Edgewell Personal Care Co Profile
Edgewell Personal Care Company (Edgewell) and its subsidiaries, operates as a manufacturer and marketer of personal care products in the wet shave, sun and skin care, and feminine care categories worldwide. With operations in over 20 countries, the company's products are widely available in more than 50 countries.
Business Segments
The company operates through three segments: Wet Shave, Sun and Skin Care, and Feminine Care.
Wet Shave
Wet Shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Billie, Shave Guard and its custom brands group. The company manufactures and distributes Schick and Wilkinson Sword razor systems, composed of razor handles and refillable blades, and disposable shave products for men and women. While the company markets its wet shave products throughout the world, its primary markets are the U.S., Canada, Japan, Germany, France, and the U.K.
In 2022, the company completed the acquisition of Billie, Inc. (Billie), adding the growing woman's brand to its portfolio of products. Billie's strong direct-to-consumer and digital capabilities have underpinned its strong growth, which positioned the brand well for its initial expansion into the U.S. brick-and-mortar in 2022. The Billie brand complements and strengthens Edgewell's position in the women's shaving category, adding to the company's portfolio of strong brands, such as Schick Intuition, Hydro Silk, and Skintimate.
In the U.S., Canada and Japan, the company sells market-leading shave preparation products, including shaving gels and creams under the Edge, Skintimate, and Shave Guard brands.
The company also manufactures, distributes, and sells a complete line of private label and disposable razors, shaving systems and replacement blades. These private label wet shave products, including emerging direct-to-consumer (DTC) brands are sold primarily under a retailer's store name or under its value brand names, such as Personna.
Sun and Skin Care
Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, Cremo, and Wet Ones brand names. The company markets Sun Care products under the Banana Boat and Hawaiian Tropic brands. The company competes across the full spectrum of Sun Care categories: general protection, sport, kids, baby, tanning, and after sun. Outside of the U.S., the company is also the leading Sun Care manufacturer in Mexico with significant presence in Australia and Canada. The company expects to continue to drive its worldwide business through product innovation, increased distribution and geographic expansion.
The company offers Wet Ones antibacterial hand wipes and other related products as the leader in the U.S. portable hand wipes category. The company expects to utilize its position as market leader to further scale the business and use innovation, such as Wet Ones lavender gel, to increase growth.
The company has acquired a portfolio of men's grooming skin care products that have grown under its direction. The company's Bulldog skincare products are purpose-built for men and were created to work simply and efficiently while dealing with issues specific to men's skin. Since acquiring Bulldog Skincare Holdings Limited (Bulldog), the company has expanded sales geographically and is committed to further growth and distribution for the brand. The company acquired the Jack Black brand and obtained a footprint in the luxury men's skincare market and continues to use resources at its disposal to grow the Jack Black (Jack Black, L.L.C.) brand globally. The company's Cremo (Cremo Holding Company, LLC) products compete in the masstige category for men's grooming, and that offers a complete line of 'barber quality' beard, hair, and skin care products.
Feminine Care
In Feminine Care, the company markets products under the Playtex, Stayfree, Carefree and o.b. brands. The company offers tampons under the Playtex Gentle Glide 360°, Playtex Sport, Playtex and o.b. brands, including the Playtex Sport compact tampon launched in 2017. The company also markets pads and liners under the Stayfree and Carefree brands. The company is one of the top three manufacturers of feminine care products in North America, with unique, competitive product technologies and well-known brands that address complementary consumer needs. The company intends to continue to invest in innovation in its feminine care brands.
Sales and Distribution
The company's products are marketed primarily through a direct sales force and supplemented by strategic exclusive and non-exclusive distributors and wholesalers. In the U.S., Japan and larger markets in Western Europe and Latin America, it has dedicated commercial organizations, reflecting the scale and importance of these businesses to the company. In several countries where the company does not have dedicated commercial organizations, it utilizes third-party distributors and wholesalers. As a result of increased competition through the expansion of online markets, the company has established e-commerce operations across several business lines, including global Schick.com websites providing men's and women's shaving products, Bulldog, Jack Black direct to consumer sites, an acceleration of e-commerce sales in China through its partnership with T-Mall. The company distributes its products to consumers through numerous retail locations worldwide, including mass merchandisers and warehouse clubs, food, drug and convenience stores, and military stores.
Although a large percentage of the company's sales are attributable to a relatively small number of retail customers, only Walmart Inc. and its subsidiaries (Walmart), as a group, account for more than 10% of its consolidated annual net sales. Walmart accounted for approximately 19.4% of the company's net sales in the year ended September 30, 2023. Purchases by Walmart included products from all of the company's segments. Target Corporation represented approximately 9.4% of net sales for the company's Sun and Skin Care segment and 10.0% for its Feminine Care segment, respectively.
Seasonality
Customer orders for sun care products within the company's Sun and Skin Care segment are highly seasonal, which has historically resulted in higher sun care sales to retailers during the late winter through mid-summer months (year ended September 30, 2023). Within the company's Wet Shave segment, the sale of women's products is moderately seasonal, with increased consumer demand in the spring and summer months.
Patents, Technology and Trademarks
The company owns a number of the U.S. and international trademarks, which the company considers of substantial importance and which are used individually or in conjunction with its other trademarks. These include, but are not limited to: Edgewell, Schick, Schick Hydro, Schick Hydro Silk, Hydro Connect, Wilkinson Sword, Intuition, Quattro, Xtreme 3, Billie, Protector, Silk Effects, Slim Twin, Edge, Skintimate, Personna, Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, Cremo, Gentle Glide, Sport, Sport Level Protection, Wet Ones, Stayfree, Carefree and o.b. As a result of the Playtex acquisition, the company also owns royalty-free licenses in perpetuity to the Playtex trademark in the U.S. and in many international jurisdictions related to certain feminine hygiene and other products but excluding certain baby care and apparel-related products. The company considers the protection of its trademarks to be important to its business.
As of September 30, 2023, the company owned, either directly or beneficially, approximately 370 unexpired U.S. patents, which have a range of expiration dates from October 2023 to February 2040; and the company had approximately 55 pending U.S. patent applications. It routinely prepares additional patent applications for filing in the U.S. and actively pursues foreign patent protection in various countries. As of September 30, 2023, the company owned, either directly or beneficially, approximately 1,187 foreign patents, having a range of expiration dates from October 2023 to August 2048; and the company had approximately 125 pending patent applications in foreign countries.
Governmental Regulation and Environmental Matters
The company is subject to various federal, state, local and foreign laws and regulations by governmental agencies intended to protect the public health and environment, including those governing the manufacture, use, discharge and disposal of hazardous materials, labeling and notice requirements related to consumer exposure to certain chemicals, and requirements for the recycling of its products and their packaging. These agencies include, but are not limited to the U.S. Food and Drug Administration (the 'FDA') and equivalent international agencies that regulate ingredients in consumer products; the U.S. Environmental Protection Agency ('EPA') and equivalent international agencies that regulate its manufacturing facilities; and the Chemical Registration/Notification authorities that regulate chemicals that the company uses in, or transports to, the various countries in which it manufactures and/or markets its products.
The company has seen an increase in registration and reporting requirements concerning the use of certain chemicals in a number of countries, such as the Registration, Evaluation, Authorization and Restriction of Chemicals ('REACH') regulations in the European Union (the 'E.U.').
In connection with certain sites, the company has received notices from the EPA, state agencies and private parties seeking contribution that it has been identified as a potentially responsible party (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), and as a result, the company may be required to share in the cost of cleanup with respect to a number of federal 'Superfund' sites.
When the company imports chemicals into the U.S., the company must ensure that chemicals appear on the U.S. Toxic Substances Control Act of 1976 (TSCA) registry prior to import, participate in the Significant New Use Rules (SNUR) process when a chemical it imports requires testing data and report to the EPA information relating to quantities, identities and uses of imported chemicals.
Research and Development
The company's research and development expenses were $58.5 in the year ended September 30, 2023.
Competition
Wet Shave
The company's principal competitors in the global wet shave business are The Procter & Gamble Company, Bic Group, and Dorco. The company also competes with newer entrants to the Wet Shave market for both direct-to-consumer (DTC) online and traditional retail shelf space, including Unilever (Dollar Shave Club brand), Harry's, Perio (Barbasol and PureSilk brands), and Beiersdorf (Nivea branded women's wet shave product in Germany).
Sun and Skin Care
The company's competitors in the markets for sun and skin care consist of a large number of domestic and foreign companies, including Bayer AG and Johnson & Johnson.
The company's competitors in the global men's skin care market include large companies, such as Johnson & Johnson, L'Oreal S.A., The Estee Lauder Companies, Inc. and Unilever.
History
The company was founded in 1772. It was incorporated in Missouri in 1999. The company was formerly known as Energizer Holdings, Inc. and changed its name to Edgewell Personal Care Company in 2015.
