Edgewell Personal Care (NYSE:EPC) today reported first-quarter results that modestly exceeded internal expectations, as the company finalized a major strategic pivot by divesting its Feminine Care business to Essity for $340 million.
The Shelton, Connecticut-based company behind brands like Schick, Banana Boat, and Hawaiian Tropic saw continuing-operations net sales rise 1.9% to $422.8 million.
Including the now-divested Feminine Care segment, consolidated net sales reached $486.8 million.
The quarter's performance was bolstered by a 3.5% organic growth in international markets, which helped offset a more sluggish retail environment in North America.
The $340 million sale of brands like Playtex, Carefree, and Stayfree marks a "pivotal milestone," according to CEO Rod Little, allowing the company to pay down its U.S. revolving credit facility and focus entirely on its higher-growth core: Shave, Sun & Skin Care, and Grooming.
While the loss of the Feminine Care revenue stream is significant, management noted that the divestiture’s annualized impact is expected to be favorable to the previous outlook by improving the balance sheet and narrowing the operational focus.