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Edgewell Personal Care Company (NYSE:EPC) reported organic sales increased 3.1% in FQ1. The organic sales growth was primarily driven by strong performance in international markets across all segments and reflecting growth from higher volumes and pricing across Wet Shave and Grooming, partly offset by lower net sales in North America. Pricing was higher during quarter, while volume was essentially flat compared to a year ago. Total revenue was up 4.2% year-over-year to $488.9M.
Adjusted EPS came in at $0.24 vs. $0.06 consensus and $0.32 a year ago. Adjusted gross margin increased 30 basis points during the quarter off productivity savings of approximately 380 basis points, the benefit of higher pricing of approximately 210 basis points, and approximately 70 basis points of favorable currency. Those positive factors more than offset core gross inflationary pressures, transitory cost headwinds related to unfavorable absorption and heightened unit cost inflation trapped in inventory, and the impact of negative mix. Adjusted operating income was 7.3% of sales, compared 8.0% of sales a year ago.
CEO update: "Gross margin was a highlight and above our expectations, driven by our ability to realize further productivity savings and gains from improved revenue management. With this good start and strong fundamentals in place, we are on track to meet our previous outlook for both top and bottom line."
Looking ahead, the company expects FY24 revenue to grow 1% to 3% year-over-year and EPS to land in a range of $2.65 to $2.85 vs. $2.74 consensus. Adjusted EBITDA of $340M to $352M is anticipated vs. $351M consensus.
Shares of Edgewell Personal Care (EPC) fell 0.51% premarket to $37.20 vs. the 52-week trading range of $33.71 to $46.13.