EDGEWELL PERSONAL CARE Co
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
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.
Mar 31, 2025 · Filed May 7, 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 2024-12-31; filed 2025-02-10.
0001628280-25-004522
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001628280-25-023206
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 93 previous paragraphs and 113 current paragraphs.
56 unchanged; 34 reworded; 21 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 14 previous and 16 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 (21)
Current report
Second Quarter of Fiscal 2025
Current report
•Net sales in the second quarter of fiscal 2025 decreased $18.7, or 3.1%, to $580.7, as compared to the prior year quarter. Organic net sales decreased $8.9, or 1.5%. Growth in international markets was 2.9%, 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 volume declines in Wet Shave, Feminine Care, and Sun Care.
Current report
First Six Months of Fiscal 2025
Current report
•Net earnings in the first six months of fiscal 2025 were $26.9 compared to $40.8 in the prior year period. On an adjusted basis, net earnings for the first six months of fiscal 2025 were $45.1 compared to $56.0 in the prior year period. Adjusted net earnings decreased primarily due to lower net sales offset by a slight increase in gross margin.
Current report
•Diluted net earnings per share during the first six months of fiscal 2025 were $0.55 compared to $0.81 in the prior year period. On an adjusted basis, diluted net earnings per share during the first six months of fiscal 2025 were $0.93 compared to $1.11 in the prior year period.
Current report
For the second quarter of fiscal 2025, net sales decreased $18.7, or 3.1%, to $580.7, including a $9.8, or 1.6%, unfavorable impact from currency movements, as compared to the prior year quarter. Organic net sales decreased $8.9, or 1.5%. Growth in international markets was 2.9%, 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 volume declines in Wet Shave, Feminine Care, and Sun Care.
Current report
SG&A expense was $208.6, or 19.7%, of net sales in the first six months of fiscal 2025 compared to $210.8, or 19.4%, of net sales in the prior year period. Adjusted SG&A was $205.7, or 19.4% of net sales, an increase of 40-basis points, primarily driven by the impact of lower net sales and unfavorable currency impacts.
Current report
A&P expense for the first six months of fiscal 2025 was $115.8, an increase of $4.5, or 4.0%, compared to $111.3 in the prior year period. A&P was 10.9% of net sales, compared to 10.2% in the prior year period.
Current report
R&D expense for the first six months of fiscal 2025 was $27.8, an increase of $0.3, or 1.1%, compared to $27.5 in the prior year period. As a percentage of net sales, R&D expense was 2.6% in the second quarter of fiscal 2025, compared to 2.5% in the prior year period.
Current report
Interest expense associated with debt for the first six months of fiscal 2025 was $39.0, a decrease of $1.2, or 3.0%, compared to $40.2 in the prior year period. The decrease in interest expense was the result of a lower borrowing rate on the Company’s Revolving Credit Facility.
Current report
Other (income) expense, net
Current report
Other (income) expense, net, was $0.6 in the first six months of fiscal 2025, including a gain on investment of $0.9, compared to $3.0 in the prior year period. Currency hedge and remeasurements gains were $0.4 million in the first six months of 2025, compared to gains of $1.0 million in the prior year period.
Current report
Wet Shave net sales for the first six months of fiscal 2025 were $580.0, a decrease of $14.8, or 2.5%, as compared to the prior year period, including a $8.3, or 1.4%, unfavorable impact from currency. Organic net sales decreased $6.5, or 1.1%, as 3.0% growth in international markets, driven by both higher volumes and price, was more than offset by a 6.0% decline in North America, driven by lower volumes.
Current report
Wet Shave segment profit for the second quarter of fiscal 2025 was $46.6, an increase of $6.2, or 15.3%, and inclusive of a $0.5, or 1.2%, unfavorable impact from currency. Organic segment profit increased $6.7, or 16.5%, as higher gross margins were partially offset by higher marketing expenses.
Current report
Sun and Skin Care net sales for the second quarter of fiscal 2025 decreased $4.7, or 2.0%, including an unfavorable impact from foreign currency of $4.5, or 1.9%. Organic net sales decreased $0.2, or 0.1%, as growth in Grooming in and Wet Ones, was offset by declines in North America Sun Care. In aggregate, the decrease in organic sales was related to a 0.5% decline in North America , partially offset by an increase of 1.5% in International sales.
Current report
Sun and Skin Care segment profit for the first six months of fiscal 2025 was $47.4, a decrease of $5.7, or 10.7%, including an unfavorable impact from foreign currency of $3.1, or 5.8%. Organic segment profit decreased $2.6, or 4.9%, driven by lower gross margin and higher SG&A expenses, partially offset by lower market expenses.
Current report
Feminine Care net sales for the second quarter of fiscal 2025 were $64.1, a decrease of $6.4, or 9.1%, with minimal currency impact. Organic net sales decreased $6.2, or 8.8%, largely driven by a decline in Pads and Tampons. In aggregate, the decrease in organic sales was related to a 9.9% decline in North America , partially offset by an increase of 11.2% in International sales.
Current report
Feminine Care segment profit for the second quarter of fiscal 2025 was $3.1, a decrease of $5.6, or 64.4%. Organic segment profit decreased $5.7, or 65.5%, primarily driven by lower gross profit and higher marketing expenses, partially offset by lower SG&A expenses.
Current report
For the second quarter of fiscal 2025 and 2024, corporate expenses were $59.2, or 10.2%, of net sales, compared to $56.5, or 9.4% in the prior year quarter. For the first six months of fiscal 2025 and 2024, corporate expenses were $107.3, or 10.1%, of net sales, compared to $110.2, or 10.1% in the prior year period.
Current report
During the second quarter and first six months of fiscal 2025, we incurred $3.1 related to a shift in go-to-market strategy and SKU rationalization.
Current report
At March 31, 2025, after evaluating business conditions, our financial performance and market capitalization, we concluded that there were no triggering events requiring an interim impairment analysis. The fair value of our reporting units’ goodwill are sensitive to differences between estimated and actual cash flows, including changes in the projected revenue, projected EBITDA margin, discount rate and market multiples used to evaluate the fair value of these assets. We will continue to evaluate the factors described herein, and assess whether any material changes would be indicative of a triggering event and require an interim impairment test.
Removed paragraphs (3)
Previous report
First Quarter of Fiscal 2025
Previous report
Other expense, net
Previous 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.
Reworded paragraphs (34)
Previous 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.
Current wording
The following is a summary of key results for the second quarter and first six months of fiscal 2025, as compared to the corresponding periods in fiscal 2024. 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.
Previous 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.
Current wording
•Net earnings in the second quarter of fiscal 2025 were $29.0 compared to $36.0 in the prior year quarter. On an adjusted basis, net earnings for the second quarter of fiscal 2025 were $41.8 compared to $44.0 in the prior year quarter. Adjusted net earnings decreased primarily due to lower net sales.
Previous 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.
Current wording
•Diluted net earnings per share during the second quarter of fiscal 2025 were $0.60 compared to $0.72 in the prior year quarter. On an adjusted basis, diluted net earnings per share during the second quarter of fiscal 2025 were $0.87 compared to $0.88 in the prior year quarter.
Previous wording
(1)EBIT is defined as (Loss) earnings before Income taxes.
Current wording
(1) EBIT is defined as earnings before Income taxes.
Previous wording
•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 wording
•Net sales in the first six months of fiscal 2025 decreased $29.2, or 2.7%, to $1,059.1, as compared to the prior year period. Organic net sales decreased $15.4, or 1.4%. Organic growth in international markets was 2.4%, 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 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 volume declines in Wet Shave, Feminine Care, and Sun Care.
Previous 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.
Current wording
The following table presents changes in net sales for the second quarter and first six months 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
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 wording
For the first six months of fiscal 2025, net sales were $1,059.1, a decrease of $29.2, or 2.7%, including a $13.8, or 1.3%, unfavorable impact from currency movements. Organic net sales decreased $15.4, or 1.4%. Organic growth in international markets was 2.4%, 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 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 volume declines in Wet Shave, Feminine Care, and Sun Care.
Previous 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.
Current wording
Gross profit was $447.8 during the first six months of fiscal 2025, compared to $455.8 in the prior year period, a decrease of $8.0, or 1.8%. Gross margin as a percent of net sales for the second quarter of fiscal 2025 increased 40-basis points, to 42.3%, inclusive of approximately 70-basis points of negative foreign currency. Adjusted gross margin as a percent of net sales increased 20-basis points, to 42.6% in the quarter. Productivity savings of approximately 360-basis points were partially offset by increased promotional levels (net of pricing) of approximately 20-basis points, core inflation and lower volume absorption of approximately 200-basis points and unfavorable mix and other of approximately 50-basis points.
Previous 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.
Current wording
Selling, General and Administrative (“SG&A”) expense was $105.7, or 18.2%, of net sales in the second quarter of fiscal 2025 compared to $107.5, or 17.9%, of net sales in the prior year quarter. Adjusted SG&A was 18.0% of net sales, an increase of 60-basis points, primarily driven by higher people expenses and the impact of lower net sales, partially offset by favorable currency impacts.
Previous 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.
Current wording
Advertising and sales promotion (“A&P”) expense for the second quarter of fiscal 2025 was $65.5, an increase of $2.4, or 3.8%, compared to $63.1 in the prior year quarter. A&P was 11.3% of net sales, compared to 10.5% in the prior year quarter.
Previous 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.
Current wording
Research and development (“R&D”) expense for the second quarter of fiscal 2025 was $13.9, a decrease of $0.3, or 2.1%, compared to $14.2 in the prior year quarter. As a percentage of net sales, R&D expense was 2.4% in the second quarter of fiscal 2025, compared to 2.4% in the prior year quarter.
Previous 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.
Current wording
In fiscal 2025, the Company continues to take 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 Oregon 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 $33 in fiscal 2025. We incurred $12.2 and $3.2 during the second quarter of fiscal 2025 and 2024, respectively, and $16.4 and $10.0 during the first six months of fiscal 2025 and 2024, respectively.
Previous 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.
Current wording
Interest expense associated with debt for the second quarter of fiscal 2025 was $20.2, a decrease of $0.2, or 1.0%, compared to $20.4 in the prior year quarter. The decrease in interest expense was the result of a lower borrowing rate on the Company’s U.S. Revolving Credit Facility.
Previous wording
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 wording
Other (income) expense, net, was income of $2.6 in the second quarter of fiscal 2025, compared to expense of $2.7 in the prior year quarter. Currency hedge and remeasurements gains were $2.4 million in the second quarter of 2025, compared to losses of $0.3 million in the prior year quarter.
Previous 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.
Current wording
The effective tax rate for the second quarter of fiscal 2025, was 29.9%, compared to 23.4% in the prior year quarter. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items and the unfavorable mix of earnings in higher tax rate jurisdictions. On an adjusted basis, the effective tax rate was 28.5% for the second quarter ended March 31, 2025, and 23.6% in the prior year quarter.
Previous 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.
Current wording
The following tables present changes in segment net sales and segment profit for the second quarter and first six months 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 earnings before income taxes, refer to Note 15 of Notes to Condensed Consolidated Financial Statements.
Previous 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.
Current wording
Wet Shave net sales for the second quarter of fiscal 2025 were $285.5, a decrease of $7.6, or 2.6%, as compared to the prior year quarter, including a $5.1, or 1.7%, unfavorable impact from currency. Organic net sales decreased $2.5, or 0.9%, as 3.2% growth in international markets, driven by both higher volumes and price, was more than offset by volume declines in Shave Preps and Disposables in North America. Organic net sales declined 5.4% in North America.
Previous 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.
Current wording
Wet Shave segment profit for the first six months of fiscal 2025 was $93.2, a decrease of $0.9, or 1.0%, and inclusive of a $7.4, or 7.9%, unfavorable impact from currency. Organic segment profit increased $6.5, or 6.9%, as higher gross margins were primarily offset by higher marketing expenses.
Previous wording
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 wording
Sun and Skin Care net sales for the first six months of fiscal 2025 increased $0.5, or 0.1%, including an unfavorable impact from foreign currency of $5.2, or 1.5%. Organic net sales increased $5.7, or 1.6%, driven by strong performance in Grooming and Wet One’s, led by Cremo, partly offset by declines in North America Sun Care. In aggregate, the increase in organic sales was related to a 1.2% increase in North America and an increase of 0.4% in International sales.
Previous wording
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 wording
Sun and Skin Care segment profit for the second quarter of fiscal 2025 was $50.8, a decrease of $3.6, or 6.6%, including an unfavorable impact from foreign currency of $2.4, or 4.4%. Organic segment profit decreased $1.2 million, or 2.2%, driven by lower gross margin and higher SG&A expenses, partly offset by lower marketing expenses.
Previous 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.
Current wording
Feminine Care net sales for the first six months of fiscal 2025 were $127.4, a decrease of $14.9, or 10.5%. Organic net sales decreased $14.6, or 10.3%, largely driven by a decline in Pads and Tampons, and to a lesser extent, Liners. In aggregate, the decrease in organic sales was related to a 10.2% decline in North America and a 12.1% decline in International sales.
Previous 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.
Current wording
Feminine Care segment profit for the first six months of fiscal 2025 was $6.3, a decrease of $9.7, or 60.6%. Organic segment profit decreased $9.6, or 60.0%, primarily driven by lower gross profit and was partially offset by lower SG&A expenses.
Previous wording
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 wording
For the second quarter of fiscal 2025, corporate expenses increased related to higher people costs, partially offset by higher lower consulting costs. For the first six months of fiscal 2025, corporate expenses decreased related to lower people costs and consulting costs.
Previous wording
During the first quarter of fiscal 2025, we recorded a gain of $0.9 for an equity method investment.
Current wording
During the first six months of fiscal 2025, we recorded a gain of $0.9 for an equity method investment.
Previous wording
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 wording
During the second quarter and first six months of fiscal 2024, the Company incurred $3.8 and $5.3, respectively, 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.
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 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.
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. For more information on the U.S. Revolving Credit Facility, see Note 10 to the Notes To Condensed Consolidated Financial Statements.
Previous 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.
Current wording
Cash flow used for operating activities was $70.5 during the first six months of fiscal 2025, compared to cash flow provided by operating activities of $56.1 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 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.
Current wording
Net cash used for investing activities was $33.0 during the first six months of fiscal 2025, compared to $19.7 during the prior year period. The increase in cash used was primarily due to an increase in capital expenditures which were $33.9 during the first six months of fiscal 2025, compared to $18.0 in the prior year period.
Previous 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.
Current wording
Net cash provided by financing activities was $72.5 during the first six months of fiscal 2025, compared to net cash used by financing activities of $59.4 in the prior year period. During the first six months of fiscal 2025, we had net borrowings of $157.0 under the U.S. Revolving Credit Facility, compared to repayments of $11.0 in the prior year period. Dividend payments totaled $15.2 in the first six months of fiscal 2025, compared to $15.8 in the prior year period. We had share repurchases of $65.7 in the first three months of fiscal 2025, compared to $30.3 in the prior year period.
Previous 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.
Current wording
During the first six months of fiscal 2025, we repurchased 1.9 shares of our common stock for $65.7. We have 1.1 shares remaining under the 2018 Share Repurchase Plan as of March 31, 2025. Future share repurchases, if any, would be made in the open market, privately negotiated transactions or otherwise permitted, and 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 three months ended December 31, 2024 was as follows:
Current wording
Dividend activity for the six months ended March 31, 2025 was as follows:
Previous 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.
Current wording
On May 7, 2025, the Board declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter of 2025. The dividend will be payable on July 9, 2025 to shareholders of record as the close of business on June 6, 2025.
Previous 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.
Current wording
Dividends declared during the six months ended March 31, 2025 totaled $14.7. Payments made for dividends during the six months ended March 31, 2025 totaled $15.2.
Previous 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.
Current wording
As of March 31, 2025, we had outstanding borrowings of $191.0 under the U.S. Revolving Credit Facility, which matures in 2029. As of March 31, 2025, future minimum repayments of fixed debt are: $750.0 in fiscal 2028 and $500.0 in fiscal 2029.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Gross profit was $256.2 during the second quarter of fiscal 2025, compared to $258.1 in the prior year quarter, a decrease of $1.9, or 0.7%. Gross margin as a percent of net sales for the second quarter of fiscal 2025 increased 100-basis points, to 44.1%, inclusive of approximately 10-basis points of negative foreign currency. Adjusted gross margin as a percent of net sales increased 100-basis points, to 44.7% in the quarter. Productivity savings of approximately 380-basis points were partially offset by increased promotional levels (net of pricing) of approximately 10-basis points, core inflation and lower volume absorption of approximately 195-basis points and unfavorable mix and other of approximately 75-basis points.
Current report — wording carried from elsewhere
The effective tax rate for the first six months of fiscal 2025, was 32.1%, compared to 23.0% in the prior year period. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items and the unfavorable mix of earnings in higher tax rate jurisdictions. On an adjusted basis, the effective tax rate was 29.9% for the first six months ended March 31, 2025, and 23.5% in the prior year period.