Prestige Consumer Healthcare Inc. Reports Record Third Quarter Results and Raises Full-Year Earnings Outlook

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]