Edgewell Reports 1.9% Sales Growth to $422.8M, Completes $340M Divestiture
Edgewell Personal Care's fiscal Q1 net sales rose 1.9% to $422.8 million on a continuing operations basis, while adjusted EPS was $(0.16), down from $(0.10) a year earlier. The company completed a $340 million divestiture of its Feminine Care business and maintained its full‐year outlook.
1. First Quarter Financial Highlights
On a continuing operations basis, Q1 net sales increased 1.9% to $422.8 million with organic sales down 0.5%, while GAAP diluted EPS was $(0.63) and adjusted EPS was $(0.16).
2. Feminine Care Divestiture
In the quarter the company completed the divestiture of its Feminine Care business for $340 million, which strengthens the balance sheet and is expected to favorably impact annualized results.
3. Operating Performance and Margins
Gross profit declined to $161.0 million with gross margin down 350 basis points to 38.1%, driven by 450 basis points of inflation, tariffs and volume absorption partly offset by 240 basis points of productivity savings; the company also recorded $24.4 million in restructuring charges.
4. Outlook and Guidance
After adjusting for the divestiture impact, the full‐year outlook for continuing operations remains unchanged for sales, adjusted EPS, adjusted EBITDA and free cash flow.