Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Oppenheimer Annual Consumer Growth and E-Commerce Conference 2024
29 slides from Prestige Consumer Healthcare's conference presentation, Jun 10, 2024
Slide 1: Oppenheimer Annual Consumer Growth and E-Commerce Conference
June 10, 2024 Oppenheimer Annual Consumer Growth and E-Commerce Conference
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: Contents Overview
Contents Overview I. Introduction to Prestige Consumer Healthcare II. Brand-Building Playbook III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 25 Outlook JUNE 2024 INVESTOR PRESENTATION 3
Slide 4: I. Introduction to Prestige Consumer Healthcare
I. Introduction to Prestige Consumer Healthcare JU J UN NE E2 20 02 24 4I NI NV VE ES ST TOOR RP PR RE ES SE EN NT TA AT TI OI ON N
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 JUNE 2024 INVESTOR PRESENTATION 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 10% Motion Sickness 21% Cough & Allergy & Redness Relief Drop Cold 11% Dry Eye Relief
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 +6.1% +9.1% 3-
Slide 8: II. Brand-building Playbook
II. Brand-building Playbook JU J UN NE E2 20 02 24 4I NI NV VE ES ST TOOR RP PR RE ES SE EN NT TA AT TI OI ON N
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 Consumer-Driven New Product Development Resulting Long-Term Success Across Channels & Categ
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 Bran d Vomiting Heat & Sports & Work Travel & Diarrhea Outdoor Exercise Market Opportunity Long-T
Slide 12: 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 13: 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 14: 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% Continuing to ~13% Upgrade User ~11% Experience ~5% Engaging Content Driving Traffic & FY 20 FY 21 FY 22 FY 23 FY 24 Conversion ◼ Well-positioned due to early investments in E- Co
Slide 15: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation JU J UN NE E2 20 02 24 4I NI NV VE ES ST TOOR RP PR RE ES SE EN NT TA AT TI OI ON N
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 JU J UN NE E2 20 02 24 4I NI NV VE ES ST TOOR RP PR RE ES SE EN NT TA AT TI OI ON N
Slide 20: 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 21: 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 22: 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 23: Appendix / Q&A
Appendix / Q&A JUNE 2024 INVESTOR PRESENTATION
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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