The following is a summary of the Prestige Consumer Healthcare Inc (PBH) Q2 2025 Earnings Call Transcript:
Financial Performance:
Q2 revenue reached $283.8 million, a slight decline of 0.9% from the previous year due to Clear Eyes supply chain constraints.
Gross margin was approximately stable to the prior year; Q2 earnings per share (EPS) was $1.09, slightly up from the previous year.
Strong free cash flow of $68 million in Q2, reflecting an increase versus the previous year.Operating leverage was maintained with a disciplined capital deployment, reducing debt by $40 million, resulting in leverage decline to 2.7x.
Business Progress:
Significant growth in the International segment and Canadian portfolio, particularly with brands like Hydralyte and Gaviscon.
Continued strategic investments in brand-building and product innovation, notably the new Gaviscon Flavor Blend in Canada.
Sequential improvements in Summer's Eve sales, aiming for brand growth rebound.
Opportunities:
International market expansion, notably with the Hydralyte and Gaviscon brands, demonstrating robust growth outside the U.S.
New product introductions and digital marketing strategies to enhance brand performance and consumer engagement.
Risks:
Persistent supply chain constraints impacting Clear Eyes product availability, with gradual improvements expected in Q3.
High dependency on strategic partnerships and upgrades for long-term supply chain reliability and inventory recovery.
More details: Prestige Consumer Healthcare IR
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