Revenue Performance - Total revenues for the three months ended December 31, 2024 were $290.3 million, an increase of $7.6 million, or 2.7%, compared to the same period in 2023[94]. - Total revenues for the nine months ended December 31, 2024 were $841.2 million, a decrease of $7.1 million, or 0.8%, compared to the same period in 2023[110]. - North American OTC Healthcare segment revenues increased by $2.4 million, or 1.0%, primarily due to growth in the Gastrointestinal and Dermatologicals categories[95]. - North American OTC Healthcare segment revenues decreased by $16.1 million, or 2.2%, primarily due to declines in Cough & Cold, Women's Health, and Oral Care categories[112]. - International OTC Healthcare segment revenues increased by $5.2 million, or 11.3%, mainly driven by sales growth in the Gastrointestinal category[96]. - International OTC Healthcare segment revenues increased by $8.9 million, or 7.4%, mainly driven by growth in Gastrointestinal and Dermatologicals categories[113]. Profitability Metrics - Gross profit for the three months ended December 31, 2024 increased by $3.1 million, or 2.0%, but gross profit margin decreased to 55.5% from 55.9% due to increased supply chain costs[98]. - Gross profit for the nine months ended December 31, 2024 decreased by $8.2 million, or 1.7%, with gross profit margin declining to 55.2% from 55.7%[114]. - Contribution margin for the North American OTC Healthcare segment increased by $3.3 million, or 3.4%, with a margin of 41.8%, up from 40.8% in the prior year[103]. - Contribution margin for the North American OTC Healthcare segment decreased by $12.8 million, or 4.2%, to 40.8%[120]. - Contribution margin for the International OTC Healthcare segment increased by $1.3 million, or 6.0%, but margin decreased to 45.2% from 47.5% due to higher advertising and marketing expenses[104]. Expenses and Costs - General and administrative expenses were $26.2 million for the three months ended December 31, 2024, slightly up from $26.0 million in the same period of 2023[105]. - Depreciation and amortization expenses decreased to $5.0 million from $5.6 million, primarily due to certain intangible assets being fully depreciated[106]. - Interest expense, net decreased to $11.5 million from $16.6 million, with average indebtedness down to $1.0 billion from $1.3 billion[107]. - Interest expense, net decreased to $36.9 million for the nine months ended December 31, 2024, down from $51.9 million in the same period of 2023[124]. Cash Flow and Investments - Cash provided by operating activities was $189.7 million for the nine months ended December 31, 2024, an increase of $7.6 million compared to $182.0 million in 2023[128]. - Net cash used in investing activities was $14.0 million for the nine months ended December 31, 2024, compared to $5.1 million in 2023, primarily due to the acquisition of Hydralyte intellectual property[129]. - As of December 31, 2024, the company had cash and cash equivalents of $50.9 million, an increase of $4.4 million from March 31, 2024[127]. Debt and Compliance - The company repaid the balance of its 2012 Term B-5 Loans during the three months ended December 31, 2024[132]. - The company has a total debt maturity of $1,000 million, with $400 million maturing in 2028 and $600 million in 2031[133]. - The company must maintain a fixed charge ratio greater than 1.0 to 1.0, and it was in compliance with this requirement as of December 31, 2024[134]. - The company anticipates remaining in compliance with financial and restrictive covenants during the next twelve months[134]. Tax and Currency Exposure - The effective tax rate for the nine months ended December 31, 2024 was 21.8%, down from 23.4% in the same period of 2023[125]. - Approximately 18.2% of gross revenues for the three months ended December 31, 2024, were denominated in currencies other than the U.S. Dollar, compared to 17.0% for the same period in 2023[146]. - A hypothetical 10.0% adverse change in foreign currency exchange rates would have a pre-tax income impact of approximately $3.9 million for the three months ended December 31, 2024[147]. - The company is exposed to foreign currency exchange rate risks primarily with respect to the Canadian and Australian Dollars[146]. Accounting Policies - The company reported no material changes to its critical accounting policies during the nine months ended December 31, 2024[136]. - The company’s 2012 ABL Revolver had a zero balance at December 31, 2024, meaning none of its debt carried a variable rate of interest[145].

Revenue Performance - Reported revenues for Q3 fiscal 2025 were $290.3 million, an increase of 2.7% from $282.7 million in Q3 fiscal 2024[3] - For the first nine months of fiscal 2025, revenues totaled $841.2 million, a decrease of 0.8% compared to $848.4 million in the same period last year[5] - The North American OTC Healthcare segment reported revenues of $238.9 million in Q3 fiscal 2025, a 1.0% increase from $236.6 million in the prior year[11] - International OTC Healthcare segment revenues for Q3 fiscal 2025 were $51.4 million, an increase of 11.3% compared to $46.2 million in the prior year[13] - Total segment revenues for the three months ended December 31, 2024, reached $290,317 thousand, a 2.7% increase from $282,741 thousand in the same period of 2023[31] - Non-GAAP Organic Revenues for the three months ended December 31, 2024, were $290,317 thousand, with a revenue change of 2.3% compared to the previous year[39] Net Income and Earnings - Net income for Q3 fiscal 2025 totaled $61.0 million, compared to $53.0 million in the prior year, with diluted earnings per share of $1.22, up approximately 15% from $1.06[4] - Net income for the nine months ended December 31, 2024, was $164,477 thousand, up from $159,881 thousand in the same period of 2023, representing a growth of 1.0%[29] - GAAP Net Income for Q4 2024 was $61,032,000, compared to $53,046,000 in Q4 2023, representing a 18.7% increase[40] - Projected GAAP Diluted EPS for FY 2025 is $4.58, with a projected Non-GAAP Adjusted Diluted EPS of $4.50 after a normalized tax rate adjustment[42] Cash Flow and Investments - Non-GAAP free cash flow for Q3 fiscal 2025 was $63.5 million, down from $69.5 million in the prior year[9] - Cash and cash equivalents increased to $50,874 thousand at the end of the period, up from $46,469 thousand at the beginning of the period[29] - Non-GAAP Free Cash Flow for Q4 2024 was $63,525,000, compared to $69,476,000 in Q4 2023, indicating a decrease of 8.4%[41] - Projected GAAP Net cash provided by operating activities for FY 2025 is $250,000,000, leading to a projected Non-GAAP Free Cash Flow of $240,000,000 after accounting for property and equipment additions[43] Debt and Liabilities - The company's net debt position as of December 31, 2024, was approximately $0.9 billion, resulting in a leverage ratio of 2.5x[10] - Total liabilities decreased to $1,541,064 thousand as of December 31, 2024, from $1,663,333 thousand on March 31, 2024, a reduction of 7.3%[27] - Interest paid decreased to $37,427 thousand for the nine months ended December 31, 2024, down from $49,666 thousand in the same period of 2023[29] - Interest expense decreased to $11,455,000 in Q4 2024 from $16,575,000 in Q4 2023, a reduction of 30.5%[40] Operational Performance - Operating income for the nine months ended December 31, 2024, was $248,347 thousand, compared to $260,276 thousand in the same period of 2023, reflecting a decrease of 4.6%[34] - Gross profit for the nine months ended December 31, 2024, was $464,453 thousand, compared to $472,631 thousand in the same period of 2023, indicating a decrease of 1.7%[34] - Non-GAAP EBITDA for Q4 2024 was $98,477,000, up from $93,796,000 in Q4 2023, reflecting a 5.7% growth[40] - Non-GAAP EBITDA Margin improved to 33.9% in Q4 2024 from 33.2% in Q4 2023[40] Share Repurchase - The company repurchased approximately 0.6 million shares for a total investment of approximately $40.2 million in the first nine months of fiscal 2025[10] - The company repurchased common stock amounting to $40,196 thousand during the nine months ended December 31, 2024[29] Future Outlook - The company raised its full-year fiscal 2025 earnings outlook, projecting revenues between $1,128 million and $1,132 million[17] - The company anticipates approximately 1% organic revenue growth for fiscal 2025[15]

Core Insights - Prestige Consumer Healthcare Inc. reported strong financial results for the third quarter and first nine months of fiscal 2025, achieving record quarterly sales and earnings per share [2][3][4] - The company experienced a 2.7% increase in third-quarter revenues to $290.3 million compared to $282.7 million in the same period last year, driven by strong international business performance and improved Clear Eyes® revenues [3][11] - Net income for the third quarter rose to $61.0 million, up from $53.0 million in the prior year, with diluted earnings per share increasing to $1.22 from $1.06 [4][11] Financial Performance - For the first nine months of fiscal 2025, reported revenues totaled $841.2 million, a slight decrease of 0.8% from $848.4 million in the same period last year, impacted by supply limitations for Clear Eyes and declines in Cough & Cold and Women's Health categories [5][6] - Net income for the first nine months was $164.5 million, compared to $159.9 million in the prior year, with diluted earnings per share increasing to $3.28 from $3.19 [6][11] Cash Flow and Debt Management - The company generated $65.1 million in net cash from operating activities in the third quarter, down from $71.5 million in the prior year, while non-GAAP free cash flow was $63.5 million, a decrease from $69.5 million [8][11] - For the first nine months, net cash provided by operating activities was $189.7 million, compared to $182.0 million in the prior year, with non-GAAP free cash flow increasing to $184.9 million from $175.6 million [8][11] - The company repurchased approximately 0.6 million shares for about $40.2 million, and its net debt position as of December 31, 2024, was approximately $0.9 billion, resulting in a leverage ratio of 2.5x [9][11] Segment Performance - North American OTC Healthcare segment revenues for the third quarter were $238.9 million, up 1.0% from $236.6 million in the prior year, driven by growth in the Gastrointestinal and Dermatologicals categories [12][13] - International OTC Healthcare segment revenues increased by 11.3% to $51.4 million in the third quarter, with broad-based growth led by the Hydralyte® brand [14][15] Outlook - The company raised its full-year fiscal 2025 earnings outlook, projecting approximately 1% organic revenue growth and adjusted diluted EPS of approximately $4.50 [16][18] - The updated revenue guidance for fiscal 2025 is between $1,128 million and $1,132 million, with free cash flow expected to be $240 million or more [18][47]

Core Insights - Prestige Consumer Healthcare (PBH) has experienced significant growth, with shares increasing by 29.9%, outperforming the industry and S&P 500 [1] - The company holds a Zacks Rank 2 (Buy) and benefits from a diverse brand portfolio and effective marketing strategies [2] Company Overview - Prestige Consumer develops, manufactures, markets, and distributes over-the-counter (OTC) healthcare and household cleaning products across multiple countries [3] - The company has expanded its product offerings through both organic growth and acquisitions, focusing on consumer health and personal care brands [3] Growth Factors - The company's share price increase is attributed to its diverse portfolio of well-known consumer brands, with core brands contributing approximately 58.6% of total revenues in fiscal 2024 [4] - Prestige Consumer emphasizes brand building and product innovation, introducing targeted offerings in niche healthcare categories [5] - The company has established a strong reputation in the Eye & Ear Care category, with Clear Eyes recognized as the largest OTC brand in its category [6] - Significant investments in e-commerce have yielded positive results, enhancing the company's growth potential [7] Financial Estimates - The Zacks Consensus Estimate projects a 5.9% increase in earnings per share (EPS) for fiscal 2025, reaching $4.46, and a 6.7% increase for fiscal 2026, reaching $4.76 [10] - Revenues for fiscal 2025 are expected to grow by 0.7% to $1.13 billion, followed by a 2.4% increase to $1.16 billion in fiscal 2026 [10]

Group 1 - Prestige Consumer Healthcare Inc. will release its fiscal 2025 third quarter earnings on February 6, 2025, before market opening [1] - A conference call to discuss the earnings results will take place on the same day at 8:30 a.m. ET [1] - Participants can access the live Internet webcast of the conference call from the Investor Relations page of the company's website [2] Group 2 - The company will participate in a fireside chat at the 27th annual ICR Conference in Orlando, FL, on January 14th at 11:30 a.m. ET [4] - A live audio webcast of the ICR Conference will be available on the company's Investor Relations page, with a replay accessible later that same day [4] Group 3 - Prestige Consumer Healthcare markets a diverse portfolio of consumer healthcare products, including brands such as Monistat®, Summer's Eve®, BC®, and Goody's® [5] - The company's products are distributed to retail outlets in the U.S., Canada, Australia, and other international markets [5] - Notable products include pain relievers, eye care products, pediatric over-the-counter products, and various treatments for ailments such as motion sickness and diaper rash [5]

Core Insights - Prestige Consumer Healthcare Inc. has expanded the role of Chief Financial Officer Christine Sacco to include Chief Operating Officer responsibilities, effective immediately [1][2] - This strategic move aims to enhance execution of the company's initiatives and drive operational excellence [2] Group 1: Leadership Changes - Christine Sacco has been appointed as both COO and CFO, overseeing the supply chain in addition to her financial responsibilities [1] - Ron Lombardi, CEO of Prestige, emphasized Sacco's strategic leadership and understanding of the business as key to the company's growth during her 8 years as CFO [2] Group 2: Company Performance - Under Sacco's financial leadership since 2016, the company has experienced strong sales, earnings, and cash flow growth, positioning it for future capital allocation flexibility [2] - The company is focused on driving long-term organic and M&A growth through this expanded leadership role [2] Group 3: Company Overview - Prestige Consumer Healthcare is a leading consumer healthcare products company with a diverse portfolio including brands like Monistat, BC, and Dramamine, with sales across the U.S., Canada, Australia, and other international markets [3]

Investors looking for stocks in the Medical - Products sector might want to consider either Prestige Consumer Healthcare (PBH) or Boston Scientific (BSX) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and es ...

Prestige Consumer Healthcare’s (PBH) dedication to brand building drives consistent market share growth. The company has grown its portfolio through internal developments and strategic acquisitions. Investments in online content and digital advertising fuel the company’s e-commerce success. Meanwhile, cost pressures from macroeconomic headwinds and solvency issues weigh on Prestige Consumer’s operations.In the past year, this Zacks Rank #2 (Buy) stock has rallied 27.2% compared with the industry and the S&P ...

Investors with an interest in Medical - Products stocks have likely encountered both Prestige Consumer Healthcare (PBH) and Abbott (ABT) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings es ...

Financial Data and Key Metrics Changes - Q2 sales were $284 million, a slight decline from the prior year due to supply chain limitations for Clear Eyes and timing issues in Q1 [7][16] - Gross margin improved sequentially and remained stable compared to the prior year, with EPS of $1.09, up slightly from the previous year [8][16] - Free cash flow reached $68 million, growing double digits year-over-year, enabling capital deployment for shareholder value enhancement [9][24] Business Line Data and Key Metrics Changes - The International segment and Hydralyte brand showed strong growth, offsetting declines in the eye and ear care category due to Clear Eyes supply constraints [7][16] - The Canadian business represented about 5% of annual sales, with a sales CAGR of approximately 4% since fiscal '20, driven by strong brand performance [10][11] Market Data and Key Metrics Changes - North America segment revenues decreased 3.7%, while International segment revenues increased 4.8% year-over-year [18] - E-commerce accounted for about 15% of overall business, primarily driven by North America [48] Company Strategy and Development Direction - The company anticipates revenues of $1.125 billion to $1.140 billion for fiscal '25, with organic revenue growth of approximately 1% [27][28] - Strategic improvements in the Clear Eyes supply chain are being implemented to enhance long-term brand growth [34] Management's Comments on Operating Environment and Future Outlook - Management noted heightened business environment uncertainty due to supply chain constraints and inflation, impacting results [5] - There is optimism for sequential improvement in Clear Eyes sales in Q3, with expectations for stabilization in trends [33] Other Important Information - The company reduced debt by $40 million, achieving a leverage ratio of 2.7x while continuing share repurchases [9][25] - The anticipated gross margin for the full fiscal year is approximately 56%, driven by pricing actions and cost savings [21] Q&A Session Summary Question: Update on Clear Eyes and Summer's Eve - Management expects sequential improvement in Clear Eyes sales in Q3 and stabilization of trends [33] - Summer's Eve showed flat sales in Q2, with positive momentum and share gains expected [36] Question: Impact of Drugstore Channel Closures - Management indicated that expected store closures are consistent with recent trends and do not significantly impact their business [38] Question: International Business and Hydralyte - Hydralyte continues to perform well with a strong market share, despite new entrants in the hydration category [41] Question: Cash Flow and Capital Allocation - Strong cash flow allows for share repurchases and potential M&A opportunities, with a focus on reducing leverage [43] Question: Competitive Environment and Pricing - The company does not face the same inflationary pressures as other categories, maintaining stable pricing [45] Question: E-commerce Revenue and Growth - E-commerce currently represents about 15% of revenue, primarily from North America, with plans for international expansion [48] Question: Organic Growth Outlook - Management remains confident in returning to a 2% to 3% growth algorithm in the future [49] Question: Gross Margin Expectations - Continued air freight costs are expected, but management anticipates a return to historical gross margin levels [50]