PBH - Earnings call transcript Q3 2025 | Prestige Consumer Healthcare Inc.

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Operator

Thank you for standing by, and welcome to Prestige Consumer Healthcare's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Phil Terpolilli, Vice President, Investor Relations and Treasury. Please go ahead.

Philip Terpolilli

Thanks, operator, and thank you to everyone who has joined today.

On the call with me are Ron Lombardi, our Chairman, President and CEO; and Christine Sacco, our CFO and COO. On today's call, we'll review our third quarter fiscal 2025 results, discuss our full year outlook and then take questions from analysts. the today's the be on financial Investors and some accompanies prestigeconsumerhealthcare.com, by today's measures. presentation the presentation. Remember, on in clicking link of slide call includes accessed can visiting webcast presentation A today contained non-GAAP information and then and Reconciliations release GAAP our nearest the measures are presentation. to in included financial earnings slide of that today's management will harbor and the detailed are which complete call, make safe risks presentation On in on disclosure the call. X Page uncertainties, accompanies forward-looking statements slide a around These are and review to contemplate. important Business evolving environment uncertainty chain remains heightened due U.S. to supply constraints, and impacts. international tariffs and inflation, which have numerous potential This any Ron best most and are available impact estimate and forecasted SEC CEO, could XX-K. I'll information as means the the cautionary of statements now filings it hand on date. Further results factors available to information change time, and over recent our most risk our based is in recent of at risk company considerations Lombardi. today's the concerning Ron?

Ron Lombardi

Phil. Thanks,

on Slide begin Let's X.

both Eyes. Earnings growth, expense and women's categories. that's reflecting record This Clear included in communicated XX% the and as the capital nearly strong X% our gross our growth, and Our a EPS. with count. sharply North experienced our increased We of million category solid prior health sales the third as $XXX interest EPS of and to stable growth margin we Eve for in all well coupled sales quarterly the Net share within international year-over-year quarterly exceeded quarter continued nearly $X.XX, to forecast. for sales led expectations increased deployment growth versus including in back record QX brand of November sequential strong Hydralyte results and both lower improvement sales disciplined brand, above Summer's was year resulted broad-based a the in by across American

to balance to free profile variable priorities options continue In X value. we debt our our reduced term while repurchase to X.Xx. in QX, ratio shares our we Chris continues deployment and to capital on. detail improving to that will opportunistically flow enable capital greater enhance loan Lastly, later strong discuss leverage go-forward cash use shareholder and our financial

Now turn GI for category. to a let's Page review our of X

of category GI GI are of celebrated The market-defining Gaviscon, business solves the brands, X/X features on motion nearly The for synonymous drive headlined iconic sales. wide-ranging our the and fast-growing needs shown unique consumer Dramamine, continues solutions is by and XXth remain represents GI its North American the to clear to page. Fleet recently nausea and that assortment leverages portfolio is each X growth. Our sickness of with capabilities Dramamine wide anniversary and It brand-building categories. long-term brand. left

engaging ditch to as Our sales innovation. a featuring drama that our encourages [ ] the combination marketing, Lama grow consistent drama consumers nicely through to as well continue of

innovation recent Advanced and most which deal includes consumers Our features specifically with nausea herbals, stress. ingredients Dramamine help designed to

builds know in they other adjacent brand heritage. brand's when brand's core Next, a clear stands Enema leader into oral creation This laxative longstanding rapid of categories constipation category. Brown XX% brand's naturally expand such provide successfully relief trust consumer assortment Fleet the its the consumers XXX-plus suppositories since to where it laxatives, We're laxative relief of Fleet share the the it a The brand for on a Today, Fleet. also need deep leveraging consumers year as history Charlie with market trust with by rectal over most. forms. and and for is expansion the

Canada targeted in in Gaviscon nicely to consistent and our grow quarter. Lastly, marketing brand last detail innovation discussed that continues with we

last Chris solid X is over turn have discuss unique time-tested their success. With leading used formula to driving ways. to portfolio building in up long-term I'll brand of and growth wide-ranging drive own continues future years So it financials. for over The total that, growth work, to in summary, has to set brands well the the us that our GI in mid-single-digit

Christine Sacco

Thanks, Ron.

Let's turn quarter to Slide X financial results. fiscal our review and third 'XX

sales, offset information the brands measure GAAP in we is the benefits North which expected. million versus XXs nice the was broad-based that includes of GI certain today's earlier, category information In in by segment, low year, release. thanks FX, EPS growth of International highlighted a we record year. allocation versus the to interest headlined our increased or increased and X%, included that prior to count. $X.XX reconciled cold in in excluding segment X% strategy year. and X.X% presentation which As non-GAAP reductions sales our revenue prior QX Diluted reminder, the lower quarterly excluding American X.X% FX grew XX% expense experienced versus capital and up by closest and consistent margin and Ron $XXX.X growth, the of cough partially Hydralyte. EBITDA in earnings approximately was share a prior the

consolidated for around X for to results Slide turn detail months. first Let's X the

first FX, segment X.X% segment, points segment American X.X% X revenues year. the prior versus of year. 'XX, decreased fiscal the excluding North revenues By revenues the decreased basis For prior increased versus XX months International organically and

discussed, and the The planned retailer in of and declines ordering cough first women's quarter. the due X-month category first impacts health to cold largely sales constraints were the impact Clear declines supply previously in Eyes the chain anticipated of

channel are pleased double-digit of are Clear versus brands. Eve higher was and well. the our sequentially slightly growing report purchasing trend prior E-commerce the increasing quarter growth as sequential Summer's of in that online we to quarter continuing our and trend sales highlight, Eye third year experiencing of also a We sales long-term of second with year-over-year improvements its

the expected, the months gross prior associated first slightly X owing Eyes. the down total Clear of expedited versus margin expense was XX.X% company As of in year, freight to with

increase gross of cost-saving the timing to margin attributable a anticipate we certain XX%, approximately QX, the of For with efforts. largely

in further tariffs. which unique manage tariffs, well Looking ahead in include terms changes our inflation, of us attributes leave to business positioned

future our to related other We respond and tariffs continue changes and manage plan to actions in any inflation. quickly to

of necessary consumer and needs-based care offset to months. and first market further positioned marketing the share brands X efforts a was and leave their the well for leading us as percentage XX.X% inflation. health Advertising future as sales cost-saving of to impact execute pricing Our

fiscal prior versus still X.X% year full For of as year. G&A expenses in we dollars the up anticipate we still the of sales were X.X% X approximately 'XX, sales. and anticipate in of a percent A&M first months, G&A

revenues $X.XX more timing compared EPS adjusted offset in the favorable year, slightly and to A&M Finally, with and of lower G&A $X.XX by spends prior expense. the interest of

stable we first resulting QX rate rate Our XX.X%, X of anticipate tax QX. normalized tax in was a a in rate months XX.X%, tax and

turn flows. XX cash discuss Now Slide to and let's

For flow, the versus million the up months, prior in we first $XXX.X X generated free year. cash X%

outlook X maintaining quarter, are million just We continue free X industry-leading balance in of priced and or maintain leaving maturities fixed reduced in our We debt notes $XXX for flow year full cash cost with the loan the attractively to to variable more. and XXXX. our term XXXX

shares deployment flow improved opportunistically. X free repurchase approximately We to repurchased ratio, $XX the our flexibility business for capital we've moving XXX,XXX QX. million. X.Xx leverage us for continue cash strategic months, robust first performance and gives achieved in consistent This shares And ratio covenant-defined We forward. with of a

cash as of of efforts well opportunistic given that, support as turn it We on disciplined debt. and balance as attractive M&A rates capital fixed our will a these back to And to continue repurchases I'll to the part the evaluate build strategy expect deployment remaining further sheet some with Ron. to

Ron Lombardi

Chris. Thanks,

to Slide Let's up. turn XX wrap to

of the earnings business start we exceed to and the year. we the are remains gave outlook Our healthy, at on pace

Our accelerating business testament business momentum portfolio. to a our proven is diversified and strategy

revenues now $X.XXX in billion we 'XX, For an FX of to headwind billion with fiscal anticipate QX. $X.XXX expected

We're of implies million. We lower of Our approximately of reduction and approximately now organic quarter revenue X% full for debt thanks versus forecasting $X.XX. revenue QX anticipate to approximately adjusted $XXX growth interest costs. This EPS efforts 'XX the $X.XX of remains fourth the forecast our year, fiscal unchanged. EPS

Lastly, for us optionality we or to result and leverage to more, I'll and improved anticipate the deployment of maximize strong ample up questions. shareholder Operator? open upside to million our cash value. capital profile. With it moving free thanks forward financial drive is ratio that, The that allows continue flow $XXX

Operator

Oppenheimer of of from first line Company. [Operator Parikh the Instructions] question Our comes Rupesh &

Rupesh Parikh

Clear So Eyes. back to maybe going just

just we'll get think about from going perspective recovery the what normalized in-stock you're you when forward, to just us could an seeing within thinking you remind then back how the you're at If levels retail? And channel?

Ron Lombardi

quarter. a quarter, end we shipments quarter. out enabled the So with it levels to for Clear were ahead of warehouse Sales for bit for as the quarter-end the production little pretty the some of Eyes, of the in and some at timing line third were had in the get much expected -- us what

QX was that QX. between just So and differences timing

increase similar be but to going level anticipate that For production in we QX, again, continued a sales anticipate we because a QX, forward. slight of timing, of levels. to

So a levels best looking act and to continue make and to continue service to between levels we longer-term long-term objectives in-stock ahead, and support to to capacity investments it as while we improvements balancing can to support look the the suppliers be of continues allowing kind short- increases.

a couple the going we to each expect with So from forward, likely suppliers sales as suppliers we a increase the look we ramp network. of increases addition 'XX current retailers and up quarter see into additional to in supply half as forward of second the the continue slowly in our the to of

and slowly each is quarter this incrementally So improve going to forward, to going Rupesh. continue

Rupesh Parikh

going Okay. Great. QX. just maybe then back to And expectations for your

to gross expectation I was for before QX. margins in think increase the

puts of more just on look takes and the at year So the clarity on margin as you the gross line. balance the

Christine Sacco

really thing. step-up the for projects in been counting and start is have margin they'll gross a driven And couple that through of P&L number on so the of in Rupesh, the quarter. we're one any running by timing now initiatives. fourth works QX a not in the years, There's of cost-saving

Rupesh Parikh

takes year? final question. not maybe towards you're the know one initial any to as but there I Great. year, is And for and fiscal upcoming look forward then guidance just the puts fiscal give next you ready

Christine Sacco

Yes.

good have right? We up and head to the overall. about this fiscal sales and in We'll reported share finish So EPS. year solid as momentum how 'XX. May, have feeling business we We business, but just the into about we record more we're obviously, we that's feel think

Operator

line from of next Genuity. Anderson comes of Susan Our question Canaccord the

Susan Anderson

retail clean? cold It And the cough to Nice I was guess, quarter? fourth job Obviously, like I now Or talk inventory wondering end was about guess, at on clearing And then a is is really just you seem feel bit high season. I there? it across we, about could up right also, season can help picked weak. lately. bit the do maybe like little it this inventory does a out category? the is the the it's you little if going quarter.

Ron Lombardi

a isn't it I element portfolio like that of significant also start reminding talking sales. about cough/cold, percent X-ish of to our everybody at

of So only example really good, but season, or bad our the third cough/cold whether diverse of a needle. a that, it's the quarter not benefits indifferent the And it doesn't great is portfolio. move

cough/cold bit So us were quite in down -- a was sales the quarter. third for

the to at year, looks year. whole down be the to to beginning we point. bit For it's slightly that of down going this be the flat at a more anticipated it like than It

So despite in the at and ticked point. going January, December incident result I'm that's retailer up that to fact got finished up. I levels have we not sure think into reorders this as

fact, the takeaway in. of quarter, at be we've As above through a seen the matter shipments third shelf

built be with and they least So inventory our their at to the products our seem retailers, working for buy. that categories preseason down

sure not I'm point, reorder our anticipate for increase rates this at would in I products. any So

Susan Anderson

Okay. of if as and it's you Europe potentially well. moved the about if if then to maybe could helpful. if there. just have just exposure talk most talk Canada, more And Maybe could to China more manufacturing could now give is some tariffs the you there. know little you a U.S., also Mexico, color then kind any us your bit of exposure in that you also That's about Great. I just but

Christine Sacco

Tariff just derivative So that address. the just like is finished that we'll other clearer. the watching landscape cost on other for carefully understand would tariffs, just like we elements, we're for as cost goods, not and but better implications, everyone, any becomes

and While of we diversified, products from well some base. includes expected aggregate, supply that do business our be to impacted, the source our in countries the is

with fairly across vast as And our think remaining we the small countries As a unfold. advantage continents. other U.S. reminder, a strategic in versus is manufacturing the this majority manufacturing of and diversified others things is the

will the be we're unknowns variables. we of fluidity But the at for we There's the and given say prudent to I'd actions be to So a it time. pandemic period. agile through responsive still scenarios, running speculate out and wouldn't this different as we lot situation, the in there, need us were understand of our

Operator

of line from next comes question Our Keith Jefferies. of Davas the

Keith Devas

We some off the competitors back while drop Maybe benefited have can recovery. to quickly obviously the been guys eye just shelves. doubling have you see

think you how of from consumption you to you as the standpoint and to from So change stages a about promotional anything as the expecting -- are kind back evolve intensity the a you expect get of shelf? recovery, anything full on promotional

Ron Lombardi

leading by retail. Yes. the units far eye Clear Eyes at is brand care in

a So heritage connection transferability consumers. Clear we've in long with seeing SKUs We're for got Eyes. among

So if our be SKU Clear happens different Eyes. out consumers one location, a retail seeing reach a to for at we're

to connect go we them. So approach different to look continue need -- don't They're that Eyes or to the around going a for Clear we spending important activity product. to to have promotional It's with consumers.

want them be. aren't we levels in-stock to So and service levels aren't where exactly

that had long-term our the I demand the getting things to we're possible. sure product between and doing as earlier, balance on supply As soon as with as into making retailer focused support shelves we're right much network mentioned

So of we time. share expect be over that historic regain to we'll or levels retain able our

Keith Devas

obviously Hydralyte. Got just The successful. brand has And switching it. That's been then helpful. very maybe to

remaining You rights in other acquired markets. guys the

momentum some and just expected you maybe evolve of that on reinvestment some other put have adding you kind And what or and can from just brand to you expect plans see now the countries in to you brand that it so behind how context maybe rights contribution the the plan continuing? the and

Ron Lombardi

Yes.

Australia be an the to starting of classic building, care getting to think growing of case the brand in in core we how brand So with important market for as and its their think Hydralyte about of example health. continues long-term the element right, starters, Hydralyte's taking about of consumers hydration category

runway for didn't rest of ago, the those It And have So we except a was exception the Hydralyte China. regions we about world's And for with the presence. rights then bought Asia, there. got U.S. of tranche X the of recently, think of international any we long we most Southeast first the more years in territories, bought

slow distribution available they work So connect out and a a to then it's that for with them. consumers with the this -- right, benefits there's retailers to there going we offerings with that be as product network, a understand to work understand build build, and these with out so

consumer slow a to the way time but over So will term. a proposition that grow product a think we it will long nicely be over build in connect with

Operator

Our Blair. next of from of comes the line question Shakno David William

David Shakno

higher I just had many a have question on international I think it of was a expected. than bit us

that addition press that the from Hydralyte, broad of in on growth occurred? Can mentioned based some of outside that growth You Hydralyte. came to in expand where you

Ron Lombardi

Yes.

let maybe So start Chris. there, with I'll and I'll

had so the for if Zaditen, portfolio almost you think the there, I example, I the Care brand of all look business, think biggest brands Fess, across Murine, growth. actually for strong

cylinders, our not international business. seen this. of lot hitting that is So a this that Hydralyte I've isn't just first in we've time And care commented past on the the or

our growth well. South I nice European distributor also had in business nice America me, through business think small network as our in and excuse -- we

not the really Hydralyte, portfolio. So just broader it's

Operator

of next Linda line Our question the of D.A. Davidson. from comes Bolton-Weiser

Linda Bolton-Weiser

Congratulations on good the quarter.

And a like when So am curious the category? again, compete a into that, that's ]? of I on right you I about Dramamine, Fleet gives the category? of expansion you kind competing talked to of I wondering, kind heard the about the you I that can was new Dramamine, expansion I'm like I brand And makes was that like laxatives. brands, what in think [ oral mention Fleet, brand talked that guys about just that so, into anxiety. you the And if understanding wondering Is why big explain sense? an and on -- with then Metamucil

Ron Lombardi

Yes.

So Dramamine start first. with let me the Linda,

and So a for we launched nausea product that is stress.

So of tell being a to stress talk things cause go is they of nauseated. and when is consumers, the we to out us one attributed often that

done at last product fiscal -- of new us. we for And that, launched the that's I it's So there, so. very and or that's year think, the end retail well last

products, constipation-related fiber. for we've So launched not Fleet,

big constipation. the position into way inching are we're that more connecting category a have in we grounded into, brands So that's Fleet's in other serious players but of

products, got launched connecting and towards the with end stool again a distribution. slowly including we've out distribution and fiscal last of there actually we've number softeners, growing So year, digital that consumers online, of the growing we're

again, constipation relief. Fleet's So in will these fast and strong, of products positioned be the efficacious line with heritage

Linda Bolton-Weiser

POS at a story. wondering in it Okay. the does tell then the Nielsen That high. a get also remind Can makes looking on data, I like was year up prior in like and -- weeks, And harder which in whole to what bit you nevertheless, growth us you on that sense. comparisons the know I XX% does kind a range, the growth But ago? feel seem it comping the about coming do X% how little about not that is level? year POS all was pretty do of against

Ron Lombardi

feel We I variability guess. business. the a a really Super change other their step into look a people already heading the whether Yes. The are get minute, later or the at commented back good about in is we factors. dips stores so and week for in Bowl week-to-week in that to week or But GI year, this we to anyway, see right? POS later there's fact stuff, chips, momentum stuff, a that on weather our holidays we So

third in the were just one. at category, with for of every year-over-year North in we America, instance, go I about you exception think, quarter, look the up If I think

about into standpoint fourth and good to feel for trends portfolio, the Both and from across EPS for ability those a head we fourth outlook saw our the quarter. quarter. sales we we consumption So hit the broad-based performance strong a the and as

Linda Bolton-Weiser

Okay. just earnings cash the cash question And increase free the free then flow flow. last little curious, up a bump I'm guidance, my why on just in is there in wasn't with guidance?

Christine Sacco

Yes, Linda, it's Chris.

million guide or So $XXX [ more. more the or the ] I uptick original guess be the was would recent that part.

certainly about we're point. feeling the good at So to that, holding but flow this cash

Operator

line Our of next question comes Anthony of Company. from Sidoti & Lebiedzinski the

Anthony Lebiedzinski

as you're in margin, quarter, increase the I expecting so as an the know XX%. fourth So far gross sequentially

to guys prior you COVID, to I back XX%. guess, were Looking close

get out gross opportunity should historical -- that? back we into think there's how those Or here, think do look as you to if about to the As not, you we future an margins?

Christine Sacco

continue launch longer obviously, products. cost-saving we'll new continued the path so term, Anthony, of measures. We'll margin-accretive

And would so that fully creeping anticipate up time. we margin over

we're to manage low Just mid-XXs a reminder, a to margin. trying to EBITDA

So to the our A&M hold our in operating which change to is a likely or spend, moving, margins extent you're pretty G&A gross margin flat. see would income

for our that's margin we in the happening gross expectation we over that think can that's nothing recover So structural future, time. don't but

Anthony Lebiedzinski

now and That's great the the free the And cash off the of days? these to appetite And then business paying debt like -- debt you're that what's is, looking what's hear. the flows variable acquisitions? your with pipeline for

Christine Sacco

Yes.

our then second and investing M&A flow, So reduction, debt for opportunistic in cash repurchases certainly, followed by build come our now. after for cash focus brands, form in the free is which will of

out it. of But looking today, of for our been number we market. M&A at things. sit for We've disciplined. we remain there's a are at same all a out ever. something it. I forward here there. when that appetite And as move criteria. Our We haven't been pipeline, very as of now. healthy a lot of for is It's mean the We'll lot kind we years We're always find meets with it's well-defined we of as just say as the looking now, specific the

forward. remain a we just think of we'll at nature lot the opportunities and be there'll of continue going And the to disciplined, lot. look So a space, we'll given fragmented

Operator

you. Thank would conference turn for remarks. Sir? to like Lombardi Ron the now I back closing to

Ron Lombardi

you. today, a Thank an and in you, to Have and for us providing day. operator, May. thanks forward great to joining update look Thank everyone we

Operator

Thank conference call. concludes for today's call. This participating. you

You may disconnect. now

Prestige Consumer Healthcare (PBH) 6 Feb 252025 Q3 Earnings call transcript