Edgewell Personal Care Company (EPC): BCG Matrix [11-2024 Updated]

In the competitive landscape of personal care, Edgewell Personal Care Company (EPC) navigates a diverse portfolio that reveals its strategic positioning through the Boston Consulting Group Matrix. As of 2024, the company showcases promising growth in its Wet Shave segment, alongside challenges in the Feminine Care category. With innovative product launches driving segments and market pressures shaping others, discover how EPC's Stars, Cash Cows, Dogs, and Question Marks define its current and future trajectory.

Background of Edgewell Personal Care Company (EPC)

Edgewell Personal Care Company is a leading pure-play consumer products company, known for its diversified portfolio of established brands. The company operates in three primary segments: Wet Shave, Sun and Skin Care, and Feminine Care. Some of its well-known brands include Schick®, Wilkinson Sword®, Billie®, Edge, Skintimate®, Playtex®, Stayfree®, Carefree®, o.b.®, Banana Boat®, Hawaiian Tropic®, Bulldog®, Jack Black®, and Cremo®.

Founded in 2012, Edgewell emerged from the spinoff of Energizer Holdings, Inc. and has since built a global footprint, operating in over 50 markets, including the U.S., Canada, Mexico, Germany, Japan, the U.K., and Australia. As of September 30, 2024, the company employed approximately 6,700 individuals worldwide.

For the fiscal year ended September 30, 2024, Edgewell reported total net sales of $2.25 billion, slightly up from $2.25 billion in the previous year. The company faced challenges such as a 3.1% decline in net sales during the fourth quarter compared to the same period in the prior year, largely attributed to declining sales in the Feminine Care and Sun and Skin Care segments.

Edgewell's financial performance reflects its ongoing efforts to innovate and adapt in a competitive landscape. The company achieved adjusted net earnings of $153 million or $3.05 per share for the fiscal year 2024, marking a 21% increase at constant currency compared to the previous year. Additionally, Edgewell has focused on enhancing its operational efficiency and restructuring its organization to streamline operations, particularly in its manufacturing and supply chain.

As part of its commitment to shareholder value, Edgewell declared a quarterly cash dividend of $0.15 per common share on October 31, 2024, reflecting its ongoing strategy to return capital to shareholders. The company's current financial outlook for fiscal year 2025 anticipates organic net sales growth of approximately 1% to 3%, driven by a strengthened leadership team and increased focus on execution.

Edgewell Personal Care Company (EPC) - BCG Matrix: Stars

Wet Shave Segment Profit

The Wet Shave segment has demonstrated a significant increase, reporting a segment profit of $203.9 million for the fiscal year 2024, which represents a year-over-year growth of 28.8%. Additionally, for the fourth quarter of 2024, the segment profit rose to $62.2 million, marking an increase of 13.3% compared to the prior year.

International Market Growth

Edgewell has seen strong growth in international markets, particularly within the Wet Shave category, which contributed to a 2.4% increase in organic net sales. This growth in international markets is critical, as it helps offset declines in North America, where the company experienced a 6% decrease.

Innovative Products in Sun Care

The introduction of innovative products in the Sun Care category has also been a driver of growth. The Sun and Skin Care segment reported net sales of $740.8 million for the fiscal year 2024, reflecting a growth of 5.0%. Despite adverse weather conditions impacting sales, the company managed to achieve low-single-digit growth in this segment.

Adjusted Earnings Per Share (EPS)

Adjusted earnings per share (EPS) for Edgewell Personal Care increased by 18% year-over-year at constant currency, reaching $3.05 for fiscal year 2024. This increase is indicative of the strong performance of their star products, especially in the Wet Shave and Sun Care segments.

Healthy Cash Flow Generation

For the twelve months ending September 30, 2024, the company generated $231.0 million in net cash from operating activities, up from $216.1 million in the previous year. This healthy cash flow supports operational investments and is essential for maintaining the growth momentum of its star products.

Edgewell Personal Care Company (EPC) - BCG Matrix: Cash Cows

Sun and Skin Care Segment Performance

The Sun and Skin Care segment achieved a 5% increase in net sales for FY 2024, bringing total net sales to $740.8 million compared to $705.5 million in FY 2023.

Gross Margin Improvement

Gross margin improved by 60 basis points compared to the previous year, resulting in a gross margin percentage of 42.4% for FY 2024.

Wet Shave Segment Profitability

The Wet Shave segment demonstrated consistent profitability, contributing over $203.9 million in segment profit for FY 2024.

Stable Dividend Payouts

Edgewell Personal Care maintained stable dividend payouts, declaring a cash dividend of $0.15 per common share on October 31, 2024, with total dividends paid of $31 million for the fiscal year.

Market Leadership in Grooming and Personal Care

Edgewell remains a market leader in several grooming and personal care categories, ensuring steady revenues across its product portfolio. The company reported total net sales of $2,253.7 million for FY 2024, a slight increase of 0.1% compared to the previous year.

Overall, Edgewell Personal Care's cash cows within the Sun and Skin Care and Wet Shave segments illustrate strong cash generation capabilities, essential for supporting the company's overall financial health and strategic initiatives.

Edgewell Personal Care Company (EPC) - BCG Matrix: Dogs

Feminine Care Segment Performance

The Feminine Care segment reported a decline in net sales of 8.9% in Q4 2024, with net sales totaling $66.7 million compared to $73.2 million in the same quarter the previous year.

Profitability Decline

There was a significant loss in profitability, with a 46.6% decrease in organic segment profit, dropping to $6.2 million from $11.6 million in Q4 2023.

Market Share Erosion

The segment faced market share erosion due to increased competition and changing consumer preferences, leading to a 10.0% decrease in net sales for the full fiscal year, with total sales of $283.6 million compared to $315.2 million in FY 2023.

Negative Growth Trends

Overall negative growth trends continue to affect brand perception and sales performance, as evidenced by the 3.8% decline in North America organic net sales.

Edgewell Personal Care Company (EPC) - BCG Matrix: Question Marks

Sun Care growth below expectations due to adverse weather conditions affecting sales

In fiscal Q4 2024, Edgewell's Sun Care segment experienced low-single-digit growth, which was significantly below expectations. This underperformance was attributed to adverse weather conditions in the U.S. during August and September 2024, impacting overall sales figures in this category.

Declines in Wet Ones sales amid operational challenges, including a manufacturing fire

The Wet Ones brand faced a sharp decline in sales, with net sales decreasing by 3.8% in Q4 2024, translating to a drop of $5.3 million. This decline was exacerbated by operational challenges, notably a manufacturing fire that disrupted production and supply.

High marketing expenditures not translating into proportional sales increases in certain categories

Edgewell reported advertising and sales promotion expenses of $232.0 million for the fiscal year 2024, which accounted for approximately 10.3% of net sales. However, these high marketing expenditures did not lead to proportional increases in sales, particularly in the Sun and Skin Care segments, where organic net sales decreased by 3.5%.

Potential for growth exists, but requires strategic focus and successful product launches

Despite the challenges, there is potential for growth within the Sun Care category. The company's fiscal 2025 outlook anticipates organic net sales growth in the range of 1% to 3%, contingent upon effective marketing strategies and successful product launches.

Uncertainty in North American market dynamics impacting future performance

Edgewell's North American market dynamics remained uncertain, particularly reflected in a 6% decline in organic net sales for the region in Q4 2024. This decline was largely driven by volume decreases in Wet Ones and Feminine Care products.

In summary, Edgewell Personal Care Company (EPC) presents a mixed portfolio as assessed through the BCG Matrix. The Wet Shave segment shines as a Star, driving significant profit growth and international expansion. Meanwhile, the Sun and Skin Care segment remains a reliable Cash Cow, ensuring steady revenues. However, the Feminine Care segment struggles as a Dog, facing declining sales and profitability. Lastly, the Question Marks like Sun Care and Wet Ones highlight areas with potential but require strategic focus to unlock growth amidst market challenges. This nuanced analysis underscores the need for EPC to leverage strengths while addressing weaknesses to navigate the evolving personal care landscape.

Updated on 16 Nov 2024

Resources:

1. Edgewell Personal Care Company (EPC) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Edgewell Personal Care Company (EPC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Edgewell Personal Care Company (EPC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.