Prestige Consumer Healthcare (PBH) FY Conference Summary Company Overview - Prestige Consumer Healthcare sells and distributes over-the-counter health care products in the US, Canada, and certain international markets, with well-known brands like Dramamine, Clear Eyes, Dentech, and Ludens [2][4] Core Strategy and Financial Performance - The company's strategy focuses on building a consumer health care portfolio with leading brands in niche categories, which has remained unchanged over time [4][5] - Fiscal year 2025 ended with record sales and earnings per share (EPS), alongside significant cash flow performance, resulting in the lowest leverage in the company's history [7] - The company anticipates generating approximately $1 billion in free cash flow over the next four years [7][54] Consumer Behavior and Market Dynamics - Consumers are becoming more thoughtful in their shopping habits, seeking better value propositions without switching to different products [9][10] - There have been no significant changes in the competitive landscape, with no new entrants affecting the categories in which Prestige competes [12][13] Tariffs and Pricing Strategy - The company expects a cost impact of approximately $15 million for fiscal year 2026 due to tariffs, with a total annualized impact of around $20 million [16] - Prestige is well-positioned to navigate the tariff environment due to a diverse portfolio and a largely domestic supply base [19][20] Product Portfolio Insights - Clear Eyes is expected to recover from supply chain challenges over the next couple of years, with efforts to expand capacity and bring on new suppliers [24][25] - Women's health products, particularly Monistat and Summer's Eve, are showing signs of recovery, with Monistat stabilizing and Summer's Eve experiencing year-over-year sales growth for the first time in three years [28][30] - The international segment is projected to grow in the mid-single digits, driven by strong brand performance in Australia and surrounding regions [31][33] E-commerce and Marketing Strategy - E-commerce has been growing at over 10% annually, with a focus on leveraging online platforms as marketing tools to connect with new shoppers [34][36] Financial Outlook and Growth Targets - The company targets 2% to 3% organic sales growth and 6% to 8% EPS growth in the long term, supported by a diverse portfolio and stable profit margins [46][48] - Gross margin is expected to improve to approximately 56.5% for fiscal year 2026, with ongoing cost-saving initiatives [51][52] Capital Allocation and M&A Strategy - Capital allocation priorities include organic growth investments, M&A opportunities, and share repurchases, with a focus on maintaining leverage below three times [54][56] - The company continues to see consistent M&A opportunities, particularly in the consumer health care space, with a preference for acquisitions in the $200 million to $500 million range [62][65] Conclusion - Prestige Consumer Healthcare is well-positioned for long-term growth, with a strong portfolio, effective strategies to navigate market challenges, and a clear focus on capital allocation and M&A opportunities [66]

Safe Harbor Disclosure This presentation contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including revenues, organic revenue growth, diluted EPS, and free cash flow; the Company's reinvestment in Clear Eyes as supply increases; the Company's ability to execute on its brand- building strategy and to drive free cash flow and maximize shareholder value; e-commerce ...

Core Insights - Prestige Consumer Healthcare's long-term growth strategy focuses on building strong brands and expanding its brand portfolio through both organic growth and acquisitions [1][10] - The company has seen significant momentum in e-commerce, with sales growing at a double-digit rate and e-commerce now representing a high-teens percentage of total sales, up from approximately 15% the previous year [7][8] - Despite solid revenue growth forecasts, the company faces challenges from long-term debt of $1.01 billion and currency fluctuations that could impact profitability [8][11][12] Financial Performance - Prestige Consumer's stock has increased by 30.9% over the past year, outperforming the industry and S&P 500, both of which grew by 9.1% [2] - The company has a market capitalization of $4.23 billion and an earnings yield of 5.6%, significantly higher than the industry's 0.6% yield [2] - The Zacks Consensus Estimate for fiscal 2026 earnings per share is $4.77, with revenues projected at $1.15 billion, indicating a 0.9% increase from the previous year [13] Brand and Product Strategy - The company emphasizes targeted brand-building and innovation, particularly in niche consumer healthcare categories, which supports its market share leadership [4] - Recent product innovations include new flavors for Hydralyte and the Monistat Maintain Kit, aimed at enhancing consumer engagement [5][10] - Acquisitions, such as TheraTears and Hydralyte, have diversified the product portfolio, providing multiple growth sources and minimizing the impact of category-specific slowdowns [10] E-Commerce and Digital Strategy - E-commerce sales growth is driven by brand-specific digital strategies, including website refreshes and engaging content, which enhance consumer education and retention [7][9] - The company is expanding its digital channels internationally while maintaining strong profitability across all sales channels [8][9] Debt and Currency Risks - Prestige Consumer's long-term debt of $1.01 billion and a cash position of $98 million indicate a moderately leveraged debt-to-capital ratio of 35.6% [11] - Currency fluctuations pose a risk, as approximately 15.6% of revenues come from international markets, potentially affecting pricing and costs [12]

Core Viewpoint - Prestige Consumer (PBH) has shown strong momentum with a 35.7% increase in share price over the past year, outperforming the industry growth of 7.9% and the S&P 500's 9.3% increase, indicating solid fundamentals and growth opportunities for investors [1] Company Overview - Prestige Consumer develops, manufactures, markets, sells, and distributes over-the-counter (OTC) healthcare and household cleaning products across the United States, Canada, Australia, and other international markets, including e-commerce channels [2] - The company operates through two segments: North American OTC Healthcare and International OTC Healthcare, with major brands including BC, Goody's, Chloraseptic, and Dramamine [3] Factors Favoring Share Price Growth - The upward trend in PBH's share price is supported by a diverse portfolio of well-recognized consumer brands, with significant contributions from the Gastrointestinal (GI) and Women's Health categories in fiscal 2025 [4] - The company is experiencing impressive growth in the e-commerce channel, reflecting a long-term trend of increasing online purchases [4] - Strategic acquisitions, including TheraTears and Hydralyte, are viewed positively by investors, enhancing PBH's product offerings in the VMS and Cough & Cold categories [5] - PBH's focus on brand building and product innovation has allowed its brands to maintain a leading market share, with Hydralyte's expansion into international markets exemplifying this strategy [6] Market Position and Brand Strength - The Fleet brand, a leader in the rectal laxative category, holds over 50% market share and is expanding into adjacent categories [7] - The women's health franchise is represented by leading brands Monistat and Summer's Eve, contributing to PBH's strong market position [7] Financial Estimates - The Zacks Consensus Estimate for PBH's fiscal 2026 EPS has increased by 0.2% to $4.77, with an earnings yield of 5.6% compared to the industry's 0.6% [11]

Core Insights - Prestige Consumer Healthcare (PBH) is currently viewed as a better value opportunity compared to EssilorLuxottica Unsponsored ADR (ESLOY) based on various financial metrics and rankings [1] Valuation Metrics - PBH has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ESLOY has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for PBH is 18.23, significantly lower than ESLOY's forward P/E of 34.49, suggesting PBH is undervalued [5] - PBH's PEG ratio is 2.60, compared to ESLOY's PEG ratio of 3.60, indicating PBH has a more favorable earnings growth outlook relative to its price [5] - PBH's P/B ratio is 2.35, while ESLOY's P/B ratio is 2.92, further supporting the argument that PBH is a better value option [6] Overall Assessment - Based on the solid earnings outlook and favorable valuation metrics, PBH is considered the superior value option compared to ESLOY [7]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Prestige Consumer Healthcare Inc. develops and distributes OTC health and personal care products globally, primarily through North American and International segments - The company operates in two reportable segments: North American OTC Healthcare and International OTC Healthcare[20](index=20&type=chunk) Net Revenues by Segment (Fiscal Years 2023-2025) | Segment | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | North American OTC Healthcare | 84.4% | 85.2% | 86.3% | | International OTC Healthcare | 15.6% | 14.8% | 13.7% | | **Total** | **100.0%** | **100.0%** | **100.0%** | - Major brands accounted for approximately **83.0%** of total revenues in fiscal 2025, with 1 market position brands contributing **61.5%** of total revenues, up from **58.6%** in 2024[25](index=25&type=chunk)[29](index=29&type=chunk) - The company's growth strategy includes pursuing strategic acquisitions, developing new products, investing in marketing, and growing its international business, which accounted for **15.6%** of total revenues in FY2025[32](index=32&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Walmart and Amazon are major customers, accounting for approximately **19%** and **14%** of gross revenues in FY2025, respectively[44](index=44&type=chunk) - The company primarily outsources manufacturing to 98 third-party manufacturers, with one key supplier producing about **21%** of gross revenues in FY2025, and its own facility producing about **15%**[47](index=47&type=chunk)[49](index=49&type=chunk) - As of March 31, 2025, the company had approximately **600** global employees, with **82%** in the United States[79](index=79&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from third-party manufacturing dependence, intense competition, customer concentration, regulatory changes, cybersecurity threats, and substantial financial leverage - **Third-Party Manufacturer Dependence**: The company relies on a limited number of third-party manufacturers, with one supplier accounting for **21%** of gross revenues in FY2025, leading to product shortages, particularly for eye care products[88](index=88&type=chunk)[89](index=89&type=chunk)[92](index=92&type=chunk) - **Competition**: The OTC market is highly competitive, facing pressure from larger competitors with greater resources and lower-priced store brand products[98](index=98&type=chunk)[102](index=102&type=chunk) - **Customer Concentration**: A large portion of revenue comes from a few customers, notably Walmart (**19%**) and Amazon (**14%**) in FY2025, posing a material risk if these relationships change[103](index=103&type=chunk) - **Acquisition & Product Development Risks**: Failure to successfully identify, integrate, or finance acquisitions could hinder growth and lead to asset impairments due to unrealized synergies[116](index=116&type=chunk)[117](index=117&type=chunk)[121](index=121&type=chunk) - **Regulatory & International Risks**: Operations are subject to extensive regulation by agencies like the FDA and FTC, with non-compliance potentially leading to penalties, recalls, or manufacturing suspensions, and increased FDA inspection activity exacerbating supply chain issues[125](index=125&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) - **Intellectual Property & Cybersecurity Risks**: The business depends on protecting its trademarks and patents, and a majority of assets consist of goodwill and intangible assets, which are subject to impairment risk[132](index=132&type=chunk)[137](index=137&type=chunk) - The company relies on IT systems and faces risks from cyber-attacks, data breaches, and the evolving use of AI, for which an internal AI policy is in place[138](index=138&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - **Financing Risks**: As of March 31, 2025, total indebtedness was approximately **$1.0 billion**, requiring a substantial portion of cash flow for service and subject to restrictive covenants limiting operational flexibility[147](index=147&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[167](index=167&type=chunk) [Cybersecurity](index=30&type=section&id=Item%201C.%20Cybersecurity) The company implements a cybersecurity risk management program based on the NIST framework, overseen by leadership and the Audit Committee, with no material incidents identified - The cybersecurity program is designed based on the NIST Cybersecurity Framework and includes an Incident Response Plan (IRP)[168](index=168&type=chunk)[170](index=170&type=chunk) - Governance involves the VP of IT/CISO and CFO & COO managing risks, with the Audit Committee providing oversight and reviewing the IT security program at least annually[169](index=169&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - Risk management activities include annual internal vulnerability scans, external penetration tests, regular employee training, and a third-party risk management process[171](index=171&type=chunk) - The company has not identified any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[172](index=172&type=chunk) [Properties](index=32&type=section&id=Item%202.%20Properties) The company's principal properties include a leased corporate headquarters, a primary U.S. warehouse, and two owned manufacturing facilities in Virginia and Australia - The company leases its corporate headquarters in Tarrytown, New York, with the lease expiring on December 31, 2027[177](index=177&type=chunk) - It owns an office and manufacturing facility in Lynchburg, Virginia, and another manufacturing facility in Victoria, Australia[178](index=178&type=chunk) - A primary warehouse in Clayton, Indiana, is leased on the company's behalf by logistics provider GEODIS, with the lease expiring on February 28, 2030[177](index=177&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal matters, with management expecting no material adverse effect on its business or financial condition - The company is involved in routine legal matters from time to time, but does not expect their resolution to have a material adverse effect on the business[180](index=180&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[181](index=181&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=33&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NYSE under 'PBH', with no expected dividends, and it repurchased **$11.7 million** in shares, outperforming peer indexes over five years - The company's common stock is listed on the NYSE under the symbol 'PBH'[183](index=183&type=chunk) - The company does not expect to pay cash dividends on its common stock in the foreseeable future[184](index=184&type=chunk) Issuer Purchases of Equity Securities (Quarter Ended March 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plan ($) | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 38,216 | $74.43 | 256,959 | | Feb 1 - Feb 28, 2025 | 33,783 | $85.40 | 254,074 | | Mar 1 - Mar 31, 2025 | 65,725 | $84.94 | 248,491 | | **Total** | **137,724** | | | Stock Performance Comparison (Value of $100 Invested on March 31, 2020) | Company/Index | March 31, 2020 | March 31, 2025 | | :--- | :--- | :--- | | Prestige Consumer Healthcare Inc. | $100.00 | $234.29 | | Russell 2000 Index | $100.00 | $186.46 | | S&P SmallCap 600 Index | $100.00 | $201.95 | | New Peer Group Index | $100.00 | $164.93 | [ (Reserved)](index=36&type=section&id=Item%206.%20%28Reserved%29) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting a **1.1%** revenue increase to **$1.138 billion**, improved gross margin, **$12.5 million** impairment, and strong operating cash flow used for debt reduction [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include revenue recognition, goodwill and intangible asset valuation (resulting in **$12.5 million** impairment in FY2025), and stock-based compensation - Revenue recognition requires significant estimates for variable consideration, including rebates, promotional programs, and product returns, based on historical data and market conditions[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) Goodwill and Intangible Assets (March 31, 2025) | (In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | | :--- | :--- | :--- | :--- | | Goodwill | $498,936 | $28,489 | $527,425 | | Intangible assets, net | $2,209,986 | $85,364 | $2,295,350 | | **Total** | **$2,708,922** | **$113,853** | **$2,822,775** | - The top five brands (Monistat, BC/Goody's, Summer's Eve, TheraTears, and Fleet) comprise **58.6%** of the total intangible asset value as of March 31, 2025[203](index=203&type=chunk) - In fiscal 2025, the company recognized impairment charges of **$12.5 million** (**$6.6 million** for indefinite-lived and **$5.9 million** for finite-lived assets) related to non-strategic brands[221](index=221&type=chunk)[229](index=229&type=chunk)[248](index=248&type=chunk) - In fiscal 2023, the company recorded significant impairment charges of **$48.8 million** for goodwill and **$321.4 million** for tradenames (**$298.7 million** indefinite-lived and **$22.7 million** finite-lived), primarily due to increased discount rates and reassessed long-term sales projections[213](index=213&type=chunk)[219](index=219&type=chunk)[227](index=227&type=chunk) [Results of Operations (2025 vs 2024)](index=42&type=section&id=Results%20of%20Operations%20%282025%20vs%202024%29) Total revenues increased **1.1%** to **$1.138 billion** in FY2025, driven by International OTC growth, with gross profit up **1.6%** and net income rising to **$214.6 million** Total Revenue by Segment (FY2025 vs FY2024) | (In thousands) | 2025 | 2024 | Increase (Decrease) Amount | Increase (Decrease) % | | :--- | :--- | :--- | :--- | :--- | | North American OTC Healthcare | $960,010 | $958,260 | $1,750 | 0.2% | | International OTC Healthcare | $177,752 | $167,097 | $10,655 | 6.4% | | **Total Consolidated** | **$1,137,762** | **$1,125,357** | **$12,405** | **1.1%** | - Gross profit increased by **1.6%** to **$634.5 million** in FY2025, with the gross margin expanding to **55.8%** from **55.5%** in FY2024, primarily due to higher revenue and lower freight costs in North America[239](index=239&type=chunk) - A tradename impairment charge of **$12.5 million** was recorded in FY2025, related to non-strategic brands[248](index=248&type=chunk) - Net interest expense decreased to **$47.6 million** in FY2025 from **$67.2 million** in FY2024, driven by a lower average debt balance[249](index=249&type=chunk) - The effective tax rate was **24.5%** in FY2025, slightly up from **24.2%** in FY2024, due to the mix of earnings in U.S. and foreign jurisdictions[250](index=250&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow was **$251.5 million** in FY2025, primarily used for **$182.1 million** in debt repayments and share repurchases, reducing total debt to **$1.0 billion** Summary of Cash Flows (In thousands) | | Year Ended March 31, 2025 | Year Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $251,515 | $248,926 | | Net cash used in investing activities | $(17,452) | $(20,111) | | Net cash used in financing activities | $(182,075) | $(241,015) | | **Net change in cash and cash equivalents** | **$51,415** | **$(12,020)** | - Net cash from operating activities increased by **$2.6 million** in FY2025 due to higher net income before non-cash items, partly offset by increased working capital[254](index=254&type=chunk) - Net cash used in financing activities decreased by **$58.9 million** in FY2025, primarily due to a **$90.0 million** decrease in debt repayments, partially offset by a **$26.5 million** increase in share repurchases[257](index=257&type=chunk) Contractual Obligations as of March 31, 2025 (In millions) | Contractual Obligations | Total | Less than 1 Year | 1 to 3 Years | 4 to 5 Years | After 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt | $1,000.0 | $— | $400.0 | $— | $600.0 | | Interest on long-term debt | $195.7 | $43.7 | $84.0 | $45.5 | $22.5 | | Purchase obligations | $230.2 | $212.2 | $12.8 | $5.0 | $0.2 | | Leases (Operating & Finance) | $51.9 | $8.4 | $17.4 | $15.7 | $10.4 | | **Total** | **$1,477.8** | **$264.3** | **$514.2** | **$66.2** | **$633.1** | [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations, with a hypothetical **10%** adverse change impacting pre-tax income by **$10.6 million** in FY2025, while interest rate risk is mitigated by fixed-rate debt - The company has no variable rate debt outstanding as of March 31, 2025, mitigating immediate interest rate risk[281](index=281&type=chunk) - The company is exposed to foreign currency exchange rate risk, primarily from the Canadian and Australian Dollar, with approximately **15.7%** of net revenues denominated in foreign currencies in FY2025[282](index=282&type=chunk) - A sensitivity analysis showed that a hypothetical **10%** adverse change in foreign currency exchange rates would have resulted in a **$10.6 million** impact on pre-tax income for the year ended March 31, 2025[283](index=283&type=chunk) [Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, an unqualified auditor's opinion, and highlights critical audit matters regarding tradename and goodwill impairment assessments - Management concluded that the company's internal control over financial reporting was effective as of March 31, 2025, based on the COSO 2013 framework[291](index=291&type=chunk)[292](index=292&type=chunk) - The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[296](index=296&type=chunk) - Critical Audit Matters identified by the auditor were: (1) Indefinite-Lived Tradename Impairment Assessments for Summer's Eve and Monistat, and (2) Goodwill Impairment Assessment for the North American Women's Health Reporting Unit, due to significant management judgment in estimating fair values[303](index=303&type=chunk)[306](index=306&type=chunk) Consolidated Statement of Income (Loss) Highlights (In thousands) | | 2025 | 2024 | 2023 | | :--- | :--- | :--- | :--- | | Total revenues | $1,137,762 | $1,125,357 | $1,127,725 | | Gross profit | $634,463 | $624,448 | $625,294 | | Operating income (loss) | $336,775 | $342,429 | $(22,415) | | Net income (loss) | $214,605 | $209,339 | $(82,306) | | Diluted EPS | $4.29 | $4.17 | $(1.65) | Consolidated Balance Sheet Highlights (In thousands) | | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total current assets | $448,328 | $375,043 | | Goodwill | $527,425 | $527,733 | | Intangible assets, net | $2,295,350 | $2,320,583 | | **Total Assets** | **$3,402,218** | **$3,318,417** | | Total current liabilities | $106,623 | $117,048 | | Long-term debt, net | $992,357 | $1,125,804 | | **Total Liabilities** | **$1,567,321** | **$1,663,333** | | **Total Stockholders' Equity** | **$1,834,897** | **$1,655,084** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=87&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports that there have been no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None[456](index=456&type=chunk) [Controls and Procedures](index=87&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2025, with no material changes - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[456](index=456&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[458](index=458&type=chunk) [Other Information](index=87&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of fiscal 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of fiscal 2025[459](index=459&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=87&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[460](index=460&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=88&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Definitive Proxy Statement - Information required for this item is incorporated by reference from the Company's 2025 Proxy Statement under the headings 'Election of Directors,' 'Executive Compensation and Other Matters,' 'Delinquent Section 16(a) Reports,' and 'Governance of the Company'[462](index=462&type=chunk) [Executive Compensation](index=88&type=section&id=Item%2011.%20Executive%20Compensation) Details concerning executive compensation are incorporated by reference from the 2025 Definitive Proxy Statement - Information required for this item is incorporated by reference from the Company's 2025 Proxy Statement under headings including 'Executive Compensation and Other Matters,' 'Compensation Discussion and Analysis,' and 'Compensation and Talent Management Committee Report'[463](index=463&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=88&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2025 Definitive Proxy Statement - Information required for this item is incorporated by reference from the Company's 2025 Proxy Statement under the headings 'Security Ownership of Certain Beneficial Owners and Management' and 'Securities Authorized for Issuance Under Equity Compensation Plans'[464](index=464&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=88&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2025 Definitive Proxy Statement - Information required for this item is incorporated by reference from the Company's 2025 Proxy Statement under the headings 'Certain Relationships and Related Transactions,' 'Election of Directors,' and 'Governance of the Company'[465](index=465&type=chunk) [Principal Accounting Fees and Services](index=88&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the 2025 Definitive Proxy Statement - Information required for this item is incorporated by reference from the Company's 2025 Proxy Statement under the heading 'Ratification of Appointment of the Independent Registered Public Accounting Firm'[466](index=466&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=89&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K, including consolidated financials and officer certifications - This item lists the financial statements and schedules included in the filing, which are located in Part II, Item 8[468](index=468&type=chunk) - The Exhibit Index lists key documents filed with the report, including credit agreements, indentures for senior notes, long-term incentive plans, and officer certifications (302 and 906)[471](index=471&type=chunk)[472](index=472&type=chunk)[473](index=473&type=chunk) [Form 10-K Summary](index=92&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for its Form 10-K - None[474](index=474&type=chunk)

Financial Data and Key Metrics Changes - The company reported net revenue of over $1,100,000,000 for fiscal year 2025, an increase of just over 1% compared to the prior year [6][7] - Adjusted EPS for the year was $4.52, up approximately 7% from the previous year [7][23] - Q4 revenue reached $296,500,000, a 7% increase year-over-year, with adjusted diluted EPS of $1.32, up from $1.20 in the prior year [18][19] Business Line Data and Key Metrics Changes - The North America segment saw broad-based growth, particularly in the women's health and GI categories, with brands like Summer's Eve and Dramamine performing well [18][20] - The international segment grew by 7.1% excluding foreign exchange impacts, driven by the Hydralyte brand [18][20] - E-commerce sales continued to grow at a double-digit rate, now representing high teens as a percentage of total sales [20][21] Market Data and Key Metrics Changes - The international segment experienced solid growth, particularly in Australia, contributing to overall performance [20] - E-commerce remains the fastest-growing channel, with shipment growth accelerating in Q4 [20][21] Company Strategy and Development Direction - The company emphasizes a diversified portfolio of brands to navigate market challenges and capitalize on growth opportunities [6][28] - A disciplined capital allocation strategy is in place, focusing on M&A opportunities, share repurchases, and maintaining cash reserves for future investments [25][26] - The company plans to continue leveraging its marketing agility to adapt to changing consumer preferences and market conditions [8][62] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing challenges from tariffs, supply chain constraints, and inflation, which could impact consumer spending [5][28] - The outlook for fiscal 2026 anticipates revenues between $1,000,000,001.40 and $1,000,000,001.55, with organic growth expected at 1% to 2% [31][32] - The company expects to maintain gross margin expansion despite tariff impacts, projecting a gross margin of approximately 56.5% [21][33] Other Important Information - The company generated $243,000,000 in free cash flow for fiscal 2025, up approximately 2% from the prior year [24] - The leverage ratio improved to 2.4 times, providing strategic flexibility for capital deployment [25][26] Q&A Session Summary Question: Organic sales growth guidance of 1% to 2% - Management acknowledged macroeconomic volatility and the timing of e-commerce orders as factors influencing the guidance [35][36] Question: Recovery expectations for Clear Eyes - Management confirmed plans to expand capacity with existing suppliers and bring on new suppliers, expecting recovery in the second half of fiscal 2026 [39][41] Question: Women's health category growth outlook - Management expressed confidence in the growth of Summer's Eve and Monistat, citing successful marketing and new product launches [45][47] Question: Capital allocation strategy with reduced leverage - Management indicated a balanced approach to capital allocation, focusing on M&A opportunities while also considering share repurchases [52][54] Question: Consumer uncertainty and marketing plans - Management plans to adapt marketing strategies based on evolving consumer preferences, emphasizing the importance of needs-based products [60][62] Question: Tariff impacts and cost-saving measures - Management confirmed the $15,000,000 tariff headwind and outlined plans to mitigate costs through supplier collaboration and potential pricing adjustments [64][66] Question: E-commerce growth internationally - Management noted that e-commerce growth is primarily US-centric, with less growth observed in other markets [68] Question: Opportunities for domestic suppliers - Management is exploring opportunities for domestic sourcing to mitigate tariff impacts, particularly from China [74][76] Question: Innovation and new product launches - Management indicated a steady approach to innovation, focusing on margin-accretive products without targeting a specific percentage of sales from new products [78][80]

Financial Data and Key Metrics Changes - The company reported net revenue of over $1,100 million, an increase of just over 1% compared to the prior year [6] - Adjusted EPS reached $4.52, up approximately 7% year-over-year [7][23] - Total company gross margin was 55.8% for fiscal 2025, up 30 basis points from the prior year, with Q4 gross margin improving to approximately 57% [21] Business Line Data and Key Metrics Changes - North America segment revenues increased by 30 basis points, while international segment revenues grew by 6.4% [20] - The women's health category, particularly the Summer's Eve brand, showed stabilization and growth, marking the second consecutive quarter of year-over-year sales growth [6][20] - The GI category, led by brands like Dramamine and Fleet, continued to experience strong performance [6][20] Market Data and Key Metrics Changes - The international segment experienced growth in excess of 5%, driven by strong performance in Australia, particularly with the Hydralyte brand [20] - E-commerce sales grew at a double-digit rate, now representing high teens as a percentage of total sales [20] Company Strategy and Development Direction - The company emphasized a disciplined capital allocation strategy, focusing on M&A opportunities, share repurchases, and building cash reserves [26] - A multi-year pipeline of new product development is in place to ensure continuous innovation and meet consumer needs [13][15] - The company plans to leverage its diverse and predominantly domestic supplier base to navigate tariff impacts and inflationary pressures [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened market volatility and consumer uncertainty due to tariffs and inflation, but expressed confidence in the company's ability to navigate these challenges [29][30] - For fiscal 2026, the company anticipates revenues between $1,000 million and $1,055 million, with organic growth forecasted at approximately 1% to 2% [32] Other Important Information - The company generated $243 million in free cash flow for fiscal 2025, up approximately 2% from the prior year [24] - The company plans to maintain a gross margin of approximately 56.5% for both fiscal 2026 and Q1 [21] Q&A Session Summary Question: Clarification on organic sales growth guidance - Management indicated that the guidance reflects macroeconomic uncertainties and the timing of e-commerce orders, which were pulled forward [36][37] Question: Recovery expectations for Clear Eyes - Management confirmed ongoing supply chain plans to expand capacity and expects a recovery in the second half of fiscal 2026 [40][41] Question: Outlook for women's health brands - Management expressed confidence in the growth potential of Summer's Eve and Monistat, supported by successful marketing and new product launches [46][48] Question: Capital allocation strategy and M&A opportunities - Management highlighted a balanced approach to capital allocation, focusing on M&A opportunities while also considering share repurchases [52][55] Question: Impact of consumer uncertainty on innovation and marketing - Management noted that needs-based categories tend to be resilient during economic uncertainty, and they will adapt marketing strategies to align with consumer preferences [60][62] Question: Tariff impacts and cost-saving measures - Management confirmed the $15 million tariff headwind and outlined plans to implement cost-saving measures while considering surgical pricing if necessary [64][66] Question: E-commerce growth internationally - Management stated that e-commerce growth remains primarily US-centric, with less growth observed in other markets [68] Question: Opportunities for domestic suppliers - Management is exploring opportunities for domestic sourcing to mitigate tariff impacts, particularly concerning products sourced from China [74][75] Question: Innovation pipeline and margin profile - Management indicated a steady impact from new products and emphasized that all innovations must be margin-accretive [77][79]

Prestige Consumer Healthcare (PBH) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.54%. A quarter ago, it was expected that this medicine distributor would post earnings of $1.16 per share when it actually produced earnings of $1.22, delivering a surprise of 5.17%.Over the last four ...

Full-Year Fiscal 2025 Results May 8th, 2025 Safe Harbor Disclosure This presentation contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including revenues, organic revenue growth, diluted EPS, and free cash flow; the Company's reinvestment in Clear Eyes as supply increases; the Company's ability to execute on its brand- building strategy and to drive free cash flo ...