PBH - Earnings call transcript Q3 2022 | Prestige Consumer Healthcare Inc.

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Operator

Good morning everyone, and thank you for standing by. And welcome to the Third Quarter, 2022 Prestige Consumer Healthcare, Inc. Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation there will be a question and answer session. Instructions]. [Operator like Terpolilli, conference Relations, Vice now speaker to Treasury. hand Phil host, President to would over the your I of Investor Please go ahead.

Phil Terpolilli

thank for and to today. operator, Thanks, you joining everyone

today as business on over SEC and CEO, on are the the most by best cautionary date. a due continues important financial Ron? which our disclosure President are will on be non-GAAP potential contained On on safe our company change at filings includes CFO. link This presentation. recent are to make could based call, earnings harbor numerous our These Further presentation an today's and slide to can measures impacts. and management third in today's slide we're slide X the risk and outlook any COVID-XX Lombardi, the time, hand of the impact means me prestigeconsumerhealthcare.com, quarter I'll Sacco, environment estimate results review concerning Remember, accessed now the recent then and risks available statements today's Lombardi. with factors GAAP consideration today then and to review presentation financial uncertainty visiting included the contemplate information and on full complete remains from On it of call and Christine year forward-looking Investors in today's XX-K. uncertainties, measures. the our On clicking risk detailed of analysts. accompanies presentation on call take webcast updated Chairman, today's call, information are results and and information to around available going aware, call, in fiscal the forecasted release most CEO; our and the Reconciliations the provide accompanies Ron and the is are some as to There's to statements Page well today's Ron of presentation. which questions the the call. everyone XXXX, of nearest on the it heightened to have

Ron Lombardi

Phil. Thanks

begin slide Let's five. on

with first experienced are of expectations strong Revenues the our We in $XXX the the versus year-to-date. we in consistent business experienced grew million our which year, pleased exceeded half. momentum and prior with XX% performance QX results, very a trends continued QX,

across Our the demand portfolio trends majority by our robust aided base remain strong our of business time-tested brand and consumer building.

sales sales in that by also This the experienced our Hydralyte. quarter to the revenues and cold.. impacted certain most segment's digits been by strength broad-based fueled Additionally, incremental in versus have QX COVID-XX, and prior double rebounds international our record flagship brand, driven expectation quarterly categories notably increased cough segment discussed And for consumption November.

We of cash strong up digits continues Solid flow. sales into free EPS and about to versus growth cash about free earnings year. a $X million, flow both double prior of and translate generated $XX

our brands expectations. year to times continue allocation times of the leverage to Lastly, four by guidance the which the perform disciplined by X.X enables We The use generated at previous cash finished earlier future below acquisition of year-end, we be net in and well to capital of further consumer Akorn continues around to our be completed business. quarter optionality. align ahead

This supply-chain profit Now, a backdrop A performance performance. a well quarter, our enable the on have portfolio's Three page left, the major power reminder attributes variant the let's macro the of a a navigate testament as business QX these and quarter. during the of help achieved the execution during for solid turn this cost of proven environment. to we QX a our page allow as in dynamic dive to new strategy against deeper that challenges a like six COVID-XX continues of to was of to us and shown sales diversification. successfully. At

are This are COVID-XX pandemic. brands is and versus be In agile of us accelerating products out again proactively has the page the This opportunity middle consumers reminder year. cough rebound broadened Australia. categories. and a we've in to with in sought the trusted opportunistic benefited have allowed experienced. and which wide-ranging prior as across demand by QX hydration throughout QX, during they Furthermore, consumers cold occurred Hydralyte Our around marketing

are associated right inflationary pressures. of supply the the chain with Like constraints experiencing chain. side we is headwinds on page Finally, supply others, and the

base supply well-positioned adjust a Fortunately, to support the to helping gives chain dynamic a we supply are ensure this agility navigate supplier to in and volatile growing of environment to us our diversification sales. The environment. continuity

including we to So portfolios attributes categories growth. summarize, diversification drive its are leveraging across our product long-term to

We experiencing chain challenges. supply experiencing headwinds, in a and multiple are are COVID impacted solid well-positioned macro categories rebound we believe we to navigate while

it turn I'll Now, walk the over financials. to to through Chris

Christine Sacco

Thanks, Ron. Good everyone. morning

third fiscal financial quarter Let's results. eight our slide review XXXX turn to and

includes categories million, XX.X% segment, the the in $XX.X and to Nearly the measure presentation is non-GAAP especially experienced excluding QX effects in favorable in the certain North the excluding Luden we care and with international America the which increased on revenue GI, reminder, all both largest currency. trends organic increased XX%. an GAAP earnings approximately of $XXX.X year a were cough today's reconciled Chloraseptic. increases in of prior and grew where X.X% XX% million The quarter. the cold prior foreign after revenues our segment Akorn, for eye latter that ear of closest up acquisition sales QX and about organic product versus As information the year, release. added By and the in information versus basis

trends including versus highlighted remained the earnings continue lower higher XX% EBITDA record expense. up prior Hydralyte in segment many expectations to per impacted long-term by in XX% share from earlier, and mid-XXs. interest consumer QX EBITDA was performance. by driven a our favorable in consistent The benefit our and quarter brand. previously was the primarily strong year As approximately with the $X.XX, categories for of international the Ron sales QX for margins increased sales Diluted COVID-XX

organic for for first versus of nine approximately an detail prior the months. to increased was nine in nine and and the year, accelerated This XX% driven strengths COVID brands consolidated impacted an categories cold. certain XXXX turn around Let's cough Revenues segments the along performance fiscal on with as slide for XX% and basis. most by performance first across results months such more travel

upon XX.X%. margin year-over-year XXXX. year-to-date last with higher of double-digit was growth continue throughout the sharply XX.X% Total e-commerce further gross the We purchasing consumption channel shift margin online building that also comparable fiscal occurred to adjusted experience company of year's gross in

full of experiencing. XX%, and approximately challenges supply margin and anticipate to cost pressures a year reflecting continue we gross We others are

as portfolio in to first instituted these continue months, Returning have across similar We offset actions for to year and year-to-date at percentage nine dollars. to advertising of results, our to as XX.X% moving inflationary forward pricing in will the a the do so prior headwinds. to and came continue necessary growing marketing and sales

the for diluted for anticipate rate as of just X% this around G&A well the sales We year. G&A nine tax prior months XX%. first million of drove we we'd Higher expenses anticipate of an rate of growth. anticipate earnings around year. still to lower interest full Adjusted A&M as effective QX, sales approximately approximately interest over $XX XX%. over were of of for expense grew per X.X% full For an XX% year, share and Adjusted the continue sales and approximate year-to-date, to $X.XX, the

XX. Now let's to slide turn

XXXX. strong For the the the first performance operating nine prior to as as cash in discussed, months $XXX.X XX% about free year million lower well due in versus we fiscal generated flow, CapEx up just

maintain continue leverage free $X.X ratio a based industry-leading we December of our model. net XXst, asset-light the and quarter finished around was X.X approximately times. covenant-defined our flow We to At conversion cash with debt billion,

on in Our have achieve strong focused us a that acquired leverage year. the Akorn allowed when debt below operating to performance earlier and of we ratio reduction

a allocation We it strategy that operate the near-term. disciplined continue prioritizes capital reduction in I'll turn With debt to Ron. with that, back to

Ron Lombardi

Chris. Thanks

to increased slide up wrap outlook. XX our discuss to Let's and turn

to navigate performance record market Our have us a thus and proven successfully XXXX fiscal far. strategy portfolio business to dynamic and diversified the led allowed

For the COVID remainder a continued the categories growth impact certain organic as of to we X% anticipate full an billion about year revenue of of the we year. revenues recovery in This anticipate includes now for $X.XX billion. $X.XX expectation

full-year for fiscal more and $X.XX are $X cash raising the an XXXX outlooks. prior adjusted earnings well. as of flow our million We We EPS or of equating $XXX to of also about year. anticipate to free increase XX% now flow adjusted versus anticipate cash We to XX%

sharing to enable fiscal remains quarterly growth we We have fiscal to stakeholders of COVID comparisons the we top unusual fiscal outlook it comping strategy a ahead bottom expect questions. disruptions, and upcoming and up more detailed reward to confident, the as attributes long that results well Even and with business the volatility XXXX look stemming business another for remain I'll deliver and in this, year superior XXXX, expect With our record attributes right our results. well-positioned Looking business face term. year. fiscal May open as to over from full-year our that, XXXX to and forward line our both in we

Operator

our Rupesh first question And Oppenheimer. Parikh from the of line coming [Operator Instructions] with

line Your is open. now

Rupesh Parikh

And morning. question. on quarter. for another Good my congrats taking Thanks strong

more bottom I you about expect guess, outlook just some maybe know in four a of growth. as and actually So you color terms the guys specific for can't you just such lapping talked next the but just you on headwinds the of next point, terms I this at that ending and year? provide Ron, in look year year guidance top line tailwind to strong

Ron Lombardi

Rupesh. Yes. Good morning,

couple a So, of just things.

really momentum. outlook I all lot the provided now. around that the just have some next First we're of to business we optimism on a right And The has is, we reinforce for cylinders. year business firing think

record we organic next this an point including to we stepping off anticipate that So wanted look year into across. get growth of growth. expectation we of that results year, as the And even we have

Rupesh Parikh

Okay.

range up anything you based targeted great. allocation -- lower end do allocation how debt-to-EBITDA this next a ranges. our you on And change into guys like, then, else? do standpoint it guys prioritization that the from Like, the down know below your buybacks guys about year? How on you of capital even share anything think capital be like or front, do looks pay model least being end can at does whether Okay, if you below

Ron Lombardi

even that consistent floor operate will if talked capital priorities remain below Our we've X.X the about. we allocation

The first is de-levering. continued

consideration M&A be they third opportunities the see shareholders be if pop back. up. Second good for returns buyback get opportunistic we to stock would stock opportunities as And would buying thoughtful of by

no So, that. in change

Rupesh Parikh

final question just just cost Okay, on the And great. my backdrop.

us played expectations? your versus this headwind then, your how you out If of the has magnitude that And again can year. you're facing remind the pricing

Christine Sacco

good Rupesh, Chris. morning. It's Sure.

and have there's about on pressure portfolio. So, change this is, price. majority the $XX now we talked that's talked XX% we to And in the million guide that no our November, $XX taken inflationary initiated In latest about price around of taken million or the actions our call. either vast update pricing year having of further contemplated today's of we've portfolio or

pricing, our with So, environment pressures to we should further remain confident the inflationary ability in offset worsen.

Rupesh Parikh

Thank you. great. Okay,

Operator

Our Jefferies. the next question from Stephanie of Wissink with line coming

open. Your line is

Stephanie Wissink

Thank you. Good morning everyone.

Just magnitude on a that? or question price your wondering a give seeing on degree you're if I'm pricing. to you how follow-up in compares category and increase Rupesh's of the can then OTC the overall us pricing some

Christine Sacco

morning. Steph. Good Yes,

Chris. it's So

But inflation. we've what for think digits where play us fiscal there we'll kind our our of is had in that this worth to work a across obviously that's rolls most significant pricing us we're consistent to quarter. XXXX point and seeing we of for think factor single other So timing pretty mid categories how high brands. in cost out out of year. consistent about products out. a I as for with and there's into It's seeing the with I through we're what And next Obviously rest out there

Stephanie Wissink

we to categories And very inventory second having the to trade about much and in six That's a How question the the feeling then COVID so is there's XX are about trade do to levels. see you feeling my starting through mix as on impacted dynamicism inventory? months? given been anticipate business just helpful. you next the move own recalibrate are How your And inventory? you recovery. of

Ron Lombardi

Sure. Good morning, Steph.

terms habits bit retailers So place, would see think to we'd for be peaks demand valleys like inventory quickly more in of positioned There's of lot little and we buying a in deal consumer I shifting starters, the and and to like to a all that I both right? with. think better

chased performance kind this quarter stores. of in largely quarter example, For out shoppers the or performance variants omicron large was our month last as the of the concentrated the into the was

bit a in at part of we're good then the pretty see inventory, So for retailers terms we'd like more to shape. in the would. most And shelf

presence more record the for in pockets are able of up and been to of terms are at us shipments here. there levels where chain Although couple keep last a the But of shelf challenged has some we supply outs. stock bit with quarters

Stephanie Wissink

That's great. e-comm. My on last question two-part actually question a is

mentioned, penetration? Where you of back neutralizing Or in there e-comm to be called out? you traffic you you've talk in your think Can it think out you expect was to are foot then, this bit outlook? and I double you donate term the distort. recently XXXX. But balances Ron that of a you shift just more comment and online expect some about to that e-comm year XXXX, And longer up digits kind do a that do as little factor then seen stores? about you

Ron Lombardi

Yes.

clearly well we that online and shipped is So e-comm the shopping pickup the delivery the XXXX, brick online will to consumer above to be in for then home growth. mortar store. convenience, of enter continue we quick growing you be Tough But the above growth to of the to lot trend predict expect are the aspect many fiscal growth that going online what and forward. order parking brick sticking and e-commerce habits as mortars. And order pickup would products see or ordered and to the will continue be seems

those of strong are continue to to think attributes see strongly. all help it grow I So, -- going

retail, $XX mortar from $XX well. to retail work their with or million our still just continue even and we million But as we're a here. though gone years early stages behind partners has of over couple $XXX it's be million So, to brick e-comm invest initiatives in something business the in to our successful and and brick in

Stephanie Wissink

Thank as always. you. Very helpful

Ron Lombardi

Steph. you, Thank

Operator

coming question Anderson of William from Blair. Our with next line Jon the

Your line is open.

Jon Anderson

everybody. Hey, morning good

Ron Lombardi

Jon. morning, Good

Christine Sacco

morning. Good

Jon Anderson

start guidance with -- the just the wanted I top line. the to on

quarter. I that organic that the and of comparison of momentum other consider? levels consumption And in easiest be now growth that we conservatism on-shelf, at in in the restore need the think think some fourth the it would just stock COVID shipping they're of some that? work is And are to implies the just there kind and to deceleration perhaps the baked kind year. the a to pretty I categories meaningful a trying factors And ahead and into understand in of that of right business recovery given

Christine Sacco

Hey Jon, Chris. it's morning. Good

month So, meaningful a mentioned, couple Ron guess to things a our I as environment. consider, in very in acceleration just we December. Obviously, saw the pretty dynamic sales of a

forecasting we was sit a this full up proven. thought that markets. which is continued learn in consumer rebound QX, environment that we more as cough/cold. year included we we demand this reminder As guide took up here a a we'll in reflecting for a obviously And today, strong as we go. call are continued But morning But lot a essentially across

Jon Anderson

growth X% top think about growth the of of Is broad in XXXX, long-term for should Are the way period top XXXX on on over and think was XXXX. of talked level? of I algorithm results organic growth the thinking an at the the about high on organically of kind it you've expectation commentary mentioned about then a great -- kind And time. we longer a that Okay. you XXXX, line you kind

Ron Lombardi

get in December to in early next little when the hard May, detail talking us more that for November. bit provide The We'll here into predict we Yes. Jon. for quarter was to A were year. details ended

that comments certainly underlying business about the this this how be at year our that want particulars positioned reinforce for a categories well to the organic the meant, But continue excluding are protect to feel getting continued tailwind COVID today's we were time. tough categories good to So, growth.

grown look you'll you that the majority have If nicely see choppy into of vast given we're environment year the the queue in. our to-date categories

the one Akorn of but of anticipate we yes, -- three quarter XXXX XXXX. all So that top growth for versus of just on of would the addition the we of consumer own quarters brands organic

Jon Anderson

you you brought greater there kind focus maybe do at type health on And behavior. look or see is brought permanent market -- consumer by patterns? to an consumer Okay. future? it the like a of changes of care guess, on getting would inform vitamins. in weight consumer on perceive factors, or with some what one I'm might And by Thanks. the on your and the at portfolio in And perspective Are of changing preventative is you term what's do M&A there's Or any some what that? in benefits see pandemic. more measures, maybe here prevention, result behavior, like, question broader categories certain of changed longer you more respect management self-care, of as And or those a demand from changes is today I

Ron Lombardi

Yes.

thoughtful I of been during strengthen that And So, long pandemic around products very things why thing. health time, first trend Jon, about being immunity I think their and been of of and system that concentrating even been all wellness a right? long-term and more kind the the there's for it's that consumer talked of and space, hygiene care and cough/cold a it. Is efforts taking think help which we've consumers example, of in we've health care our the and is heightened this more for

in taking rather the as of spaces care we've part the that environment about into seen going themselves people are than of the that at So, as years, home we over office. last compete think two doctor's

care with heritage matter taking how consumers long-term has levels long trends very themselves our see whether with or continued thinks trusted consumer of portfolio for of about time. growth But time. term over the whether I growth over slow well-positioned diverse will long stick us their no So, we'll brands those of think

Jon Anderson

a lot. Great. Thanks

Ron Lombardi

Jon. you, Thank

Operator

question Anthony the coming next from our line & Company. Sidoti from And Lebiedzinski of

Your line is open.

Anthony Lebiedzinski

and Good taking Yes. morning the thank for you question.

guys across you advertising advertising play broadly of there? broadly seeing of media terms speaking your just expect And of just I guidance just I rates. the are rates terms channels. in in the speaking? expenses, XXXX I there do different So, what for terms are you to mean, what But fiscal fourth in out in you how quarter. you provided that the mean, seeing know

Christine Sacco

Anthony. morning good Hey,

spend every are example get more an as key So, ecomm A&M just as now. there But certainly channel How the day. there's we of some pressures -- many smarter we're factors A&M so inflationary ecomm right learnings, dollars around across we with efficient. our getting

we're of lot offset so concern And big there, within able It's just a to the impact. but company overall offset when a efficiency is about think spend. It's I think our that. a the to certainly helping our not we

Anthony Lebiedzinski

Got you.

as Okay. chain, mean, that, supply that's pressure as anything as And doing try some out far you as than far you margin concerned, offset some to gross could those else with the other increases obviously anything then, I that of to are call price still there's pressures?

Christine Sacco

Sure.

is team our consolidation, include rates me, could cost partnering operations hard and of that better for negotiating in with co-packer at projects transportation terms our -- always we're with. using partners savings work multi-year So, and with excuse who lanes

host looking at are folks So, things sourcing. a whole of dual

can more maybe Looking be APIs and efficiently. how at they sourced

and focused have go on multi-year again, uncovered. so. it. So, But stone it's no always more environment, even will obviously always in In this programs we place

Anthony Lebiedzinski

you. Got

fiscal expect as far XXXX? last as for we what Okay. CapEx, should And then, thing

Christine Sacco

obviously $XX lower model asset-light at right? an the about Yes. We X% basis timing just X% got the of we million, and it'll with range. end capital to year speaking, with pretty sales of Generally modest on our about in annual come this it talk

Anthony Lebiedzinski

you Best right. Well, very luck. it. All much. Got thank of

Ron Lombardi

Anthony. Thanks

Operator

Davidson. coming next from Weiser And the of question line D.A. Linda our with

is open. line Your

Linda Weiser

you kind had in like any interesting to maybe share? in Yes. you then, strongly game of you had -- share you'd would some innovations gaining are like Hi. maybe points comment just to there more highlight? just could last which Are even And And certain Could you've certain ones the the innovations products. that you've on in occur? year at past Thanks. products then that highlight most

Ron Lombardi

good Linda. morning Hey,

important expand year. every are launches our we innovation sales product how share brands and New and and build of thought an our

fiscal of a W Eve, exception. and brands number innovation Compound including and of it's number for a XXXX, of products So, had We've others. been across Summer's no number new launched a

year. continue But [ph]. a to significant contributor the success year going It's it's performance consistent role contributor every to to and in a forward. just nothing to a base going been that play So, has the this

Linda Weiser

Any you to categories share are particularly strong? gains that want your where highlight

Ron Lombardi

Sure.

even If that and across success you we've done has in look And and had environment Eyes the share probably quick the recovery year at Dramamine, across been gainer this disrupted well. has biggest biggest Clear portfolio, our portfolio. this

So call I two think those areas. are out

Linda Weiser

or was it vast third Amazon? e-commerce then, Okay. I little combination you just that a Or the through that expect give a how Can I sales. just party a your first would Amazon, go I is curious or business? -- comes on And are on about guess. about majority a you seller on party you color more

Ron Lombardi

Yes.

the arms And the bit how us best of dot focus the partners be that to Amazon. do is walmart.com, we obviously them buy win where we're strategy and and working to to number product still a successful we and big consumer dollar growth, available or our a the well. focus And Again, as but can on us. our And cetera. So, product. big is com we Xp which pretty consumer working et then, whether simple, that'll and And drive focus mortar with Amazon through help is be is a for the chooses it's both. Xp offering with be is of for what do, amazon.com what of target.com brick the on

consumer means what really the the chooses buy So, where we're product. or terms in to agnostic through of

Linda Weiser

you Okay, much. Thank very great.

Ron Lombardi

Linda. you, Thank

Operator

from coming of with question Mitch me, line Company. excuse question & Pinheiro Sturdivant Our our next -- next the coming from

open. is line Your

Mitch Pinheiro

good a have do But asked. Most morning. have my questions I of Hey, couple on been TheraTears.

to from flows. statement curious what QX. was? just about acquisition And First, that I I was saw million in up QX cash I the looking $XX cash of went the was that

Christine Sacco

its Mitch, Hey, Chris. good morning.

eye It our So quarter we market care what to a very the that similar Australia. be brand acquired small we during in complement It's in folded the brand into It's category. to the it'll Australia. will murine in allergy and rights have pretty Hydralyte. with

ago couple recall a some brand. you acquired to Hydralyte the If we years for Asian additional markets rights the

XXXX. about it about a me, [ph], think not It's called Hydralyte quarter. but which Zetadine excuse $X in million, back $X the a this brand, brand million is was I is a

small, pretty in looking it's So, we're growing but the future. to it forward

Mitch Pinheiro

we then, have had you to Okay. what are you've line couple like couple -- a so, it's -- you've had And expectations. What quarter tracking here been quarters But your had sale your you've look with about and Are thinking it. in like. TheraTears arms there you a get -- around with marketing you're see I you you to TheraTears? was with curious packaging to any just there -- going what going it's line possibilities? changes? here Is forward Is do extension changes? as the look

of year? for next a it's be imagine you driver a to bit little I So, going

Ron Lombardi

think Yes. opportunities. Mitch, there's opportunities. all over of gain distribution really We so extension we those things time, product there's think

products out innovation. very new it. we'll We time can that stages additional that even the We're updating find. early [ph] recently will still launched had to even unit-dose that seven months it now over we've so packaging in Maybe just shelf product, be the you though extra get at New and of or now. an for

and that brand growing the it term. for we about So long-term very opportunities forward continue to look be long growth to over optimistic the

Mitch Pinheiro

I have very Thank you. all much. you for That's Okay.

Ron Lombardi

Mitch. you, Thank

Operator

line from coming the Carla with question of next JPMorgan. Casella Our

Your line is open.

Carla Casella

and our morning for thanks Hi. question. Good taking

question the the rebound second of in given mentioned, that XXXX environment? you improvement guys and that the quarter. stacks up sort cold changes You that flu And an versus part guys driving or kind Was any results have that in promotional specifically, pre-COVID-XX? some of in that curious the this of category is of how seen

Ron Lombardi

looks six rebound this the our for we the a reminder at what for up year. largely for then slow still as XXXX. continue of rest see below year like to being year for hard and driver At in a going December point end months of it's out. anticipate to the season is first the We'll fiscal in it's terms those plays level This what start our predict with least products cough/cold for We retailer year us. beginning for next fairly year then, and So, through consumer will of at that categories. XXXX of how this fiscal was away quarter will our orders starters the for and saw It sales incidences both this plus And be that take to for us. still ultimately at significant this shelf.

predict only So, but But still about this good growth help lots, that's hard year. not to quarter year this next as to well.

Christine Sacco

or a our reminder, just sales. X% And cough/cold is about of X%

Carla Casella

number of of you. Thank the I a second Great. been think [ph] question, And couple them have answered far. so

of relative kind stands to a talk opinion well. And just from driving us. You international results. market in as a Thank that about you. also lot of we there? below back are kind to you pre-pandemic it I'm be where called Australia Can bit We're little the out kind of should of that curious full? your

Christine Sacco

sure. Yes,

levels, as to is incidences pre-pandemic of big back this quarter right? business flu. So, the in the Hydralyte, of our the brand, quite we international U.S. increased from segment benefited in which part not did A cough/cold hydration here just

come expectations, are our well. of But X% consumers bit likely about long-term the which QX in to but timing because were as strong As we rates in predict is pretty growth QX as here we a in today up stronger anticipating international back a just we me, our Excuse growth than above international the segment. given distributor continued that our is a hard vaccination it's momentum model. to out. think It's sit always orders X% we it segment, drove

Carla Casella

Thank you. Great.

Operator

line our William with question from of Bank America. coming And next Reuter the of

Your line is open.

William Reuter

two. Good I just morning. have

availability you given disrupt inputs that could supply of products of you all the fared and have potentially you're that done the mentioned Are challenges. concerned be to that is chain eye first there well any unavailable some pretty on, your the So your customers? could your has of to some your products

Christine Sacco

Hey, good morning.

not So the really. answer short is

As and diversify a benefit the with that reminder, brand starting diverse a portfolio, components. to a also of we're helps cost as our

suppliers We of a pretty have partners. number broad-based and co-manufacturing

So, on thing we're focused one that material this time to particular at not no, the would company. be

William Reuter

And capital Good you to went through ranking guys of hear. then, allocation. the

the remarks expected based are attractive a seeing of little in this a are had that think relatively upon it you being valuations mentioned think valuations? also guess, little at leverage Do prepared you you what to optionality bit it's I having than additional lower in a point. rich? do be terms you market You or

Ron Lombardi

that's So, we appropriate returns But very start. the to much an we evaluate and brand get is capital building M&A, for ability on the certainly consideration where valuation. starters, when long-term important

is think So, a we can term It's value. kind long to really what multiple exercise. do over the with about create we the math brand of a

of news GFK terms For example, times right? the down that really In current indication certainly gives Unilever, an environment, lot there's multiples, rich. turning XX valuations EBITDA of super a from headline about are rich super

synergies competing out we and don't For the us, to be tend that allows have other that there. and necessarily to the cost against get of have PE or other buyers competitive who we be capital us

valuation a for So, we XX-ish around with saw or TheraTears, so. of example,

for we multiples the for competing that the that press. the high super things seeing don't you're So, we're in see

William Reuter

you. Thank Very others. I'll Great. pass to helpful.

Ron Lombardi

Thank you.

Operator

remarks. any And I'm at would showing back call no turn like now this over to Mr. questions closing I further the Lombardi time. for to

Ron Lombardi

look us Have finish to and Good. an the May forward Thank connecting to give fiscal XXXX thanks And for where update on to a we again everyone And XXXX. you today. we'll joining great day. fiscal in operator.

Operator

participation. conference Ladies and for conclude you for Thank does gentlemen, this today. your the

now disconnect. may You

Prestige Consumer Healthcare (PBH) 3 Feb 222022 Q3 Earnings call transcript