Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — FY2023 Earnings Presentation
28 slides from Prestige Consumer Healthcare's earnings presentation, May 4, 2023
Slide 1: Full-Year FY 23 Results
M a y 4 th, 2 0 2 3 Full-Year FY 23 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, diluted EPS, leverage, free cash flow, and
Slide 3: Agenda for Today’s Discussion
Agenda for Today’s Discussion I. FY 23 and Performance Recap II. Diverse Portfolio Driving Growth III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 24 Outlook FULL-YEAR FY 23 RESULTS 3
Slide 4: I. FY 23 and Performance Recap
I. FY 23 and Performance Recap FULL-YEAR FY 23 RESULTS
Slide 5: Proven Strategy & Execution Delivered Record FY 23 Results
Proven Strategy & Execution Delivered Record FY 23 Results ◼ Strong sales growth in FY 23 up 3.8% vs. record FY 22 FY 23 Sales ◼ Consumers continuing to seek out trusted brands Drivers ◼ Benefitting from diverse portfolio across 7 key categories ◼ Gross Margin as anticipated; Adjusted EBITDA Margin(
Slide 6: History of Superior Performance
History of Superior 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% +12.4% 3-Yr CAGR
Slide 7: II. Diverse Portfolio Driving Growth
II. Diverse Portfolio Driving Growth FULL-YEAR FY 23 RESULTS
Slide 8: 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 9: Robust Growth Across Key Categories
Robust Growth Across Key Categories 3-Yr Organic Growth CAGR Numerous Drivers of Success GI 9% Skin Care 6% GI Work Travel Vomiting & Heat & Sports & Ear & Eye 4% Diarrhea Outdoor Exercise Cough & Cold 2% Skin Care Oral Care 2% Analgesics 2% Women's Health 0% Eye & Ear Care Portfolio Diversity Drivi
Slide 10: Strategic Focus Positions Us for Long-Term Growth
Strategic Focus Positions Us for Long-Term Growth 1 Understanding Consumer Insights and Opportunity 2 Flexible & Agile Brand Strategies in an Evolving Environment 3 E-Commerce Success through Investments 4 Proven New Product Development Resulting Long-Term Success Across Channels & Categories Over T
Slide 11: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation FULL-YEAR FY 23 RESULTS
Slide 12: Key Financial Results for Fourth Quarter and FY 23 Performance
Key Financial Results for Fourth Quarter and FY 23 Performance FY 23 FY 22 7.1% Revenue of $285.9 million, up 8.0% vs. PY Q4 on an organic basis(1) $285.9 $266.9 14.2% Q4 $97.5 $85.4 17.6% $1.07 $0.91 (3) (3) Revenue Adjusted EBITDA Adjusted EPS Adjusted EBITDA(3) of $97.5 million up 14.2% vs. PY Q4
Slide 13: Financial Results for FY 23
Financial Results for FY 23 3 Months Ended 12 Months Ended FY 23 Comments Q4 FY 23 Q4 FY 22 % Chg FY 23 FY 22 % Chg ◼ Revenue up 3.5% vs. PY organically(1) Total Revenue $ 285.9 $ 266.9 7.1% $ 1,127.7 $ 1,086.8 3.8% (3) – Broad & diverse portfolio helped to Adj. Gross Margin 153.8 148.9 3.3% 625.3 6
Slide 14: Consistent, Strong Free Cash Flow Continued in FY 23
Consistent, Strong Free Cash Flow Continued in FY 23 Adj. FY Free Cash Flow & Net Leverage(4) Key Business Attributes Model with $254 Low Capital Expenditures $240+ $222 $207 $213 $202 Leading Margin Profile 5.0x 4.7x 4.2x Long-Term 3.8x 3.3x Cash Tax Savings <3.0x Ongoing Focus on Profitability FY
Slide 15: Capital Allocation Priorities Remain Unchanged
Capital Allocation Priorities Remain Unchanged 1 2 Invest in Current Brands Continue Strategy of to Drive Organic Growth Deleveraging 3 4 Pursue M&A That is Strategic Share Accretive to Shareholders Repurchases FULL-YEAR FY 23 RESULTS 15
Slide 16: IV. The Road Ahead & FY 24 Outlook
IV. The Road Ahead & FY 24 Outlook FULL-YEAR FY 23 RESULTS
Slide 17: 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 Cash Flow 4 Scalable Platform 5 Organic Growth Engine Reinforced by M&A Prestige’s Business At
Slide 18: FY 24 Outlook
FY 24 Outlook ◼ Remain well-positioned in dynamic macro environment ◼ Anticipate diverse portfolio delivering organic growth off of record FY 23 ◼ Revenue of $1,135 million to $1,140 million Top Line Trends — Organic growth of 1% to 2% ex-FX — Organic growth of 2% to 3% when excluding strategic exit
Slide 19: Q&A
Q&A PrestigeConsumer HEALTHCARE
Slide 20: 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 4, 2023 in the “About Non-GAAP Financial Measures” section. (2) Company consumption and m
Slide 21: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Total Revenues $ 285,869 $ 266,936 $ 1,127,725 $ 1,086,812 Revenue Change 7.1% 3.8% Adjustments: Revenues associated with acquisition(a) - - (12,624) - Impact of
Slide 22: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted G&A a) Includes tradename impairment of $1.1 million in both the three months and year ended March 31, 2022. b) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees. F
Slide 23: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Margin Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Net (Loss) Income $ (240,552) $ 52,086 $ (82,306) $ 205,381 Interest expense, net 18,976 15,973 69,164 64,287 Provision for income taxes (58,970) 8,87
Slide 24: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 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 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow Three Months Ended March 31, Year Ended March 31, 2023 2022 2023 2022 (In Thousands) GAAP Net (Loss) Income $ (240,552) $ 52,086 $ (82,306) $ 205,381 Adjustments: Adjustments to reconcile net (loss) income to net cash provided by operating
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow 2019 2020 2021 GAAP Net Income $ (35,800) $ 142,281 $ 164,682 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 Changes in operating a
Slide 27: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Organic Revenue Change a) Revenues of our Akorn acquisition for the year ended March 31, 2023 are excluded for purposes of calculating Non-GAAP organic revenues. FULL-YEAR FY 23 RESULTS 27
Slide 28: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Three Year Months EndedEnded MarchMarch 31, 31, Year Ended March 31, 2021 2020 2021 2021 2020 2020 2021 2020 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Net Income EPS Net Income E
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