Prestige Consumer Healthcare Q1 Earnings Call Highlights

Prestige Consumer Healthcare NYSE: PBH reported first-quarter fiscal 2027 revenue growth of 6.5%, supported by broad-based category strength, the initial contribution from its Breathe Right acquisition and retailer order timing. The company raised its reported full-year outlook to incorporate Breathe Right and LaCorium Health while maintaining its prior outlook for organic revenue growth. First-quarter revenue rose to $265.7 million from $249.5 million a year earlier. Organic revenue, excluding foreign exchange effects and the Breathe Right acquisition, increased 3.2%. Adjusted diluted earnings per share increased to $0.98 from $0.95, while adjusted EBITDA rose 5.5%.

North America organic revenue increased 4.2%, led by gastrointestinal brands Fleet and Dramamine and dermatological growth driven by Compound W. The company also cited solid growth for TheraTears and Debrox, which helped offset weaker Clear Eyes sales amid continued supply constraints. Lombardi said Prestige is investing in its Pillar5 sterile ophthalmic manufacturing facility to improve supply consistency and expand long-term capacity for Clear Eyes. The company expects output variability to continue during the first half of fiscal 2027, including the second quarter, before greater stability supports sequential improvement in eye-care shipments during the second half. Clear Eyes represents less than 3% of sales today, according to Senior Vice President, General Counsel and Corporate Secretary Bill P’Pool. Lombardi described the effort to restore the brand as a multiyear process involving consistent supply, rebuilding safety stocks, restoring the full SKU offering and eventually increasing advertising and marketing support.

International organic revenue declined 2.1% in the quarter, reflecting the timing of distributor orders despite positive consumption trends. Prestige continues to expect the segment to return to its long-term organic growth target of at least 5% for the full year. Chief Financial Officer and Chief Operating Officer Chris Sacco said e-commerce consumption continued to grow at a double-digit rate. However, some e-commerce order timing benefited the first quarter at the expense of the second quarter. Retailer order timing contributed roughly two percentage points of first-quarter growth, Sacco said.

Prestige completed the acquisition of the Breathe Right portfolio on June 12 and acquired Australia-based LaCorium Health on July 1. The Breathe Right portfolio contributed $5.9 million of first-quarter revenue.