EDGEWELL PERSONAL CARE Co
For the period ended Dec 31, 2024. Filed Feb 10, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 10, 2025
EPC$27.99-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001628280-24-035205
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-10.
0001628280-25-004522
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 93 current paragraphs.
51 unchanged; 29 reworded; 13 added; 30 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
First Quarter of Fiscal 2025
Current report
•Net sales in the first quarter of fiscal 2025 decreased $10.5, or 2.1%, to $478.4, as compared to the prior year quarter. Organic net sales decreased $6.5, or 1.3%. Growth in international markets was 2.0%, driven by both price and volume gains, and seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 3.9%, due to declines in Wet Shave and Feminine Care. Globally, by segment, growth in Sun and Skin Care, led by double-digit increases in Wet One’s and Grooming, was offset by declines in Feminine Care and Wet Shave. In aggregate, organic net sales decreased as a result of slightly lower volumes and lower price, due to increased promotional levels.
Current report
For the first quarter of fiscal 2025, net sales were $478.4, a decrease of $10.5, or 2.1%, including a $4.0, or 0.8%, unfavorable impact from currency movements. Organic net sales decreased $6.5, or 1.3%. Growth in international markets was 2.0%, driven by both price and volume gains, and seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 3.9%, due to declines in Wet Shave and Feminine Care. Globally, by segment, growth in Sun and Skin Care, led by double-digit increases in Wet One’s and Grooming, was offset by declines in Feminine Care and Wet Shave. In aggregate, organic net sales decreased as a result of slightly lower volumes and lower price, due to increased promotional levels.
Current report
Restructuring Charges
Current report
Other expense, net
Current report
Other expense, net, was $3.2 in the first quarter of fiscal 2025, including a gain on investment of $0.9, compared to $0.3 in the prior year quarter. The first quarter of 2025. Currency hedge and remeasurements losses were $2.0 million, compared to gains of $1.3 million in the prior year quarter.
Current report
Sun and Skin Care net sales for the first quarter of fiscal 2025 increased $5.2, or 4.5%. Organic net sales increased $5.9, or 5.1%, driven by strong performance in Grooming, led by Cremo and Billie, as well as Wet One’s, partly offset by declines in North America Sun Care.
Current report
Sun and Skin Care segment loss for the first quarter of fiscal 2025 was $3.4, a decrease of $2.1, or 161.5%, with minimal currency impact, driven by lower gross margin and higher SG&A expenses.
Current report
For the first quarter of fiscal 2025 and 2024, corporate expenses were $11.6, or 2.4%, of net sales, compared to $16.2, or 3.3% in the prior year quarter.
Current report
For the first quarter of fiscal 2025, corporate expenses decreased related to lower incentive compensation, partially offset by higher bad debt expense, consulting costs and higher people costs.
Current report
During the first quarter of fiscal 2025, we recorded a gain of $0.9 for an equity method investment.
Current report
Through the three months ended December 31, 2023, the Company incurred $1.5 in costs related to incremental material charges, labor and absorption as a result of the fire that occurred at our Wet Ones manufacturing plant in Sidney, Ohio on December 1, 2023.
Current report
Critical Accounting Estimates
Removed paragraphs (30)
Previous report
Third Quarter of Fiscal 2024
Previous report
•Net sales in the third quarter of fiscal 2024 decreased $2.2, or 0.3%, to $647.8, as compared to the prior year quarter. Organic net sales increased $4.0, or 0.6%, compared to the prior year quarter, as continued strong performance in International markets as well as growth in our Right to Win portfolio of Sun Care and Grooming were partly offset by declines in North America Wet Shave and Feminine Care. Overall, the increase in organic net sales was the result of a 6.1% increase in International markets which was partially offset by a 2.4% decline in North America. In aggregate, volume growth in International markets and increased pricing and revenue management globally more than offset the impact of lower volumes in North America.
Previous report
First Nine Months of Fiscal 2024
Previous report
•Net sales for the first nine months of fiscal 2024 increased $18.6, or 1.1%, to $1,736.1. Organic net sales increased $19.0, or 1.1%, compared to the prior year period, as International markets increased 9.0%, and were partially offset by lower organic net sales in North America of 3.2%. In aggregate, organic net sales growth was driven by volume growth across International markets and global pricing and revenue management gains, partially offset by lower volume in North America.
Previous report
•Net earnings for the first nine months of fiscal 2024 were $89.8 compared to $84.8 in the prior year period. On an adjusted basis, net earnings for the first nine months of fiscal 2024 were $117.2 compared to $97.2 in the prior year period. Adjusted net earnings increased primarily due to higher gross margin.
Previous report
•Diluted net earnings per share during the first nine months of fiscal 2024 were $1.79 compared to $1.63 in the prior year period. On an adjusted basis, diluted net earnings per share during the first nine months of fiscal 2024 were $2.33 compared to $1.87 in the prior year period.
Previous report
For the third quarter of fiscal 2024, net sales were $647.8, a decrease of $2.2, or 0.3%, including a $6.2, or 0.9%, unfavorable impact from currency movements. Organic net sales increased $4.0, or 0.6%, as continued strong performance in International markets as well as growth in our Right to Win portfolio of Sun Care and Grooming were partly offset by declines in North America Wet Shave and Feminine Care. Overall, the increase in organic net sales was the result of a 6.1% increase in International markets, which was partially offset by a 2.4% decline in North America. In aggregate, increased pricing and revenue management more than offset the impact of lower volumes in North America.
Previous report
For the first nine months of fiscal 2024, net sales were $1,736.1, an increase of $18.6, or 1.1%, including a $0.4 unfavorable impact from currency movements. Organic net sales increased $19.0, or 1.1%, as International markets increased 9.0%, which was partially offset by lower organic net sales in North America, which decreased 3.2%. In aggregate, organic net sales growth was driven by increased pricing and revenue management, partially offset by lower volume in North America.
Previous report
Gross profit was $742.9 during the first nine months of fiscal 2024, compared to $712.2 in the prior year period, an increase of $30.7, or 4.3%. Gross margin as a percent of net sales for the first nine months of fiscal 2024 increased 130-basis points, to 42.8%. Adjusted gross margin as a percent of net sales increased 180-basis points, to 43.3%. The adjusted gross margin increase was primarily due to productivity savings, the benefits of higher pricing and strategic revenue management as well as a favorable impact from currency, which more than offset lower volume absorption, unfavorable mix and other costs and core gross inflationary pressures.
Previous report
SG&A was $320.9, or 18.5%, of net sales in the first nine months of fiscal 2024 compared to $297.2, or 17.3%, of net sales in the prior year period. Adjusted SG&A was 18.0% of net sales, an increase of 60-basis points, primarily driven by higher people expenses, partially offset by operational efficiency savings, lower bad debt and other corporate costs.
Previous report
For the first nine months of fiscal 2024, A&P was $187.9, a decrease of $0.9, or 0.5%, compared to $188.8 in the prior year period. A&P was 10.8% of net sales, compared to 11.0% in the prior year period.
Previous report
R&D expense for the first nine months of fiscal 2024 was $42.1, a decrease of $0.5, or 1.2%, compared to $42.6 in the prior year period. As a percentage of net sales, R&D expense was 2.4% in the first nine months of fiscal 2024 compared to 2.5% in the prior year period.
Previous report
Other expense (income), net
Previous report
Other expense (income), net, was $1.4 of expense in the third quarter of fiscal 2024 compared to $3.8 of income in the prior year quarter. Other expense (income), net, was $4.4 of expense during the first nine months of fiscal 2024, an increase of $3.7 compared to $0.7 of expense in the prior year period. The third quarter and first nine months of 2024 included a loss on investment of $3.1. The first nine months of 2023 included a $7.2 charge for the wind-up of the Canada Plan, which was partially offset by other financing expenses and foreign currency.
Previous report
Operating Model Redesign
Previous report
Wet Shave net sales for the first nine months of fiscal 2024 increased $3.1, or 0.3%, as compared to the prior year period, including a $3.4, or 0.4%, unfavorable impact from currency. Organic net sales increased $6.5, or 0.7%, driven by a 8.8% increase in International organic sales driven by both higher volumes and price. North America sales declined 7.8%, primarily due to lower volumes. North America sales were impacted by continued weak category and channel dynamics, particularly in the highly promotional drug channel, along with heightened competitive dynamics in Women’s shave, as well as significant declines in Shave Preps and Disposables.
Previous report
Wet Shave segment profit for the first nine months of fiscal 2024 was $141.7, an increase of $38.3, or 37.0%, and inclusive of a $0.4, or 0.4%, unfavorable impact from currency. Organic segment profit increased $38.7, or 37.4%, reflecting higher net sales, higher gross margin and lower marketing expense.
Previous report
Sun and Skin Care net sales for the third quarter of fiscal 2024 increased $12.0, or 4.9%. Organic net sales increased $12.4, or 5.1%, driven by Sun Care growth of 16.0% in international markets and a 1.0% increase in North America markets, which reflected weak early-season weather dynamics in the U.S., followed by a very strong month of June. Global grooming net sales increased 14.0%, driven by both price and volume.
Previous report
Sun and Skin Care net sales for the first nine months of fiscal 2024 increased $40.6, or 7.2%. Organic net sales increased $37.6, or 6.6%, driven by Sun Care growth of 12.1% in International markets and 6.1% in North America, as well as 9.0% growth in global grooming, partially offset by lower sales in Wet Ones.
Previous report
Sun and Skin Care segment profit for the third quarter of fiscal 2024 was $64.2, an increase of $2.8, or 4.6%, all which is related organic segment profit and was primarily driven by higher gross margins, partly offset by higher marketing and SG&A expenses.
Previous report
Sun and Skin Care segment profit for the first nine months of fiscal 2024 was $117.3, an increase of $2.6, or 2.3%. Organic segment profit increased $1.0, or 0.9%, primarily driven by higher gross margins, partly offset by higher SG&A and marketing expenses.
Previous report
Feminine Care net sales for the first nine months of fiscal 2024 was $216.9, a decrease of $25.1, or 10.4%, primarily due to a decline in Tampons and Pads.
Previous report
Feminine Care segment profit for the first nine months of fiscal 2024 was $22.6, a decrease of $15.5, or 40.7%. Organic segment profit decreased $15.4, or 40.4%, primarily driven by lower sales and the resulting impact on gross profit as well as higher marketing expenses.
Previous report
For the third quarter of fiscal 2024 and 2023, corporate expenses were $15.8, or 2.4%, of net sales. For the third quarter of fiscal 2024, corporate expenses remained flat, as lower corporate consulting and project costs were equally offset by higher people and incentive compensation costs.
Previous report
For the first nine months of fiscal 2024, corporate expenses were $47.0, or 2.7%, of net sales, compared to $48.7, or 2.8%, of net sales in the prior year period. For the first nine months of fiscal 2024, the decrease in corporate expenses is primarily due to a decrease in corporate consulting and project costs, which was partially offset by higher people and incentive compensation costs.
Previous report
Wet Ones manufacturing plant fire
Previous report
On December 1, 2023, a fire occurred at our Wet Ones manufacturing plant in Sidney, Ohio. There were no injuries reported and damage was limited to a single manufacturing process. As a consequence of the fire damage, there was a partial shutdown of the operations that manufacture Wet Ones raw materials. For the third quarter and the first nine months of fiscal 2024, we incurred $2.7 and $8.0, respectively, in incremental costs related to material charges, increased labor and absorption and other inefficiency costs as a result of the fire.
Previous report
Effective August 5, 2024, we amended the pricing index used to determine the purchase price for subject receivables under the Sixth Amendment to Master Accounts Receivable Purchase Agreement from BSBY to Term SOFR. Except as noted above, all other material terms, conditions, obligations, covenants or agreements contained in the Accounts Receivable Facility are unmodified in all respects and continue in full force and effect. Refer to Note 7 of Notes to Condensed Consolidated Financial Statements for additional discussion.
Previous report
On April 2, 2024, we amended our Revolving Credit Facility pursuant to the Restatement Agreement. Refer to Note 8 of Notes to Condensed Consolidated Financial Statement for additional discussion.
Previous report
Critical Accounting Policies
Reworded paragraphs (29)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November 28, 2023 (the “2023 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our 2023 Annual Report.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited Condensed Consolidated Financial Statements and the accompanying notes included in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on November 14, 2024, as amended on November 21, 2024 (the “2024 Annual Report”). The following discussion may contain forward-looking statements that reflect our plans, estimates, and beliefs and involve risks, uncertainties, and assumptions. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include those discussed within “Forward-Looking Statements” below and in Item 1A. Risk Factors and “Forward-Looking Statements” included within our 2024 Annual Report.
Previous wording
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of Edgewell Personal Care Company or any of our businesses (the “Company”). Forward-looking statements generally can be identified by the use of words or phrases such as “believe,” “expect,” “expectation,” “anticipate,” “may,” “could,” “intend,” “estimate,” “plan,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook,” “strategy,” or other similar words or phrases. These statements are not based on historical facts, but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of the Company or any of our businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.
Current wording
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of Edgewell Personal Care Company or any of our businesses (the “Company”). Forward-looking statements may appear throughout this report, including, without limitation, the following sections: Management’s Discussion and Analysis, Risk Factors, and the Notes to the Condensed Consolidated Financial Statements. Forward-looking statements generally can be identified by the use of words or phrases such as “believe,” “expect,” “expectation,” “anticipate,” “may,” “could,” “intend,” “estimate,” “plan,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook,” “strategy,” or other similar words or phrases. These statements are not based on historical facts, but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of the Company or any of our businesses. Many factors outside our control could affect the realization of these estimates. These statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. You should not place undue reliance on these statements.
Previous wording
The following is a summary of key results for the third quarter and the first nine months of fiscal 2024, as compared to the corresponding periods in fiscal 2023. In addition to net sales, net earnings and earnings per share (“EPS”) for the periods presented were also impacted by certain costs or income, as described in the table below. The impact of these items on reported net earnings and EPS are provided as a reconciliation of net earnings and EPS to adjusted net earnings and adjusted diluted EPS, both of which are non-GAAP measures.
Current wording
The following is a summary of key results for the first quarter of fiscal 2025, as compared to the corresponding period in fiscal 2024. In addition to net sales, net (loss) earnings and (loss) earnings per share (“EPS”) for the periods presented were also impacted by certain costs or income, as described in the table below. The impact of these items on reported net (loss) earnings and EPS are provided as a reconciliation of net (loss) earnings and EPS to adjusted net earnings and adjusted diluted EPS, both of which are non-GAAP measures.
Previous wording
•Net earnings in the third quarter of fiscal 2024 were $49.0 compared to $53.0 in the prior year quarter. On an adjusted basis, net earnings for the third quarter of fiscal 2024 were $61.2 compared to $51.3 in the prior year quarter. Adjusted net earnings increased primarily due to higher gross margin.
Current wording
•Net (loss) earnings in the first quarter of fiscal 2025 were $(2.1) compared to $4.8 in the prior year quarter. On an adjusted basis, net earnings for the first quarter of fiscal 2025 were $3.3 compared to $12.0 in the prior year quarter. Adjusted net earnings decreased primarily due to lower net sales and a slight decline in gross margin.
Previous wording
•Diluted net earnings per share during the third quarter of fiscal 2024 were $0.98 compared to $1.02 in the prior year quarter. On an adjusted basis, diluted net earnings per share during the third quarter of fiscal 2024 were $1.22 compared to $0.99 in the prior year quarter.
Current wording
•Diluted net (loss) earnings per share during the first quarter of fiscal 2025 were $(0.04) compared to $0.09 in the prior year quarter. On an adjusted basis, diluted net earnings per share during the first quarter of fiscal 2025 were $0.07 compared to $0.24 in the prior year quarter.
Previous wording
(1)EBIT is defined as Earnings before Income taxes.
Current wording
(1)EBIT is defined as (Loss) earnings before Income taxes.
Previous wording
The following table presents changes in net sales for the third quarter and first nine months of fiscal 2024, as compared to the corresponding periods in fiscal 2023, and provides a reconciliation of organic net sales to reported amounts.
Current wording
The following table presents changes in net sales for the first quarter of fiscal 2025, as compared to the corresponding periods in fiscal 2024, and provides a reconciliation of organic net sales to reported amounts.
Previous wording
Gross profit was $287.1 during the third quarter of fiscal 2024, compared to $280.3 in the prior year quarter, an increase of $6.8, or 2.4%. Gross margin as a percent of net sales for the third quarter of fiscal 2024 increased 120-basis points, to 44.3% in the quarter. Adjusted gross margin as a percent of net sales increased 160-basis points, to 44.7% in the quarter. The adjusted gross margin increase was due to the productivity savings of approximately 225-basis points and the benefit of higher pricing and strategic revenue management of approximately 110-basis points more than offset core inflation and lower volume absorption of approximately 60-basis points, unfavorable mix and other of approximately 100-basis points and an unfavorable currency impact of approximately 15-basis points.
Current wording
Gross profit was $191.6 during the first quarter of fiscal 2025, compared to $197.7 in the prior year quarter, a decrease of $6.1, or 3.1%. Gross margin as a percent of net sales for the first quarter of fiscal 2025 decreased 30-basis points, to 40.1%, inclusive of approximately 140-basis points of negative foreign currency. Adjusted gross margin as a percent of net sales decreased 60-basis points, to 40.1% in the quarter, as productivity savings of approximately 340-basis points were more than offset by increased promotional levels (net of pricing) of approximately 40-basis points, core inflation and lower volume absorption of approximately 200-basis points and unfavorable mix and other of approximately 20-basis points.
Previous wording
SG&A was $110.1, or 17.0%, of net sales in the third quarter of fiscal 2024 compared to $96.3, or 14.8%, of net sales in the prior year quarter. Adjusted SG&A was 16.2% of net sales, an increase of 50-basis points, primarily driven by higher people expenses and legal costs, partially offset by operational efficiency savings, lower bad debt and favorable currency impacts.
Current wording
SG&A was $102.9, or 21.5%, of net sales in the first quarter of fiscal 2025 compared to $103.3, or 21.1%, of net sales in the prior year quarter. Adjusted SG&A was 21.2% of net sales, an increase of 20-basis points, primarily driven by higher people and consulting expenses and the impact of lower net sales, partially offset by lower incentive compensation expense, lower bad debt expense and favorable currency impacts.
Previous wording
For the third quarter of fiscal 2024, advertising and sales promotion expense (“A&P”) was $76.6, a decrease of $3.4, or 4.3%, compared to $80.0 in the prior year quarter. A&P was 11.8% of net sales, compared to 12.3% in the prior year quarter, reflecting a reallocation of brand investment from A&P into increased trade promotion and consumer activation spend.
Current wording
Advertising and sales promotion expense (“A&P”) for the first quarter of fiscal 2025 was $50.3, an increase of $2.1, or 4.4%, compared to $48.2 in the prior year quarter. A&P was 10.5% of net sales, compared to 9.9% in the prior year quarter.
Previous wording
Research and development (“R&D”) expense for the third quarter of fiscal 2024 was $14.6, a decrease of $0.2, or 1.4%, compared to $14.8 in the prior year quarter. As a percentage of net sales, R&D expense was 2.3% in the third quarter of fiscal 2024, which was flat compared to the prior year quarter.
Current wording
Research and development (“R&D”) expense for the first quarter of fiscal 2025 was $13.9, an increase of $0.6, or 4.5%, compared to $13.3 in the prior year quarter. As a percentage of net sales, R&D expense was 2.9% in the first quarter of fiscal 2025, compared to 2.7% in the prior year quarter.
Previous wording
In fiscal 2024, the Company continues to strengthen its operating model, simplify the organization’s ways of working and improve manufacturing and supply chain efficiency. As a result of these actions, we expect to incur charges of approximately $19 in fiscal 2024. We incurred $3.2 and $13.2 during the third quarter and first nine months of fiscal 2024, respectively, primarily related to employee severance and related costs.
Current wording
In fiscal 2025, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including certain operational and organizational steps designed to streamline the Company’s operations and supply chain by consolidating its current Mexico operations in Obregon and Mexico City into a single facility in Aguascalientes, Mexico. As a result of these actions, we expect to incur pre-tax charges of approximately $29 in fiscal 2025. We incurred $4.2 and $6.8 during the first quarter of fiscal 2025 and 2024, respectively.
Previous wording
Interest expense associated with debt for the third quarter of fiscal 2024 was $18.8, a decrease of $0.4, or 2.1%, compared to $19.2 in the prior year quarter. For the first nine months of fiscal 2024, interest expense was $59.0, a decrease of $0.8, or 1.3%, compared to $59.8 in the prior year period. The decrease in interest expense was the result of a lower overall debt balance on the Company’s Revolving Credit Facility, partially offset by higher interest rates.
Current wording
Interest expense associated with debt for the first quarter of fiscal 2025 was $18.8, a decrease of $1.0, or 5.1%, compared to $19.8 in the prior year quarter. The decrease in interest expense was the result of a lower overall debt balance on the Company’s Revolving Credit Facility.
Previous wording
The effective tax rate for the third quarter and first nine months ended June 30, 2024, was 21.6% and 22.2%, respectively, compared to 25.3% and 25.9% in the prior year period. The fiscal 2024 effective tax rate reflects the favorable mix of earnings in lower tax rate jurisdictions and the impact of a change in the Company’s prior estimates. On an adjusted basis, the effective tax rate was 21.2% and 22.3%, for the third quarter and first nine months ended June 30, 2024, respectively, and 25.3% and 25.9% for the third quarter and first nine months June 30, 2023 respectively.
Current wording
The effective tax rate for the first quarter of fiscal 2025, was (21.7)%, compared to 20.1% in the prior year period. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items on a pretax (loss) and the unfavorable mix of earnings in higher tax rate jurisdictions. On an adjusted basis, the effective tax rate was 43.6% for the first quarter ended December 31, 2024, and 22.8% in the prior year quarter.
Previous wording
The following tables present changes in segment net sales and segment profit for the third quarter and first nine months of fiscal 2024, compared to the corresponding periods in fiscal 2023, and provide a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of segment profit to Earnings before income taxes, refer to Note 13 of Notes to Condensed Consolidated Financial Statements.
Current wording
The following tables present changes in segment net sales and segment profit for the first quarter of fiscal 2025, compared to the corresponding period in fiscal 2024, and provide a reconciliation of organic segment net sales and organic segment profit to reported amounts. For a reconciliation of segment profit to (Loss) earnings before income taxes, refer to Note 15 of Notes to Condensed Consolidated Financial Statements.
Previous wording
Wet Shave net sales for the third quarter of fiscal 2024 decreased $7.8, or 2.4%, as compared to the prior year quarter, including a $5.8, or 1.8%, unfavorable impact from currency. Organic net sales decreased $2.0, or 0.6%, as 4.5% growth in international markets, driven by both higher volumes and price, was more than offset by a 6.7% decline in North America, driven by volume. North America sales were impacted by continued weak category and channel dynamics, particularly in the highly promotional drug channel, along with heightened competitive dynamics in Women’s shave, as well as significant declines in Shave Preps.
Current wording
Wet Shave net sales for the first quarter of fiscal 2025 were $294.5, a decrease of $7.2, or 2.4%, as compared to the prior year quarter, including a $3.2, or 1.1%, unfavorable impact from currency. Organic net sales decreased $4.0, or 1.3%, as 2.9% growth in international markets, driven by both higher volumes and price, was more than offset by volume declines in Shave Preps and Women’s Systems in North America. Organic net sales declined 6.6% in North America.
Previous wording
Wet Shave segment profit for the third quarter of fiscal 2024 was $47.6, an increase of $15.3, or 47.4%, and inclusive of a $2.2, or 6.8%, unfavorable impact from currency. Organic segment profit increased $17.5, or 54.2%, reflecting higher gross margins and lower marketing expenses.
Current wording
Wet Shave segment profit for the first quarter of fiscal 2025 was $46.6, a decrease of $7.1, or 13.2%, and inclusive of a $6.9, or 12.8%, unfavorable impact from currency. Organic segment profit decreased $0.2, or 0.4%, as higher gross margins were primarily offset by higher marketing and SG&A expenses.
Previous wording
Feminine Care net sales for the third quarter of fiscal 2024 was $74.6, a decrease of $6.4, or 7.9%, largely driven by a decline in Tampons and Pads, partly offset by growth in Liners.
Current wording
Feminine Care net sales for the first quarter of fiscal 2025 were $63.3, a decrease of $8.5, or 11.8%. Organic net sales decreased $8.4, or 11.7%, largely driven by a decline in Pads and to a lesser extent, Tampons, partly offset by growth in Liners.
Previous wording
Feminine Care segment profit for the third quarter of fiscal 2024 was $6.6, a decrease of $7.4, or 52.9%. Organic segment profit decreased $7.4, or 52.9%, primarily driven by lower sales and the resulting impact on gross profit as well as higher marketing expenses.
Current wording
Feminine Care segment profit for the first quarter of fiscal 2025 was $3.2, a decrease of $4.1, or 56.1%. Organic segment profit decreased $3.9, or 53.4%, primarily driven by lower sales and gross profit and was partially offset by lower SG&A expenses.
Previous wording
Historically, we have generated, and expect to continue to generate, favorable cash flows from operations. Our cash flows are affected by the seasonality of our Sun Care businesses, typically resulting in higher net sales and increased cash generated in the second and third quarters of each fiscal year. We believe our cash on hand, cash flows from operations and borrowing capacity under the Revolving Credit Facility will be sufficient to satisfy our future working capital requirements, interest payments, R&D activities, capital expenditures, and other financing requirements for at least the next 12 months. We will continue to monitor our cash flows, spending and liquidity needs.
Current wording
Historically, we have generated, and expect to continue to generate, favorable cash flows from operations. Our cash flows are affected by the seasonality of our Sun Care businesses, typically resulting in higher net sales and increased cash generated in the second and third quarters of each fiscal year. We believe our cash on hand, cash flows from operations and borrowing capacity under the U.S. Revolving Credit Facility will be sufficient to satisfy our future working capital requirements, interest payments, R&D activities, capital expenditures, and other financing requirements for at least the next 12 months. We will continue to monitor our cash flows, spending and liquidity needs.
Previous wording
Cash flow provided by operating activities was $157.3 during the first nine months of fiscal 2024, compared to $168.3 of cash provided from operations during the prior year period. The decrease in cash provided by operating activities was largely driven by changes in net working capital which was partially offset by increased earnings.
Current wording
Cash flow used for operating activities was $115.6 during the first three months of fiscal 2025, compared to $72.9 during the prior year period. The increase in cash used for operating activities was largely driven by changes in net working capital and lower earnings.
Previous wording
Net cash used by investing activities was $36.9 during the first nine months of fiscal 2024, compared to $31.6 of cash used during the prior year period. The increase in cash used was due to an additional investment. Capital expenditures were $30.6 during the first nine months of fiscal 2024, compared to $31.1 in the prior year period. The decrease in cash provided by investing activities is primarily due to an outflow of $6.5 for an investment.
Current wording
Net cash used for investing activities was $15.7 during the first three months of fiscal 2025, compared to $6.0 during the prior year period. The increase in cash used was primarily due to an increase in capital expenditures which were $16.8 during the first three months of fiscal 2025, compared to $6.5 in the prior year period.
Previous wording
Net cash used by financing activities was $139.3 during the first nine months of fiscal 2024, compared to $132.3 of cash used in the prior year period. During the first nine months of fiscal 2024, we had net borrowings of $72.0 under the Revolving Credit Facility, compared to $70.0 in the prior year period. Dividend payments totaled $23.3 in the first nine months of fiscal 2024, compared to $23.8 in the prior year period. We had financing outflows for employee equity awards held for taxes totaling $7.1 in the first nine months of fiscal 2024, compared to $9.0 in the prior year period.
Current wording
Net cash provided by financing activities was $109.9 during the first three months of fiscal 2025, compared to $69.8 in the prior year period. During the first three months of fiscal 2025, we had net borrowings of $165.0 under the Revolving Credit Facility, compared to $91.0 in the prior year period. Dividend payments totaled $7.9 in the first three months of fiscal 2025, compared to $7.6 in the prior year period. We had share repurchases of $30.3 in the first three months of fiscal 2025, compared to $15.0 in the prior year period.
Previous wording
During the first nine months of fiscal 2024, we repurchased 1.1 shares of our common stock for $40.2. We have 3.5 shares remaining under the Repurchase Plan as of June 30, 2024. Future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise, in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors.
Current wording
During the first three months of fiscal 2025, we repurchased 0.8 shares of our common stock for $30.3. We have 2.2 shares remaining under the 2018 Share Repurchase Plan as of December 31, 2024. Future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise, in such amounts and at such times as the Company deems appropriate based upon prevailing market conditions, business needs and other factors. For more information, see Note 12 of the Notes To Condensed Consolidated Financial Statements.
Previous wording
Dividend activity for the nine months ended June 30, 2024 are as follows:
Current wording
Dividend activity for the three months ended December 31, 2024 was as follows:
Previous wording
On August 6, 2024, the Board declared a quarterly cash dividend of $0.15 per common share for the fourth fiscal quarter of 2024. The dividend will be payable on October 3, 2024 to shareholders of record as the close of business on September 4, 2024.
Current wording
On February 6, 2025, the Board declared a quarterly cash dividend of $0.15 per common share for the first fiscal quarter of 2025. The dividend will be payable on April 9, 2025 to shareholders of record as the close of business on March 5, 2025.
Previous wording
Dividends declared during the nine months ended June 30, 2024 totaled $22.9. Payments made for dividends during the nine months ended June 30, 2024 totaled $23.3.
Current wording
Dividends declared during the three months ended December 31, 2024 totaled $7.1. Payments made for dividends during the three months ended December 31, 2024 totaled $7.9.
Previous wording
As of June 30, 2024, we had outstanding borrowings of $50.0 under the Revolving Credit Facility. As of June 30, 2024, future minimum repayments of debt were: $750.0 in fiscal 2028 and $550.0 in fiscal 2029. Refer to Note 8 of the Notes to Condensed Consolidated Financial Statements for additional discussion.
Current wording
As of December 31, 2024, we had outstanding borrowings of $199.0 under the Revolving Credit Facility. As of December 31, 2024, future minimum repayments of debt were: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.
Previous wording
Our critical accounting policies and estimates are fully described in our 2023 Annual Report. The preparation of these financial statements requires us to make estimates and assumptions. These estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates. There have been no significant changes to our critical accounting policies and estimates since September 30, 2023.
Current wording
Our critical accounting estimates are fully described in our 2024 Annual Report. The preparation of these financial statements requires us to make estimates and assumptions. These estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates. There have been no significant changes to our critical accounting estimates since September 30, 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(1)EBIT is defined as Earnings before Income taxes.