Edgewell Personal Care Company (NYSE:EPC) Q1 2023 Earnings Call Transcript

There’s no product there. Our products are safe. We’re always going to lean in on safety and make sure that people can have confidence when they pick Banana Boat and Hawaiian Tropic. And on the early season share REITs you are seeing, it’s more around everyday sun. If you think about the time of the year we’re in, those everyday Sun Care brands are the ones that, that win and grow share in this period of the year. You’ll start to see that moderate as we get into the balance of the year. And the other thing that just keep in mind because it is a little complicated as competitors come back on shelf to a certain extent from supply chain issues of their own that we didn’t have in past periods. You’ll just naturally see math show that share move a little differently than it has in in the past couple of years, but I think we’re confident in our business and that we have a good year in front of us.

Chris Carey: Okay, thanks so much.

Chris Gough: Thanks a lot, Chris. Operator, next question please.

Operator: Our next question comes from Susan Anderson from Canaccord Genuity. Please go ahead with your question.

Susan Anderson: Hi. Thanks for having the quarter. Thanks for taking my question. I wanted to ask about Billie, I’m just curious if there’s any early color on the sell through and the new retail partners? And then I’m curious how much of that already occurred in first quarter and expectations of how much will benefit second quarter? And then last, if you guys have talked about the margin profile of Billie versus the rest of wet shaved before in the past, or if you could give any color on that? Thanks.

Rod Little: Yes. Susan, good morning. Welcome to coverage. Great to have you on board.

Susan Anderson: Thanks.

Rod Little: I’ll just, yes, I’ll just say a couple of things about Billie bigger picture and then let Dan give a little more detail. We’re very, very happy with where Billie the brand is, the team that’s built the brand the way it’s been built is resonating with consumers and we’re off to a very good start with Walmart year one. As you know, when you grow share and you grow the category that becomes a very portable story. And so the expansion is underway now I think we did better than I think we expected in terms of retailers wanting the brand and wanting the brand quickly. So that’s happening as we speak. The DTC portion of Billie performed very well in the first quarter actually outperformed what we were expecting. And so we continue to believe we’ve got a very healthy omnichannel brand in front of us that has lots of legs to go in many, many more places. And Dan, I’ll let you talk quarter one, quarter two.

Dan Sullivan: Yeah. So in terms of the phasing of the national retail launch, there was a bit in Q1, but it was quite limited to drug and grocery. And even in grocery small amounts, I think the lion share of the launch and therefore the pipeline is Q2 and beyond. And you’ll see that now as we roll out in broader grocery, broader drug and of course mass; so that’s to come. And then to the question Susan, on margin profile, I think I’m comfortable saying largely at Edgewell family levels but there’s a lot beneath that comment, right? Because it will depend on mix DTC versus retail and then within the Billie portfolio will largely depend on which category and which product is driving the growth. But in principle pretty comparable to Edgewell family margins.