Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — FY2024 Earnings Presentation
28 slides from Prestige Consumer Healthcare's earnings presentation, May 15, 2024
Slide 1: Full-Year FY 24 Results
M a y 1 5 th, 2 0 2 4 Full-Year FY 24 Results
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company’s expected financial performance, including revenues, organic revenue growth, diluted EPS, and f
Slide 3: Agenda for Today's Discussion
Agenda for Today’s Discussion I. FY 24 and Performance Recap II. Diverse Portfolio Driving Growth III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 25 Outlook FULL-YEAR FY 24 RESULTS 3
Slide 4: I. FY 24 and Performance Recap
I. FY 24 and Performance Recap FULL-YEAR FY 24 RESULTS
Slide 5: Proven Strategy & Execution Delivered Strong FY 24 Results
Proven Strategy & Execution Delivered Strong FY 24 Results ◼ Consistent performance in FY 24, with Organic Revenues(1) up slightly vs. PY FY 24 Sales ◼ Strong consumption growth; consumers continuing to seek out trusted brands Drivers ◼ Sales inhibited by temporary supply constraints late in Q4 ◼ Gr
Slide 6: Continued Active Management of Supply Chain
Continued Active Management of Supply Chain Well-Established ◼ Broad supply & sourcing is a key element of our strategy Long-Term ◼ Have been managing 100+ global supply partners for many years, with long-term Competencies trusted relationships ◼ Q4 supply challenges driven primarily by limited Eye
Slide 7: Long-Term Proven Business Attributes Unchanged
Long-Term Proven Business Attributes Unchanged Diverse Brand Capital Portfolio Building Allocation Diverse portfolio of category Brand-building enabling strong Lower leverage driving increased optionality leading brands consumption across iconic portfolio around long-term capital allocation Oral Car
Slide 8: II. Diverse Portfolio Driving Growth
II. Diverse Portfolio Driving Growth FULL-YEAR FY 24 RESULTS
Slide 9: Long-Term Performance Enabled by Brand-Building Strategy
Long-Term Performance Enabled by Brand-Building Strategy 1 Understanding Consumer Insights and Opportunity 2 Flexible & Agile Brand Strategies Responsive to Consumer Needs 3 E-Commerce Success through Investments 4 Consumer-Driven New Product Development Resulting Long-Term Success Across Channels &
Slide 10: Numerous Drivers of Success Across Categories
Numerous Drivers of Success Across Categories Eye & Ear Care Skin Care GI Omnichannel Campaigns & Innovation Attuned to Consumer Needs Driving Consumption Growth FULL-YEAR FY 24 RESULTS 10
Slide 11: Brand-building Strategies Enabled by Flexible Marketing
Brand-building Strategies Enabled by Flexible Marketing Monistat Maintain ◼ Full-funnel omnichannel campaign across entire ◼ Digital-first media campaign reminding women at or before their consumer journey moment of need to “Monistat that” ◼ New Summer’s Eve Ultimate Odor Protection off to a strong
Slide 12: Attractive International Business
Attractive International Business Key Brands in Key Geographies Growing International Presence Sustained Revenue Growth % Intl. Revenue Key Brands 21 – FY FY +50% 24 Australia ~15% 21% 52% 3- ~14% Y r C AG R Singapore & ROW 11% FY 24 22% 10% 11% oY * Y h Europe Growt 13% g-Term on L LatAm 5%+ et ro
Slide 13: Strong Online Growth via Strategic Conversion Campaigns
Strong Online Growth via Strategic Conversion Campaigns e POS G erc r m ow eCom th Continuing to * +8% Upgrade User Experience vs . F Y 2 3 ◼ Continued strong performance across all eCommerce partners Engaging Content Driving Traffic & Conversion *Retail sales as of 9.30.2023 FULL-YEAR FY 24 RESULTS
Slide 14: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation FULL-YEAR FY 24 RESULTS
Slide 15: Key Financial Results for Fourth Quarter and FY Performance
Key Financial Results for Fourth Quarter and FY 24 Performance FY 24 FY 23 (3.1%) Revenue of $277.0 million, down 2.9% vs. PY Q4 on an organic basis(1) driven by supply chain $277.0 $285.9 (7.3%) Q4 $90.4 $97.5 (4.7%) $1.02 $1.07 (3) (3) Revenue Adjusted EBITDA Adjusted EPS Adjusted EBITDA(3) of $90
Slide 16: Financial Results for FY 24
Financial Results for FY 24 3 Months Ended 12 Months Ended FY 24 Comments Q4 FY 24 Q4 FY 23 % Chg FY 24 FY 23 % Chg Total Revenue $ 277.0 $ 285.9 (3.1%) $ 1,125.4 $ 1,127.7 (0.2%) ◼ Revenue up slightly vs. PY organically(1) Gross Profit 151.8 153.8 (1.3%) 624.4 625.3 (0.1%) – Broad & diverse portfol
Slide 17: Consistent, Strong Free Cash Flow Continued in FY 24
Consistent, Strong Free Cash Flow Continued in FY 24 Adj. FY Free Cash Flow(3) & Net Leverage(4) Key Business Attributes Low Capital Expenditures Needs $254 $239 $222 $207 $213 $202 Leading Margin Profile 5.0x 4.7x 4.2x Long-Term 3.8x 3.3x Cash Tax Savings 2.8x Ongoing Focus on Profitability FY 19 F
Slide 18: Disciplined Capital Allocation Approach as Flexibility Increases
Disciplined Capital Allocation Approach as Flexibility Increases Organic Long-Term Algorithm… 1 Invest in Current Brands to Drive Organic Growth 2 Pursue M&A That is Attractive to Shareholders Ample Capacity to Pursue Brands & Portfolios of Scale Anticipate $1 billion+ total Free Cash Flow(5) 3 over
Slide 19: IV. The Road Ahead & FY 25 Outlook
IV. The Road Ahead & FY 25 Outlook FULL-YEAR FY 24 RESULTS
Slide 20: FY 25 Outlook
FY 25 Outlook ◼ Remain well-positioned in dynamic macro environment ◼ Continue to emphasize brand-building on leading brands ◼ Revenues of $1,125 to $1,140 million Top Line Trends — Organic growth of approximately 1% ex-FX — Anticipate supply disruptions to continue through first half but gradually
Slide 21: Robust Long-term Growth Algorithm Unchanged
Robust Long-term Growth Algorithm Unchanged Organic Long-Term Algorithm High Proven & Organic Growth(1) Free Cash Flow(3) Repeatable M&A of 2.0% to 3.0% Generation Strategy Current Leverage Supports Additional 6.0% to 8.0% EPS Growth Upside Potential Value Creating Capital Allocation Optionality Pro
Slide 22: Q&A
Q&A PrestigeConsumer HEALTHCARE
Slide 23: Appendix
Appendix (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release dated May 14, 2024 in the “About Non-GAAP Financial Measures” section. (2) Company consumption and
Slide 24: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended March 31, Year Ended March 31, 2024 2023 2024 2023 (In Thousands) GAAP Total Revenues $ 276,991 $ 285,869 $ 1,125,357 $ 1,127,725 Revenue Change (3.1%) (0.2%) Adjustments: Impact of foreign currency exchange rates - (580) - (4,284) T
Slide 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Year Ended March 31, 2024 2023 2024 2023 Adjusted Adjusted Adjusted Adjusted Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net (Loss) Income a
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow Three Months Ended March 31, Year Ended March 31, 2024 2023 2024 2023 (In Thousands) GAAP Net (Loss) Income $ 49,458 $ (240,552) $ 209,339 $ (82,306) Adjustments: Adjustments to reconcile net (loss) income to net cash provided by operating
Slide 27: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Year Ended March 31, 2021 Adjusted Net Income EPS (In Thousands, except per share data) GAAP Net Income $ 164,682 $ 3.25 Adjustments: Loss on extinguishment of debt 12,327 0.24 (a) Tax impact on adjustments (2,986) (0.06) (b) No
Slide 28: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow 2019 2020 2021 2022 GAAP Net Income $ (35,800) $ 142,281 $ 164,682 $ 205,381 Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 233,400 66,041 76,523 65,487
Prestige Consumer Healthcare — FY2024 Earnings Presentation on 6ix