"I have never been more confident than I am now that we can deliver consistent and reliable growth and value creation over the coming years."
— Rod Little
03Detailed Report
EPC
Company EPC
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Edgewell’s Q4 2024 results reflect a complex margin-and-growth ecosystem: the company delivered modest organic growth for the full year, with international markets driving volume and price gains while North America faced sustained headwinds in Wet Shave and Fem Care. Management emphasized a disciplined capital allocation framework, productivity initiatives, and a sharp focus on consumer-centric innovation to drive mid-single-digit growth internationally and stabilize U.S. shave and feminine care segments. Gross margin demonstrated meaningful accretion, supported by productivity savings and pricing actions, even as higher promotions and commodity costs moderated the pace of margin expansion. Cash generation remained robust, enabling deleveraging to ~3x and shareholder returns through buybacks and dividends. For FY25, EPC projects 1%–3% organic net sales growth (with currency tailwinds modestly offset by headwinds), about 75–90 bps of gross margin expansion (CC), and approximately $3.15–$3.35 in adjusted EPS, backed by roughly $185 million in free cash flow. The plan hinges on international growth acceleration, a reenergized U.S. shave and Fem Care franchise under new North American leadership, and a strong innovation engine across Billie, Cremo, Banana Boat, and Wilkinson Sword. Investors should monitor currency dynamics, promotional intensity, supply-chain normalization, and the execution of the new regional leadership structure as primary variables to watch in FY25.
Key Performance Indicators
Revenue
Decreasing
517.60M
QoQ: -20.10% | YoY: -3.09%
Gross Profit
Decreasing
212.80M
41.11% margin
QoQ: -25.88% | YoY: -6.67%
Operating Income
Decreasing
20.40M
QoQ: -76.44% | YoY: -60.39%
Net Income
Decreasing
8.80M
QoQ: -82.04% | YoY: -71.88%
EPS
Decreasing
-1.81
QoQ: -282.83% | YoY: -412.07%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: Q4 revenue of $517.6 million, down 3.09% YoY and -20.10% QoQ per annualized metrics; Gross Profit $212.8 million with a gross margin of 41.11% (YoY gross profit -6.67%, QoQ -25.88%).
- Adjusted Gross Margin: up 40 bps in the quarter; CC gain 60 bps. Productivity savings contributed ~290 bps of gross margin improvement, partially offset by ~50 bps of higher promotions, ~100 bps core gross inflation, ~80 bps mix/headwinds.
- Operating Income (GAAP): $20.4 million; Operating Margin 3.94%. Adjusted Operating Income: $56.0 million; Adjusted Operating Margin declined ~70 bps due to higher brand spend.
- Net Income / EPS: Net income $8.8 million; Net Margin 1.70%; GAAP EPS -$1.81; Diluted EPS -$1.79.
- EBITDA: $44.3 million; EBITDA Margin 8.56% (ratio provided as 0.0856).
- Full-year 2024: Organic net sales +0.2%; International net sales +7%; North America -4%; Adjusted Gross Margin +140 bps; Productivity savings ~280 bps; Adjusted Operating Margin +100 bps; Free cash flow $175 million; Net debt leverage ~3.1x; Cash from operations $231 million; cash on hand $209 million; revolver balance reduced by $88 million; share repurchases $18.3 million in Q4; dividend of $0.15 per share declared for Q4; total cash returned to shareholders in the year to be quantified in press release.
- FY25 guidance highlights: Organic net sales growth 1%–3% (currency tailwinds ~-70 bps); international mid-single-digit growth; right-to-win portfolio mid-single-digit; right-to-play flat to slightly down; gross margin ~75 bps up YoY (90 bps CC); 290 bps productivity savings; A&P to ~10.8% of net sales; adjusted EPS $3.15–$3.35; adjusted EBITDA $356–$368 million; free cash flow ~$185 million. These targets assume ~2/3 of annual EPS in H2 and ~¥10–11 million currency headwinds for EBITDA; FX headwinds to earnings are acknowledged as a risk.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
517.60M
-3.09%
-20.10%
Gross Profit
212.80M
-6.67%
-25.88%
Operating Income
20.40M
-60.39%
-76.44%
Net Income
8.80M
-71.88%
-82.04%
EPS
-1.81
-412.07%
-282.83%
Key Financial Ratios
Gross Profit Margin
Good
41.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
3.94%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
1.70%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.24%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.56%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.66
Current ratio shows adequate liquidity to meet short-term obligations
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