American multinational consumer products company Edgewell Personal Care has reported net sales of $647.8 million for the third quarter of fiscal 2024 (Q3 FY24), a slight decrease of 0.3 per cent year-over-year (YoY). The decline includes a $6.2 million unfavourable impact from currency movements. However, organic net sales increased by 0.6 per cent, driven by strong performance in international markets.

The company’s gross profit for the quarter was $287.1 million, up from $280.3 million in the same period last year. Gross margin as a percentage of net sales increased by 120 basis points to 44.3 per cent. The adjusted gross margin saw an even higher increase of 160 basis points, the company said in a press release.

Advertising and sales promotion expenses decreased to $76.6 million, or 11.8 per cent of net sales, compared to $80 million, or 12.3 per cent, in the prior year quarter. Selling, general, and administrative expenses rose to $110.1 million, or 17 per cent of net sales, up from $96.3 million, or 14.8 per cent of net sales, in the same quarter last year.

Operating income for Q3 FY24 was $82.7 million, including a $2.3 million unfavourable impact from currency movements, compared to $86.2 million in the prior year quarter. GAAP net earnings were $49.0 million, or $0.98 per diluted share, down from $53.0 million, or $1.02 per diluted share, in the same period last year.

In the sun and skin care segment, net sales increased by $12 million, or 4.9 per cent, with organic net sales rising by 5.1 per cent. However, the feminine care segment saw a net sales decrease of $6.4 million, or 7.9 per cent, with minimal currency impact. Segment profit in feminine care fell by $7.4 million, or 52.9 per cent, with organic segment profit also declining by 52.9 per cent.

"Our third quarter results reflected robust gross margin accretion leading to substantial adjusted EBITDA and earnings per share growth. Amidst a competitive and dynamic market landscape, organic net sales growth featured continued strength in our Right-to-Win portfolio. Our international businesses sustained their momentum, achieving significant growth through a balanced mix of pricing and volume improvements," said Rod Little, Edgewell's president and chief executive officer.