Edgewell Personal Care Company (NYSE:EPC) Q1 2019 Earnings Conference Call - Final Transcript

Feb 07, 2019 • 10:00 am ET


Edgewell Personal Care Company (NYSE:EPC) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Edgewell Personal Care First Quarter Fiscal 2019 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Chris Gough, Vice President of Investor Relations. Please go ahead.

Chris Gough

Thank you. Good morning, everyone, and thank you for joining us for Edgewell's First Quarter Fiscal 2019 Earnings Conference Call.

With me this morning is David Hatfield, our President, Chief Executive Officer and Chairman of the Board; and Rod Little, our Chief Financial Officer. David will kick off the call then I'll hand over to Rod to discuss quarterly results and the fiscal 2019 outlook, followed by Q&A. This call is being recorded and will be available for replay via our website, www.edgewell.com.

During the call, we may make statements about our expectations for future plans and performance. This might include future sales, earnings, advertising and promotional spending, product launches, savings and costs related to restructurings, changes to our working capital metrics, currency fluctuations, commodity costs, category value, future plans for return of capital to shareholders and more. Any such statements are forward-looking statements, which reflect our current views with respect to future events.

These statements are based on assumptions and are subject to various risks and uncertainties, including those described under the caption Risk Factors in our annual report on Form 10-K for the year ended September 30, 2018, as maybe amended in our quarterly reports on Form 10-Q. These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not assume any obligation to update or revise any of these forward-looking statements to reflect new events or circumstances except as required by law.

During this call, we will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures are shown in our press release issued earlier today, which is available at the Investor Relations section of our website. Management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business.

With that, I'd like to turn the call over to David.

David P. Hatfield

Thank you, Chris, and good morning, everyone. Let me briefly summarize the quarter and then I'll have Rod take you through our financial results, Project Fuel and our view for the remainder of the fiscal year.

In the quarter, organic net sales declined 3.5%, with improved performance in some key areas of the business such as international Wet Shave, helping to offset some of the ongoing challenges in North America. We had good profit and adjusted earnings per share growth, in part, due to the accelerated actions we've taken on Project Fuel and we're maintaining our full year outlook for organic net sales and adjusted earnings per share.

Operationally, we're making good progress on our key strategic