Prestige sumer Healthcare (PBH) - 2022 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for Q3 2022 were $275 million, representing a 15$0.99, up 22% year-over-year, driven by higher sales and lower interest expenses [20] Business Line Data and Key Metrics Changes - North America revenues increased by about 14%, with significant organic growth in GI, ear and eye care, and cough and cold categories [18] - The international segment saw an approximate 18% increase in Q3, benefiting from strong sales of the Hydralyte brand [19] Market Data and Key Metrics Changes - The company experienced a rebound in cough and cold product sales, which had been impacted by COVID-19, contributing to incremental sales in Q3 [8][13] - E-commerce channel consumption growth continued to be double digits year-over-year, reflecting a shift in consumer purchasing behavior [21] Company Strategy and Development Direction - The company is focused on leveraging its diversified portfolio to drive long-term growth and navigate supply chain challenges [15][28] - Capital allocation priorities include continued de-levering, considering M&A opportunities, and opportunistic stock buybacks [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum and anticipated continued growth despite potential headwinds from COVID-19 disruptions [28][30] - The company raised its full-year revenue outlook to between $1.75 billion and$1.80 billion, with an expected organic growth of about 9% [28] Other Important Information - The company generated approximately 65 million in free cash flow for Q3, up double digits from the prior year [9] - The acquisition of Akorn consumer brands is performing well and aligns with the company's expectations [10] Q&A Session Summary Question: Outlook for next year regarding growth - Management indicated optimism about growth, expecting organic growth even after record results in the current year [34] Question: Capital allocation strategy if below targeted debt-to-EBITDA ranges - Capital allocation priorities will remain consistent, focusing on de-levering, M&A opportunities, and stock buybacks [35] Question: Magnitude of inflationary pressures faced - Management noted 10 million to $15 million of inflationary pressure and indicated that pricing actions have been taken across the majority of the portfolio [36] Question: E-commerce growth and its future - E-commerce growth is expected to continue outpacing brick-and-mortar growth, with ongoing investments in this channel [42] Question: Supply chain concerns - Management expressed confidence in their diverse supplier base and did not identify any specific inputs of concern [85] Question: Innovations and share gains in products - New product launches have occurred, with notable share gains in brands like Dramamine and Clear Eyes [67] Question: Changes in consumer behavior post-COVID - Management noted a long-term trend towards increased consumer focus on health and wellness, which aligns with the company's product offerings [54]