Edgewell Personal Care Company (EPC) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 saw slight organic net sales growth, significant adjusted gross margin expansion, and double-digit adjusted EPS growth at constant currency for the second consecutive year.

• International markets grew over 7% and now represent about 40% of total revenue, offsetting a 3.8% decline in North America.

• The Billie brand gained 260 basis points of share in women's shave and expanded into new categories at Walmart.

• Productivity and pricing initiatives drove gross margin accretion and strong bottom-line results, supporting deleveraging and share buybacks.

• Leadership and organizational changes, including a new head of North America, were implemented to strengthen execution and drive sustainable growth.

Financial highlights

• Adjusted gross margin rate increased 140 basis points year-over-year to 43.1%, with 280 basis points of productivity savings.

• Adjusted operating margin expanded by 100 basis points to 11.9%; adjusted operating profit increased $21.3 million (approx. 9%).

• Adjusted EPS grew 18% year-over-year at constant currency to $3.05; GAAP-diluted EPS for Q4 was $0.17 vs. $0.58 prior year, adjusted EPS $0.72 vs. $0.73.

• Adjusted EBITDA for FY 2024 was $353.0 million, with $356–$368 million expected for FY25.

• Free cash flow generation was $175 million for FY24, with $231 million net cash from operations.

Outlook and guidance

• Fiscal 2025 organic net sales growth expected at 1%–3%, with reported net sales up 1.7%–3.7%.

• Adjusted gross margin expected to accrete 75 basis points year-over-year; adjusted operating profit margin to increase 40 basis points.

• Adjusted EPS guidance is $3.15–$3.35, up 7% at midpoint (13% at constant currency); GAAP EPS: $2.59–$2.79.

• Adjusted EBITDA expected at $356–$368 million; free cash flow forecasted at $185 million.

• $29 million in restructuring charges expected for FY 2025, mainly for Mexico operations consolidation.