance, when that I current are that to businesses of if you sort that to ask context going challenged performance? from to from businesses that that of lap really Can the thinking some transition, some this but start transition, Care that collection the doesn't if Sun thoughts. start this, encounter, when standpoint that those Prep lap here. here. get do or sense, to will, beyond or atypically, you curious I a seeing businesses for what your on maybe the you that's provide that have embedding X-year then are negative And reframe

Rod Little

into as we the think get compares. when I to of half it's, primarily Yes. is the Look, have we it's better year, start second

the had plant last fire If supply was manufacturing Ones in last the happening you about we think issues Wet chain for our fall. year,

so were as lap come that, that quarter back. finished. back in we we start XX% we come Ones up to Ones And seeing mode. Wet already production just rate full as We're Wet in and the on

and So in Wet online Ones' a good relatively spot. back

Cremo some those and some had the lap where Edge half into this as we'll start constraint, we back of the periods areas then you year. of If look those we again at to fiscal and into get

had delayed So Care That's summer. I out into happen had we've the of summer. actually one mentioned didn't And last earlier. Kate's the where reset, is, one question March issues Fem the was in February, year then we a planogram which targeted until

us QX And sequentially But you see go and as in QX so, of compares this year. you'll the here, I think like-for-like improve. easiest and more compares are really

Daniel Sullivan

of said Chris, just have and mid-single-digits year at we for up, We quarter only still sight to business would that to the ladder And of we growing XXXX. add, continue last back our XX% thing that. Yes. is line to the fiscal I expect a

business And our that expectation and XX% of is that, that's up remember, Win our to grow of our portfolio. XXXX for still will Right Now global made international mid-single-digits.

Christopher Carey

Okay.

orders, believe. Can shift Sun I on You mentioned you some in expand that, Care please?

Rod Little

is at. big there's think resets. And I'm quarter, was of out planning some was at earlier, what year I more a a weeks into but a we a X Easter just Yes, those second Easter driver there looking Easter was ahead year from of as profile mean basis, you this driver the single had and it, into shipments look it that where driver couple later things, get is you last here as big timing. a mid-April there's around I it

Daniel Sullivan

you Yes. Fem. And said just to be clear,

was out I That's think as Rod we you answering share. Sun. an Sun, order meant what because called

Christopher Carey

the If meant I Fem Care I said business. Care, Sun

Daniel Sullivan

remember I look, Care. to have So yes, between happens And XX% and we course April the of no, season's consumption Sun it's think, of just September.

initiated go our we U.S. shipments season the of in profile. guide on first We're always whether in back week So in late November. bullish tough or as we were here as March the April, when to in

order some phase. Just

Rod Little

Chris. looking week look and And with and I'll down at the and Board some We add data were great. Florida last a the the shelf out shelf in point, formats

at are, place an standpoint for it where weather's was at it Florida We in this from We better wet of than rainy And and South activation down at year. the already I was the really point this good point season. last this right year, think, most about feel that.

of So in here what But about seen excited the point. it's start, the think couple to months. Dan's I we're early early we've

Operator

The next James. question comes from with Olivia Raymond Tong

Olivia Tong Cheang

much originally you a for anticipated. year than you FX this is hit bigger obviously had

you So that talk have pricing planned? about that? some the are you If offsets can evaluating of or plans, any you've

Daniel Sullivan

Olivia, I'm sorry, muddled. was repeat Could a the you question? it's Dan. bit it

Olivia Tong Cheang

it's Sure. was question bigger and obviously this hit My around FX a year.

you incremental have to if -- any have categories? plans pricing, you that, if are or the any the for potentially offset some pricing evaluating what just So plans in of

Daniel Sullivan

and a it hit of that Yes, in that. discussed FX heavier look, a is year. for quarter, full for we bit flowed the the us We through

back November. from headwinds certainly FX when spoke increased So in the we have

lower end within to guide of profit. ranges the our held original we've Now the on

business. we Doesn't was pricing the in how for look, yes, XXXX planned solve reconsider. mean as that, our we can't that far As executed we have

in us while course, margin. we in of the It in on And of then do operational basis for tailwind will D&A, good are of are how in most hygiene typically the terms XXX was to saw sure actually well, I push and trade areas healthy a to quarter, go which team's managed the going we the around think the delivered always a productivity dollars Mix make management savings is is points side, be course, productivity first revenue are for optimized. more. to you effective, that just we promotional quarter.

So continue that know look don't There's a not committing either of factors and all at to would of at But the going price tariff otherwise. I one levers. team those. now, to will this I right say lot in point.

We firm. but say we it, are at that certainly today looking is would nothing

Rod Little

is And cut we're in. a We're I one would add to to as to way going not leaned Olivia, our stay going to thing investment this. do offset brand

us right the operationally as we to have coming, campaigns, we're we start activation only to we sets quarter, out the our in thing saw And back fiscal you to like we've the We in keep As the look to success invested and like not because 'XX. in we what the of brands. supporting do. that half for in that think going up of that's year, the

And so, going an I do. point not of that's important to we're what think

Olivia Tong Cheang

just Got number for it. year, understand, then And planogram reasons some Fem been there following Care, have time, summer up on last been winter from but challenged for that. know, to quite a of it's the you and different delayed

that confidence consolidation think brand this what the the plan that right that you gives you can, plan as this So the and does the you about is for for of stabilize the business? year year, help master

Rod Little

us a So we've I fact starts a choppy, years healthy right? and noise demand to a that printed got inability category, very behind being spikes, of now. category, couple lot think. around of with demand supply it the spikes, Olivia, around results against that's the the after consumption in those data

I that would is segments, about stable, We've a category so X growing. we've call our pads, tampons. got liners, operating it talked traditionally And normal

one those. of happening We have of each good in to sight line what's

good our I feel we've about. We'll the plans, about sequential year. and the think execution we talked the as improvement see for

growth it at what the or we've or that below, think part and sight makes category whether, we're from got of us not lap line I so required feel good slightly easier gets to what's right And here. is of rate about just

Operator

Peter next The from comes with question UBS. Grom

Peter Grom

I the on this, outlook? the if having missed just organic second is Chris's growth of Maybe and an top on can sales shift timing just maybe big this here. quarter from you maybe you specifically the impact know, question, a few quantify on apologize And then but just to line I how

just, you the in versus here? I'm to evolving trying here the doing you as U.S. international to would that some at improvement I masks hear the from data completely we scanner And seeing what a U.S. guess look weekly you is given U.S.? expect growth are just what strong company the as international I performance. But how So whole the understand data, see

Rod Little

XX% Yes. available read. what's obviously XX% our Peter, business. within that XX% to data of this XX% you in U.S. the look see, scanner is at to to we It's

business. it's important of right. the a It's every it's it's out But than more and piece overall total. roughly the small a of So there week third piece, relatively global an

sequential see improvement to in expect results. American We North our

Win to see strength here in earlier, I mid-single-digits We're the we business, in organic in continue going have think U.S. we categories we're go in international, went continue it and growth to minus international the America. here the to and I think we see to our Dan from domestically going year minus in mentioned And Right XX% the X% QX. of between as to business X% to in across improvement QX North

it's of to and have good growth got question that a of year. Related to had think initially. It's Sun a the level I'll here good the to just territory, Care guided we've piece to successful mechanical a for be quarterly and timing, not but we back from balance confidence we'll line from So how we that happening of the what sight flip that, Dan, the phasing. I of be execution's in

Daniel Sullivan

Yes.

for we've QX So our down our of thinking taken to end lower outlook. the

X.X X% thinking. it That's call what originally from is contemplated. our X.X, So we down growth

So if it as it $X size impact slides $X the million, in I range, that million would XQ. into I were to put an now

we to growth, here, across see year. the we the want organic always growth to a other consumption this contemplated growth double-digit saw grooming and do ladder growth exactly year make the continue quarter we strength sun ago, U.S. to think XX% brand in be last season, literally we quarter. Remember came flat I sequentially improving Billie cycled strongest in back at profiled of off point drivers in you there'll a year profile growth up, QX as coming just underlying international have a there. it our and of Just the season mid-single-digits. last QX The year, we

sequentially is story. improving it So growth a

said, of to into back as range the sight We sort improving, the we organics, on. good line all have ladders a plays that on contemplated that of quarter-over-quarter it, the as of drivers of year Rod and

Operator

comes question Stanley. next from with Morgan Mohsenian The Dara

Dara Mohsenian

it? look just on category pricing. this also about touch think this to a be and understand relative too could from just on the and question, you on Is reinvigorate the pricing wanted landscape you Maybe with but we on a typically standpoint, your internationally. environment year the guys just to FX about as internationally, it offset perspective? substantially? I we relative given just So environment you're start Olivia's to think pricing how with that but forward to the we you're has from then FX particularly Is know look top you muted touched seeing not to Thoughts to promotional should Wanted category pricing industry from line. manage conceptually do Just the and I FX? here, sort how longer-term pricing making decision, to aggressive moved how of it U.S.

Daniel Sullivan

Yes.

plans the back. is What Price So year price. us in let international pricing for U.S. our you me from increases standpoint? take will step outside are taking where is a so a see this entirely of

we You've seen aspects it in, and or in the market not Australia Care leader. Sun are in business. most of also show part we're where shave -- our surprisingly up where leader, Japan for market various Mexico

already. price the price. But all has as from been taken of where bit is So we've well. last outside There of that's U.S. that our a of pricing executed in year plays carryover

So I'll that. pin in put a

right U.S. focus I list earlier, think management, our in much increase. revenue price on itself, mentioned necessarily not now I as is I think more the

intensity a in particularly Fem We Care. level, women's are shave, seeing and in continue in heightened promotional at Fem Care

quite came seasonally, It fall, it's we yet is, that. but mentioned we ease promotional. haven't of it as And category. we and thought perhaps the Rod summer seen out that So a is although healthy still would

are We participating that. in

a out it. we're bit behind what is had so, of Fem levels not promotional getting as a And headwind of within Care on sort shelf. executed it increased also That's

team the affect going opportunistic withstand pricing. is cost be where our market Where a is far right Where that. the do we to the at the leader and another of of is one variables always a, looking with as a have As are we'll FX another that be as opportunity one. price? could thought it'll is as one. lead But Rising our brands Tariffs broader thinking, to we ultimately commercial price. take therefore price? can decision, and the yes,

commercially. earlier And point, into calculus go here we we things ruled these while out. won't said price I also our at of this it to commit All further haven't

Dara Mohsenian

Great. cold the York couple takeaway maybe the up think shipment as Care timing, moving ahead And taking New do position near-term there's from some standpoint season? but but consumer in then step how we summer. and head a we're times. your Obviously here you to pretty Sun back, just peak a into It's today, spring came a

look share, be Sun U.S. business would So helpful. in just pipeline thoughts and you the as around the internationally market Care both innovation at

Rod Little

because Yes, I'll some start right important. that's I for morning, and then Dan flavor, throw international XX on to this degrees in Dara. it my think

we So sun you're North right, the feel about here. we're it is how good set cold really Look, up season. for

all forecast for for have, relatively we've the in optimistic you think sunnier last We be what weather ready think the I to expected. we're warmer we're year And than start. it got look Southeast at I on early patterns and the distribution South, if had we

an with standpoint fun, win. of some we I the new We distribution year about We're set. innovation beach, sport, that's pipeline, we relative look as as know think, really in to really the that. who innovation Tropic and our what with of and active we come. about activations the good go and brands really got competitive we're the based, solid expected. what's think products. Boat here where feel at X the XXX so, U.S. And And Banana look we And we again Hawaiian innovation type outdoor, positioning as from We I coming are. good domestically set, in that outcomes are. feel I we good think at on occasion We're We've

with that a is in driver you domestically business. here the leisure, think only of travel And key look at combined I that not our as and what so, still brands globally, drives be but appears fact that the to U.S. our robust

Dan, good feel think you I internationally. That's so add And perspective. U.S. the I to overall. want

Daniel Sullivan

and units units at single dollars coming we're the And season. share as Sun quarter of international perhaps Mexico terms off for in the best look, we Yes, market share our we won Australia won in We in ready Care up the of heart in of performance. season. dollars in and

holidays fire. bodes other for that well with be restage tourism mineral for thing to the I only and a the retail Week line, then happening you also So has would Banana from would good. is I of break the think in a Mexico ones. tell well which travel, I mentioned And the say going launching as here enter big the super in off then Boat I the Holy destination, sure, we spring and think really we're baby feel which team. been on received us on And really I is leisure, kick the season. was can we the as the well. there's the complete NPD, add we U.S., couple And Rod impactful. before

obviously, good good need in bullish itself. We're So stock position. innovation. but sunshine, season on good distribution We the outcomes, certainly

Operator

question comes Susan Genuity. next Canaccord from with The Anderson

Susan Anderson

how about versus growth. historically I ask the sounds if categories to performing first products like mentioned guess and it's national I doing. It had And XXXX. drive maybe your Maybe did about expansion wanted in you expectations. for Billie Body, you are help then, to could how it talk think I the

still that's works? if in the Just curious

Daniel Sullivan

some we about that and you'll grooming takes activation the total to going have very see in at, much really examples of are Yes. Look, are good threshold, still velocity across some mode. you're where below, some puts above feel Obviously body, portfolio. overall or that

feel we So good. overall,

excited brand launch. support, the the Target behind shopper, Body the we good with as retailer We're getting sees this data begin about point think who's I really really national is we're most and terrific on Wash. a Target, especially connection now most notably gotten

largely performed would, and we'll level. Walmart now we a at the offering bring opening good national expected so And as it to

exciting anything you the add? Rod, would retailer behind a think really I Target launch. really,

Rod Little

of Susan, that. is exactly This I off this. And a and would Billie expansion, healthy a core is shave to be all add brand is adjacency what rock-solid and has just logical business.

count top basis XXX nationally, #X and Billie in points category the having a retailers. X is We volume over #X. refill The across XX just the quarter-on-quarter. volume share increasing the SKU on the despite entire X SKU are #X

as on in that and other that's we So growth go of is this ultimately we're piece there a piece that the shave, that's body building because to really focused is the credentialer driving forward. out the that

as we with with very, a happy So to-date. play very but definitely progress the it's strategy forward Billie, both

Susan Anderson

maybe talk about buying you'd growth? obviously down been help X-year capital then any pretty updated in brand around consider another could M&A potential plans, Billie's segments road. the allocation if just like drive you to any if so successful, And DTC curious thoughts Billie

Daniel Sullivan

buyback look, We've given think prioritizing, it's delevering debt, really a share I think Yes, an good journey question. very what price. about XX-month paydown on undervalued and been is we share a

if right Xx an think shaping done we've assets. so will We right acquisition, end thought we market. our a M&A lot value our difficult remain the now part certainly quite certainly important shy around looked we sure, been efforts at year story, portfolio growth growth for the wouldn't from Susan, We expect but in meaningful levered. portfolio. and and the to good the to that away to would of it hygiene active, in on forward. We've here and be our of We've going always It's

we're months in position. So a, I XX a we're think healthier later, much in

will and be, generation for options mind top of flow We given and ourselves us free M&A here to opportunity. sort certainly functionality continue have of cash for our from pending valuation

Rod Little

know, we relatively, the that good on that's We're get But repurchase which why valuation at, than a capital return it's leaning I in where in get here. repurchase, you in we is we the is can ever the earlier look and can we're year Susan, more convinced now, you return? really have a, a that not lost something with use of think, good always

Operator

further turn in Rod like At to for would the this any are back closing no the Little, to over I remarks. time, there queue. questions conference

Rod Little

can uncertainty Yes, behind stay a forward focused With brands, basics. think focused path Building we're our and brands, thank us, it's investing are in on control. what and you the everybody. we our fundamentals and here. the important of Look, I around our to confident controlling on lot noise

you. you Thank speaking to QX we about results. early then. So talk See May, you with look forward when in we

Operator

The conference has now concluded. Thank you for attending today's presentation.

now disconnect. You may

Edgewell Personal Care (EPC) 10 Feb 252025 Q1 Earnings call transcript