Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Consumer Analyst Group of New York (CAGNY) 2024 Luncheon
26 slides from Prestige Consumer Healthcare's conference presentation, Mar 7, 2024
Slide 1: CAGNY Luncheon Presentation
March 7, 2024 CAGNY Luncheon Presentation
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, diluted EPS, leverage, free cash flow, and
Slide 3: Contents Overview
Contents Overview I. Introduction to Prestige Consumer Healthcare II. Brand-Building Playbook III. Financial Strategy & Capital Allocation IV. The Road Ahead CAGNY PRESENTATION MARCH 2024 3
Slide 4: I. Introduction to Prestige Consumer Healthcare
I. Introduction to Prestige Consumer Healthcare C CA AGGN NY YP PR RE ES SE EN NT TA AT TI OI ON NMMA AR RC CH H2 20 02 24 4
Slide 5: Who We Are: Helping Consumers Care for Themselves
Who We Are: Helping Consumers Care for Themselves eye drops per year throat drops for every cold season doses of pain relief per week infections treated annually CAGNY PRESENTATION MARCH 2024 5
Slide 6: Diversified Portfolio of Leading Consumer Healthcare Brands
Diversified Portfolio of Leading Consumer Healthcare Brands Total Sales by Category Diverse Portfolio of Market-Leading Brands Oral Feminine Hygiene Care Vaginal Anti-Fungal Analgesics 9% Women’s Health Rehydration 11% Motion Sickness 23% Skin Allergy & Redness Relief Drop Care 11% Dry Eye Relief Tr
Slide 7: Proven Strategy Delivers Long-Term Performance
Proven Strategy Delivers Long-Term Performance Proven Ability to Execute Value Creation Strategy 1 Investing for Growth with Proven Brand-Building Playbook 2 Superior Business Attributes Drive Strong Free Cash Flow 3 Scalable & Efficient Platform Enables Capital Allocation Optionality +5.4% +3.5% +1
Slide 8: II. Brand-building Playbook
II. Brand-building Playbook C CA AGGN NY YP PR RE ES SE EN NT TA AT TI OI ON NMMA AR RC CH H2 20 02 24 4
Slide 9: Brand-Building Focus Positions Us for Long-Term Growth
Brand-Building Focus Positions Us for Long-Term Growth 1 Understanding Consumer Insights and Opportunity 2 Flexible & Agile Brand Strategies in a Dynamic Environment 3 E-Commerce Success through Investments 4 Proven New Product Development Result: Long-Term Success & Differentiation Across Channels
Slide 10: Dramamine: Thinking Beyond Motion Sickness
Dramamine: Thinking Beyond Motion Sickness Broadened Motion Sickness Offering Expanding an Iconic Brand into Nausea Robust Digital Campaigns Supporting Brand 2011 New Forms & Flavors #1 Brand* in Motion Sickness Leading brand* in Nausea Successful Brand Building Resulting in Approximate +8% 10-Year
Slide 11: Growth Through Execution of Proven Playbook
Growth Through Execution of Proven Playbook Brand-Building Playbook to Increase Penetration Category-Defining Brand Product Extensions & Solutions Robust Digital & Retail Marketing Rehydra Oral tio n #1 B ra n d Vomiting Heat & Sports & Work Travel & Diarrhea Outdoor Exercise Market Opportunity Long
Slide 12: E-Commerce: Winning in Consumer Shift to Online
E-Commerce: Winning in Consumer Shift to Online E-Commerce as a % of Net Sales Numerous Drivers of Success +3x ~15% ~14% Investment in ~13% Online User ~11% Experience ~5% Engaging Digital Campaigns FY 20 FY 21 FY 22 FY 23 FY 24 E ◼ Well-positioned due to early investments in E- Commerce behind bran
Slide 13: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation C CA AGGN NY YP PR RE ES SE EN NT TA AT TI OI ON NMMA AR RC CH H2 20 02 24 4
Slide 14: Third Quarter and YTD FY24 Performance Highlights
Third Quarter and YTD FY24 Performance Highlights FY24 FY23 2.6% Revenue of $282.7 million, up 2.6% vs. PY on an organic basis(1) $282.7 $275.5 (0.4%) Q3 $ 93.8 $94.2 2.2% $1.06 $1.04 (3) Revenue EBITDA EPS EBITDA(3) of $93.8 million, down 0.4% vs. PY, owing to timing of A&M investments 0.8% $848.4
Slide 15: Robust Free Cash Flow Profile Enabled by Key Attributes
Robust Free Cash Flow Profile Enabled by Key Attributes Strategic Business Model Attributes Strong FCF Supports Leverage Profile Low Capital Expenditures $240+ Million FY 24 Free Cash Flow Outlook(3) Leading Margin Profile Long-Term Cash Tax Savings Tranches >100% ~7% Ongoing Focus on Profitability
Slide 16: Positioned for Continued Strong Free Cash Flow
Positioned for Continued Strong Free Cash Flow Adj. Free Cash Flow & Leverage Capital Allocation Highlights Efficient & manageable debt at 2.9x Net Adj. FCF (3) (5) $254 $240+ Leverage(4) and $1.1B in Net Debt at 12/31 $222 $207 $213 FY 20 FY 21 FY 22 FY 23 FY 24 E 80%+ of debt outstanding at fixed
Slide 17: Lower Leverage Reshuffles Capital Deployment Opportunities
Lower Leverage Reshuffles Capital Deployment Opportunities Capital Deployment Priorities Plentiful U.S. OTC M&A Opportunities Remain* 200 Invest in Current Brands to Drive 1 150 # of Brands Organic Growth 100 Pursue M&A That is Accretive to 2 Shareholders 50 0 >$200M $50-200M $20-50M $5-20M 3 Share
Slide 18: IV. The Road Ahead
IV. The Road Ahead C CA AGGN NY YP PR RE ES SE EN NT TA AT TI OI ON NMMA AR RC CH H2 20 02 24 4
Slide 19: Portfolio & Strategy Well-Positioned for Continued Value Creation
Portfolio & Strategy Well-Positioned for Continued Value Creation 1 Diversified Portfolio of Leading, Trusted Brands 2 Established Organic Growth Playbook 3 Superior Financial Profile Generating Consistent Free Cash Flow 4 Scalable Platform 5 Organic Growth Reinforced by Proven & Repeatable M&A Stra
Slide 20: Portfolio Designed for Strong Long-Term Financial Performance
Portfolio Designed for Strong Long-Term Financial Performance Organic Long-Term Algorithm Proven & High Repeatable Organic Growth(1) Free Cash Flow(3) Capital of 2.0% to 3.0% Generation Deployment Strategy Current Leverage Supports Additional 6.0% to 8.0% EPS Growth Value Creating Capital Allocation
Slide 21: Q&A
Q&A CAGNY PRESENTATION MARCH 2024
Slide 22: 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 releases in the “About Non-GAAP Financial Measures” section. (2) Company consumption and market share are b
Slide 23: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 (In Thousands) GAAP Total Revenues $ 282,741 $ 275,524 $ 848,366 $ 841,856 Revenue Change 2.6% 0.8% Adjustments: Impact of foreign currency exchange rates - 55 - (3,704)
Slide 24: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 (In Thousands) GAAP Net Income $ 53,046 $ 51,951 $ 159,881 $ 158,246 Interest expense, net 16,575 17,917 51,900 50,188 Provision for income taxes 16,529 16,166 48,8
Slide 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Free Cash Flow Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 (In Thousands) GAAP Net Income $ 53,046 $ 51,951 $ 159,881 $ 158,246 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Free Cash Flow 2019 2020 2021 2022 2023 GAAP Net Income $ (35,800) $ 142,281 $ 164,682 $ 205,381 $ (82,306) 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
Prestige Consumer Healthcare — Consumer Analyst Group of New York (CAGNY) 2024 Luncheon on 6ix