Fri, May 9, 10:07 AM (40 days ago)
**Summary of Prestige Consumer Healthcare Inc. (PBH) Financial Performance and Strategic Overview** **Financial Performance (Fiscal Year Ended March 31, 2025):** - **Revenue:** $1,137.8 million, an increase of $12.4 million (1.1%) vs. 2024. - North American OTC Healthcare: $960.0 million (84.4% of total revenue). - International OTC Healthcare: $177.8 million (15.6% of total revenue). - **Gross Profit:** $634.5 million, an increase of $10.0 million (1.6%) vs. 2024. - Gross margin: 55.8% (up from 55.5% in 2024). - **Operating Income:** $336.8 million. - **Net Income:** $214.6 million, an increase of $5.3 million (2.5%) vs. 2024. - Earnings per share (EPS): $4.32 (basic) and $4.29 (diluted). - **Cash Flow from Operations:** $251.5 million, an increase of $2.6 million (1.1%) vs. 2024. - **Debt:** $1.0 billion (as of March 31, 2025), with $165.7 million of borrowing capacity available under the revolving credit facility. **Strategic Overview:** - **Product Portfolio:** Diversified portfolio of well-recognized consumer brands, with a focus on OTC health and personal care products. - Major brands include BC/Goody's, Chloraseptic, Compound W, Debrox, Dramamine, Fleet, Gaviscon, Hydralyte, Monistat, Nix, and Summer's Eve. - **Market Position:** Strong market positions in various product categories, with a focus on recurring consumer needs. - **Growth Strategy:** Organic growth through new product lines and brand extensions, as well as inorganic growth through strategic acquisitions. - **Distribution:** Broad distribution network across major retail channels, including mass merchandisers, drug, food, dollar, convenience, club stores, and e-commerce channels. - **Manufacturing:** Outsourcing to third-party manufacturers, with a focus on flexibility, responsiveness, and cost-efficiency. **Future Outlook:** - **Economic Environment:** Expects continued volatility and uncertainty, with potential impacts on prices, supply, and demand. - **Innovation:** Focus on product innovation and new product introductions to drive growth. - **International Expansion:** Continued growth in international markets, with a focus on expanding distribution and increasing market share. - **Acquisitions:** Strategic acquisitions to enhance product portfolio, realize cost savings, and diversify category, customer, and channel focus. **Risk Factors:** - **Supply Chain Disruptions:** Dependence on third-party manufacturers and suppliers, with potential risks of shortages, delays, and price increases. - **Competition:** High level of competition in the OTC health and personal care market, with numerous national and global manufacturers, distributors, marketers, and retailers. - **Regulatory Risks:** Extensive regulation by various U.S. federal agencies and foreign regulatory bodies, with potential impacts on product formulation, manufacturing, packaging, labeling, distribution, importation, sale, and storage. - **Intellectual Property:** Dependence on trademarks, tradenames, and patents, with potential risks of infringement, dilution, and enforcement. - **Financial Condition:** Significant indebtedness, with potential impacts on financial flexibility, liquidity, and ability to fund acquisitions and other strategic transactions. **Financial Condition:** - **Liquidity:** Adequate liquidity to finance working capital and capital expenditures through the next twelve months, excluding acquisitions. - **Capital Resources:** $165.7 million of borrowing capacity available under the revolving credit facility, with no balance outstanding as of March 31, 2025. - **Debt Covenants:** Compliance with financial and restrictive covenants under the credit agreement governing the 2012 ABL Revolver and the indentures governing the 2021 Senior Notes and the 2019 Senior Notes. **Market Position Changes:** - **Brand Performance:** Strong performance of major brands, with a number one market position in various product categories. - **Customer Concentration:** Dependence on a limited number of customers, with Walmart and Amazon accounting for a significant portion of gross revenues. - **Distribution Channels:** Broad distribution across major retail channels, with a focus on maintaining and expanding market share. **Note:** Amounts are in thousands, except per share data.