Edgewell Personal Care, which owns the Hawaiian Tropic and Wilkinson Sword brands, among others, has said that the repositioning of its Feminine Care business, coupled with the integration of the Harry's shaving brand, should enable it to achieve its longer-term financial objectives.
The business made the forecast as it posted a 1.8% decline in net sales in the third quarter of its financial year, to $609.2 million (€544 million).
Organic net sales were down 0.3% in the quarter, with organic net sales declining 2.7% in North America, offset by a 4.2% gain in its International business.
Operational Performance
Commenting on the group's performance, chief executive Rod Little said that the results reflect the "steps we have been taking to fundamentally improve the commercial and operational performance" of the business, as part of its Project Fuel initiative.
This includes a strategic review of its Feminine Care arm, which has now been completed, with the group set to focus on better brand building and trade execution in the division. It is also currently exploring 'strategic alternatives' for its Infant Care business.
Little and his team also pointed to the integration of shaving startup Harry's, acquired in May in a cash and stock transaction that values the brand at $1.37 billion, as a core driver of future growth for the business.
"As we look ahead, we continue to reshape how we operate the business through Project Fuel, which has generated over $100 million in gross savings to date and is serving as a catalyst for reinvestment," Little said.
"We are making progress on our core business initiatives, beginning the repositioning of our Feminine Care business, and building significant momentum in the integration planning for the Harry’s transaction. We are confident that Edgewell is taking the right steps to generate sustainable shareholder value creation," he added.
'Pivotal Step'
Edgewell has described the Harry's integration as a 'pivotal step forward' in the group's portfolio transformation, with the business incorporating Harry's 'best-in-class brand building, design and direct-to-consumer expertise' into its own organisation.
"The two leadership teams have made great progress in the integration planning process," said Little. "The more we have learned about each other, the more confident we are about the power of this combination and our ability to create new avenues for growth, and ultimately deliver superior returns for investors.”
In terms of the performance of Edgewell's various divisions, the group's Wet Shave business saw a 3.9% decline in sales (-1.7% in organic terms); Sun and Skin Care was up 3.4% (4.3% organic); Feminine Care declined 3.8%; and All Other brands decreased 1.2% (-0.6% organic).
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
