EDGEWELL PERSONAL CARE Co Q4 FY2025 earnings call

Divestiture: Intends to divest its Feminine Care business, a key step in focusing on shave, sun and skin care, and grooming categories. ### International Growth: International markets, ~40% of global sales, delivered strong growth for 4 consecutive years, with mid-single-digit growth expected in fiscal 2026. ### Innovation: Committed to consumer-led, locally designed innovation. Expanded Billy to Australia, Bulldog in premium skincare, Schick in premium skincare in Japan, broadened Cremo's range. Hawaiian Tropic saw strong growth due to marketing, formulations, and branding. ~70% of measured markets growing or holding share. ### Supply Chain Optimization: Delivered over 270 basis points in gross savings in fiscal 2025, expects ~310 basis points in fiscal 2026. Will further optimize North American Wet Shave business and manufacturing footprint, build agile supply chain.

In Q4, organic net sales increased 2.5%. International organic net sales grew 6.9%, with broad-based growth across segments. North America had organic net sales decline of 0.6%, with Sun Care, Wet Ones, and grooming growing but Wet Shave down. Sun and Skin Care organic net sales increased 11%, with Wet Ones growing nearly 25% and grooming up 9%. Fem Care organic net sales increased 1%. Internationally, representing ~40% of global sales, organic net sales grew 3.5% for the full year. North America organic net sales declined ~4% for the full year.

Fiscal 2026 Outlook: - Organic net sales expected to be in range of down 1% to up 2% excluding 150 basis points of currency tailwind. Mid-single-digit growth in international markets, flat to slightly down in North America. - Adjusted EPS expected in range of $2.15 to $2.55. - Adjusted EBITDA expected in range of $290 million to $310 million, flat to prior year at midpoint. - Free cash flow expected in range of $115 million to $145 million, including working capital improvements. - Gross margin expected to have 60 basis points year-over-year total gross margin rate accretion or 20 basis points at constant currency, with half-two gross margin rate growing versus prior year.

• External pressures: Tariffs, currency fluctuations, geopolitical tensions, consumer uncertainty. - Internal headwinds: Softer than expected sun care season, slower recovery in feminine care, challenges in North America wet shave category dynamics.

Q: Olivia Tong asked about the outlook, category growth assumptions, market share assumptions, and segment results.

A: Rod stated the plan is balanced and achievable, category growth at low single-digit rate, holding share, with Sun Care planned for similar season to recent one. Fran added Q1 expected EPS loss due to margin pressures and rate flighting, but confident in half two with productivity and investment.

Q: Nik Modi asked about the strategy and potential M&A.

A: Rod said focus is on shave, grooming, sun, and skin categories, with global scale and IP know-how. Plans to invest in shave footprint with new automated plant. Fran refined on Wet Shave optimization costs and progress.

Q: Chris Carey asked about productivity and gross margin.

A: Rod said plan is second-half oriented with higher sales growth in second half. Fran explained Q4 productivity in line with expectations, with headwinds from Mexican plant inventory adjustments and trade promotions, but productivity will be phased with more in back half.

Q: Peter Grom asked about proceeds from divestiture and impact on EPS.

A: Rod said sale expected to close early 2026, proceeds to be used for debt reduction and balance sheet strengthening, focused on debt reduction to three-time zone, with disciplined M&A. Fran mentioned net proceeds after taxes and fees about 80% to be used for debt pay down.

Q: Susan Anderson asked about sun and skin category, inventory levels, and innovation.

A: Rod said sun season just ended was not great, inventories clean, Hawaiian Tropic has new campaign in year two, Banana Boat has new campaign coming. Fran added low single-digit growth expected in '26, international as growth engine with strong regional execution, and focus on Hawaiian Tropic and Banana Boat in The U.S.