ST. LOUIS, Aug. 5, 2015 /PRNewswire/ -- Edgewell
Personal Care Company (NYSE: EPC), formerly known as
Energizer Holdings, Inc., completed the spin-off of its Household
Products business on July 1,
2015. This press release includes the results for both the
Personal Care and Household Products businesses. Edgewell's
fourth fiscal quarter will be its first quarter with standalone
financial data, as the historical results of the Household Products
business will be presented as discontinued operations.
Third Quarter Highlights for Edgewell Personal Care Company
(including Household Products segment results) (Unaudited)
(All comparisons are with the fiscal 2014 third quarter unless
otherwise noted. The Company reports results on a GAAP and
adjusted (Non-GAAP) basis, as defined within this release.
Adjusted measures are reconciled to the most directly comparable
GAAP measures later in this release.)
For the third fiscal quarter, which ended June 30, 2015, the Company delivered adjusted net
earnings per diluted share of $1.17,
down 19.9% compared to $1.46 the
prior year, primarily due to its increased investment in
Advertising and Sales Promotional Expense ("A&P"), unfavorable
currency movements, and a higher effective tax rate, offset in part
by savings from the Company's 2013 restructuring project. Excluding
the impact of currency movements, adjusted net earnings per share
would have decreased 2% as compared to the prior year
quarter. On a reported basis, net loss per diluted share were
$(1.17) as compared to net earnings
per diluted share of $1.03 in the
prior year quarter.
- Net sales of $1,047.1 million
decreased 7.3% (up 0.2% on an organic basis excluding the negative
impact of currency and year-over-year Venezuela results);
- Gross margin decreased 50 basis points as a percent of net
sales (up 140 basis points as a percent of net sales, excluding the
negative impact of currency and the change in Venezuela results);
- A&P increased $15.9 million,
or 260 basis points as a percent of net sales; and
- Reported Selling, general and administrative expense
("SG&A") as a percent of net sales increased 640 basis points
due to spin costs, restructuring charges and integration expenses.
Adjusted SG&A as a percent of net sales, which excludes these
items, decreased 150 basis
points.
"Our goals coming into the quarter were to successfully complete
the spin-off of the Household Products business, to continue to
deliver great products to our customers and consumers and to meet
our financial commitments in the quarter. We accomplished all
of these goals," said David
Hatfield, Chief Executive Officer. "The teams did a
terrific job executing this very complex split of the two
companies, while delivering solid financial results."
Mr. Hatfield continued, "I'm excited about our Company and its
future. While we are in a period of increased complexity and
transition, we are quickly taking actions that will highlight the
focus, agility and passion needed to build a strong personal care
company, a company that will deliver ongoing value for our
customers, consumers, employees and shareholders."
The following tables provide a reconciliation of net (loss)
earnings and net (loss) earnings per diluted share ("EPS") to
adjusted net earnings and adjusted net earnings per diluted share,
which are Non-GAAP measures.
|
Quarter Ended June
30,
|
|
Net (Loss)
Earnings
|
|
Diluted
EPS
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net (Loss)
Earnings and Diluted EPS - GAAP (Unaudited)
(1)
|
$
|
(72.5)
|
|
|
$
|
64.5
|
|
|
$
|
(1.17)
|
|
|
$
|
1.03
|
|
Impacts, net of
tax: Expense (Income) (2)
|
|
|
|
|
|
|
|
Spin costs
(3)
|
63.1
|
|
|
4.4
|
|
|
1.01
|
|
|
0.07
|
|
Spin restructuring charges
|
13.9
|
|
|
—
|
|
|
0.22
|
|
|
—
|
|
2013 restructuring and related charges, net
(4)
|
17.3
|
|
|
20.6
|
|
|
0.28
|
|
|
0.34
|
|
Industrial exit charges
|
13.8
|
|
|
—
|
|
|
0.22
|
|
|
—
|
|
Feminine care acquisition and integration costs
|
—
|
|
|
1.0
|
|
|
—
|
|
|
0.02
|
|
Cost of early debt
retirements
|
38.7
|
|
|
—
|
|
|
0.62
|
|
|
—
|
|
Other realignment and integration
|
0.3
|
|
|
0.3
|
|
|
0.01
|
|
|
—
|
|
Adjustment to prior years' tax accruals
|
(1.4)
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Adjusted Net Earnings and Diluted EPS - Non-GAAP
|
$
|
73.2
|
|
|
$
|
90.8
|
|
|
$
|
1.17
|
|
|
$
|
1.46
|
|
Weighted average
shares - Basic
|
|
|
|
|
62.2
|
|
|
61.7
|
|
Weighted average
shares - Diluted (2)
|
|
|
|
|
62.6
|
|
|
62.4
|
|
|
|
(1)
|
GAAP EPS for the
quarter ended June 30, 2015 was calculated using the basic weighted
average shares outstanding due to the reported net loss.
|
(2)
|
All EPS impacts are
calculated using diluted weighted average shares outstanding.
For the quarter ended June 30, 2015, this reflects the impact of
0.4 million dilutive RSEs which are excluded from the GAAP EPS
calculation due to the reported net loss.
|
(3)
|
Includes costs of
$60.7 million and $4.4 million (net of tax) for the quarter ended
June 30, 2015 and 2014, respectively, which are included in
SG&A. Additionally, costs of $2.4 million (net of tax)
for the quarter ended June 30, 2015 were included in Cost of
products sold.
|
(4)
|
Includes costs of
$0.1 million and $1.7 million (net of tax) for the quarter ended
June 30, 2015 and 2014, respectively, associated with certain
information technology and related activities, which are included
in SG&A. Additionally, costs of $0.8 million (net of tax)
for the quarter ended June 30, 2015, associated with obsolescence
charges related to the restructuring were included in Cost of
products sold.
|
|
Nine Months Ended
June 30,
|
|
Net (Loss)
Earnings
|
|
Diluted
EPS
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net (Loss)
Earnings and Diluted EPS - GAAP (Unaudited)
(1)
|
$
|
(55.9)
|
|
|
$
|
270.9
|
|
|
$
|
(0.90)
|
|
|
$
|
4.33
|
|
Impacts, net of
tax: Expense (Income) (2)
|
|
|
|
|
|
|
|
Venezuela deconsolidation
charge
|
144.5
|
|
|
—
|
|
|
2.31
|
|
|
—
|
|
Spin costs (3)
|
119.9
|
|
|
4.4
|
|
|
1.92
|
|
|
0.07
|
|
Spin restructuring charges
|
47.0
|
|
|
—
|
|
|
0.75
|
|
|
—
|
|
2013 restructuring and
related charges, net (4)
|
20.6
|
|
|
55.7
|
|
|
0.32
|
|
|
0.89
|
|
Industrial exit charges
|
13.8
|
|
|
—
|
|
|
0.22
|
|
|
—
|
|
Feminine care acquisition
and integration costs
|
—
|
|
|
4.8
|
|
|
—
|
|
|
0.07
|
|
Acquisition inventory valuation
|
—
|
|
|
5.0
|
|
|
—
|
|
|
0.08
|
|
Cost of early debt retirements
|
38.7
|
|
|
—
|
|
|
0.62
|
|
|
—
|
|
Other realignment and
integration
|
1.0
|
|
|
0.6
|
|
|
0.03
|
|
|
0.01
|
|
Adjustment to prior years' tax accruals
|
(4.0)
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
Adjusted Net Earnings and Diluted EPS - Non-GAAP
|
$
|
325.6
|
|
|
$
|
341.4
|
|
|
$
|
5.21
|
|
|
$
|
5.45
|
|
Weighted average
shares - Basic
|
|
|
|
|
62.1
|
|
|
62.1
|
|
Weighted average
shares - Diluted (2)
|
|
|
|
|
62.5
|
|
|
62.6
|
|
|
|
(1)
|
GAAP EPS for the nine
months ended June 30, 2015 was calculated using the basic weighted
average shares outstanding due to the reported net loss.
|
(2)
|
All EPS impacts are
calculated using diluted weighted average shares outstanding.
For the nine months ended June 30, 2015, this reflects the impact
of 0.4 million dilutive RSEs which are excluded from the GAAP EPS
calculation due to the reported net loss.
|
(3)
|
Includes costs of
$117.0 million and $4.4 million (net of tax) for the nine months
ended June 30, 2015 and 2014, respectively, which are included in
SG&A. Additionally, costs of $2.9 million (net of tax)
for the nine months ended June 30, 2015 were included in Cost of
products sold.
|
(4)
|
Includes costs of
$0.3 million and $5.3 million (net of tax) for the nine months
ended June 30, 2015 and 2014, respectively, associated with certain
information technology and related activities, which are included
in SG&A. Additionally, costs of $0.8 million and $0.3
million (net of tax) for the nine months ended June 30, 2015, and
2014, respectively, associated with obsolescence charges related to
the restructuring were included in Cost of products
sold.
|
Third quarter reported results also include the following
pre-tax spin and restructuring charges:
- $114.5 million of spin costs and
spin restructuring charges ($92.5
million included in SG&A, $3.4
million included in Cost of products sold and $18.6 million included in Spin restructuring
charges);
- $61.4 million included within
Cost of early debt retirement associated with the prepayment of the
Company's private placement notes on May 29,
2015;
- $23.6 million of pre-tax
restructuring charges associated with the Company's 2013
restructuring project, including certain information technology
enablement and inventory obsolescence costs associated with the
restructuring activities ($0.2
million included in SG&A and $1.1
million included in Cost of products sold);
- $21.9 million of pre-tax charges
related to the Company's decision to exit the industrial blade
product line (included in Industrial exit charges); and
- $0.4 million of pre-tax
acquisition and integration expenses ($0.1
million included in SG&A and $0.3
million included in Cost of products sold).
Net Sales - Total
Company (In millions - Unaudited)
|
|
|
|
|
Quarter and Nine
Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
%Chg
|
|
Nine
Months
|
|
%Chg
|
Net Sales -
FY'14
|
|
$
|
1,130.0
|
|
|
|
|
$
|
3,306.3
|
|
|
|
Organic
|
|
1.7
|
|
|
0.2
|
%
|
|
(48.5)
|
|
|
(1.4)
|
%
|
Change in Venezuela
results
|
|
(14.4)
|
|
|
(1.3)
|
%
|
|
(10.5)
|
|
|
(0.3)
|
%
|
Impact of
currency
|
|
(70.2)
|
|
|
(6.2)
|
%
|
|
(175.2)
|
|
|
(5.3)
|
%
|
Incremental impact of
acquisition
|
|
—
|
|
|
—
|
%
|
|
21.4
|
|
|
0.6
|
%
|
Net Sales - FY'15
|
|
$
|
1,047.1
|
|
|
(7.3)
|
%
|
|
$
|
3,093.5
|
|
|
(6.4)
|
%
|
Net sales for the third quarter decreased 7.3% as
compared to the prior year quarter, including a decrease of 6.2%
due to an unfavorable movement in foreign currency rates and a
decrease of 1.3% in net sales related to Venezuela. Exclusive
of the impact of unfavorable currency movements and the change in
Venezuela results, organic net
sales increased 0.2% versus the prior year quarter.
Go-to-market changes began to negatively impact net sales in the
quarter as both segments exited markets in certain countries and
moved to a distributor model in other countries.
Gross margin for the third quarter decreased 50 basis
points to 47.2%. Gross margin improved 140 basis points
excluding the negative impact of currency and the change in
Venezuela results. Margin
improvement across both businesses was driven by cost savings
initiatives and lower commodity and manufacturing costs.
Advertising and sales promotion expense was $177.3 million in the third quarter, or 16.9% of
net sales. This represents an increase of $15.9 million, or 260 basis points as a percent
of net sales, versus the prior year quarter. Spending was
increased in both segments in support of new product and brand
building programs in Wet Shave and Sun and Skin Care in the
Personal Care segment, and in support of innovation launch activity
in the Household Products segment.
Selling, general and administrative expense was
$258.5 million in the third quarter,
or 24.7% of net sales, compared to $207.1
million, or 18.3% of net sales, in the prior year
quarter. Included within the current quarter results were
pre-tax costs of $92.5 million
related to the spin-off, $0.1 million
of acquisition and integration costs and $0.2 million of information technology enablement
costs. Excluding these items, SG&A as a percent of net
sales improved 150 basis points compared to the same period in the
prior year.
Interest expense was $31.1
million for the both the third quarter ended June 30, 2015 and the third quarter ended June
30, 2014.
Other financing income was $10.3
million for the third quarter, primarily reflecting the net
impact of foreign currency hedging contract gains, partially offset
by revaluation losses on nonfunctional currency balance sheet
exposures, as compared to $0.1
million of expense in the prior year
quarter.
The year-to-date effective tax rate was a negative 18.9%
as compared to 27.9% in the prior year. The negative tax rate
for 2015 was a result of having incurred tax expense on a net
loss. The tax rate for 2015 was unfavorably impacted by the
Venezuela deconsolidation charge
of $144.5 million during the second
quarter of fiscal 2015, which had no accompanying tax
benefit. Excluding the tax impact of the non-GAAP items, the
year-to-date effective tax rate was 29.9% as compared to 29.2% in
the prior year.
Average (trailing four quarter) working capital as a percent
of net sales was 15.7% at June 30,
2015 versus 15.0% as of September
30, 2014. The Company continues to make improvements
within Days Payable Outstanding; however, Days in Inventory
increased, primarily due to manufacturing footprint changes in both
segments.
Capital spending in the quarter was $35.4 million, an increase of $16.8 million versus the prior year quarter, with
increases in both segments, driven by spin and restructuring
projects. Depreciation expense, excluding accelerated
depreciation on assets impacted by the 2013 restructuring project,
was approximately $25 million, a
decrease of $6 million versus the
prior year quarter. The charges for accelerated depreciation
are included within the 2013 restructuring charges line on the
Consolidated Statement of Earnings (Condensed).
Dividend payments in the quarter were $31.1 million, or $0.50 per share, consistent with the prior
year.
2013 Restructuring Project
Restructuring savings in the third quarter increased
approximately $21 million compared to
the same period in the prior year. The primary impacts of savings
were reflected in gross margin across both segments and lower
overhead expenses. Project-to-date savings total
approximately $331 million.
Restructuring (pre-tax) related charges were $23.6 million for the third quarter, including
certain information technology enablement and inventory
obsolescence costs associated with restructuring
activities.
Total project-to-date costs were approximately $293.5 million. These amounts were
inclusive of certain information technology enablement costs
(included in SG&A) and inventory obsolescence charges (included
in Cost of products sold), both of which were considered part of
the 2013 restructuring project.
Spin Costs and Spin Restructuring
On July 1, 2015, Edgewell Personal
Care Company (formerly known as Energizer Holdings, Inc.) completed
the separation of its Household Products business into a separate
publicly traded company (the "Separation" or the "Spin"). The
Company incurred incremental costs to evaluate, plan and execute
the Separation, and Spin restructuring costs that prepared both
businesses to operate as stand-alone entities, including actions
to:
- Adapt the global go-to-market footprint to adjust to the future
strategies and scale of each stand-alone business;
- Centralize certain back-office functions to increase
efficiencies;
- Outsource certain non-core transactional activities; and
- Reduce headcount to optimize the cost structures of each
stand-alone business.
Savings from the spin restructuring initiatives are targeted to
offset incremental costs necessary to develop the stand-alone
organizations. Both businesses are expected to reach a
normalized SG&A run rate by the end of fiscal year 2016, as
several duplicate costs will need to be maintained for a period of
time as both companies transition and complete restructuring
initiatives.
The Company incurred the following pre-tax charges related to
the spin and spin restructuring initiatives:
- $114.5 million for the third
quarter ($92.5 million included in
SG&A, $3.4 million included in
Cost of products sold and $18.6
million included in Spin restructuring charges);
- $251.9 million for the nine
months ended June 30, 2015
($180.9 million reported in SG&A,
$4.1 million included in Cost of
products sold and $66.9 million
reported in Spin restructuring charges);
- $296.6 million project-to-date
($225.6 million reported in SG&A,
$4.1 million included in Cost of
products sold and $66.9 million
reported in Spin restructuring charges); and
- $61.4 million for the quarter and
nine months ended June 30, 2015
included within Cost of early debt retirement associated with the
prepayment of the Company's private placement notes on May 29, 2015.
Key Personal Care Segment Results (Unaudited)
Following is a summary of key fiscal 2015 third quarter results
for the Personal Care segment. All comparisons are with the
fiscal 2014 third quarter unless otherwise stated. Household
Products segment results are included in the notes section.
Personal Care Highlights
- Net sales down 6.3% (organic net sales up 0.7%, excluding the
negative impacts of currency movements and the year-over-year
change in Venezuela results);
- Gross margin increased 20 basis points to 48.5% of net sales
(up 130 basis points excluding the impact of currency movements and
the change in Venezuela results);
and
- Segment profit of $95.3 million
decreased 15.1%. Excluding the negative impacts of currency
movements and the year-over-year change in Venezuela operations, adjusted segment profit
increased 1.7%.
Starting July 1, 2015, as a result
of the Separation, operations for the Company will be reported via
four segments - Wet Shave, Sun and Skin Care, Feminine Care and All
Other.
Net Sales -
Personal Care (In millions - Unaudited)
|
Quarter Ended June
30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Net Sales -
FY'14
|
$
|
402.6
|
|
|
|
|
$
|
169.6
|
|
|
|
|
$
|
98.7
|
|
|
|
|
$
|
47.4
|
|
|
|
|
$
|
718.3
|
|
|
|
Organic
|
9.5
|
|
|
2.4
|
%
|
|
(10.9)
|
|
|
(6.4)
|
%
|
|
6.4
|
|
|
6.5
|
%
|
|
(0.4)
|
|
|
(0.8)%
|
|
|
4.6
|
|
|
0.7
|
%
|
Change in Venezuela
results
|
(7.6)
|
|
|
(1.9)
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
(7.6)
|
|
|
(1.1)
|
%
|
Impact of
currency
|
(35.1)
|
|
|
(8.7)
|
%
|
|
(5.4)
|
|
|
(3.2)
|
%
|
|
(1.1)
|
|
|
(1.1)
|
%
|
|
(0.9)
|
|
|
(1.9)
|
%
|
|
(42.5)
|
|
|
(5.9)
|
%
|
Net Sales - FY'15
|
$
|
369.4
|
|
|
(8.2)
|
%
|
|
$
|
153.3
|
|
|
(9.6)
|
%
|
|
$
|
104.0
|
|
|
5.4
|
%
|
|
$
|
46.1
|
|
|
(2.7)
|
%
|
|
$
|
672.8
|
|
|
(6.3)
|
%
|
Net Sales -
Personal Care (In millions - Unaudited)
|
Nine Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wet
Shave
|
|
Sun and Skin
Care
|
|
Feminine
Care
|
|
All
Other
|
|
Total
|
Net Sales -
FY'14
|
$
|
1,166.5
|
|
|
|
|
$
|
355.8
|
|
|
|
|
$
|
286.6
|
|
|
|
|
$
|
148.6
|
|
|
|
|
$
|
1,957.5
|
|
|
|
Organic
|
(2.7)
|
|
|
(0.3)
|
%
|
|
(6.5)
|
|
|
(1.9)
|
%
|
|
(3.7)
|
|
|
(1.3)
|
%
|
|
(7.5)
|
|
|
(5.1)
|
%
|
|
(20.4)
|
|
|
(1.1)
|
%
|
Change in Venezuela
results
|
1.2
|
|
|
0.1
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1.2
|
|
|
0.1
|
%
|
Impact of
currency
|
(82.1)
|
|
|
(7.0)
|
%
|
|
(11.5)
|
|
|
(3.2)
|
%
|
|
(2.8)
|
|
|
(1.0)
|
%
|
|
(2.3)
|
|
|
(1.5)
|
%
|
|
(98.7)
|
|
|
(5.0)
|
%
|
Incremental impact of
acquisition
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
21.4
|
|
|
7.5
|
%
|
|
—
|
|
|
—
|
%
|
|
21.4
|
|
|
1.1
|
%
|
Net Sales - FY'15
|
$
|
1,082.9
|
|
|
(7.2)
|
%
|
|
$
|
337.8
|
|
|
(5.1)
|
%
|
|
$
|
301.5
|
|
|
5.2
|
%
|
|
$
|
138.8
|
|
|
(6.6)
|
%
|
|
$
|
1,861.0
|
|
|
(4.9)
|
%
|
Segment Profit -
Personal Care (In millions - Unaudited)
|
|
|
|
|
Quarter and Nine
Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
%
Chg
|
|
Nine
Months
|
|
%
Chg
|
Segment Profit -
FY'14
|
|
$
|
112.2
|
|
|
|
|
$
|
413.2
|
|
|
|
Operations
|
|
2.0
|
|
|
1.7
|
%
|
|
(2.3)
|
|
|
(0.7)
|
%
|
Change in Venezuela
results
|
|
(2.3)
|
|
|
(2.0)
|
%
|
|
1.9
|
|
|
0.5
|
%
|
Impact of
currency
|
|
(16.6)
|
|
|
(14.8)
|
%
|
|
(40.7)
|
|
|
(9.8)
|
%
|
Incremental impact of
acquisition
|
|
—
|
|
|
—
|
%
|
|
4.5
|
|
|
1.1
|
%
|
Segment Profit -
FY'15
|
|
$
|
95.3
|
|
|
(15.1)
|
%
|
|
$
|
376.6
|
|
|
(8.9)
|
%
|
Net Sales for the third quarter decreased 6.3%.
Exclusive of the impact of unfavorable currency movements and
Venezuela year-over-year results,
organic net sales increased 0.7% versus the prior year.
Organic net sales growth in the quarter was driven by higher
volumes in Wet Shave and Feminine Care products, offset by
unfavorable price/mix in Wet Shave and lower volumes in Sun and
Skin Care and Infant Care.
North America net sales declined
in the quarter as growth in Wet Shave and Feminine Care were
off-set by a decline in Sun and Skin Care. International net
sales grew, driven by increased volumes in Wet Shave and Sun and
Skin Care. Net sales were slightly impacted by
go-to-market changes including exiting markets in certain countries
and moving to a distributor model in others.
Segment profit decreased $16.9
million for the quarter. Excluding the impact of the
unfavorable movement in currencies and year-over-year Venezuela results, segment profit increased
$2.0 million. Operationally,
segment profit growth in the quarter was driven primarily by
restructuring savings, lower overhead spending and higher net
sales, partially offset by a higher investment in A&P.
Additional Key
Personal Care Segment Metrics (In millions -
Unaudited)
|
|
|
Quarter and Nine
Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
%
Chg
|
|
Nine
Months
|
|
%
Chg
|
Gross
profit
|
|
$
|
326.6
|
|
|
(5.9)
|
%
|
|
$
|
916.8
|
|
|
(4.3)
|
%
|
Selling, general and
administrative expense (1)
|
|
72.3
|
|
|
(14.0)
|
%
|
|
220.4
|
|
|
(10.2)
|
%
|
Advertising and sales
promotion expense
|
|
142.2
|
|
|
6.4
|
%
|
|
271.3
|
|
|
8.8
|
%
|
Research and
development expense
|
|
16.8
|
|
|
(2.9)
|
%
|
|
48.5
|
|
|
(2.8)
|
%
|
|
|
(1)
|
Includes $16.3 and
$55.7, respectively, of Personal Care segment depreciation and
amortization for the quarter and nine months ended June 30,
2015.
|
Financial Outlook
The Company is providing the following assumptions related to
its financial outlook for the fourth quarter ended September 30, 2015, unless otherwise
stated. Given the substantial go-to-market and other
organizational changes occurring in the fourth quarter, the company
is providing some broad range guidance for the 4th quarter stub
period as follows:
- Organic net sales are expected to be down by low single digits.
However, including the impact of go-to-market changes and temporary
volatility post-separation, organic net sales could be down in the
mid single digit range.
- A&P as a percent of net of sales is expected to be in the
range of 14.5% to 15%.
- SG&A as a percent of net sales is expected to be
approximately 16% before corporate amortization.
- Adjusted EBITDA is expected to be in the range of $90 - $100 million, including the impact of
$20 to $25 million of unfavorable
movement in foreign currencies.
- Spin and Spin restructuring costs of $30
to $35 million are anticipated to be incurred through the
end of FY2016, with the majority of the costs to be incurred in the
fourth quarter of this fiscal year.
- 2013 Restructuring related costs are anticipated to be
$8 - $10 million in the fourth
quarter of this fiscal year and $40 to $50
million for the remainder of the project, which is now
expected to continue through fiscal 2017. The Company expects the
majority of the incremental savings of $30 -
$40 million to occur in FY16 and FY17.
Webcast Information
In conjunction with this announcement, the Company will hold an
investor conference call beginning at 10:00
a.m. eastern time today. The call will focus on third fiscal
quarter earnings. All interested parties may access a live
webcast of this conference call at www.edgewell.com, under
"Investors," and "Webcasts and Presentations" tabs or by using the
following link:
http://ir.edgewell.com/phoenix.zhtml?c=254077&p=irol-calendar
For those unable to participate during the live webcast, a
replay will be available on www.edgewell.com, under "Investors",
"Investor Information", "Webcasts and Presentations", and "Audio
Archives" tabs.
Non-GAAP Financial Measures. While the Company
reports financial results in accordance with accounting principles
generally accepted in the U.S. ("GAAP"), this discussion also
includes Non-GAAP measures. These Non-GAAP measures are
referred to as "adjusted" and exclude expenses associated with (1)
spin costs, (2) restructuring charges (including 2013
restructuring, spin restructuring, and industrial blade product
line exit), (3) acquisition and integration expenses (including
acquisition inventory valuation charges), (4) Venezuela deconsolidation charges (5) cost of
early debt retirements and (6) adjustments to prior year tax
accruals.
This Non-GAAP information is provided as a supplement, not as a
substitute for, or as superior to, measures of financial
performance prepared in accordance with GAAP. The Company
uses this Non-GAAP information internally to make operating
decisions and believes it is helpful to investors because it allows
more meaningful period-to-period comparisons of ongoing operating
results. The information can also be used to perform trend
analysis and to better identify operating trends that may otherwise
be masked or distorted by the types of items that are
excluded. Finally, the Company believes this information
provides a higher degree of transparency.
The Company analyzes its net revenue on an organic net sales
basis to better measure the comparability of results between
periods. Organic net sales excludes the impact of changes in
foreign currency, the impact of acquisitions, and the
period-over-period change in Venezuela results. This information is
provided because these types of fluctuations can distort the
underlying change in net sales either positively or negatively.
Adjusted EBITDA is defined as earnings before income taxes,
interest income and expense, depreciation and amortization and
excludes items such as spin costs, restructuring charges,
acquisition and integration expenses, Venezuela deconsolidation charges, cost of
early debt retirements and adjustments to prior year tax
accruals.
Forward-Looking Statements. This document contains both
historical and forward-looking statements. Forward-looking
statements are not based on historical facts but instead reflect
the Company's expectations, estimates or projections concerning
future results or events, including, without limitation, the future
earnings and performance of the Company or any of its businesses.
These statements generally can be identified by the use of
forward-looking words or phrases such as "believe," "expect,"
"expectation," "anticipate," "may," "could," "intend," "belief,"
"estimate," "plan," "target," "predict," "likely," "will,"
"should," "forecast," "outlook," or other similar words or
phrases. These statements are not guarantees of performance
and are inherently subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict and
could cause the Company's actual results to differ materially from
those indicated by those statements. The Company cannot
assure you that any of its expectations, estimates or projections
will be achieved. The forward-looking statements included in
this document are only made as of the date of this document and the
Company disclaims any obligation to publicly update any
forward-looking statement to reflect subsequent events or
circumstances. Numerous factors could cause the Company's
actual results and events to differ materially from those expressed
or implied by forward-looking statements, including, without
limitation:
- Whether the operational, marketing and strategic benefits of
the recently completed Separation can be achieved;
- Whether the remaining costs and expenses resulting from the
Separation can be controlled within expectations;
- General market and economic conditions;
- Market trends in the categories in which the Company
operates;
- The success of new products and the ability to continually
develop and market new products;
- The Company's ability to attract, retain and improve
distribution with key customers;
- The Company's ability to continue planned advertising and other
promotional spending and the effectiveness of such spending;
- The Company's ability to timely execute strategic initiatives,
including restructurings, in a manner that will positively impact
its financial condition and results of operations and does not
disrupt its business operations;
- The impact of strategic initiatives, as well as restructurings,
on the Company's relationships with employees, customers and
vendors;
- The Company's ability to maintain and improve market share in
the categories in which it operates despite heightened competitive
pressure;
- The Company's ability to improve operations and realize cost
savings;
- The impact of foreign currency exchange rates and currency
controls, as well as offsetting hedges;
- The impact of raw material and other commodity costs;
- Goodwill impairment charges resulting from declines in
profitability or estimated cash flows related to intangible assets
or market valuations for similar assets;
- Costs and reputational damage associated with cyber-attacks or
information security breaches;
- The Company's ability to acquire and integrate businesses, and
to realize the projected results of acquisitions;
- The impact of advertising and product liability claims and
other litigation;
- Compliance with debt covenants and maintenance of credit
ratings as well as the impact of interest and principal repayment
of our existing and any future debt; or
- The impact of legislative or regulatory determinations or
changes by federal, state and local, and foreign authorities,
including taxing authorities.
In addition, other risks and uncertainties not presently known
to the Company or that it considers immaterial could affect the
accuracy of any such forward-looking statements. The list of
factors above is illustrative, but by no means exhaustive.
All forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. Additional risks
and uncertainties include those detailed from time to time in the
Company's publicly filed documents, including the Company's annual
report on Form 10-K for the year ended September 30, 2014 and its quarterly reports on
Form 10-Q for the quarters ended December
31, 2014 and March 30,
2015.
EDGEWELL PERSONAL
CARE COMPANY
CONSOLIDATED
STATEMENTS OF EARNINGS
(Condensed)
(In millions,
except per share data - Unaudited)
|
|
|
Quarter
Ended
June
30,
|
|
Nine Months
Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,047.1
|
|
|
$
|
1,130.0
|
|
|
$
|
3,093.5
|
|
|
$
|
3,306.3
|
|
Cost of products
sold
|
553.0
|
|
|
591.0
|
|
|
1,608.7
|
|
|
1,747.2
|
|
Gross
profit
|
494.1
|
|
|
539.0
|
|
|
1,484.8
|
|
|
1,559.1
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
258.5
|
|
|
207.1
|
|
|
700.8
|
|
|
610.8
|
|
Advertising and sales
promotion expense
|
177.3
|
|
|
161.4
|
|
|
370.3
|
|
|
339.5
|
|
Research and
development expense
|
23.3
|
|
|
23.2
|
|
|
67.6
|
|
|
67.8
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
144.5
|
|
|
—
|
|
Spin restructuring
charges
|
18.6
|
|
|
—
|
|
|
66.9
|
|
|
—
|
|
2013 restructuring
charges
|
22.3
|
|
|
28.0
|
|
|
28.7
|
|
|
75.1
|
|
Industrial exit
charges
|
21.9
|
|
|
—
|
|
|
21.9
|
|
|
—
|
|
Interest
expense
|
31.1
|
|
|
31.1
|
|
|
88.7
|
|
|
93.6
|
|
Cost of early debt
retirements
|
61.4
|
|
|
—
|
|
|
61.4
|
|
|
—
|
|
Other financing
items, net
|
(10.3)
|
|
|
0.1
|
|
|
(19.0)
|
|
|
(3.4)
|
|
(Loss) earnings
before income taxes
|
(110.0)
|
|
|
88.1
|
|
|
(47.0)
|
|
|
375.7
|
|
Income tax (benefit)
provision
|
(37.5)
|
|
|
23.6
|
|
|
8.9
|
|
|
104.8
|
|
Net (loss)
earnings
|
$
|
(72.5)
|
|
|
$
|
64.5
|
|
|
$
|
(55.9)
|
|
|
$
|
270.9
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.17)
|
|
|
$
|
1.05
|
|
|
$
|
(0.90)
|
|
|
$
|
4.36
|
|
Diluted
|
$
|
(1.17)
|
|
|
$
|
1.03
|
|
|
$
|
(0.90)
|
|
|
$
|
4.33
|
|
|
|
|
|
|
|
|
|
Weighted average
shares of common stock - Basic
|
62.2
|
|
|
61.7
|
|
|
62.1
|
|
|
62.1
|
|
Weighted average
shares of common stock - Diluted
|
62.2
|
|
|
62.4
|
|
|
62.1
|
|
|
62.6
|
|
See Accompanying Notes
EDGEWELL PERSONAL
CARE COMPANY
|
NOTES TO CONDENSED
FINANCIAL STATEMENTS
|
June 30,
2015
|
(In millions,
except per share data - Unaudited)
|
|
|
1.
|
Prior to the July 1,
2015 separation of its Household Products business (further
described below), operations for the Company were managed via two
segments - Personal Care (Wet Shave, Skin Care, Feminine Care and
Infant Care products) and Household Products (Battery and Portable
Lighting products). Segment performance was evaluated based
on segment operating profit, exclusive of (1) general corporate
expenses, (2) share-based compensation costs, (3) restructuring
charges (including 2013 restructuring, spin restructuring, and the
industrial product line exit), (4) Venezuela deconsolidation
charge, (5) acquisition and integration expense (6) amortization of
intangible assets and (7) cost of early debt retirements.
Financial items, such as interest income and expense, were managed
on a global basis at the corporate level. The exclusion of
charges such as other acquisition transaction and integration
costs, and substantially all restructuring costs, from segment
results reflected management's view on how it evaluated segment
performance.
|
|
|
|
The Company's
operating model included a combination of stand-alone and combined
business functions between the Personal Care and Household Products
businesses, varying by country and region of the world.
Shared functions included product warehousing and distribution,
various transaction processing functions, and in some countries, a
combined sales force and management. The Company applied a
fully allocated cost basis, in which shared business functions were
allocated between the segments. Such allocations were
estimates, and do not represent the costs of such services if
performed on a stand-alone basis.
|
|
|
|
For the nine months
ended June 30, 2015, the Company recorded a charge of $144.5 as a
result of deconsolidating its Venezuelan subsidiaries, which had no
accompanying tax benefit. The Venezuela deconsolidation
charge was reported as a separate line item on the Consolidated
Statement of Earnings (Condensed).
|
|
|
|
On July 1, 2015, the
Company completed the previously announced separation of its
Household Products business into a separate publicly-traded company
(the "Spin" or the "Separation"). The Company incurred
incremental costs to evaluate, plan and execute the
Separation. For the quarter and nine months ended June
30, 2015, $92.5 and $180.9, respectively, of pre-tax charges were
recorded in Selling, general and administrative expense
("SG&A") and $3.4 and $4.1, respectively, of pre-tax charges
for the quarter and nine months ended June 30, 2015 were recorded
in Cost of products sold. Additionally, the Company recorded
$18.6 and $66.9, respectively, in pre-tax Spin restructuring
charges related to the Separation for the quarter and nine months
ended June 30, 2015. The Spin restructuring charges were
reported as a separate line item on the Consolidated Statement of
Earnings (Condensed).
|
|
|
|
For the quarter and
nine months ended June 30, 2015, the Company recorded pre-tax
expense of $22.3 and $28.7, respectively, related to its 2013
restructuring, as compared to pre-tax expense of $28.0 and $75.1,
respectively, in the prior year. The 2013 restructuring
charges were reported as a separate line item on the Consolidated
Statement of Earnings (Condensed). In addition, pre-tax costs
of $0.2 and $0.5, respectively, for the quarter and nine months
ended June 30, 2015 and $2.6 and $8.1, respectively, for the same
periods in the prior year associated with certain information
technology enablement activities related to the Company's
restructuring initiatives were included in SG&A.
Additionally, pre-tax costs of $1.1 for the quarter and nine months
ended June 30, 2015 and $0.4 for the nine months ended June 30,
2014, associated with obsolescence charges related to the Company's
restructuring, were included in Cost of products sold. These
information technology and inventory obsolescence costs were
considered part of the total project costs incurred for the
restructuring initiative.
|
|
|
|
For the quarter and
nine months ended June 30, 2015, the Company recorded pre-tax
expense of $21.9 related to its decision to exit the industrial
blade product line. The Industrial exit charges were reported
as a separate line item in the Consolidated Statement of Earnings
(Condensed).
|
|
|
|
In connection with
the Company's October 2013 acquisition of certain feminine care
brands from Johnson & Johnson (the "feminine care
acquisition"), the Company recorded pre-tax acquisition and
integration costs of $1.5 and $7.4, respectively, for the quarter
and nine months ended June 30, 2014. These amounts were not
reflected in the Personal Care segment, but rather were presented
as a separate line item below segment profit. Such
presentation reflects management's view on how segment results are
evaluated.
|
|
|
|
For the nine months
ended June 30, 2014, the Company recorded a pre-tax inventory
valuation adjustment of $8.0 related to the feminine care
acquisition, representing the increased fair value of the inventory
based on the estimated selling price of the finished goods acquired
on the closing date less the sum of (a) costs of disposal and (b) a
reasonable profit allowance for the selling effort of the acquiring
entity. For the quarter and nine months ended June 30, 2014,
the Company recorded $8.0 within Cost of products sold based upon
the write-up and subsequent sale of inventory acquired in the
feminine care acquisition. These amounts were not reflected
in the Personal Care segment, but rather presented as a separate
line item below segment profit. Such presentation reflects
management's view on how segment results are evaluated.
|
|
|
|
For the quarter and
nine months ended June 30, 2015, the Company recorded early debt
retirement costs of $61.4 associated with the prepayment of its
private placement notes on May 29, 2015.
|
|
|
|
Segment net sales and
profitability for the quarter and nine months ended June 30, 2015
and 2014, respectively, are presented below.
|
|
Quarter
Ended
June
30,
|
|
Nine Months
Ended
June 30,
|
Net
Sales
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Personal
Care
|
$
|
672.8
|
|
|
$
|
718.3
|
|
|
$
|
1,861.0
|
|
|
$
|
1,957.5
|
|
Household Products
|
374.3
|
|
|
411.7
|
|
|
1,232.5
|
|
|
1,348.8
|
|
Total Net
sales
|
$
|
1,047.1
|
|
|
$
|
1,130.0
|
|
|
$
|
3,093.5
|
|
|
$
|
3,306.3
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
95.3
|
|
|
$
|
112.2
|
|
|
$
|
376.6
|
|
|
$
|
413.2
|
|
Household Products
|
68.6
|
|
|
84.2
|
|
|
257.7
|
|
|
279.7
|
|
Total Segment
profit
|
163.9
|
|
|
196.4
|
|
|
634.3
|
|
|
692.9
|
|
General
corporate and other expenses
|
(27.9)
|
|
|
(33.3)
|
|
|
(90.1)
|
|
|
(107.0)
|
|
Venezuela
deconsolidation charge
|
—
|
|
|
—
|
|
|
(144.5)
|
|
|
—
|
|
Spin costs
(1)
|
(95.9)
|
|
|
(7.0)
|
|
|
(185.0)
|
|
|
(7.0)
|
|
Spin restructuring
charges
|
(18.6)
|
|
|
—
|
|
|
(66.9)
|
|
|
—
|
|
2013
restructuring and related charges (2)
|
(23.6)
|
|
|
(30.6)
|
|
|
(30.3)
|
|
|
(83.6)
|
|
Industrial exit charges
|
(21.9)
|
|
|
—
|
|
|
(21.9)
|
|
|
—
|
|
Feminine
care acquisition and integration costs
|
—
|
|
|
(1.5)
|
|
|
—
|
|
|
(7.4)
|
|
Acquisition inventory valuation
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0)
|
|
Amortization of intangibles
|
(3.8)
|
|
|
(4.7)
|
|
|
(11.5)
|
|
|
(14.0)
|
|
Cost of
early debt retirements
|
(61.4)
|
|
|
—
|
|
|
(61.4)
|
|
|
—
|
|
Interest
and other financing items
|
(20.8)
|
|
|
(31.2)
|
|
|
(69.7)
|
|
|
(90.2)
|
|
Total (loss) earnings
before income taxes
|
$
|
(110.0)
|
|
|
$
|
88.1
|
|
|
$
|
(47.0)
|
|
|
$
|
375.7
|
|
|
|
(1)
|
Includes pre-tax
costs of $92.5 and $180.9, respectively, for the quarter and nine
months ended June 30, 2015 and $7.0 for the quarter and nine months
ended June 30, 2014 which are included in SG&A.
Additionally, pre-tax costs of $3.4 and $4.1, respectively, for the
quarter and nine months ended June 30, 2015 were included in Cost
of products sold.
|
(2)
|
Includes pre-tax
costs of $0.2 and $0.5, respectively, for the quarter and nine
months ended June 30, 2015 and $2.6 and $8.1, respectively, for the
quarter and nine months ended June 30, 2014, associated with
certain information technology and related activities, which were
included in SG&A. Additionally, pre-tax costs of $1.1 for
the quarter and nine months ended June 30, 2015 and $0.4 for the
nine months ended June 30, 2014, associated with obsolescence
charges related to the restructuring, were included in Cost of
products sold.
|
|
|
2.
|
Basic (loss) earnings
per share is based on the average number of common shares
outstanding during the period. Diluted (loss) earnings per
share is based on the weighted average number of shares used for
the basic (loss) earnings per share calculation, adjusted for the
dilutive effect of stock options and restricted stock
equivalents. For the quarter and nine months ended June 30,
2015, GAAP (loss) earnings per share is calculated using basic
weighted average shares outstanding due to the reported net
loss.
|
|
|
3.
|
Working Capital
Metrics at June 30, 2015 as compared to September 30,
2014.
|
|
Q3
|
|
|
|
|
|
|
|
FY
'15
|
|
Days
|
|
FY
'14
|
|
Days
|
|
|
|
|
|
|
|
|
Receivables,
as reported
|
$
|
476.8
|
|
|
|
|
$
|
481.1
|
|
|
|
Less:
Trade allowance in accrued liabilities
|
(83.4)
|
|
|
|
|
(94.6)
|
|
|
|
Receivables,
adjusted (1)
|
393.4
|
|
|
33.9
|
|
386.5
|
|
|
31.7
|
|
|
|
|
|
|
|
|
Inventories
|
636.0
|
|
|
107.1
|
|
617.4
|
|
|
97.5
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
365.4
|
|
|
61.5
|
|
337.5
|
|
|
53.3
|
|
|
|
|
|
|
|
|
Average
Working Capital, net (2)(4)
|
$
|
664.0
|
|
|
|
|
$
|
666.4
|
|
|
|
|
|
|
|
|
|
|
|
Average
Working Capital as % of Net Sales (3)
|
15.7
|
%
|
|
|
|
15.0
|
%
|
|
|
|
|
(1)
|
Trade receivable
adjusted for trade allowance recorded as a reduction of net sales
per GAAP, but included in accrued expenses on the consolidated
balance sheet.
|
(2)
|
Average Working
Capital is calculated using an average of the four quarter-end
balances for each working capital component as of June 30, 2015 and
September 30, 2014, respectively.
|
(3)
|
Average Working
Capital / Trailing Four Quarter Net sales.
|
(4)
|
Working Capital is
defined as Receivables (less trade allowance in accrued
liabilities), plus Inventories less Accounts Payable.
|
4.
|
Venezuela historical
results of operations through the quarter ended June 30, 2015
(reflected at the official exchange rate of 6.30 bolivars per U.S.
dollar).
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Total Company - Net
Sales
|
Fiscal
2015
|
$12.7
|
$19.8
|
—
|
—
|
$32.5
|
|
Fiscal
2014
|
$12.2
|
$16.4
|
$14.4
|
$11.5
|
$54.5
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Total Company -
Segment Profit
|
Fiscal
2015
|
$3.8
|
$8.0
|
—
|
—
|
$11.8
|
|
Fiscal
2014
|
$4.9
|
$7.3
|
$5.6
|
$3.1
|
$20.9
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Personal Care - Net
Sales
|
Fiscal
2015
|
$9.6
|
$14.4
|
—
|
—
|
$24.0
|
|
Fiscal
2014
|
$6.9
|
$8.3
|
$7.6
|
$5.9
|
$28.7
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Personal Care -
Segment Profit
|
Fiscal
2015
|
$3.3
|
$6.0
|
—
|
—
|
$9.3
|
|
Fiscal
2014
|
$2.4
|
$2.7
|
$2.3
|
$0.4
|
$7.8
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Household Products -
Net Sales
|
Fiscal
2015
|
$3.1
|
$5.4
|
—
|
—
|
$8.5
|
|
Fiscal
2014
|
$5.3
|
$8.1
|
$6.8
|
$5.6
|
$25.8
|
|
|
|
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Household Products -
Segment Profit
|
Fiscal
2015
|
$0.5
|
$2.0
|
—
|
—
|
$2.5
|
|
Fiscal
2014
|
$2.5
|
$4.6
|
$3.3
|
$2.7
|
$13.1
|
5.
|
Key Household
Products Segment Results
|
|
|
|
|
Following is a
summary of third quarter results for the former Household Products
segment. All comparisons are with the third quarter of fiscal
2014 unless otherwise stated.
|
|
|
|
Household
Products
|
|
|
|
|
•
|
Net sales down
9.1%;
|
|
•
|
Organic net sales
decreased 0.6% in the third fiscal quarter versus the prior year
quarter impacted by the international go-to-market changes.
Excluding the go-to-market changes, organic net sales increased
0.1% exceeding category value performance; and
|
|
•
|
Segment profit of
$68.6, down 18.5% (up 4.2% excluding the negative impact of
currency movements and the year-over-year change in Venezuela
results).
|
Net Sales -
Household Products
|
Quarter and Nine
Months Ended June 30, 2015
|
|
|
|
|
|
|
Nine
|
|
|
|
|
Q3
|
|
%
Chg
|
|
Months
|
|
%
Chg
|
Net Sales -
FY'14
|
|
$
|
411.7
|
|
|
|
|
$
|
1,348.8
|
|
|
|
Organic
|
|
(2.8)
|
|
|
(0.6)%
|
|
(28.0)
|
|
|
(2.0)%
|
Change in Venezuela
results
|
|
(6.8)
|
|
|
(1.7)%
|
|
(11.7)
|
|
|
(0.9)%
|
Impact of
currency
|
|
(27.8)
|
|
|
(6.8)%
|
|
(76.6)
|
|
|
(5.7)%
|
Net
Sales - FY'15
|
|
$
|
374.3
|
|
|
(9.1)%
|
|
$
|
1,232.5
|
|
|
(8.6)%
|
Segment Profit -
Household Products
|
Quarter and Nine
Months Ended June 30, 2015
|
|
|
|
|
|
|
Nine
|
|
|
|
|
Q3
|
|
%
Chg
|
|
Months
|
|
%
Chg
|
Segment Profit -
FY'14
|
|
$
|
84.2
|
|
|
|
|
$
|
279.7
|
|
|
|
Operations
|
|
3.5
|
|
|
4.2%
|
|
31.0
|
|
|
11.0%
|
Change in Venezuela
results
|
|
(3.3)
|
|
|
(3.9)%
|
|
(7.9)
|
|
|
(2.8)%
|
Impact of
currency
|
|
(15.8)
|
|
|
(18.8)%
|
|
(45.1)
|
|
|
(16.1)%
|
Segment
Profit - FY'15
|
|
$
|
68.6
|
|
|
(18.5)%
|
|
$
|
257.7
|
|
|
(7.9)%
|
Organic net sales decreased 0.6% in the third quarter versus the
prior year, impacted by the international go-to-market changes.
Excluding the go-to-market changes, organic net sales increased
0.1% exceeding category value performance.
Segment profit in the third quarter decreased $15.6. Excluding the impact of the
unfavorable movement in currencies and Venezuela year-over-year results, adjusted
segment profit increased $3.5 as
increased A&P spending (in support of the EcoAdvanced™ product
launch) was offset by reduced overhead spending, improved
manufacturing costs resulting from the 2013 restructuring project
and lower commodity input prices.
Supplemental product information is presented below for revenues
from external customers:
|
Quarter
Ended
June
30,
|
|
|
|
Nine Months Ended
June 30,
|
|
|
Net
Sales
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
%
Change
|
Alkaline
batteries
|
$
|
233.9
|
|
|
$
|
256.5
|
|
|
(8.8)%
|
|
$
|
786.2
|
|
|
$
|
844.9
|
|
|
(6.9)%
|
Other batteries and
lighting products
|
140.4
|
|
|
155.2
|
|
|
(9.5)%
|
|
446.3
|
|
|
503.9
|
|
|
(11.4)%
|
Total Household
Products Net Sales
|
$
|
374.3
|
|
|
$
|
411.7
|
|
|
(9.1)%
|
|
$
|
1,232.5
|
|
|
$
|
1,348.8
|
|
|
(8.6)%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/edgewell-personal-care-company-announces-fiscal-2015-third-quarter-results-300123836.html
SOURCE Edgewell Personal Care Company