PresentationRon LombardiChairman, President & CEO Okay. Good afternoon, everyone. Thanks for joining us. I'm Ron Lombardi, Chairman and CEO of Prestige Consumer Healthcare, joined by Christine Sacco, our Chief Operating and Financial Officer. So today, we're going to give an update and talk a bit about our business. I'll start things off, and I'll turn it over to Chris, who will wrap up today's discussion. So with that, let's jump into the slide that I always like to present and talk about to set up the ide ...

Prestige Consumer Healthcare (PBH) FY 2025 Conference September 04, 2025 12:45 PM ET Company ParticipantsRon Lombardi - Chairman, President & CEOChristine Sacco - CFO & COONone - ExecutiveConference Call ParticipantsNone - AnalystRon LombardiEveryone. Thanks for joining us. I'm Ron Lombardi, chairman and CEO of Prestige Consumer Health Care, joined by Christine Sacco, our chief operating and financial officer. So today, we're gonna give an update and talk a bit about our business. I'll start things off, and ...

Prestige Consumer Healthcare (PBH) FY 2025 Conference September 04, 2025 12:45 PM ET Speaker0Everyone. Thanks for joining us. I'm Ron Lombardi, chairman and CEO of Prestige Consumer Health Care, joined by Christine Sacco, our chief operating and financial officer. So today, we're gonna give an update and talk a bit about our business. I'll start things off, and I'll turn it over to Chris who'll who'll wrap up today's discussion.So with that, let's jump into the the slide that I always like to to present and ...

Core Insights - Prestige Consumer Healthcare Inc. reported a revenue of $249.5 million for the first quarter of fiscal 2026, a decrease of 6.6% from $267.1 million in the same period last year, primarily due to supply constraints in the Clear Eyes product line [3][10] - The company announced an acquisition of Pillar5 Pharma to enhance its eye care production capacity, which is expected to be neutral to earnings per share (EPS) and close in the third quarter of fiscal 2026 [10][11] - The updated fiscal 2026 revenue outlook is revised to $1,100 to $1,115 million, with diluted EPS expected to be between $4.50 and $4.58 [14][16] Financial Performance - Reported net income for the first quarter of fiscal 2026 was $47.5 million, down from $49.1 million in the prior year, with diluted EPS of $0.95 compared to $0.98 in the same period last year [4][10] - Free cash flow for the first quarter increased to $78.2 million from $53.6 million in the prior year, attributed to improved working capital timing and lower interest expenses [6][10] - The company's net cash provided by operating activities was $79.0 million, compared to $54.8 million in the prior year [6][10] Segment Performance - North American OTC Healthcare segment revenues decreased to $212.6 million from $232.3 million year-over-year, primarily due to lower sales in the Eye & Ear Care category [8][29] - International OTC Healthcare segment revenues increased by 6.1% to $37.0 million, driven by broad-based growth across various geographies [9][29] Strategic Initiatives - The acquisition of Pillar5 Pharma is part of a long-term strategy to secure supply and enhance production capacity for eye care products, addressing current supply chain challenges [10][13] - The company aims to leverage its diverse portfolio and strong financial profile to drive long-term shareholder value [2][14]

Core Viewpoint - Prestige Consumer Healthcare Inc. is set to release its fiscal 2026 first quarter earnings on August 7, 2025, before market opening, followed by a conference call at 8:30 a.m. ET to discuss the results [1]. Group 1 - The earnings release will be available on the company's Investor Relations page [2]. - Participants can join the conference call via phone by registering to receive dial-in details and a unique pin, with a recommendation to join 10 minutes early [2]. - A replay of the conference call will be accessible for approximately one week after the live event on the Investor Relations page [3]. Group 2 - Prestige Consumer Healthcare Inc. markets, sells, manufactures, and distributes a variety of consumer healthcare products across the U.S., Canada, Australia, and other international markets [4]. - The company's product portfolio includes brands such as Monistat, Summer's Eve, BC, Goody's, Clear Eyes, TheraTears®, DenTek, Dramamine, Fleet, Chloraseptic, Luden's, Compound W, Little Remedies, Boudreaux's Butt Paste, Nix, Debrox, Gaviscon, and Hydralyte [4].

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]