Edgewell Personal Care, a global firm with over 25 market-leading brands in shave, grooming, sun, skin, and feminine care, has reported net sales of $469.1 million in the first quarter (Q1) of fiscal 2023 (FY23), a 1.3 per cent increase from the corresponding period of the previous year. The company’s organic net sales increased by 3 per cent year-on-year (YoY), with strong growth in the international market.
Gross profit was $189 million, with a 40.3 per cent gross margin, a decrease of 70 basis points compared to the previous year. This was due to a 500-basis point impact from higher commodity and transportation costs, offset by higher pricing and promotion management and productivity savings, the company said in a press release.
Selling, general, and administrative expenses were $95.7 million, or 20.4 per cent of net sales, compared to $96.9 million, or 20.9 per cent of net sales in the previous year.
Operating income was $31.3 million, with an adjusted operating income of $36.7 million, or 7.8 per cent of net sales, compared to $46.7 million, or 10.1 per cent of net sales in the previous year. This was due to the impact of higher costs and unfavourable currency movements.
The feminine care segment saw a 11.7 per cent YoY increase in net sales, driven by higher pricing and improved product availability.
For the fiscal 2023, Edgewell Personal Care has estimated net sales growth in the range of 2-4 per cent, with organic net sales expected to increase 3-5 per cent. The company’s GAAP EPS is expected to be in the range of $1.90 to $2.10, and adjusted EPS is expected to be $2.30 to $2.50, with an estimated $0.45 unfavourable impact from foreign currency changes.