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

Feb 07, 2019 • 10:00 am ET

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

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Presentation
Executive
David P. Hatfield

initiatives. We're working with urgency against executing Project Fuel, driving savings in the quarter and getting much of our reorganization behind us. We're focused on getting the fundamentals right in a very competitive North American market, getting our value proposition and marketing programs right for Men's and Women's Systems and the Feminine Care.

Our results reflect the benefits of our focus on innovation with Hydro Sense and Intuition f.a.b., contributing to growth in our international markets. We've made good progress on our key growth initiatives, including e-commerce and our Bulldog and Jack Black Skin Care brands where we continue to invest. And today, we're announcing that we've initiated a strategic review of our Feminine Care and Infant Care businesses, with the intent to sharpen focus and increase resources in support of our core Wet Shave and Sun and Skin Care businesses.

We still have a lot of work ahead of us, as we execute the transformation of Edgewell, but I'm pleased with the progress we're making and I'm confident we're taking the actions needed to better position us to tackle the competitive pressures we face, winning the marketplace and increase value creation.

I'm also confident that now is the right time to announce my retirement and hand over the reins to Rod Little. As you know, Rod has a strong consumer goods background and a long history of driving results. Rod has led the transformation of Edgewell since arriving last March and as I've worked onside Rod during that time, I've witnessed his abilities and I'm certain I leave the company in a very capable hands.

Rod will be helped by a strong leadership team and the group of colleagues who are committed to the success of Edgewell. I'd especially like to thank those colleagues for their commitment during my time at Edgewell and Energizer Personal Care before that.

With that, I'll hand the call over to Rod.

Executive
Rod R. Little

Thank you, David, and good morning, everyone. I'll begin with some of the key first quarter business performance metrics, and then I'll provide an update on Project Fuel, discuss our strategic review of the Feminine and Infant Care businesses and then close with a few comments about our fiscal 2019 outlook.

Reported net sales in the quarter were $457 million, a decrease of 2.4%, or 3.5% on an organic basis. Organic net sales exclude the benefit from the Jack Black acquisition, the impact from the Playtex gloves business divestiture and the negative translational impact from currency. In the quarter, we returned to growth in our International markets, increasing organic net sales by nearly 3%, driven by broad-based strength in Wet Shave, particularly in Europe and Asia Pacific.

This growth more than offset temporary declines in our International Sun and Skin Care businesses, where we were impacted by delivery delays related to our Sun Care reformulation project. However, our overall sales performance continues to be impacted by North America, down 7.6% in the quarter, driven by declines in Wet Shave, Feminine Care and