Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q2 FY2016 Earnings Presentation
20 slides from Prestige Consumer Healthcare's earnings presentation, Nov 5, 2015
Slide 1: Review of Second Quarter FY 16 Results
Review of Second Quarter FY 16 Results November 5, 2015 Exhibit 99.2
Slide 2: Safe Harbor Disclosure
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 2 This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s product expansion and development plans, investments in brand building
Slide 3: Agenda for Today's Discussion
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 3 Agenda for Today’s Discussion I. Performance Highlights II. Financial Overview III. FY 16 Outlook and the Road Ahead
Slide 4: Performance Highlights
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 4
Slide 5: Solid Q2 Results; First Half Results In Line with Expectations
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 5 Solid Q2 Results First Half Results In Line with Expectations Q2 consolidated Revenue of $206.1 million, up 13.7% versus prior year Q2, and +17.1%(1) on a constant currency basis – First half consolidated Revenue growth of 21.8%, consistent with pr
Slide 6: Company on Track to Meet FY2016 Expectations
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 6 Solid Q2 Results Company on Track to Meet FY2016 Expectations Second Half up 0.5% to 1.5% Full year up 10% to 11% Full Year Revenue Outlook Full year estimate range of: $2.05 to $2.10(7) Expected to be at high end of the range Adjusted E.P.S.
Slide 7: Continued Core OTC Consumption Growth and Sales Momentum
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 7 Continued Core OTC Consumption Growth and Sales Momentum Source: IRI multi-outlet + C-Store retail dollar sales growth for relevant period. Data reflects retail dollar sales percentage growth versus prior period; FY’16 Organic sales growth presented
Slide 8: Q2 FY16 Core OTC Growth Broad Based, Led by Largest Brands
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 8 Q2 FY 16 Core OTC Growth Broad Based, Led by Largest Brands Core OTC Portfolio with Consumption Growth in Q2 FY 16 6.0% 13.3% 15.6% 16.2% 14.9% 10.5% Q1 Q2 Q3 Q4 Q1 Q2 Largest Brands Growing Above Categories 1.6% 2.5% 5.1% 4.6% 9.1% 8.0% Q1 Q2 Q3 Q4
Slide 9: Investment in Core OTC and International Driving Organic Growth
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 9 Core OTC International Other OTC Household Contribution to Portfolio: # of Brands: Investment: Targeted Mix Over Time(4)(5): 1H FY 16 % Organic Growth: (Constant Currency)(1) Invest for Growth Manage for Cash Flow Generation ~25% of Total Brands ~75%
Slide 10: Monistat Building Momentum One Year After Acquisition
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 10 Monistat Building Momentum One Year After Acquisition; +6% in 1H The Prestige 4-Part Plan for Monistat Success Began on Day 1 TV HCP Outreach Digital/Social Women Like Me – Online Support 1. Re-engage With Health Care Professionals (HCP) Create ne
Slide 11: Little Remedies: Core Pediatric Brand Expands With New GI Product
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 11 Little Remedies: Our Core Pediatric Brand Expands With New GI Product Expanding Product Offering: Little Remedies expands focus to include products for fast-growing digestive category to treat infant gas and colic Multi-Media Marketing Approach:
Slide 12: Luden's: A Classic Brand Engaging A New Generation
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 12 Luden’s: A Classic Brand Engaging A New Generation of Consumers Revitalized and modernized: Luden’s still retains its heritage and reputation for great taste for a new generation Marketing and NPD Working Together: Flavor line expansion, new siz
Slide 13: Financial Overview
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 13
Slide 14: Key Financial Results for Second Quarter Performance
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 14 Key Financial Results for Second Quarter Performance Solid overall financial performance in the quarter − Revenue of $206.1 million, an increase of 13.7% − Organic Revenue decline of (0.5%)(1) excluding the impact of foreign currency − Adjusted EP
Slide 15: Second Quarter and 1H Consolidated Financial Summary
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 15 FY 16 Second Quarter and 1H Consolidated Financial Summary Q2 Revenue growth of +13.7%, or +17.1%(1) on a constant currency basis Q2 Adjusted Gross Margin of 58.2%(2), consistent with full year outlook of 58.0% Q2 A&P of 13.5% of Total Revenue
Slide 16: Debt Profile & Financial Compliance
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 16 Debt Profile & Financial Compliance: Net Debt at 9/30/15 of $1,481 million comprised of: – Cash on hand of $22 million – $853 million of term loan and revolver – $650 million of bonds Leverage ratio(3) of ~5.0x Acquisition capacity exceeding ~
Slide 17: FY 16 Outlook and the Road Ahead
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 17
Slide 18: Staying the Strategic Course to Continue Shareholder Value Creation
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 18 Staying the Strategic Course to Continue Shareholder Value Creation − Good momentum heading into Q3 − Retail environment continues to present headwinds − Fx impact larger than anticipated of approx. +$12MM full year, no impact expected on EPS or FCF
Slide 19: Q&A
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 19 Q&A
Slide 20: Appendix
S e c o n d Q u a r t e r F Y 1 6 R e s u l t s 20 Appendix (1) Revenue Growth on a constant currency basis is a Non-GAAP financial measure and is reconciled to its most closely related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted Gr
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