TARRYTOWN, N.Y., Aug. 03, 2023 (GLOBE NEWSWIRE) — Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its first quarter ended June 30, 2023.
“We are pleased with our first quarter results that delivered a strong start to the year. Solid Q1 revenue and profit growth were slightly ahead of our expectations, thanks to our leading and diversified portfolio of brands. Our strategic priority of disciplined capital deployment remains unchanged, and during Q1 we completed our share repurchase program while further reducing debt and leverage,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.
First Fiscal Quarter Ended June 30, 2023
Reported revenues in the first quarter of fiscal 2024 of $279.3 million increased 0.8% from $277.1 million in the first quarter of fiscal 2023. Revenues increased 1.8% excluding the impact of foreign currency. The solid revenue performance for the quarter was broad-based across North America, partially offset by a slight decline in the International OTC segments versus the prior year comparable period.
Reported net income for the first quarter of fiscal 2024 totaled $53.3 million, compared to the prior year first quarter’s net income of $55.3 million. Diluted earnings per share of $1.06 for the first quarter of fiscal 2024 compared to $1.09 in the prior year comparable period.
Free Cash Flow and Balance Sheet
The Company’s net cash provided by operating activities for first quarter fiscal 2024 was $48.1 million, compared to $58.2 million during the prior year comparable period. Non-GAAP free cash flow in the first quarter of fiscal 2024 was $46.6 million compared to $57.2 million in the prior year first quarter, with the change attributable to the timing of working capital expenditures.
In the first quarter fiscal 2024, the Company repurchased approximately 0.4 million shares at a total investment of $25.0 million, completing its previously authorized share repurchase program.
The Company’s net debt position as of June 30, 2023 was approximately $1.3 billion, resulting in a covenant-defined leverage ratio of 3.2x.
Segment Review
North American OTC Healthcare: Segment revenues of $246.1 million for the first quarter fiscal 2024 increased 1.5% compared to the prior year comparable quarter’s segment revenues of $242.5 million. The revenue performance for the quarter was driven by strong performance across many brands and led by the Dermatological and Gastrointestinal categories.
International OTC Healthcare: Fiscal first quarter 2024 revenues were $33.2 million compared to $34.5 million reported in the prior year comparable period. The slight decline in revenue versus the prior year first quarter was driven by a $1.9 million currency headwind.
Commentary Reaffirming Outlook for Fiscal 2024
Ron Lombardi, Chief Executive Officer, stated, “Our strong start to fiscal ’24 is fueled by robust growth in multiple categories such as Dermatological and Gastrointestinal, and highlights the impact of our long-standing brand-building across our diverse portfolio. Meanwhile, we continued to generate strong profitability and free cash flow that allowed us to reduce our leverage to 3.2x at the end of Q1, even with our $25 million share repurchase that drove additional shareholder value.”
“We are reaffirming our fiscal 2024 outlook that includes solid sales and earnings growth that builds off our record fiscal 2023 performance. We remain focused on executing our proven business strategy and leveraging our diverse portfolio of brands to create shareholder value,” Mr. Lombardi concluded.
| Reaffirmed Fiscal 2024 Outlook | |
| Revenue | $1,135 to $1,140 million |
| Organic Revenue Growth | 1% to 2% |
| Diluted E.P.S. | $4.27 to $4.32 |
| Free Cash Flow | $240 million or more |
About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare is a leading consumer healthcare products company with sales throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women’s health products, BC® and Goody’s® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden’s® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company’s website at www.
