What the changes say
- Edgewell highlights increasing tariff exposure in China and Mexico, the planned divestiture of its Feminine Care business, and heavy revenue concentration with Walmart at 17.4%.
What changed since the prior 10-K
New
- New
Changes in U.S. and international trade policies may adversely impact our business, financial condition and results of operations
Tariffs and trade policy changes between the U.S. and countries like China and Mexico could increase costs for materials and finished goods.
- NewLegal, Regulatory, Tax and Other Risks
Actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements could adversely affect our business, results of operations, and financial condition
Evolving global data privacy and security laws could increase compliance costs and restrict our handling of personal information.
- NewLegal, Regulatory, Tax and Other Risks
Rationalization or restructuring of manufacturing facilities, and plant expansions and updates at our manufacturing facilities may cause capacity constraints, inventory fluctuations, and other issues
Restructuring or rationalizing manufacturing facilities could cause operational disruptions, capacity constraints, and unexpected costs.
- NewLegal, Regulatory, Tax and Other Risks
Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our business
Damage to the reputation of brands like Schick, Hawaiian Tropic, or Playtex from recalls or quality issues could hurt operating results.
- NewLegal, Regulatory, Tax and Other Risks
We must successfully manage divestiture activities
Divesting assets, such as the Feminine Care business, carries execution risks, potential delays, and lost earnings.
Dropped
- DroppedLegal, Regulatory, Tax and Other Risks
We depend on the continuing reputation and success of our brands, particularly the Schick, Wilkinson Sword, Billie, Edge, Skintimate, Playtex, Wet Ones, Banana Boat, Hawaiian Tropic, Bulldog, Cremo, Jack Black, Stayfree, Carefree and o.b. brands
- DroppedLegal, Regulatory, Tax and Other Risks
could impact access to funding and increase associated borrowing costs, which could reduce our earnings and cash flows. Additionally, disruptions in financial markets could reduce our access to debt and equity capital markets, negatively affecting our ability to implement our business plan and strategy
Reworded
- 82% rewrittenLegal, Regulatory, Tax and Other Risks
Our access to capital markets and borrowing capacity could be limited
Expanded to detail credit ratings and specific impacts on debt and equity capital market access.
- 50% rewritten
We may not be able to attract, retain and develop key personnel
Added risks regarding failure to achieve planned productivity improvements and cost savings from staffing adjustments.
- 37% rewrittenLegal, Regulatory, Tax and Other Risks
Loss of any of our principal customers could significantly decrease our sales and profitability
Updated Walmart net sales concentration figure from 17.2% in fiscal 2024 to 17.4% in fiscal 2025.
- 21% rewrittenLegal, Regulatory, Tax and Other Risks
We are subject to risks related to our international operations, including currency fluctuations, which could adversely affect our results of operations
Updated international net sales percentage from nearly 44% in fiscal 2024 to nearly 46% in fiscal 2025.
All 26 risk factors
Headings as the filing states them, in filing order.
Other
- 01Changes in production costs, including raw material prices and tariffs, could erode our profit margins and negatively impact operating results
- 02Changes in U.S. and international trade policies may adversely impact our business, financial condition and results of operationsNew
- 03We may not be able to attract, retain and develop key personnel50% rewritten
- 04Competition in our industries may hinder our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers
Legal, Regulatory, Tax and Other Risks
- 05Our business is subject to increasing global regulation, including product related regulations and environmental regulations, that may expose us to significant liabilities
- 06Our business could be negatively impacted by corporate citizenship and sustainability matters
- 07If we fail to adequately protect our intellectual property rights, competitors may manufacture and market similar products, which could adversely affect our market share and results of operations
- 08Legislative changes in applicable tax laws, policies and regulations or unfavorable resolution of tax matters may result in additional tax liabilities, which could adversely impact our cash flows and results of operations
- 09A failure of a key information technology system or a breach of our information security could adversely impact our ability to conduct business
- 10An information security incident, including a cybersecurity breach, could have a negative impact to the Company’s business or reputation
- 11Actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and other requirements could adversely affect our business, results of operations, and financial conditionNew
- 12Loss of any of our principal customers could significantly decrease our sales and profitability37% rewritten
- 13Changes in the policies of our customers and increasing dependence on an omnichannel strategy in developed markets may adversely affect our business
- 14We face risks arising from our ongoing efforts to achieve cost savings
- 15We are subject to risks related to our international operations, including currency fluctuations, which could adversely affect our results of operations21% rewritten
- 16We are currently dependent on third party manufacturers to manufacture certain products for our business. Our business could suffer as a result of a third-party manufacturer’s inability to produce our products for us on time or to our specifications
- 17Our manufacturing facilities, supply channels or other business operations may be subject to disruption from events beyond our control and we may be unable to implement, maintain and ramp efficient and cost-effective manufacturing capabilities at current and any future manufacturing locations
- 18Rationalization or restructuring of manufacturing facilities, and plant expansions and updates at our manufacturing facilities may cause capacity constraints, inventory fluctuations, and other issuesNew
- 19Loss of reputation of our leading brands or failure of our marketing plans could have an adverse effect on our businessNew
- 20Our business is subject to seasonal volatility
- 21Impairment of our goodwill and other intangible assets would result in a reduction in net income
- 22Our access to capital markets and borrowing capacity could be limited82% rewritten
- 23We have a substantial level of indebtedness and are subject to various covenants relating to such indebtedness, which could limit our discretion to operate and grow our business
- 24We may not be able to effectively integrate acquired companies to achieve desired financial benefits
- 25We must successfully manage divestiture activitiesNew
- 26We may experience losses or be subject to increased funding and expenses related to our pension plans
Other Edgewell Personal CARE 10-Ks
- FY2024 10-K risk factors23 risks
Concentrated customer risk dominates with Walmart accounting for 17.2 percent of net sales in fiscal 2024. Substantial leverage of 1.3 billion dollars in debt creates ongoing financial constraints. International exposure includes nearly 44 percent of net sales originating outside the United States.
Filed Nov 14, 2024
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.