Edgewell Personal Care reveals first financial results after spin-off

By Simon Pitman contact

- Last updated on GMT

Edgewell Personal Care reveals first financial results after spin-off

Related tags: Personal care, Revenue

The newly spun-off and renamed business, Edgewell Personal Care, has released the first financial results, showing it was hard hit by the currency revaluation in Venezuela and the strength of the US dollar.

The company officially became known as Edgewell Personal Care on July 1st​, which means that future results will now reflect earnings distinct from the Energizer business, which is now a standalone household products business, best known for the Energizer battery brand.

The current third quarter results still incorporate the revenues for the Energizer business, but the fourth quarter results for the two businesses will be reported separately, for the first time.

International sales hard hit

For the current quarter, total sales fell by 7.3% to reach $1.05 bn, a figure that was up by 0.2% on an organic basis, reflecting the negative impact of currency translations against a strong US dollar.

The fall in sales and costs associated with the spin-off also significantly impacted the net income for the period, with a $64.5m profit in the third quarter last year, coming in as a loss of $72.5m for the current period.

The third quarter results also included costs of $114.5 million for the spin-off and subsequent restructuring of the two businesses, as well as a further $23m in restructuring charges for its 2013 program.

"While we are in a period of increased complexity and transition, we are quickly taking actions that will highlight the focus, agility and passion needed to build a strong personal care company, a company that will deliver ongoing value for our customers, consumers, employees and shareholders,"​ said David Hatfield, CEO.

Performance of the personal care division

Although sales were down on the household products side of the business on lower battery sales, the personal care division fared better, with sales increasing 0.7% on an organic basis to $672.8m, but down 6.3% on an adjusted basis for currency.

Looking ahead to the fourth quarter results, the company says that the separate reporting for the personal care division will see results reported via four principle segments. Those segments will be Wet Shave, Sun and Skin Care, Feminine Care and All Other.

For the current quarter the company broke the figures down as Wet Care – where sales showed a healthy increase of 2.4% to $402.6m – and Sun and Skin Care – where sales fell 6.4% to $169.6m.

Related topics: Business & Financial

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