Feminine Care Divestiture Closed
Sale of the feminine care business to Essity closed on Feb 2, 2026; expected annualized benefit to margins and strategy focus; pro forma impact to continuing operations estimated at a $0.44 headwind to adjusted EPS and $44M to adjusted EBITDA in FY2026 (note: normalized 12-month impact would be ~ $0.20 adj EPS / $36M adj EBITDA, better than prior outlook).
Consolidated Results Beat Expectations
On a consolidated basis Q1 organic net sales declined 30 bps but adjusted EPS was $0.30 and adjusted EBITDA was $38M — all modestly ahead of the company's outlook.
Strong Sun Care and Grooming Performance
Sun & Skin Care organic net sales grew ~8% overall; Sun Care grew nearly 20% (driven by ~60% growth in North America due to early retailer orders); Grooming grew ~7% with Cremo +27% and Bulldog +6%.
Productivity Gains and Supply Chain Optimization
Generated ~240 basis points of gross productivity savings in the quarter, on track to support margin expansion and to mitigate tariff/inflation impacts over time.
International Resilience and Market Share Gains
International organic net sales modestly down 1.6% in Q1 (phasing impacts), but company reported share gains across Australia, Europe, Canada and China; international expected to deliver mid-single-digit net sales growth for FY2026 and now represents nearly half of company sales post-divestiture.
Maintained Dividend and Active Capital Allocation
Quarterly dividend declared of $0.15 per share (~$7M returned); proceeds from the feminine care sale directed to debt reduction and strengthening the balance sheet while retaining flexibility for future share repurchases or accretive M&A.
Unchanged FY26 Outlook for Continuing Operations
Management left FY2026 continuing-operations guidance unchanged: organic net sales growth outlook of -1% to +2% (excl. 150 bps currency tailwind), adjusted EBITDA $245M–$265M, adjusted EPS $1.70–$2.10, and adjusted gross margin expected to expand ~60 bps year-over-year.