Edgewell Personal Care Company (EPC) 21st Annual dbAccess Global Consumer Conference 2024 summary

Strategic transformation and portfolio evolution

• Four-year transformation focused on shifting into higher-growth, consumer-centric categories and diversifying the portfolio, launched in November 2020.

• Brands are managed as "Built to Win"/"Right to Win" (high-growth, leading share) and "Built to Play" (cash flow, profit focus) segments, now about one-third of total sales.

• Acquisitions like Billie, Bulldog, Jack Black, and Cremo have expanded the high-growth portfolio and brand presence in new adjacencies and geographies.

• International business represents close to 40% of revenue, with market-leading positions in Japan and strong #2 positions in Europe and Latin America.

• Sustainability and DEI are core to the business model, with a commitment to carbon neutrality by 2030 and recognition for responsible practices.

Operational excellence and financial discipline

• Consistent cost reduction, with $400 million in gross cost takeout and ongoing annual productivity gains of 200+ basis points since 2019.

• Free cash flow of $170–$180 million supports balanced capital allocation: share buybacks, dividends, and debt reduction.

• Leverage reduced from 3.5x to a target of at or below 3x, with a profile of ~3.0x at September 2024.

• Margin inflection achieved, with 300+ basis points of year-over-year margin accretion and a 2024 outlook of 120 basis points improvement.

• Cumulative gross margin benefit from cost savings and price/revenue management: +675bps (FY21-23), +240bps (FY24e) from cost savings, and +130bps (FY24e) from price/revenue management.

Brand building, innovation, and market trends

• Modernized brand building and consumer engagement, with campaigns like the Wilkinson Sword relaunch in Europe.

• Innovation is shifting from tech-driven to consumer-centric, with local tailoring for international markets and expansion into adjacent categories.

• No significant trade-down to private label observed; value-branded offerings are performing well.

• Stronger brands and retail partnerships have improved shelf outcomes and market position.

• U.S. market remains competitive, but international shave business is less so and continues to outperform.