Edgewell shakes off Q4 results with promise of new launches in 2018

Published: 10-Nov-2017

In what was described as a “challenging year”, Edgewell Personal Care suffered a net sales decline of 7.5% in the fourth quarter of 2017

Edgewell Personal Care has reported a net sales decline of 7.5% in the fourth quarter of 2017 to reach US$565.9m.

For the full fiscal year, the company suffered a drop of 2.7% to $2.29bn.

David Hatfield, Edgewell's Chief Executive Officer, President and Chairman of the Board, said: “Fiscal 2017 was a challenging year, with unprecedented category and competitive pressure.”

Acknowledging that both sets of results were short of expectations, Hatfield focused on the positives adding: “We delivered 11% adjusted earnings per share growth and expanded adjusted operating income as a percent of sales by over 50 basis points. 

“We also grew dollar share in the US and key global markets in both Razors and Blades, and Sun and Skin Care, and we successfully integrated the Bulldog business to expand our global platform.”

Declines across all business divisions

Edgewell’s four divisions – Wet Shave, Sun and Skin Care, Feminine Care and All Other – reported net sales declines across the board.

Wet Shave net sales decreased $23.5m or 6% compared with the prior year quarter, due to lower volumes in North America and EMEA.

Edgewell said that the ongoing “intense competitive environment” and category declines in men’s, women’s and disposables were contributing factors.

In Sun and Skin Care, a business unit that now includes the Bulldog brand, net sales dropped 8.4%, a decrease of $6.5m, although this figure excluded the Bulldog acquisition.

North America organic net sales were down over 25%, driven by expected volume declines, the company said, as well as an unfavourable price mix due to higher promotional spend and product returns.

However, international sun and skin care organic net sales increased nearly 14% due to growth in Latin America.

The company’s exit from the private label sun care business prompted a $16m decline in organic net sales.

NPD in the pipeline

Hatfield said the company expects the Wet Shave decline to continue into fiscal 2018, however, the company remains focused on its strategy of delivering “compelling innovation”.

He said: “In a category like Wet Shave, where innovation matters, I'm particularly excited about the coming year, as we plan to launch new products across our entire portfolio."

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