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- **Strategic Restructuring**: Divesting feminine care to focus on high-margin shave, sun, and skincare. FY2026 international sales growth expected to offset flat North America performance.
- **Financial Resilience**: FY2025 adjusted EBITDA $290M, FY2026 outlook flat at $290M-$310M despite $25M tariff headwind. Free cash flow targets $115M-$145M.
- **Growth Drivers**: 70% of markets showing stable or improving share, with Hawaiian Tropic leading sun care innovation. FY2026 A&P spend increases to 11.8% of sales.
- **Tariff Mitigation**: 310 basis points productivity savings offset 270 basis points inflation, but FY2026 Q1 gross margin expected to decline 270 basis points.
- **Debt Reduction**: Proceeds from feminine care sale to reduce leverage to 3x, supporting long-term financial flexibility.

**【CEO Summary Section】**
- **Organic Sales Growth**: 2.5% for Q4 FY2025, driven by international markets (6.9% growth) and stabilization in North America. North America wet shave sales declined 1%, while sun care and grooming grew 10% and 9%, respectively.
- **Strategic Focus**: Divesting feminine care to focus on shave, sun, skincare, and grooming. International markets (40% of sales) are expected to grow mid-single-digit in FY2026.
- **Innovation Successes**: Billie expanded to Australia, Schick launched premium skincare in Japan, and Hawaiian Tropic saw 25% growth in Wet Ones. 70% of measured markets now show growth or stable share.
- **Productivity**: Delivered 270 basis points of gross savings in FY2025, targeting 310 basis points in FY2026 through supply chain optimization and tariff mitigation.
- **North America Transformation**: Streamlined U.S. commercial org, increased A&P spend on 5 core brands (Schick, Billie, Hawaiian Tropic, Banana Boat, Cremo), and focus on profitable growth post-2027.

**【CFO Financial Commentary】**
- **FY2025 Results**: Organic sales down 1.3%, adjusted EBITDA $290M, free cash flow $118M. Adjusted EPS $0.68 vs. $0.72 prior year, impacted by $0.19 currency headwinds.
- **FY2026 Outlook**: Organic sales -1% to +2%, adjusted EBITDA flat at $290M-$310M, adjusted EPS $2.15-$2.55. Key drivers:
  - **Gross Margin**: 60 basis points accretion (310 basis points productivity vs. 270 basis points inflation). FY2026 Q1 expected to be down 270 basis points due to inflation and transitory costs.
  - **A&P Spend**: +70 basis points to 11.8% of sales, focused on brand activation.
  - **Tariffs**: $25M net impact, partially mitigated by pricing in international markets.
  - **Free Cash Flow**: $115M-$145M, driven by working capital improvements.
- **Feminine Care Divestiture**: Expected Q1 2026 close, proceeds to reduce debt and support core brands. Annualized impact: $0.40-$0.50 EPS reduction, offset by $35M-$45M EBITDA from transition services.

**【Q&A Highlights】**
- **Category Growth Assumptions**: Low single-digit category growth, with 70% of markets showing stable or improving share. Sun care planned for low single-digit growth, shave flat to slightly up, grooming leading at 9%+.
- **Profit Flexibility**: Plan includes $25M tariff headwind, but flexibility to adjust A&P if needed. FY2026 phasing: 2/3 of EBITDA in H2, 3/4 of EPS in H2 due to tax timing.
- **Innovation Momentum**: Hawaiian Tropic's 25% growth driven by new campaign and formulations. Banana Boat re-launching with enhanced marketing in Q2 2026.
- **Debt Reduction**: Proceeds from feminine care sale to reduce leverage to 3x target. Free cash flow focused on debt repayment and dividend sustainability.
- **Tariff Mitigation**: No broad U.S. price increases planned; 2026 outlook does not assume offset for $25M tariff impact.

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