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

Susan Anderson: Great. Yes. The merchandising looks good in the stores. I was wondering too just on the men’s business, I know you rolled it out further Edge and Cremo in the U.S. curious how that’s going and if there’s any plans for further expansion in the U.S. because it still looks pretty small out there. And then I’m just curious on the men’s grooming if it performed well both in the U.S. and then North America. I think you said Edge and Cremo did perform well?

Rod Little: Yes, on the men’s shave piece of it we were a flat share in the quarter just finished. And that’s primarily shipman’s and so we held share there in what was a growing category. I think we actually felt good about that outcome as there was some destocking that, that happened in the quarter as well that we think is more one-time in nature at a couple of retailers. The Cremo rollout as you suggested is just getting started. The product is fantastic. It’s a natural extension category wise to the grooming line and we think sets up to give us a better shave portfolio in men’s for the future and so it’s early days there but initial read is good. And then grooming more generally continues to be just a fantastic category. Double-digit growth rates continue in the category. We’ve got big ambition for our own business in that category this year and I would expect that will be one of our growth leaders as we get throughout the year.

Susan Anderson: Great. Thanks so much. Good luck the rest of the year.

Rod Little: Thank you.

Chris Gough: Thanks, Susan. Operator, next question please.

Operator: Our next question comes from Kevin Grundy from Jefferies. Please go ahead with your question.

Kevin Grundy: Great. Thank you. Good morning everyone. Two questions if I could, just first kind of pulling on the organic growth guidance for the year in the 3% to 5% and not asking you to be redundant, but it looks like grooming perhaps a bit light Sun Care, also a really good start. FEM Care was better by Geography. International stronger than the U.S. so far. I don’t recall if it was Rod or Dan, you mentioned you saw some signs of weaker consumer sentiment, but you sound quite good on the spring shelf space resets. So just kind of reading your tone, it sounds like you’re probably a little bit more optimistic within that range versus when you started the year, but not to put words in your mouth, but as you kind of pulled this all together, I’m just kind of curious how the shape of your organic sales growth guidance may or may not have changed since the initial guide. And maybe you could just comment on that and then I have a quick follow up for Dan on FX?

Dan Sullivan: Yes. Hey Kevin its Dan. Good morning. So look, we still feel confident with the range. We did acknowledge given some of the Sun Care poll that you’ll probably flight a bit more into half one than we had originally contemplated. But that’s really a one half, two phase. As we think about the categories, look, they’re structurally healthy, they’re growing, there is price that’s come into the categories, which we’ve obviously participated in as well. And I think this quarter certainly reinforces our confidence and our confidence to execute as well. You heard Rod talk about distribution outcomes, he specifically mentioned Sun, there is other really good news as well, particularly in Women’s Shave here in the U.S. and shave more broadly in certain international markets.