Edgewell Personal Care Announces Second Quarter Fiscal 2025 Results

May 07 2025 11:00 BST

Net Sales decreased 3.1%, Organic Net Salesdecreased 1.5%
Gross Margin increased 100-basis points
GAAP EPS decreased $0.12, Adjusted EPS decreased $0.01
Updates Full Year Outlook

SHELTON, Conn. , May 7, 2025 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its second fiscal quarter 2025 ended March 31, 2025.

Executive Summary

Net sales were $580.7 million, a decrease of 3.1% compared to the prior year quarter.
Organic net sales decreased 1.5% (Organic basis excludes the impact from currency movements.)
GAAP Diluted Net Earnings Per Share ("EPS") were $0.60, compared to $0.72 in the prior year quarter.
Adjusted EPS were $0.87, compared to $0.88 in the prior year quarter.
Ended the second quarter with $170 million in cash on hand, access to an additional $229 million revolving credit facility and a net debt leverage ratio of 3.8x.
Returned $42.7 million to shareholders in the form of $35.4 million in share repurchases and $7.3 million of dividends in the second quarter.
The Board of Directors declared a cash dividend of $0.15 per common share on May 7, 2025 for the second quarter.

The Company reports and forecasts results on a GAAP and non-GAAP basis and has reconciled non-GAAP results and outlook to the most directly comparable GAAP measures later in this release. See non-GAAP Financial Measures for a more detailed explanation, including definitions of various non-GAAP terms used in this release. All comparisons used in this release are for the same period in the prior fiscal year unless otherwise stated.

"We continue to execute well on our strategic priorities, acting with urgency, discipline, and purpose in a challenging and volatile environment. Our focus on business fundamentals has led to top-line growth in our International business and accelerated gross margin expansion through excellent execution of our productivity program. While execution across much of the business is strong, we recognize that work remains to better position our portfolio in the competitive U.S. market. Therefore, we remain in an investment stance, reinforcing brand equity and supporting innovation. As we look forward to the second half of the year, we expect the challenging economic environment to negatively impact consumer sentiment and behavior, moderating our top-line expectations. Despite this, we will incrementally invest, focusing on our Wet Shave and Sun Care portfolios in the US. I am confident that these investments, along with our continued focus on strategic priorities and disciplined execution, will strengthen our business and better position Edgewell to deliver significant value creation for our shareholders."

Fiscal 2Q 2025 Operating Results (Unaudited)

Net sales were $580.7 million in the quarter, a decrease of 3.1%, including a $9.8 million unfavorable impact from currency movements. Organic net sales decreased $8.9 million, or 1.5%. Growth in international markets was 2.9%, driven by both price and volume gains, seen across Wet Shave and Sun & Skin Care. Organic sales declined in North America by 3.9%, due to volume declines in Wet Shave, Feminine Care, and Sun Care.

Gross profit was $256.2 million, as compared to $258.1 million in the prior year quarter. Gross margin as a percent of net sales increased 100-basis points, to 44.1% in the quarter, inclusive of approximately 10-basis points of negative foreign currency. Adjusted gross margin, as a percent of net sales, increased 100-basis points, or increased 110-basis points at constant currency. Productivity savings of approximately 380-basis points were partially offset by 195-basis points of core inflation and volume absorption and 85-basis points of unfavorable mix and increased promotional levels (net of pricing).

Advertising and sales promotion expense ("A&P") was $65.5 million, or 11.3% of net sales, an increase of $2.4 million, compared to $63.1 million, or 10.5% of net sales in the prior year quarter.

Selling, general and administrative expense ("SG&A") was $105.7 million, or 18.2% of net sales, as compared to $107.5 million, or 17.9% of net sales in the prior year quarter. Adjusted SG&A was 18.0% of net sales, an increase of 60-basis points, which was primarily driven by higher people expenses and the impact of lower net sales, partially offset by favorable currency impacts.

The Company recorded pre-tax restructuring and repositioning expenses and costs in support of cost efficiency and effectiveness programs of $12.2 million in the quarter.

Operating income, was $58.9 million, or 10.1% of net sales, inclusive of a $2.8 million unfavorable currency movement, compared to $70.1 million, or 11.7% of net sales in the prior year quarter. Adjusted operating income was $76.7 million, or 13.2% of net sales, compared to $80.7 million, or 13.5% of net sales in the prior year quarter.

Interest expense associated with debt was $20.2 million, compared to $20.4 million in the prior year quarter. The decrease in interest expense was the result of a lower borrowing rate on the Company's U.S. revolving credit facility.

Other (income) expense, net was income of $2.6 million compared to expense of $2.7 million in the prior year quarter. Currency hedge and remeasurements gains were $2.4 million in the current quarter, compared to losses of $0.3 million in the prior year quarter.

The effective tax rate for the first six months of fiscal 2025 was 32.1% compared to 23.0% in the prior year period. The fiscal 2025 effective tax rate reflects the impact of net unfavorable discrete items and the unfavorable mix of earnings in higher tax rate jurisdictions. The adjusted effective tax rate for the first six months of fiscal 2025 was 29.9%, up from the prior year period adjusted effective tax rate of 23.5%.

GAAP net earnings were $29.0 million or $0.60 per diluted share compared to $36.0 million or $0.72 per diluted share in the prior year quarter. Adjusted net earnings were $41.8 million or $0.87 per share, compared to $44.0 million or $0.88 per share in the prior year quarter. Currency movements in the quarter had no impact on adjusted EPS, as the currency-related losses within operating profit were offset by currency-related benefits included in other expense (income), net. Adjusted EBITDA was $99.3 million, inclusive of a $0.1 million unfavorable currency impact, compared to $99.7 million in the prior year quarter.

Net cash used for operating activities was $70.5 million for the six months ending March 31, 2025, compared to cash flow provided by operating activities of $56.1 million in the prior year period. The increase in cash used for operating activities was largely driven by changes in net working capital and lower earnings.

Capital Allocation

On May 7, 2025, the Board of Directors declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter of fiscal 2025. The dividend will be payable on July 9, 2025 to shareholders of record as the close of business on June 6, 2025. During the second quarter of fiscal 2025, the Company paid dividends totaling $7.3 million to stockholders and completed share repurchases of approximately 1.1 million shares at a total cost of $35.4 million. As of March 31, 2025, the Company had 1.1 million shares of common stock available for repurchase in the future under the Board's 2018 authorization.

Fiscal 2Q 2025 Operating Segment Results (Unaudited)

Wet Shave (Men's Systems, Women's Systems, Disposables, and Shave Preps)

Net sales decreased $7.6 million, or 2.6%. Organic net sales decreased $2.5 million or 0.9%, as growth in international markets, driven by both higher volumes and price, was more than offset by volume declines in Shave Preps and Disposables in North America. Segment profit increased $6.2 million, or 15.3%. Organic segment profit, excluding the unfavorable impact from currency, increased $6.7 million, or 16.5%, as higher gross margins were offset by higher marketing expenses.

Sun and Skin Care(Sun Care, Men's and Women's Grooming Products, and Wet Ones)

Net sales decreased $4.7 million, or 2.0%. Organic net sales decreased $0.2 million, or 0.1%, as growth in Grooming in and Wet One's, was offset by declines in North America Sun Care. Segment profit decreased $3.6 million, or 6.6%, including an unfavorable impact from foreign currency of $2.4 million, or 4.4%. Organic segment profit decreased $1.2 million, or 2.2%, driven by lower gross margin and higher SG&A expenses, partly offset by lower marketing expenses.

Feminine Care (Tampons, Pads, and Liners)

Net sales decreased $6.4 million, or 9.1% with minimal currency impact, largely driven by a decline in Pads and Tampons. Segment profit decreased $5.6 million, or 64.4%. Organic segment profit decreased $5.7 million, or 65.5%, primarily driven by lower gross profit and higher marketing expenses, partially offset by lower SG&A expenses.

Full Fiscal Year 2025 Financial Outlook

The Company is providing the following outlook assumptions for fiscal 2025*

Organic net sales are now expected to be in the range of flat to 1% (previously in the range of 1% to 3%)
- Currency is now expected to negatively impact reported net sales by 10-basis points (previously, 160-basis points negative)
GAAP EPS is now expected to be in the range of $2.09 to $2.29 (previously in the range of $2.54 to $2.74)
- Includes: Restructuring and re-positioning charges**, Sun Care reformulation, Other costs
Adjusted EPS is now expected to be in the range of $2.85 to $3.05 (previously towards the lower end of the range of $3.15 to $3.35)
- Includes an estimated $0.35 per share unfavorable impact from foreign currency changes (previously $0.36)
- Adjusted gross margin is expected to increase approximately 10-basis points (previous 55-basis points), or 70-basis points (previously 90-basis points) at constant currency, reflecting increased investments, which are expected to primarily impact the third quarter and incremental tariffs of approximately $3 million to $4 million
- Adjusted operating margin is expected to decrease approximately 65 basis points (previously increase 10-basis points), or 10 basis points at constant currency (previously increase 50 basis points)
- The EPS outlook reflects the impact of expected share repurchases of approximately $90 million
Adjusted EBITDA is expected to be in the range of $329 to $341 million (previously towards the lower end of the range of $356 to $368 million)
- Includes an estimated $22 million unfavorable (previously $23 million unfavorable) impact from foreign currency changes
Other Expense (Income), net is now expected to be expense of $3 million (previously income of $1 million), inclusive of interest income of $2 million (previously $3 million)
Interest expense associated with debt is expected to be approximately $74 million
Adjusted effective tax rate is expected to be approximately 20% (previously 22%)
Total depreciation and amortization expense expected to be approximately $87 million (previously $89 million)
Capital expenditures expected to be approximately 2.5% to 3.0% of net sales
Free cash flow is expected to be approximately in the range of $130 million to $140 million (previously $185 million)

* This outlook reflects all known tariffs, including tariffs placed by the U.S., on other countries and tariffs announced by other countries, on the U.S. This outlook does not include tariffs that have been announced and delayed, or other additional tariffs which could result in additional costs incurred.

** In fiscal 2025, the Company is taking specific actions to strengthen its operating model, simplify the organization and improve manufacturing and supply chain efficiency through restructuring and repositioning actions, including the organizational and operational changes in Mexico. As a result of these actions, the Company expects to incur pre-tax charges of approximately $33 million (previously $29 million) for the full fiscal year.

Webcast Information

In conjunction with this announcement, the Company will hold an investor conference call beginning at 8:00 a.m. Eastern Time today. All interested parties may access a live webcast of this conference call at www.edgewell.com, under the "Investors," and "News and Events" tabs or by using the following link: http://ir.edgewell.com/news-and-events/events

For those unable to participate during the live webcast, a re-play will be available on www.edgewell.com, under the "Investors," "Financial Reports," and "Quarterly Earnings" tabs. This release includes references to the Company's website and references to additional information and materials found on its website. The Company's website and such information and materials are not incorporated by reference in, and are not part of, this release.

About Edgewell

Edgewell is a leading pure-play consumer products company with an attractive, diversified portfolio of established brand names such as Schick®, Wilkinson Sword® and Billie® men's and women's shaving systems and disposable razors; Edge and Skintimate® shave preparations; Playtex®, Stayfree®, Carefree® and o.b.® feminine care products; Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack Black®, and CREMO® sun and skin care products; and Wet Ones® products. The Company has a broad global footprint and operates in more than 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K. and Australia, with approximately 6,700 employees worldwide.

Forward-Looking Statements. This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. Forward-looking statements generally can be identified by the use of 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 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 Edgewell or any of its businesses. Many factors outside our control could affect the realization of these estimates. 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, except as required by law. You should not place undue reliance on these statements.

In addition, other risks and uncertainties not presently known to the Company or that it presently considers immaterial could significantly affect the accuracy of any such forward-looking statements. Risks and uncertainties include those detailed from time to time in the Company's publicly filed documents, including in Item 1A. Risk Factors of Part I of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 14, 2024.

Non-GAAP Financial Measures. While the Company reports financial results in accordance with generally accepted accounting principles ("GAAP") in the U.S., this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as "adjusted" or "organic" and exclude items which are considered by the Company as unusual or non-recurring and which

may have a disproportionate positive or negative impact on the Company's financial results in any particular period. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2025 financial outlook, are included within the Notes to Condensed Consolidated Financial Statements included with this release.

This non-GAAP information is provided as a supplement to, 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 analysis and to better identify operating trends that may otherwise be masked or distorted by the types of items that are excluded. This non-GAAP information is a component in determining management's incentive compensation. Finally, the Company believes this information provides a higher degree of transparency. The following provides additional detail on the Company's non-GAAP measures:

The Company utilizes "adjusted" non-GAAP measures including gross margin, SG&A, operating income, operating margin, effective tax rate, net earnings, diluted earnings per share, and EBITDA to internally make operating decisions.
- Constant currency measures are calculated by removing the impact of translational and transactional foreign currencies changes, net of foreign currency hedges compared to the prior year. Transactional foreign currency changes are driven by foreign legal entities' transactions not denominated in local currency.
The Company analyzes its net sales and segment profit on an organic basis to better measure the comparability of results between periods. Organic net sales and organic segment profit exclude the impact of changes in foreign currency and the impact of acquisitions.
- Segment profit will be impacted by fluctuations in translation and transactional foreign currency. The impact of currency was applied to segments using management's best estimate.
Free cash flow is defined as net cash from operating activities, less capital expenditures plus collections of deferred purchase price of accounts receivable sold and proceeds from sales of fixed assets. Free cash flow conversion is defined as free cash flow as a percentage of net earnings adjusted for the net impact of non-cash impairments.
Net debt is defined as Gross debt less cash. Net debt leverage ratio is defined as net debt less cash divided by trailing twelve month adjusted EBITDA.

Basis of Presentation. Please refer to the Annual Report on Form 10-K filed with the Securities and Exchange Commission on November 14, 2024, as amended by the Company on November 21, 2024.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data)
	Three Months Ended March 31,		Six Months Ended March 31,
	2025	2024	2025	2024
Net sales	$ 580.7	$ 599.4	$ 1,059.1	$ 1,088.3
Cost of products sold	324.5	341.3	611.3	632.5
Gross profit	256.2	258.1	447.8	455.8

Selling, general and administrative expense	105.7	107.5	208.6	210.8
Advertising and sales promotion expense	65.5	63.1	115.8	111.3
Research and development expense	13.9	14.2	27.8	27.5
Restructuring charges	12.2	3.2	16.4	10.0
Operating income	58.9	70.1	79.2	96.2

Interest expense associated with debt	20.2	20.4	39.0	40.2
Other (income) expense, net	(2.6)	2.7	0.6	3.0
Earnings before income taxes	41.3	47.0	39.6	53.0
Income tax provision	12.3	11.0	12.7	12.2
Net earnings	$ 29.0	$ 36.0	$ 26.9	$ 40.8

Earnings per share:
Basic net earnings per share	$ 0.60	$ 0.72	$ 0.56	$ 0.82
Diluted net earnings per share	$ 0.60	$ 0.72	$ 0.55	$ 0.81

Weighted-average shares outstanding:
Basic	48.0	49.8	48.3	50.0
Diluted	48.2	50.2	48.4	50.3
See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
	March 31, 2025	September 30, 2024
Assets
Current assets
Cash and cash equivalents	$ 170.1	$ 209.1
Trade receivables, less allowance for doubtful accounts	178.2	109.4
Inventories	512.2	477.3
Other current assets	151.9	140.2
Total current assets	1,012.4	936.0
Property, plant and equipment, net	344.6	349.1
Goodwill	1,332.7	1,338.6
Other intangible assets, net	930.0	948.5
Other assets	153.1	158.7
Total assets	$ 3,772.8	$ 3,730.9

Liabilities and Shareholders' Equity
Current liabilities
Notes payable	$ 27.2	$ 24.5
Accounts payable	215.6	219.3
Other current liabilities	293.5	319.8
Total current liabilities	536.3	563.6
Long-term debt	1,433.1	1,275.0
Deferred income tax liabilities	133.0	133.2
Other liabilities	156.5	175.0
Total liabilities	2,258.9	2,146.8
Shareholders' equity
Common shares	0.7	0.7
Additional paid-in capital	1,567.3	1,586.0
Retained earnings	1,102.3	1,090.1
Common shares in treasury at cost	(979.2)	(937.9)
Accumulated other comprehensive loss	(177.2)	(154.8)
Total shareholders' equity	1,513.9	1,584.1
Total liabilities and shareholders' equity	$ 3,772.8	$ 3,730.9
See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)
	Six Months Ended March 31,
	2025	2024
Cash Flow from Operating Activities
Net earnings	$ 26.9	$ 40.8
Depreciation and amortization	43.5	44.9
Share-based compensation expense	12.4	13.3
Loss on sale of assets	1.5	0.2
Deferred compensation payments	(1.9)	(1.4)
Deferred income taxes	(0.1)	(0.6)
Other, net	(8.0)	(5.0)
Changes in current assets and liabilities used in operations	(144.8)	(36.1)
Net cash (used for) provided by operating activities	$ (70.5)	$ 56.1

Cash Flow from Investing Activities
Capital expenditures	$ (33.9)	$ (18.0)
Collection of deferred purchase price on accounts receivable sold	2.3	0.1
Other, net	(1.4)	(1.8)
Net cash used for investing activities	$ (33.0)	$ (19.7)

Cash Flow from Financing Activities
Cash proceeds from debt with original maturities greater than 90 days	$ 605.0	$ 385.0
Cash payments on debt with original maturities greater than 90 days	(448.0)	(396.0)
Proceeds from debt with original maturities of 90 days or less	3.5	3.9
Repurchase of shares	(65.7)	(30.3)
Dividends to common shareholders	(15.2)	(15.8)
Net financing inflow from the Accounts Receivable Facility	0.3	1.4
Employee shares withheld for taxes	(7.4)	(7.0)
Other, net	—	(0.6)
Net cash provided by (used for) financing activities	$ 72.5	$ (59.4)

Effect of exchange rate changes on cash	(8.0)	2.8

Net decrease in cash and cash equivalents	(39.0)	(20.2)
Cash and cash equivalents, beginning of period	209.1	216.4
Cash and cash equivalents, end of period	$ 170.1	$ 196.2
See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, in millions, except per share data)

Note 1 — Segments

The Company conducts its business in the following three segments: Wet Shave, Sun and Skin Care, and Feminine Care (collectively, the "Segments," and each individually, a "Segment"). Segment performance is evaluated based on segment profit, exclusive of general corporate expenses, share-based compensation costs, items which are considered by the Company to be unusual or non-recurring and which may have a disproportionate positive or negative impact on the Company's financial results in any particular period and the amortization of intangible assets. Financial items, such as interest income and expense, are managed on a global basis at the corporate level. The exclusion of such charges from segment results reflects management's view on how it evaluates segment performance.

Segment net sales and profitability are presented below:

	Three Months Ended March 31,		Six Months Ended March 31,
	2025	2024	2025	2024
Net Sales
Wet Shave	$ 285.5	$ 293.1	$ 580.0	$ 594.8
Sun and Skin Care	231.1	235.8	351.7	351.2
Feminine Care	64.1	70.5	127.4	142.3
Total net sales	$ 580.7	$ 599.4	$ 1,059.1	$ 1,088.3

Segment Profit
Wet Shave	$ 46.6	$ 40.4	$ 93.2	$ 94.1
Sun and Skin Care	50.8	54.4	47.4	53.1
Feminine Care	3.1	8.7	6.3	16.0
Total segment profit	100.5	103.5	146.9	163.2
General corporate and other expenses	(16.1)	(15.0)	(27.7)	(31.2)
Amortization of intangibles	(7.7)	(7.8)	(15.5)	(15.6)
Interest and other expense, net	(18.2)	(23.1)	(39.3)	(43.2)
Restructuring and repositioning expenses	(12.2)	(3.2)	(16.4)	(10.0)
Acquisition and integration costs	—	(0.7)	(0.5)	(1.4)
Sun Care reformulation costs	(0.7)	(0.4)	(1.7)	(0.9)
Wet Ones manufacturing plant fire	—	(3.8)	—	(5.3)
Legal matters	—	(1.4)	—	(1.4)
Gain on investment	—	—	0.9	—
Commercial realignment	(3.1)	—	(3.1)	—
Vendor bankruptcy	(0.4)	—	(0.4)	—
Other project and related costs	(0.8)	(1.1)	(3.6)	(1.2)
Total earnings before income taxes	$ 41.3	$ 47.0	$ 39.6	$ 53.0

Refer to Note 2 - GAAP to Non-GAAP Reconciliations for the income statement location of non-GAAP adjustments to earnings before income taxes.

Note 2 — GAAP to Non-GAAP Reconciliations

The following tables provide a GAAP to Non-GAAP reconciliation of certain line items from the Condensed Consolidated Statement of Earnings:

	Three Months Ended March 31, 2025
	Gross Profit	SG&A	Operating Income	EBIT ⁽¹⁾	Income taxes	Net Earnings	Diluted EPS
GAAP — Reported	$ 256.2	$ 105.7	$ 58.9	$ 41.3	$ 12.3	$ 29.0	$ 0.60
Restructuring and repositioning expenses	—	—	12.2	12.2	3.1	9.1	0.19
Sun Care reformulation costs	—	—	0.7	0.7	0.1	0.6	0.01
Commercial realignment	3.1	—	3.1	3.1	0.9	2.2	0.05
Vendor bankruptcy	0.4	—	0.4	0.4	0.1	0.3	0.01
Other project and related costs	—	(1.4)	1.4	0.8	0.2	0.6	0.01
Total Adjusted Non-GAAP	$ 259.7	$ 104.3	$ 76.7	$ 58.5	$ 16.7	$ 41.8	$ 0.87

				Adjusted Non-GAAP Constant Currency			$ 0.87

GAAP as a percent of net sales	44.1 %	18.2 %	10.1 %	GAAP effective tax rate		29.9 %
Adjusted as a percent of net sales	44.7 %	18.0 %	13.2 %	Adjusted effective tax rate		28.5 %
Adjusted Constant Currency as a percent of net sales	44.8 %		13.5 %

	Three Months Ended March 31, 2024
	Gross Profit	SG&A	Operating Income	EBIT ⁽¹⁾	Income taxes	Net Earnings	Diluted EPS
GAAP — Reported	$ 258.1	$ 107.5	$ 70.1	$ 47.0	$ 11.0	$ 36.0	$ 0.72
Restructuring and repositioning expenses	—	—	3.2	3.2	0.8	2.4	0.05
Acquisition and integration costs	—	(0.7)	0.7	0.7	0.1	0.6	0.01
Sun Care reformulation costs	—	—	0.4	0.4	0.1	0.3	0.01
Wet Ones manufacturing plant fire	3.8	—	3.8	3.8	0.9	2.9	0.06
Legal matter	—	(1.4)	1.4	1.4	0.3	1.1	0.02
Other project and related costs	—	(1.1)	1.1	1.1	0.4	0.7	0.01
Total Adjusted Non-GAAP	$ 261.9	$ 104.3	$ 80.7	$ 57.6	$ 13.6	$ 44.0	$ 0.88

GAAP as a percent of net sales	43.1 %	17.9 %	11.7 %	GAAP effective tax rate		23.4 %
Adjusted as a percent of net sales	43.7 %	17.4 %	13.5 %	Adjusted effective tax rate		23.6 %
(1) EBIT is defined as Earnings before Income taxes.

	Six Months Ended March 31, 2025
	Gross Profit	SG&A	Operating Income	EBIT ⁽¹⁾	Income taxes	Net Earnings	Diluted EPS
GAAP — Reported	$ 447.8	$ 208.6	$ 79.2	$ 39.6	$ 12.7	$ 26.9	$ 0.55
Restructuring and repositioning expenses	—	—	16.4	16.4	4.1	12.3	0.25
Acquisition and integration costs	—	(0.5)	0.5	0.5	0.1	0.4	0.01
Sun Care reformulation costs	—	—	1.7	1.7	0.4	1.3	0.03
Gain on investment	—	—	—	(0.9)	—	(0.9)	(0.02)
Commercial realignment	3.1	—	3.1	3.1	0.9	2.2	0.05
Vendor bankruptcy	0.4	—	0.4	0.4	0.1	0.3	0.01
Other project and related costs	—	(2.4)	2.4	3.6	1.0	2.6	0.05
Total Adjusted Non-GAAP	$ 451.3	$ 205.7	$ 103.7	$ 64.4	$ 19.3	$ 45.1	$ 0.93

				Adjusted Non-GAAP Constant Currency			$ 1.10

GAAP as a percent of net sales	42.3 %	19.7 %	7.5 %	GAAP effective tax rate		32.1 %
Adjusted as a percent of net sales	42.6 %	19.4 %	9.8 %	Adjusted effective tax rate		29.9 %
Adjusted Constant Currency as a percent of net sales	43.3 %		10.7 %

	Six Months Ended March 31, 2024
	Gross Profit	SG&A	Operating Income	EBIT ⁽¹⁾	Income taxes	Net Earnings	Diluted EPS
GAAP — Reported	$ 455.8	$ 210.8	$ 96.2	$ 53.0	$ 12.2	$ 40.8	$ 0.81
Restructuring and repositioning expenses	—	—	10.0	10.0	2.5	7.5	0.15
Acquisition and integration costs	—	(1.4)	1.4	1.4	0.3	1.1	0.02
Sun Care reformulation costs	—	—	0.9	0.9	0.2	0.7	0.01
Wet Ones manufacturing plant fire	5.3	—	5.3	5.3	1.3	4.0	0.08
Legal matter	—	(1.4)	1.4	1.4	0.3	1.1	0.02
Other project and related costs	—	(1.2)	1.2	1.2	0.4	0.8	0.02
Total Adjusted Non-GAAP	$ 461.1	$ 206.8	$ 116.4	$ 73.2	$ 17.2	$ 56.0	$ 1.11

GAAP as a percent of net sales	41.9 %	19.4 %	8.8 %	GAAP effective tax rate		23.0 %
Adjusted as a percent of net sales	42.4 %	19.0 %	10.7 %	Adjusted effective tax rate		23.5 %
(1) EBIT is defined as Earnings before Income taxes.

Note 3 - Net Sales and Profit by Segment

Operations for the Company are reported via three Segments. The following tables present changes in net sales and segment profit for the three and six months ended March 31, 2025, as compared to the corresponding period in the prior year quarter.

Net Sales
Quarter ended March 31, 2025
	Wet Shave		Sun and Skin Care		Feminine Care		Total
Net Sales - Q2 2024	$ 293.1		$ 235.8		$ 70.5		$ 599.4
Organic	(2.5)	(0.9) %	(0.2)	(0.1) %	(6.2)	(8.8) %	(8.9)	(1.5) %
Impact of currency	(5.1)	(1.7) %	(4.5)	(1.9) %	(0.2)	(0.3) %	(9.8)	(1.6) %
Net Sales - Q2 2025	$ 285.5	(2.6) %	$ 231.1	(2.0) %	$ 64.1	(9.1) %	$ 580.7	(3.1) %

Net Sales
Six Months Ended March 31, 2025
	Wet Shave		Sun and Skin Care		Feminine Care		Total
Net Sales - Q2 2024	$ 594.8		$ 351.2		$ 142.3		$ 1,088.3
Organic	(6.5)	(1.1) %	5.7	1.6 %	(14.6)	(10.3) %	(15.4)	(1.4) %
Impact of currency	(8.3)	(1.4) %	(5.2)	(1.5) %	(0.3)	(0.2) %	(13.8)	(1.3) %
Net Sales - Q2 2025	$ 580.0	(2.5) %	$ 351.7	0.1 %	$ 127.4	(10.5) %	$ 1,059.1	(2.7) %

Segment Profit
Quarter Ended March 31, 2025

	Wet Shave		Sun and Skin Care		Feminine Care		Total
Segment Profit - Q2 2024	$ 40.4		$ 54.4		$ 8.7		$ 103.5
Organic	6.7	16.5 %	(1.2)	(2.2) %	(5.7)	(65.5) %	(0.2)	(0.2) %
Impact of currency	(0.5)	(1.2) %	(2.4)	(4.4) %	0.1	1.1 %	(2.8)	(2.7) %
Segment Profit - Q2 2025	$ 46.6	15.3 %	$ 50.8	(6.6) %	$ 3.1	(64.4) %	$ 100.5	(2.9) %

Segment Profit
Six Months Ended March 31, 2025

	Wet Shave		Sun and Skin Care		Feminine Care		Total
Segment Profit - Q2 2024	$ 94.1		$ 53.1		$ 16.0		$ 163.2
Organic	6.5	6.9 %	(2.6)	(4.9) %	(9.6)	(60.0) %	(5.7)	(3.5) %
Impact of currency	(7.4)	(7.9) %	(3.1)	(5.8) %	(0.1)	(0.6) %	(10.6)	(6.5) %
Segment Profit - Q2 2025	$ 93.2	(1.0) %	$ 47.4	(10.7) %	$ 6.3	(60.6) %	$ 146.9	(10.0) %

For all tables, the impact of currency to segment profit includes both the translational and transactional currency changes during the quarter.

Note 4 - Net Debt and EBITDA

The Company reports financial results on a GAAP and adjusted basis. The tables below are used to reconcile Net Debt and Net earnings to EBITDA and Adjusted EBITDA, which are non-GAAP measures, to improve comparability of results between periods.

	March 31, 2025	September 30, 2024
Notes payable	$ 27.2	$ 24.5
Long-term debt	1,433.1	1,275.0
Gross debt	$ 1,460.3	$ 1,299.5
Less: Cash and cash equivalents	170.1	209.1
Net debt	$ 1,290.2	$ 1,090.4

	Three Months Ended March 31,		Six Months Ended March 31,
	2025	2024	2025	2024
Net earnings	$ 29.0	$ 36.0	$ 26.9	$ 40.8
Income tax provision	12.3	11.0	12.7	12.2
Interest expense, net	19.6	19.7	37.9	38.8
Depreciation and amortization	21.8	22.4	43.5	44.9
EBITDA	$ 82.7	$ 89.1	$ 121.0	$ 136.7

Restructuring and repositioning expenses⁽¹⁾	11.6	3.2	15.8	10.0
Acquisition & integration costs	—	0.7	0.5	1.4
Sun Care reformulation costs	0.7	0.4	1.7	0.9
Wet Ones manufacturing plant fire	—	3.8	—	5.3
Legal matter	—	1.4	—	1.4
Gain on investment	—	—	(0.9)	—
Commercial realignment	3.1	—	3.1	—
Vendor bankruptcy	0.4	—	0.4	—
Other project and related costs	0.8	1.1	3.6	1.2
Adjusted EBITDA	$ 99.3	$ 99.7	$ 145.2	$ 156.9

Adjusted EBITDA Constant Currency	$ 99.4		$ 156.5

(1) Excludes $0.6 of accelerated depreciation, which is included within Depreciation and amortization.

Note 5 - Outlook

The following tables provide reconciliations of Adjusted EPS and Adjusted EBITDA, Non-GAAP measures, included within the Company's outlook for projected fiscal 2025 results:

Adjusted EPS Outlook
Fiscal 2025 GAAP EPS	approx.	$2.09 - $2.29

Restructuring and repositioning costs	approx.	0.70
Sun Care reformulation costs	approx.	0.11
Commercial realignment	approx.	0.06
Vendor bankruptcy	approx.	0.04
Other costs	approx.	0.11
Income taxes⁽¹⁾	approx.	(0.26)

Fiscal 2025 Adjusted EPS Outlook (Non-GAAP)	approx.	$2.85 - $3.05
(1) Income tax effect of the adjustments to Fiscal 2025 GAAP EPS noted above.

Adjusted EBITDA Outlook
Fiscal 2025 GAAP Net Income	approx.	$100 - $110
Income tax provision	approx.	22
Interest expense, net	approx.	72
Depreciation and amortization	approx.	87
EBITDA	approx.	$280 - $292

Restructuring and repositioning costs	approx.	33
Sun Care reformulation costs	approx.	5
Commercial realignment	approx.	3
Vendor bankruptcy	approx.	2
Other costs	approx.	6
Fiscal 2025 Adjusted EBITDA	approx.	$329 - $341

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SOURCE Edgewell Personal Care Company