Edgewell (Banana Boat) Q2 Comments

I have cherry picked some quotes from the latest Edgewell (Banana Boat) earnings call which provides some useful insights on the sunscreen market as a whole, particularly with exposure to USA.



“The positive inflection we saw in our Sun Care business in the month of March bodes well for the key summer selling season“


“Consumption trends have meaningfully improved in April and we remain confident in both our outlook for the season and our portfolios relative performance in the US.”

“The biggest improvement we saw within the quarter was sun care, where as we got into March we really started to see March pivot to a positive picture. We have seen that continue through all of April as well.”

“We love the (sun care) category. We remain very bullish longer term outlook on the category. We’ve got great capability around formulation, regulatory safety and like the portfolio we have, with room to build over time.”

“We are seeing very high levels of demand in domestic markets - where you don’t have to travel over an international border within that market - think the US, Australia, Mexico, continental Europe. We are seeing very heavy demand. There is pent up desire to be outside.”

"There’s pent up demand to put vacation travel back into the routine and to go to warmer climates and be around water. When you do that, being outside around water drives consumption. What we’re seeing in the scanner data is people doing that.”

“We see upside in sun care and have tried to position ourselves to meet higher than expected demand this year. Making sure we have staff in place, where we’ve had long supply chains, working to shorten them.”

“We’re setup and prepared to hit a higher demand across the summer and if it lasts later in the fall, which we do expect."

“There is a theoretical capacity constraint. When the category is growing 200-300% week on week, it can’t do that all season. None of our competitors would be able to meet that demand. But if it gets where we expect it to be, we think we can hit the demand.”

"We feel really good about our position at the start of the season. Pre-bought and pre-built, sitting on a higher inventory level at Q2. We’ve taken all of the necessary steps to be ready for the season. We’ve seen a really nice start to the quarter on our end.”

"We are absolutely spending behind the brands (in 3Q), and feel prepared for the season. Seeing 100%+ growth week over week for 3 straight weeks.”

“What we have in the pipeline to come is really exciting from product forms - the product formulation around mineral, mineral sprays, not only the efficacy but the skin feel and ease of spread and how you get the product on your body - we’ve got innovation on that as well.”