Full Fiscal Year 2020 Financial Outlook
The outlook provided for fiscal 2020, reflects the existing Edgewell business only, including the Infant and Pet Care business. It does not include any elements of the Harry's combination or future synergies. Adjustments to this outlook will be provided, as needed, at a future date, post close of these transactions.
The fiscal 2020 outlook for the standalone Edgewell business contemplates stable top-line and stable gross margin performance, compared to fiscal 2019, on-going Project Fuel gross savings and increased commercial investments in the business. Importantly, this Edgewell-only outlook for fiscal 2020 is consistent with the financial assumptions and valuation models developed in support of the combination with Harry's, as announced on May 9, 2019.
Mr. Little added, "With our pending transactions, we are fundamentally changing the Company. And the outlook we are providing today reflects the actions we are taking and progress we are making to address our core businesses and best positions us as we move into the next chapter of the company's evolution, focusing on growth and re-investment in the business to drive sustainable value creation."
The Company estimates total net sales to be in the range of down 2% to 1% compared to the prior year. Organic net sales growth, which excludes an estimated 100 basis point negative impact from currency, is expected to be in the range of down 1% to flat compared to the prior year.
The outlook for GAAP EPS is in the range of $2.45 to $2.65 and includes: Project Fuel restructuring charges, IT enablement costs, acquisition and integration costs and Sun Care Monograph costs.
The outlook for Adjusted EPS is in the range of $3.10 to $3.30.
The Company is also providing an outlook for Adjusted EBITDA, as we believe EBITDA will be an important metric on a go-forward basis as a combined company with Harry's. Adjusted EBITDA is estimated to be in the range of $370 to $380 million.
For fiscal 2020, Project Fuel is expected to generate approximately $70 million in incremental gross savings. Project Fuel related restructuring charges are expected to be approximately $36 million. Total Company capital expenditures, including Project Fuel are expected to be approximately 3.0% to 3.5% of net sales.
The adjusted effective tax rate for fiscal 2020 is estimated to be in the range of 22.5% to 24.5%.
The Company anticipates that fiscal 2020 free cash flow will be above 125% of GAAP net earnings.