THE WHAT? Edgewell Personal Care has announced its results for the fourth quarter and full year of fiscal 2020. Sales dropped 7.4 percent yoy in the final quarter ended September 30, 2020, to bring net sales to US$1,949.7 million for the year. A decrease of 8.9 percent compared to the prior year.
THE DETAILS Gross profit was down US$7.9 million in Q4 compared to the prior year period, largely driven by a US$5.3 million net impact from divestitures and acquisitions as well as lower net sales, the Schick manufacturer said.
However, sales had begun to bounce back in North America, rising 3 percent compared to the prior year period thanks to growth in Sun Care, Wet Ones and Women’s Shave.
In terms of category, Wet Shave sales dipped 4 percent, while Sun and Skin Care saw sales climb 15 percent (+8.8 percent excluding the impact of the company’s acquisition of Cremo and currency movements). Feminine Care sales were down 10.8 percent thanks to distribution losses at Walmart, category softness due to pantry loading earlier in the year and increased competition.
THE WHY? Sales continued to be negatively impacted across most categories due to the effects of COVID-19, Edgewell said but the company is predicting a organic sales rise in the low-single digits for 2021. Rod Little, Edgewell’s President and Chief Executive Officer, commented, “We are pleased to close out fiscal 2020 with a fourth quarter that demonstrated a clear return to more stable underlying top line and bottom-line performance, underpinned by healthy gross margin results. North American Wet Shave and Sun Care, and continued expansion of our Wet Ones brand, were all areas of strength. Our strong focus on execution and disciplined approach to commercial investment and brand activation, all helped fuel this performance.”