Prestige Consumer Healthcare (PBH) 8 Feb 242024 Q3 Earnings call transcript

Company Profile

Participants

Philip Terpolilli	executive
Ron Lombardi	executive
Christine Sacco	executive
Rupesh Parikh	analyst
Susan Anderson	analyst
Jon Andersen	analyst
Linda Bolton-Weiser	analyst
Mitchell Pinheiro	analyst
Anthony Lebiedzinski	analyst

Call transcript

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Operator

Good day and thank you for standing by. Welcome to the Prestige Consumer Healthcare's Third Quarter Fiscal 2024 Earnings Call.At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to turn the call over to your speaker today, Phil Terpolilli, Vice President, Investor Relations and Treasury. Please go ahead, sir.

Philip Terpolilli

our you me who Chairman, fiscal are CEO; Christine thank the joined President, XXXX and we'll and with call, full call Ron Sacco, results, operator, discuss to third year has everyone today.On and review our Thanks, our today's the outlook, quarter CFO.On accessed and Lombardi, take clicking of on prestigeconsumerhealthcare.com, questions presentation contained then and presentation.Remember, visiting today's information analysts.A then and accompanying today's presentation non-GAAP investors link, the by slide from call on webcast can today be measures. financial in the some includes our Reconciliations a to today's our call, financial safe page on complete which around the are presentation.On earnings make will included uncertainties, forward-looking statements harbor presentation disclosure the in call. nearest of accompanying GAAP the management risks X slide in release slide detailed and and measure are review important to These and are contemplate. remains uncertainty events, environment factors geopolitical variety a inflation, numerous Business impacts. high have chain due including heightened which potential supply of and to constraints, This considerations is at means risk information estimate on based date. impact best available any the the forecasted results time of the of today's and could as change Further most it concerning company filings our SEC most now risk and available cautionary CEO, factors recent are information statements hand Ron our over in to XX-K.I'll Lombardi. recent and Ron?

Ron Lombardi

on Phil.Let's Thanks, begin Slide X.

in international the previously label our of We fiscal quarter, more offset we've in private the third in discussed. our outlook. our in sales were US and continued eye which are This year. added ear of and that business the brands performance than strong our X% our Net with the strength very earlier from million and results the and strategic to $XXX impact thanks in strength the exit performance to pleased was exceeded segment, QX up earnings our ahead expectations sales nearly and

gross expected, enabling marketing prior versus year, the improved increased margin As reinvestment.

debt the of X% reduction generated $XX million, we EPS, up cash further flow results enabling X.X $X.XX, us quarter times finish approximately robust the into These free prior at versus that year. had For translated leverage.

target leverage operating outlined X back leverage We times are May. that less than of with long-term within now we the in

optionality will benefits in We the gives our capital us on remarks. this and later discuss deployment

strength So summary, to category in XX% largest & revenue over Care flow first and a shareholder the Ear more Eye can of continue representing percentage value drive to Page on half in free to X results these detail. built Care performance robust solid QX on & enable discuss our basis, is turn that our a business let's proven Eye Ear from in strong cash incremental strategy.Now, our sales. of third

As the on each leader need. as Clear a left leader a and solutions. in TheraTears long relief this shown for brands, consumers. designed Eyes time-tested is dry well page, the solve leading and in wide a contains specific to side a redness heritage assortment has a of eye with proven consumer category is of established

the alleviate leading the Debrox, and it gives visit. ear a created for that us we've and scale with lastly consumer, ointments, home eye solution define eye drops, at strategy, Eye for discomfort care. portfolio the relief. market-leading a For without associated here shown And category in help and eyes. soothing stands By a the compresses care is doctor's

side consumers category of are provide and There growth. building retailers page. position leverage one to in the With These right and learnings the insights. broad both OTC examples that of unique leadership number units this brand with the enables we drops, establish across our on eye two help long-term

Eyes drops TheraTears. continue For and and marketing, across awareness to safe consumer we benefits eye like TV and digital channels drive of the around Clear effective

in to helps in solutions Innovation that's two generally also drop best for another categories. invest to also element fits We content, is find them. success eye continue consumer which digital the and long-term

established First, for claims products which help we consumers. differentiate

For relief all-day consumers our desire. of hydrating XX the example, delivers claim comfort hours

growth. fiscal the After consumers The returned Sensitive discuss experience winning specific that range we strategy of certain to I'll continue states to turn offer that of Clear solid seek. is for year-to-date thanks in it over need that, Eyes over-time, eyes. 'XX, results supply characteristics.With XX% sensitive to we've across grow financials. to disruptions Eyes Chris franchise establish to our growth example continues is innovation and a in Second, over solutions specifically mid-single-digit an formulated excellent the these to

Christine Sacco

Thanks, quarter turn morning our 'XX Slide to and everyone.Let's Good third X review Ron. results. fiscal financial

non-core reconciled of presentation $XXX.X release. X.X% flat is to a brand. prior XX% information North brands. our approximately certain increased million to year, related prior International OTC strategic year, revenues the private headwinds and reported with includes segment basis. today's Eye versus Hydralyte segment measure with non-GAAP double-digit organic were Ear the year As that our on category and certain from GAAP the expectations, in prior OTC both exceeded the information for strength included versus label growth weakness broad-based of closest that in Care revenues by in offset business earnings a and reminder, the in revenue American the QX increasing strength the exit the solid

EPS while flow performance. first was reflecting free and benefit the from to to discuss environment.Let's expected, approximately X.X% EBITDA for prior our turn As results. consolidated rate half year-to-date the more interest stable QX margin a more and cash EBITDA year, Slide with detail higher flat debt was X increased spend, of to year, in attributable prior reducing A&M consistent in

experienced owing performance and brands in comparisons high year-over-year also portfolio, prior the business. increases, label in attributable single-digit months North to margin year. sales, months The geographies. offset prior first which pricing and million In entirely in growth partially challenging offset segment, strategic thanks were revenues first By the Care gross versus X.X% the Dermatological as our up year and & Health FX. Total North QX. the offset Ear dollar Eye Women's of increased segment which prior points channel. the down company XX% strong the months approximately For segment in savings XX.X% largest to of expected numerous cost we drivers helped and above gross excluding when FX, actions for growth the This international America, partially performed were of category versus the American first international across fiscal our nine by was declines exit $XXX.X category private we while the solid flat Year-to-date, margin segment amount headwinds. grew nine was to excluding of long-term year, cost across 'XX, the were approximately expectations, revenues versus nine e-commerce XX basis slightly inflationary cost strong and to and

For estimated at to up the margin basis to full increase fiscal versus versus fiscal dollars months with and prior sales QX first a anticipate XX.X%. the continue percentage versus flat nine flat points year year, XXX the XX.X%.Advertising was nearly prior on 'XX to slightly year and in to for we gross basis marketing up of

prior anticipate of $X.XX reduction anticipate efforts. rate of opportunities. prior despite to our a of the the over EPS QX first XX.X% million, marketing versus interest We $XX just of year, headwind interest expense we the with impact G&A the was $X.XX months, attributable debt rates. the A&M QX, expenses spend timing in to thanks approximately marketing and higher in related to timing of nine up consistent Diluted For an X.X% of year. sales were in

rate Finally, anticipate to and cash our rate Slide we QX tax QX.Now XX, in discuss was let's similar XX.X% a and turn flow.

December which year. mid-single XX% the At $X.X and times, flow, versus of we cash first leverage nine months, up of million fixed generated digits objective. the is consistent $XXX.X For debt net achieved we XX, nearly covenant-defined prior long-term ratio our was a approximately in free our X.X with billion,

fiscal our turn being the largely around moving reduced that, leverage debt balance at of it back deployment reducing anticipate Ron. and rates fixed debt year, unlocks to forward.With we capital I'll further the Although through attractive flexibility remaining

Ron Lombardi

Thanks, Chris.

Let's wrap XX up. to turn Slide to

are We that year results deliver full year began earnings the with. we to exceed pace and outlook on the excellent

strategy We proven that a improved forecast well-positioned this by and is EPS are our driven portfolio. with pleased diversified business and

organic of label exit billion private revenues $X.XXX business. we X% X% to excluding 'XX, of 'XX the to billion to or to X% growth X% strategic fiscal and $X.XXX approximately versus revenue fiscal revenue organic For continue of growth the anticipate of

are approximately revenue full we our year-over-year original driven guidance, a by increase. the This at million, revenue QX, for implies slight $XXX largely end FX. of For unfavorable forecasting lower of year the

EPS, anticipate power now diluted $X.XX to fiscal and cash For results thanks 'XX, we EPS for year-to-date our of flow. our of approximately the strong

the $X.XX, of For high QX, versus year. expect up EPS digits prior we single we

top-line targets for of reminder Lastly, evolving to anticipate that through that, brands XX point we are growth. organic flow algorithm. of that EPS growth that M&A free long-term, including for annually. our is the level capital drive for using year.With marketplace, in more $XXX This strategy accelerate Even to starting cash around top-line of this predictable, growth amplified balance flows diverse can the X% deployment great million strong business provide growth additional or portfolio X% flow organic of let's Slide leading Equally a this cash flows X% long-term cash and deleveraging supports free by upside our optionality for the over industry-leading to growth our and turn to to the of creates healthcare into long-term. X% significant important today's financial resulting continue cash a deleveraging

proven to May up profile details our our have a expectations help long opportunities Operator? attributes or of remain business go-forward confident M&A. questions. that further to it support our our that, buying forward I'll upside on assess to financial drive look doing providing be year We open additional paying continue back we for history We it whether leading on We next for and call.With debt formula. down stock, using this

Operator

will be The from Instructions] first Parikh [Operator question you. Thank Rupesh Oppenheimer. today of coming

Rupesh Parikh

cough been So I for to love expectations concerns given there's your about for just category. a would QX guess hear cold, and of lot just I that

Ron Lombardi

largely year. of last would be about of had So of continue start anticipated part our anticipate be the at And to year. in we that with sales we fairly line revenue, QX, cough cold for and starters, the levels to business we the is to X% what close the

Rupesh Parikh

on business improved And Health, from perspective. then sequentially a the just just Women's decline

your the that there? business expectations thinking latest growth back and getting on Just of to

Ron Lombardi

Yeah.

continues definitely there. year, earlier year And Eve going begin be got good in was brands. a Summer's Monistat to at to As that the in trends X start brands those this It both the the is anticipated for kind be of and year. stabilization for recovery see and improving we growth we the of of next position recovered should a to year. said

Rupesh Parikh

And you as look we ready I towards takes guys to is for a guidance that year? puts 'XX, there think next high-level range, your any know aren't of but and then initial FY can just provide we fiscal

Ron Lombardi

a for X% about up remarks that prepared with line mid-single-digit top line and We Yeah. X% the talked time growth finished with bottom that long our today slide we've growth. to

I on directionally, might lots So you into detail And call. starting. get to the May think want we'll that's consider where certainly, of

Rupesh Parikh

final My question.

are given a in Just pay paydown a really down. guys limited rate from good only you valuable amount of there's a position to perspective, debt

have actually more lot So flexibility you it a seems to the on algorithm. like deliver

your more share accretion going even excess business, maybe does investing the the how with could just about given forward in for cash, team see So more buybacks. you think even even

have So that business EPS sense the to because you of growth. deliver invest guys feel X% the to just X% it get more to trying does more to a flexibility just like in levers

Christine Sacco

into the Ron head attractive deleveraging on we debt fixed we now beyond, yeah, it largely leverage at right? 'XX talk that as did fiscal remaining as hit [X.X%], rates. QX. in have is The But about highlighted, So head right very continued we you at and

see in M&A, from you're buying stock think optionality us to and/or increased be terms of I it So continue whether delevering. back going

and as We forward more than have that we the head to optionality do to fiscal into one 'XX. we'll look

Operator

question coming from Anderson Susan Canaccord. next The be of will

Susan Anderson

of And you the takes while on maybe I kind P&L. puts then little and keeping if was in just the the raise bottom line a about the the the also That's wondering could Maybe Care. changed looks about I ended up growth maybe think bit same. line then North flattish. to top also could you if saw weakness that some Ear & in mentioned sales really It talk nice America brands, the you And other non-core categories? Eye there. like talk you

talk could brands what were. you those If about

Christine Sacco

second maybe your and take of Yes. the Susan, could then I'll question. start, Ron part

results was behind beat timing nature model could talk that. business being a international quarter-to-quarter distributor sometimes lumpy, We the about QX a and the bit that did a we and of performance. the see strong So be really

hence, So outlook. change real our year no to full

environment. On really stable the helped a bottom line, by more interest EPS rate

environment, 'XX fiscal in as to see flow of environment. you the continue part stable you've seen bottom head to a cash from into delever So our of deployment.I would rising our in us expect second as that as on leverage line, we've a ability rate as know to really offset more earlier, was power if interest was to result said, the and take we capital the the And past we don't highlighting of want Ron the that? our by

Ron Lombardi

Ear out would the and So prepared decline. expect Those in terms brands well. the in tail do release across portfolio, momentum & today. lot of and the International and the non-core in have a to that of we Over-time, we continue performance remarks areas X called Eye the and would

and quarter-to-quarter. little of You valleys bit a peaks may get from

tail portfolio So part of terms across performance the quarter. during of there wasn't line the anything in out the of

Susan Anderson

the color just on give kind terms year off? your of or about taper of in talk what of versus just units could as the and those pricing the price pricing you rest in saw if maybe expectations increases quarter volumes versus of then some kind you And on for

Christine Sacco

So from Year-to-date, that benefiting price price we're in volume. consistent growth half that. 'XX. pretty fiscal to half we're certain expect with still the year about We from full pricing split from we be still took about actions

we as fall For price, talk growth we others, expect unlike do the in bit had and we what's remained but think with through fourth was to QX, X/X is half, We is to really out some that the less to I year continue important continue have right, growth. volumes year line lap year, proving that. coming about half a pricing volume stable. This in little half, than Last our the of pretty about But still we talked quarter. year. from and our start

speaks So of store based our really of needs our and to products. the it the nature part stability of the

Susan Anderson

last question. maybe then one And

to we to in look margin quarters? savings about guess, you If think place flow you have could cost you we the talk the work how help put that And given started about as just I should the those gross through P&L? the pressures. few out back, have next inflationary that see

Christine Sacco

Yeah, sure.

begun we that. year-over-year. third points the benefit of have We're XXX to So basis quarter in see up the

half. price, of than is Some less that but

from The those half you other a bit or coming savings more cost is mentioned.

calling the fourth We with started of of seen terms the still P&L on deflation on gross and quarter track for have flow to to freight, in essentially quarter little that quarter, the third a year and in line the to we're margin, be bit through the flat in slightly. third up

with expected this line as in what we started year. So we

Operator

question next William Andersen And our be coming from Jon of Blair. will

Jon Andersen

levels a Anything any relative shipments talk others. forward? softness in note, retail then going And inventory strength on you certain in from could consumption areas, channel perspective and around to about if going thoughts of

Ron Lombardi

question was shift. I So your first around guess channel

look as impact business. That's people a beginning for quarter, most little third what for shopping been are is fiscal inflation, to with it inflation. seen of since fairly at moving the really value they propositions a with the least high within the During deal of differently level which and year, notable on price channels was consistent the we've around our our better

trends consistent have over the brands. different. year we a those broad and fairly last distribution again, or So so nothing of have And our been

So we consumer where to chooses mind the really shop. don't

fiscal retailer fairly widely been terms Our year. steady for of us the then available.And products are inventory for destocking, it's in

parts We of business that on from. other haven't seen unlike our the companies any maybe you're meaningful CPG so net far, impact and hearing other store

Jon Andersen

I hear. didn't

business? growth does perform a may as from standpoint? your e-commerce. percent total sit missed that of And mentioned it. business the You have did online where How I a now

Christine Sacco

Jon. Sure,

it's So the third sales. digits sitting in was about our Right at quarter. now, of for us high XX% single up e-commerce

is growth still even we significant as some from growth it prior periods. comp nice So

Jon Andersen

share. but any from to so any private label of And think, looking competitive of now, I And changes the your better your on not relative for for common consumers any Ron, value organic brands? given growth, of front comments market standpoint kind about propositions, We've much just you around that's are seeing categories? theme and your there a are kind a talked in share change

Ron Lombardi

haven't in moving to result share In our Yeah. we as from lower away or share general, private particular. products loss shift a consumers label of or seen priced any

So product. to our or goes occasions it back incidents, the

every the it's every for something brand, a If trusted few category that save years in X not and once you're time once try looking you take year, to you're the to different pennies. chance a

think consideration long important about as you brands So time that talked a about our our when and we've an position. attribute for being

Jon Andersen

cash are strong free you're to to Okay. I look It balance like, forward, criteria what's as from and a aggressively M&A just on probably looking as a use mean, a guess list? is cash. sheet really now are products, M&A What operational one your important from given excess that more. more opportunities. category perspective continued you I generation you of you like where sounds perspective for? looking is evaluate going right shopping accurate? What And to you

Ron Lombardi

what change there been though down from ago about in And success is for got that very brands last over we Interestingly really define hasn't been enough, the X look a we years think how criteria We've changed. are like XX-plus up Jon, that years, for, behind categories a our long-term well-defined that meaningfully. hasn't today, and the growth. M&A our leverage that's leading of even or M&A set

continue a It don't I for aggressive. lot look So more We're that up. There's we like we're activity that of week seems to showing opportunities out say fit be there. without something going wouldn't a going to criteria. to go

comments level Chris' it's to to for whether over for reminder cash mine it's create and know term. business, stock invest in continue stick of we lower long very be the the in shareholders the both create M&A, I that leverage, with delevering continuing value value what we a over-time, and flow think will our shareholders well even So And lower to we to our buybacks. our positioned today,

optionality a an value. have of create the factor think important lot to focus, of it. that's is we So important certainly And of which I M&A

Jon Andersen

approach. a And bad cash stock digits, that's yield Yeah, in a at guess, flow buybacks either. free thing not as good high your with is single the I looking

Operator

from question D.A. of Linda And be coming will Weiser next Davidson. our Bolton

Linda Bolton-Weiser

are something a club also about channels, dollar you more do club don't to So I that to curious, of is was you'd about the more wondering, channels? themselves like Which channels. like in which and of most the discussion was kind you little of approach much in that What's And thinking would are those distribution brands the I And them channels? channel?And And then lend how channels. talk there? very you just are brands question same dollar your stores? into penetrated stores. about

Ron Lombardi

Sure.

isn't And us. it's channel club nature very to a largely It's So due products. our small. big the of for

buy to where sick, find like in we Monistat, there. for you're offering. If some that's going and largely resale. BC we the buy you're It sell mean small doesn't and do think club X for pack channel Goody's, club the examples go a Eyes opportunity BXB, of that through you'd product may and not focus where in Clear don't convenience

opportunities been us. just So Dollar an it's the it's of a nice look we not mean that over-time. packs. by nature than don't but it's growing doesn't it important is, for consumer and channel for end for products, it It us more channel of our sheer to of grow, at

retailers, the leading consumer that of there. some out the you expanding products expand you'll looking If health to offering see they're of idles are into where branded care dollar go

it channel dollar. so any channel. that the there us in have great That's So sizes other sizes count product with and consistent pack unique be would that is for in as we in margin distribution

to our be at partners look it to with we So all retail them successful. help of partner

that's little and about for us. a dollar So bit club

Linda Bolton-Weiser

know. said Okay. -- be really wanted I the higher But it's that? Can on you market non-track have case channels it private label don't you would any And share or just just is I to versus regarding label, you're I track anything confirm big case? in that think channels. seeing But might the know Would I that private not clarify, shifts share.

Ron Lombardi

is, the side probably to It I more skews believe track the Linda. it heavily business. of

shelf, or is The products folks on our the competitor, other any have is thing differentiated right, to so price. we're consumer remind products versus our the not #X I'll on private just today, so the gets that about there's something the efficacious that when losing to different job label call

best the consumers to about we So our what continue that's lead hold that that categories we every to looking product our and making share long over the over is day we for. grow think when there what come term. why And time share, sure work consistent we've we been that's that are the out got in meets

Linda Bolton-Weiser

drop to Does eye recalls And finally, various I any Is wanted I is it benefiting been then or -- cost? that is that any been of just recalls. about you a drop don't products. ask, in saying affect it some way? we've know. any lot eye There's of of

Ron Lombardi

the heard reported eye brands it's from guess. right, never again, suppliers on press has from foreign probably I we'll hear care drop or Yeah, you eye of for recalls

I the that Eyes and from disciplined staying with on the to helpful particular, the Clear TheraTears, brands players chain. long-term, think can have it just that in you and know trusted of that branded count companies importance supply you where Over reinforces it's

suppliers. matter you penny, time, chase it. saving not suppliers care focus no We long-term eye product are Our the on on quality where last

quality over long-term, of and consumers both our brands for trusted as the and good product. So those the importance brands the industry it's of reminded

Operator

question next Sturdivant. will from our coming Mitchell Pinheiro of And be

Mitchell Pinheiro

spotty? execution levels that not category retailers label. look even channel the Is just have you couple is and anecdotal, A and inventory the at since spotty saying just TheraTears, drug TheraTears. make low specific & private of the coverage. the category it's ever I either anything real at to especially that noticed look And that Is there -- entire it's there something continues Eye shelf where channel it And brands you. kind purchased various is to, in to inventory just of for I'm questions of coverage drug I this drug the are Ear but or

Ron Lombardi

Yeah.

right, of first now. a So all, fast while care quite for has growing category eye in the general been

it right, drug seriousness. So with that a the think condition serious a about and over-indexes of with increasing to right? bit a It's people channel, bit it more demand,

that then things to more a bit. serious right, and over-indexes year see where addition some we And quarter there. where the in chain our in brands do little a in the the across affliction periodic other we eye can had So in supply we a that, maintenance related the all And put channel a are there's delivery as that players supply. at nuances shutdowns a they drug for of pause bit December, bit last of talked about pause in little that in ended care

the to happen can it So any of brands.

you all look into together, on a elements short they those may bit drug go So maybe little the you and channel inventory. why put

Mitchell Pinheiro

something levels, achievable it Okay. XX%, margin are look Are -- And comes XX%, those won't maybe is that that term or we years gross math And is slowly to when margin more. they X the then the gross to level. at just ago the levels you're longer there that you causes from structural? to back longer term, it recovering get or

Christine Sacco

dictate is structural back pass to gross we Can margin. margins? So Absolutely. see is timing. you When the say on the within normalized math just going to it there's math, a nothing the more going

little takes savings it margin So in and of you pricing. we pressures But have mentioned, as X with offset years, a these part cost while dollar to the each past math dollar the said as we've catch-up. of for inflationary

from years So that there cost measures. to to May, in nothing good but we out of certainly and us margin. them talk about have would We several saving about line start ability feel is that. recover our structural sight to prevent doing We'll

Mitchell Pinheiro

same guess consistent plans there for directionally for A&M sales a over any I on term? the either A&M basis. very changes on Are percentage mean, And longer question the I any there been spend. it's Yeah. of

Ron Lombardi

right Yeah. more right? you work, A&M to to dollars in one Mitch, thing, check. is percent You're we'll spend put over-time, continue to The right? look dollars but

support margin start as up, look said, opportunity gross always picks spend Any our desire give as the to building dollars So more it to money. to the brand will continue we should more an for company initiatives. spend long-term to us marketing opportunities to with

So that's how we think about it.

Mitchell Pinheiro

I And on last question guess just Right. leverage. is

So where a repurchase, investors maybe below but on you an down leverage you would of get to exceed many you below you've back -- the be past? to I'm I'm curious whether quicker and/or you've in share curious comfortable for when don't in you where just to X, want seems there's here level And to acquisition the level or a level be than the in like whether like had consumer spot it's come can a space. decide X

Ron Lombardi

Yeah.

business As And or we've million long For it said, the acquisition, a moved when around we business leverage did X really the while only today, you $XXX The that the than, talked time, not year with and of gives $XXX themes They you over we on about and essentially look million the of down. lower over-time. needle right? so. levels more last so because as leverage get one had spoken. the at we derisks lower of smaller operated market levels than to operate we've it that plus historically, was to you a back average companies has a or took but we were appreciate optionality

So appreciated. the right, may and and job that that's to how we to set for value every do to our right out it's be back it way opportunity shareholders, we the evaluate don't to figure way create want a step able although ceiling, our

and where of into the see of period less never. above did than an then historically. operating us X time I levels near be range say might targeted short pop X it we anywhere this But for doesn't we never So a don't peak there opportunity over-time. mean get very back that

So that how But all at directionally, to be about things. lower of optionality forward. clearly, want about we going leverage think is and operating we talking where that's levels

Mitchell Pinheiro

in books just And share with difference -- you're you've of sort you -- of flow. flow your But lot mentioned actually lot could one seeing way that in a more, Anything deal Are and change of there's small getting a just there is any M&A relative deals? versus Okay. steady large you the come seen you're you then to any color-wise I'm -- earlier curious, deals about pricing? seeing?

Christine Sacco

Mitch, it's Chris.

very So look things of at. some that been really, categories. do at, for multiples the any large deals headlines the see change. kinds that for that We large out the of you we of That's nature things read hasn't look of not there in with there kinds the very we big

us, a years was X So ago and we pretty done about on larger at consistent. times. of of of was pricings some this the about saying got X kept kept question we handle people the XX in there remain when the TheraTears deals asking press front we announced some TheraTears,

So change the for. we kinds things of that and really the look environment in no

Operator

question coming Sidoti. will be Anthony next Lebiedzinski of from The

Anthony Lebiedzinski

certainly of years. you or growth wondering driving mean, driving just Are Hydralyte And new you that segment is business overall, the to signing do But for couple you So are guys follow well just existing with on think how that? accounts? what's on been then I has doing doing up segment, the retailers that that. just more sustainable is? the that wanted I International business impressive there. last know

Christine Sacco

year, diverse good the portfolio. international North in has lot, portfolio in portfolio. because a But us, we long-term. and Hydralyte and and much have to we're this the talk growth step And our quarter is expect particular, we to focus we did So across back, really don't growth when it for continuing third a similar continued strong Hydralyte we American really about on our been grow experiencing

at there, So product terms a portfolio, about sustainability, penetration, of terms that opportunities in needs, innovation playbook similar unmet see continuing factors internationally about of number we household to in meet right? Hydralyte and XX% innovate we the talk across consumer still to right, of a there.

about algorithm continue good we that above feel but for X%-plus. we the business, So we'll growth to year, the for the which into a is see that, certainly international This future. long-term at be path think slightly

Anthony Lebiedzinski

X% playbook And be to then long-term X% to so your continues growth. organic

a reasonable international time so, we've Do you segment be it here will American North back had range? the And if think to So get obviously frame? be can that like segment. within to strong growth you

Ron Lombardi

big which sales. total Women's year, The of is about Yeah. really Health this business, in Anthony, been impact XX%-ish has the

So that expect obviously way above have on when over for growth has big international we organic of be to it get levels will for back North long-term. to impact what the Clearly, business we segment year, America. next would that grown a growth the

you to of long-term. to back to today, that to X% X%, X% the deck digits, last international business If of over over-time, X% business the on had drivers North X%, the grow expect mid-single the the to American we X% the get that would page X% grow we

expect where to directionally, flush-out we So over time. that's things

Anthony Lebiedzinski

you. Got

guys to And about guys Okay. for overall, I you be open you you I a know keeping lastly, your for but talked would non-core you so portfolio any portfolio, as mean, or the flow perhaps at think look cash just very brand divesting sure. But M&A, brand I then guess have you diversified brands they're conversely, purposes? worth

Christine Sacco

mentioned, and right, non-core But have Anthony, margins brands. non-core. that Yeah, a lot as they're because comes of we require OTC on you offer investment brands that these are evaluate in don't good gross the any certainly

perspective, cash driving on reinvested to as when math there doesn't as get cash still flow would driving can that's long divest willing they're other from right, you're we into be a work, our the the value math, But by brands. them. flow So we

that's So about it. we think how

Operator

more call like for to would there [Operator questions Instructions] over I back the At the are no in turn remarks. closing queue. Lombardi Ron this to time,

Ron Lombardi

to May. I'd further this Thank joining like forward Thank to thank morning, updating you, look in everybody us operator, for I and you and you.

Operator

you call. the joining This ends for Thank conference today. call for the

disconnect. You may all

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