PR Newswire | May 6, 2021 06:01AM EDT

05/06 05:00 CDT

Edgewell Personal Care Announces Second Quarter Fiscal 2021 ResultsNet Sales Decline of 0.7%; Wet Shave Net Sales Increase of 4%, or 1% OrganicallyCompany Maintains its Previously Provided Financial Outlook for Fiscal 2021 SHELTON, Conn., May 6, 2021

SHELTON, Conn., May 6, 2021 /PRNewswire/ -- Edgewell Personal Care Company (NYSE: EPC) today announced results for its second fiscal quarter 2021 ended March 31, 2021.

Executive Summary

* Net sales were $519.3 million, a decrease of 0.7%, when compared to the prior year period. * Organic net sales decreased 5.6% when compared to the prior year period. (Organic basis excludes the impact of the Cremo acquisition and the translational impact from currency.) * GAAP Diluted Earnings Per Share ("EPS") were $0.26 for the second quarter compared to $0.36 in the prior year period. * Adjusted EPS were $0.70 for the second quarter, compared to $0.92 in the prior year period. * The Company ended the fiscal second quarter with $282 million in cash on hand, access to an undrawn $425 million credit facility and a net debt leverage ratio of 3.0. * The Board of Directors declared a cash dividend of $0.15 per common share for the second fiscal 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 with the same period in the prior fiscal year unless otherwise stated.

"I am pleased with how our organization continues to execute against our strategic priorities while navigating the ongoing impact of COVID-19 on our business, resulting in first half financial performance largely in line with our expectations. This performance was highlighted by an expansion in gross margin and increased investment in strengthening brand equity, new product innovation, and enhancing our digital platform. The innovation we have brought to the Wet Shave category is benefiting that business, and the positive inflection we saw in our Sun Care business in the month of March bodes well for the key summer selling season," said Rod Little, Edgewell's President and Chief Executive Officer.

Mr. Little added, "We are well-positioned to drive organic sales growth in the second half of the fiscal year and to meet our financial and operational goals for fiscal 2021. Our teams continue to execute with excellence and remain focused on achieving our objectives for 2021 while also advancing our long-term strategy to transform Edgewell into a growing, sustainable and consumer centric company delivering sustainable top line growth and predictable profit and cash generation."

Fiscal 2Q 2021 Operating Results (Unaudited)

Net sales were $519.3 million in the quarter, a decrease of 0.7%, as compared to the prior year period. Excluding the positive impacts from the Cremo acquisition and from currency translation, organic net sales decreased 5.6%, reflecting the impact of pantry load in the prior year quarter, the continued impact of COVID-19 on the Sun Care and International Wet Shave categories and a slowdown in Wet One's sales. This was partly offset by growth in the Wet Shave segment, driven by Schick innovation and global eCommerce and Men's Grooming growth.

Gross profit was $241.7 million, as compared to $243.0 million in the prior year period. Gross margin as a percent of net sales for the second quarter of fiscal 2021 was 46.6%. Adjusted gross margin percentage increased slightly compared to the prior year period, as improved pricing and promotion, favorable mix and gross savings from Project Fuel, were mostly offset by rising commodity and supply chain costs.

Advertising and sales promotion expense ("A&P") increased $21 million to $68.4 million, or 13.2% of net sales, as compared to $47.0 million, or 9.0% of net sales in the prior year period, reflecting increased investments and focus on critical commercial efforts supporting the Schick Hydro relaunch, Stubble Eraser, Skintimate and Men's shave in Japan. Digital spending represented nearly 70% of overall advertising spend in the quarter.

Selling, general and administrative expense ("SG&A") was $93.4 million, or 18.0% of net sales, as compared to $121.5 million, or 23.2% of net sales in the prior year period. Adjusted SG&A, which excludes restructuring charges and acquisition and integration costs, increased 20-basis points as a percent of net sales, driven principally by operating costs associated with the Cremo business and negative foreign currency exchange, largely offset by lower discretionary spend and Project Fuel savings.

The Company recorded pre-tax restructuring and other non-recurring expenses of $5.5 million in the quarter in support of Project Fuel, consisting largely of severance and outplacement, IT enablement and consulting costs, as well as $0.3 million in acquisition and integration costs related to the Cremo acquisition.

Operating incomewas $62.9 million compared to $54.1 million in the prior year quarter. Adjusted operating income was $68.7 million in the quarter, compared to $92.0 million in the prior year period, primarily driven by higher A&P expense.

The effective tax rate for the first six months of fiscal 2021 was 28.4% as compared to 27.4% in the prior year period. The adjusted effective tax rate for the first six months of fiscal 2021 was 26.5%, up from the prior year period adjusted tax rate of 24.2%. The fiscal 2021 effective tax rate and adjusted effective tax rate reflects higher unfavorable GILTI and 162(m) permanent adjustments compared to fiscal 2020. Additionally, the fiscal 2020 effective tax rate included the unfavorable impact of the disposition of the Infant and Pet Care business.

GAAP net earningsfor the quarter were $14.4 million or $0.26 per share compared to $19.5 million or $0.36 per share in the second quarter of fiscal 2020. Adjusted net earnings in the quarter were $38.5 million or $0.70 per share, as compared to $50.4 million or $0.92 per share in the prior year period. The decrease in adjusted net earnings was driven by lower adjusted operating income and higher interest expense, partially offset by favorable foreign currency movement and hedge remeasurement income. Adjusted EBITDA was $90.9 million compared to $102.2 million in the prior year period.

Net cash used by operating activities was $18.8 million for the first six months of fiscal 2021 compared to cash inflows of $17.2 million from operating activities in the prior year period, driven by higher working capital, primarily inventory build, and lower net income.

Project Fuel

Project Fuel is an enterprise-wide transformational initiative that was launched in the second fiscal quarter of 2018, to address all aspects of Edgewell's business and cost structure, simplifying and transforming the organization, structure and key processes. Project Fuel is facilitating further re-investment in the Company's growth strategy while enabling Edgewell to achieve its desired future state operations.

The Company expects Project Fuel will generate $265 to $275 million in total annual gross savings by the end of the 2021 fiscal year. The savings generated will be used to fuel investments and brand building in strategic growth initiatives, offset anticipated operational cost headwinds from inflation and other rising input costs and improve the overall profitability and cash flow of the Company.

To implement the restructuring element of Project Fuel, the Company expects to incur one-time pre-tax charges of approximately $160 to $165 million through the end of the 2021 fiscal year.

Fiscal second quarter 2021 Project Fuel related gross savings were approximately $17 million, bringing cumulative gross savings to approximately $245 million.

Fiscal 2Q 2021 Operating Segment Results (Unaudited)

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

Wet Shave net sales increased $12.2 million, or 4.3%. Excluding the impact of currency movements, organic net sales increased $3.1 million or 1.1%, reflecting another quarter of sequential improvement and further stabilization of the business. The increase in sales was driven by sales and market share gains in Women's systems, globally, and innovation driven growth in Men's systems in North America. This was largely offset by the continued impact of COVID-19 on the category, particularly in International markets. By region, North America organic net sales increased 4.4% while International markets decreased 1.5%. Wet Shave segment profit increased $1.4 million, or 3.1%, driven by higher gross margin and favorable currency exchange, partially offset by a 65% increase in A&P.

Sun and Skin Care(Sun Care, Wet Ones, Bulldog, Jack Black and Cremo)

Sun and Skin Care net sales increased $2.0 million, or 1.3%, as compared to the prior year period. Excluding the impact of the Cremo acquisition and currency movements, organic net sales decreased $14.7 million, or 9.3%. The decline in organic net sales was primarily driven by Sun Care, reflecting the impact of COVID-19 on the category, particularly through the months of January and February. Wet Ones organic net sales decreased $2.7 million in the quarter, reflecting high retailer inventory and lower consumption as we cycled prior year COVID-driven performance. Men's Grooming increased 7.6%, driven by strong eCommerce sales. Sun and Skin Care segment profit decreased $8.1 million, driven by lower sales and gross margin, partly offset by lower A&P spending.

Feminine Care (Tampons, Pads, and Liners)

Feminine Care net sales decreased $17.9 million, or 21.1%, as compared to the prior year period. The decline in net sales was largely driven by overall category declines, and the effect of last year's retailer and consumer pantry loading, as well as the negative effect of distribution losses, most notably at Walmart. Feminine Care segment profit decreased $12.7 million, or 69.4% as compared to the prior year period, driven by lower sales and gross margin, and higher A&P.

Dividend and Share Repurchase

On May 6, 2021, the Board of Directors declared a quarterly cash dividend of $0.15 per common share for the second fiscal quarter. The dividend is payable July 7, 2021 to stockholders of record as of the close of business on June 4, 2021.

Through the first half of fiscal 2021, the Company completed share repurchases of 250 thousand shares for a cost of $9.2 million. The Company has 9.75 million shares of common stock available for repurchase in the future under the Board's previous authorization.

Full Fiscal Year 2021 Financial Outlook

The Company is maintaining its previously provided outlook assumptions for fiscal 2021:

* Reported net sales to increase mid-single digits * Includes: 160 basis-point net benefit from the Cremo acquisition and the Infant and Pet Care divestiture and a 160 basis-point benefit from currency translation

* Organic sales to increase low-single digits * Adjusted operating profit margin to be consistent with fiscal 2020 * Project Fuel costs of $25 to $30 million * Project Fuel Gross Savings of $50 to $60 million

* GAAP EPS in the range of $1.80 to $2.00 (Previously $2.18 to $2.38) * Includes: Project Fuel restructuring charges, cost of early retirement of long-term debt, IT enablement costs, acquisition and integration costs

* Adjusted EPS in the range of $2.62 to $2.82 * Adjusted EBITDA in the range of $345 to $360 million * Adjusted effective tax rate in the range of 23.5% to 24.5% (Previously 22.5% to 24.5%) * Capital expenditures of approximately 3.0% of net sales * Free cash flow expected to be approximately 100% of non-GAAP net earnings

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 replay will be available on www.edgewell.com, under the "Investors," "Financial Reports," and "Quarterly Earnings" tabs.

About Edgewell

Edgewell is a leading pure-play consumer products company with an attractive, diversified portfolio of established brand names such as Schick(r) and Wilkinson Sword(r) men's and women's shaving systems and disposable razors; Edge(r) and Skintimate(r) shave preparations; Playtex(r), Stayfree(r), Carefree(r) and o.b.(r) feminine care products; Banana Boat(r), Hawaiian Tropic(r), Bulldog(r), Jack Black(r), and CREMO(r) sun and skin care products; and Wet Ones(r) 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 5,800 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 (including the ongoing COVID-19 pandemic), 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.

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 ("SEC") on November 20, 2020.

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 such as restructuring and related costs, acquisition and integration costs, cost of early retirement of long-term debt, and the gain on sale of the Infant and Pet Care business. Reconciliations of non-GAAP measures, including reconciliations of measures related to the Company's fiscal 2021 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 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, acquisitions, and divestitures. This information is provided because these types of fluctuations can distort the underlying change in net sales and segment profit either positively or negatively. * The Company utilizes "adjusted" non-GAAP measures including gross profit, SG&A, operating income, income taxes, net earnings, diluted earnings per share, and EBITDA to internally make operating decisions. The following items are excluded when analyzing non-GAAP measures: restructuring and related costs, acquisition and integration costs, cost of early retirement of long term debt, the gain on sale of the Infant and Pet Care business, and advisory expenses in connection with the evaluation of the Feminine and Infant Care businesses. * 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 leverage ratio is defined as total debt less cash divided by adjusted EBITDA.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited, in millions, except per share data)



Quarter Ended Six Months Ended March 31, March 31,

2021 2020 2021 2020

Net sales $519.3$523.0$970.4$977.0

Cost of products sold 277.6 280.0 535.4 540.9

Gross profit 241.7 243.0 435.0 436.1



Selling, general and administrative 93.4 121.5 186.5 216.5 expense

Advertising and sales promotion 68.4 47.0 109.6 88.1 expense

Research and development expense 14.3 13.9 28.0 27.7

Restructuring charges 2.7 6.5 6.4 12.6

Operating income 62.9 54.1 104.5 91.2

Loss (gain) on sale of Infant and Pet - 1.1 - (4.1) Care business

Interest expense associated with debt 17.3 13.9 34.7 28.2

Cost of early retirement of long-term 26.1 - 26.1 - debt

Other expense (income), net - 10.9 (1.0) 9.3

Earnings before income taxes 19.5 28.2 44.7 57.8

Income tax provision 5.1 8.7 12.6 15.9

Net earnings $14.4 $19.5 $32.1 $41.9



Earnings per share:

Basic net earnings per share 0.26 0.36 0.59 0.77

Diluted net earnings per diluted 0.26 0.36 0.58 0.77 share



Weighted-average shares outstanding:

Basic 54.3 54.3 54.4 54.3

Diluted 54.9 54.5 54.9 54.5



See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)



March 31, September 2021 30, 2020

Assets

Current assets

Cash and cash equivalents $282.1 $364.7

Trade receivables, less allowance for doubtful 195.1 158.8 accounts

Inventories 354.2 314.1

Other current assets 156.3 146.0

Total current assets 987.7 983.6

Property, plant and equipment, net 360.9 370.9

Goodwill 1,164.9 1,159.7

Other intangible assets, net 918.9 928.1

Other assets 105.5 98.6

Total assets $3,537.9$3,540.9



Liabilities and Shareholders' Equity

Current liabilities

Notes payable 24.2 21.1

Accounts payable 194.0 181.9

Other current liabilities 265.6 307.5

Total current liabilities 483.8 510.5

Long-term debt 1,233.0 1,237.9

Deferred income tax liabilities 103.5 102.5

Other liabilities 253.5 257.1

Total liabilities 2,073.8 2,108.0

Shareholders' equity

Common shares 0.7 0.7

Additional paid-in capital 1,622.0 1,631.8

Retained earnings 797.7 782.4

Common shares in treasury at cost (781.3) (790.4)

Accumulated other comprehensive loss (175.0) (191.6)

Total shareholders' equity 1,464.1 1,432.9

Total liabilities and shareholders' equity $3,537.9$3,540.9



See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)



Six Months Ended March 31,

2021 2020

Cash Flow from Operating Activities

Net earnings $32.1 $41.9

Depreciation and amortization 44.4 44.5

Share-based compensation expense 12.0 10.2

Loss on sale of assets 0.4 0.3

Gain on sale of Infant and Pet Care business - (4.1)

Deferred compensation payments (8.8) (8.7)

Deferred income taxes (0.8) (15.5)

Cost of early retirement of long-term debt 26.1 -

Other, net (1.6) 8.9

Changes in operating assets and liabilities (122.6)(60.3)

Net cash (used by) from operating activities (18.8) 17.2



Cash Flow from Investing Activities

Capital expenditures (22.2) (16.8)

Proceeds from sale of Infant and Pet Care business 7.5 95.8

Acquisition of Cremo (0.3) -

Collection of deferred purchase price on accounts 2.2 3.3 receivable sold

Other, net (0.8) (1.2)

Net cash (used by) from investing activities (13.6) 81.1



Cash Flow from Financing Activities

Cash proceeds from the issuance of Senior Notes due 2029 500.0 -

Cash payments on Senior Notes due 2022 (500.0)-

Cash proceeds from debt with original maturities greater - 50.0 than 90 days

Cash payments on debt with original maturities greater - (167.0)than 90 days

Net increase in debt with original maturities of 90 days 0.7 2.4 or less

Debt issuance costs for Senior Notes due 2029 (5.9) -

Cost of early retirement of long-term debt (26.5) -

Dividends to common shareholders (8.4) -

Repurchase of shares (9.2) -

Net financing inflow (outflow) from the Accounts 0.7 (14.4) Receivable Facility

Employee shares withheld for taxes (3.0) (1.5)

Other, net (0.5) -

Net cash used by financing activities (52.1) (130.5)



Effect of exchange rate changes on cash 1.9 (0.6)



Net decrease in cash and cash equivalents (82.6) (32.8)

Cash and cash equivalents, beginning of period 364.7 341.6

Cash and cash equivalents, end of period $282.1$308.8



See Accompanying Notes.

EDGEWELL PERSONAL CARE COMPANYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENT(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, other charges such as restructuring and integration costs, 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.

The Company completed the sale of its Infant and Pet Care business in December 2019. As a result, no additional Net Sales or Segment Profit will be reported for the All Other segment in subsequent periods.

Segment net sales and profitability are presented below:

Three Months EndedSix Months Ended March 31, March 31,

2021 2020 2021 2020

Net Sales

Wet Shave $292.7$280.5$571.8$557.5

Sun and Skin Care 159.5 157.5 262.5 232.6

Feminine Care 67.1 85.0 136.1 160.1

All Other - - - 26.8

Total net sales $519.3$523.0$970.4$977.0



Segment Profit

Wet Shave $45.9 $44.5 $98.5 $97.4

Sun and Skin Care 36.2 44.3 41.4 44.4

Feminine Care 5.6 18.3 14.4 31.4

All Other - - - 3.1

Total segment profit 87.7 107.1 154.3 176.3

General corporate and other expenses (13.4) (10.9) (25.5) (24.2)

Restructuring and related costs (5.5) (12.4) (9.9) (20.4)

Cost of early retirement of long-term (26.1) - (26.1) - debt

Acquisition and integration costs (0.3) (25.5) (3.3) (31.7)

(Loss) gain on sale of Infant and Pet - (1.1) - 4.1 Care business

Feminine and Infant Care evaluation - - - (0.3) costs

Amortization of intangibles (5.6) (4.2) (11.1) (8.5)

Interest and other expenses, net (17.3) (24.8) (33.7) (37.5)

Total earnings before income taxes $19.5 $28.2 $44.7 $57.8

Refer to Note 2 GAAP to Non-GAAP Reconciliations for the income statementlocation 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, 2021

Gross SG&A OperatingEBIT Income Net EarningsDiluted Profit Income taxes EPS

GAAP - $241.7 $93.4 $62.9 $19.5 $5.1 $ 14.4 $0.26Reported

Restructuring and related - 2.8 5.5 5.5 1.3 4.2 0.08 costs

Acquisition and - 0.3 0.3 0.3 0.1 0.2 - integration costs

Cost of early retirement of - - - 26.1 6.4 19.7 0.36 long-term debt

Total Adjusted$241.7 $90.3 $68.7 $51.4 $12.9$ 38.5 $0.70Non-GAAP



GAAP as a GAAP effective tax percent of net46.6 %18.0 %12.1 %rate 26.6 % sales

Adjusted as a Adjusted effective percent of net46.6 %17.4 %13.2 %tax rate 25.3 % sales







Three Months Ended March 31, 2020

Gross SG&A OperatingEBIT Income Net EarningsDiluted Profit Income taxes EPS

GAAP - $243.0 $121.5 $54.1 $28.2 $8.7 $ 19.5 $0.36Reported

Restructuring and related 0.1 5.8 12.4 12.4 2.9 9.5 0.17 costs

Acquisition and - 25.5 25.5 25.5 6.3 19.2 0.35 integration costs

Loss on sale of Infant and - - - 1.1 (1.1) 2.2 0.04 Pet Care business

Total Adjusted$243.1 $90.2 $92.0 $67.2 $16.8$ 50.4 $0.92Non-GAAP



GAAP as a GAAP effective tax percent of net46.5 %23.2 %10.3 %rate 30.6 % sales

Adjusted as a Adjusted effective percent of net46.5 %17.2 %17.6 %tax rate 25.0 % sales





Six Months Ended March 31, 2021

Gross SG&A OperatingEBIT Income Net EarningsDiluted Profit Income taxes EPS

GAAP - $435.0 $186.5 $104.5 $44.7 $12.6$ 32.1 $0.58Reported

Restructuring and related 0.1 3.4 9.9 9.9 2.5 7.4 0.14 costs

Acquisition and 1.3 2.0 3.3 3.3 0.7 2.6 0.05 integration costs

Cost of early retirement of - - - 26.1 6.4 19.7 0.36 long-term debt

Total Adjusted$436.4 $181.1 $117.7 $84.0 $22.2$ 61.8 $1.13Non-GAAP



GAAP as a GAAP effective tax percent of net44.8 %19.2 %10.8 %rate 28.4 % sales

Adjusted as a Adjusted effective percent of net45.0 %18.7 %12.1 %tax rate 26.5 % sales





Six Months Ended March 31, 2020

Gross SG&A OperatingEBIT Income Net EarningsDiluted Profit Income taxes EPS

GAAP - $436.1 $216.5 $91.2 $57.8 $15.9$ 41.9 $0.77Reported

Restructuring and related 0.1 7.7 20.4 20.4 4.6 15.8 0.29 costs

Acquisition and - 31.7 31.7 31.7 7.8 23.9 0.44 integration costs

Gain on sale of Infant and - - - (4.1) (2.6) (1.5) (0.03)Pet Care business

Feminine and Infant Care - 0.3 0.3 0.3 0.1 0.2 - evaluation costs

Total Adjusted$436.2 $176.8 $143.6 $106.1$25.8$ 80.3 $1.47Non-GAAP



GAAP as a GAAP effective tax percent of net44.6 %22.2 %9.3 %rate 27.4 % sales

Adjusted as a Adjusted effective percent of net44.6 %18.1 %14.7 %tax rate 24.2 % sales

Note 3 - Net Sales and Profit by Segment

Operations for the Company are reported via three Segments. The impact of disposition includes the sale of the Infant and Pet Care business included in All Other. The impact of acquisitions includes the operations of Cremo which was acquired in September 2020. The following tables present changes in net sales and segment profit for the second quarter and first six months ended March 31, 2021, as compared to the corresponding period in the prior year.

Net Sales (In millions - Unaudited)

Quarter Ended March 31, 2021



Wet Sun and Skin Feminine All Total Shave Care Care Other

Net Sales - Q2 FY20$280.5 $157.5 $85.0 $- $523.0

Organic 3.1 1.1 %(14.7) (9.3) %(17.9) (21.1)%- - %(29.5) (5.6) %

Impact of - - %14.6 9.3 %- - %- - %14.6 2.8 %acquisitions

Impact of currency 9.1 3.2 %2.1 1.3 %- - %- - %11.2 2.1 %

Net Sales - Q2 FY21$292.74.3 %$159.51.3 %$67.1 (21.1)%$- - %$519.3(0.7) %





Net Sales (In millions - Unaudited)

Six Months Ended March 31, 2021



Wet Sun and Skin Feminine All Total Shave Care Care Other

Net Sales - Q2 FY20$557.5 $232.6 $160.1 $26.8 $977.0

Organic (1.1) (0.2)%(4.2) (1.8) %(24.2) (15.1)%- - %(29.5) (3.0) %

Impact of - - %31.2 13.4 %- - %- - %31.2 3.2 %acquisitions

Impact of - - %- - %- - %(26.8)(100.0)%(26.8) (2.7) %disposition

Impact of currency 15.4 2.8 %2.9 1.2 %0.2 0.1 %- - %18.5 1.9 %

Net Sales - Q2 FY21$571.82.6 %$262.512.8 %$136.1(15.0)%$- (100.0)%$970.4(0.6) %





Segment Profit (In millions - Unaudited)

Quarter Ended March 31, 2021



Wet Sun and Skin Feminine All Total Shave Care Care Other

Segment Profit - Q2$44.5 $44.3 $18.3 $- $107.1 FY20

Organic (0.7) (1.6)%(9.8) (22.1)%(12.9) (70.5)%- - %(23.4) (21.8)%

Impact of - - %1.4 3.2 %- - %- - %1.4 1.3 %acquisitions

Impact of currency 2.1 4.6 %0.3 0.7 %0.2 1.1 %- - %2.6 2.4 %

Segment Profit - Q2$45.9 3.0 %$36.2 (18.2)%$5.6 (69.4)%$- - %$87.7 (18.1)%FY21





Segment Profit (In millions - Unaudited)

Six Months Ended March 31, 2021



Wet Sun and Skin Feminine All Total Shave Care Care Other

Segment Profit - Q2$97.4 $44.4 $31.4 $3.1 $176.3 FY20

Organic (2.3) (2.4)%(6.9) (15.5)%(17.2) (54.8)%- - %(26.4) (15.0)%

Impact of - - %3.8 8.6 %- - %- - %3.8 2.2 %acquisitions

Impact of - - %- - %- - %(3.1) (100.0)%(3.1) (1.8) %disposition

Impact of currency 3.4 3.4 %0.1 0.2 %0.2 0.6 %- - %3.7 2.1 %

Segment Profit - Q2$98.5 1.0 %$41.4 (6.7) %$14.4 (54.2)%$- (100.0)%$154.3(12.5)%FY21

Note 4 - EBITDA

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

Quarter Ended MarchSix Months Ended 31, March 31,

2021 2020 2021 2020

Net earnings $14.4$19.5 $32.1 $41.9

Income tax provision 5.1 8.7 12.6 15.9

Interest expense, net 17.3 13.0 34.7 27.7

Depreciation and amortization 22.2 22.0 44.4 44.5

EBITDA $59.0$63.2 $123.8$130.0



Restructuring and related costs 5.5 12.4 9.9 20.4

Acquisition and integration costs 0.3 25.5 3.3 31.7

Cost of early retirement of long-term26.1 - 26.1 - debt

Gain on sale of Infant and Pet Care - 1.1 - (4.1) business

Feminine and Infant Care evaluation - - - 0.3 costs

Adjusted EBITDA $90.9$102.2 $163.1$178.3

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 2021 results:

Adjusted EPS Outlook

Fiscal 2021 GAAP EPS $1.80 - $2.00

Restructuring and related costs approx. 0.51

Acquisition and integration costs approx. 0.10

Cost of early retirement of long-term debt approx. 0.47

Income taxes^(1) approx. (0.26)

Fiscal 2021Adjusted EPS Outlook (Non-GAAP) $2.62 - $2.82

(1) Income tax effect of the adjustments to Fiscal 2021 GAAP EPSnoted above.

Adjusted EBITDA Outlook

Fiscal 2021 GAAP Net Income approx. $95 - $110

Income tax provision approx. 30

Interest expense, net approx. 70

Depreciation and amortization approx. 90

EBITDA approx. $285 - $300

Restructuring and related costs approx. 28

Acquisition and integration costs approx. 6

Cost of early retirement of long-term debt approx. 26

Fiscal 2021 Adjusted EBITDA approx. $345 - $360

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SOURCE Edgewell Personal Care Company