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May 7, 2020

Despite popularity of Wet Ones, personal-care giant Edgewell posts Q2 net sales decline

PHOTO | New Haven BIZ Edgewell Personal Care Co. offices in Shelton.
By Michelle Tuccitto Sullo

Edgewell Personal Care Co., the Shelton-based manufacturer of personal-care products such as Schick and Wilkinson Sword razors, on Thursday reported a decline in net sales for the second quarter.

Edgewell, headquartered on Research Drive, has operations in Milford and around the world. The company also owns such well-known brands as Edge and Skintimate shaving preparations; Wet Ones moist wipes; feminine products under the Playtex, Stayfree, Carefree and o.b. brands; and sun protection products including Hawaiian Tropic, Bulldog and Jack Black.

Rod Little, Edgewell's president and chief executive officer, told investors in a Thursday morning conference call that the company’s global manufacturing and distribution facilities have remained fully operational in spite of the ongoing coronavirus pandemic.

"At Edgewell, the health and safety of our teams and customers is our first priority and we have swiftly implemented protocols to protect them,” Little said.

Little praised employees for working to ensure products continue to be available to meet customers’ needs.

The company’s fiscal second quarter was the three-month period ending March 31.

Net sales were $523 million in the second quarter of fiscal 2020, a decrease of 4.3 percent when compared to the same period last year.

However, excluding a $31.7 million negative impact from the company’s sale of its infant and pet care business, and a $5 million negative impact from currency translation, the company reported that its organic net sales increased 2.4 percent compared to the prior year period.  

The company reported seeing growth in sales of both its feminine care and Wet Ones products during its second quarter compared to the same quarter a year ago. Feminine care net sales increased $10.4 million, or 13.9 percent. Sun- and skin-care net sales increased $11.5 million, with Wet One’s organic net sales increasing over 80 percent. These areas of growth were offset by declines in the wet shave division, as wet shave net sales decreased $13.9 million, or 4.7 percent.

Gross profit decreased $7.9 million compared to the prior year period. Edgewell ended the fiscal second quarter with $309 million in cash on hand, according to Little. It also has access to an undrawn $425 million credit facility, which was announced in recent weeks.

As with many companies around the world, the pandemic has caused uncertainty for projecting future performance, according to Little. 

"We are navigating this period of uncertainty from a position of financial strength, underpinned by a strong balance sheet and attractive cash flow generation, and buttressed by a new $425 million credit facility that provides us with considerable financial flexibility,” Little said in an announcement. 

Edgewell’s stock (EPC) was selling Thursday morning for $28.30 a share. Over the last 12 months, it has hit a high of $41.88 and a low of $20.51.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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