Prestige Consumer Healthcare (PBH) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was $267.1 million, down 4.4% year-over-year but exceeded expectations due to strong Eye & Ear Care sales timing and international growth, despite supply chain and category headwinds.

• Net income for Q1 FY2025 was $49.1 million, with adjusted EPS of $0.90, both down from the prior year but above internal expectations.

• Free cash flow increased to $53.6 million, up double digits year-over-year, supporting a stable financial profile.

• Brand-building and innovation in women's health (Monistat, Summer's Eve) and eye care (TheraTears, Debrox, Stye) supported portfolio resilience, with Summer's Eve and Hydralyte showing positive momentum.

• The company continues to face supply chain constraints, inflationary pressures, and labor shortages impacting operations and costs.

Financial highlights

• Q1 revenue was $267.1 million, down 4.4% year-over-year (4.3% excluding FX); organic revenue declined 4.3%.

• Adjusted EPS was $0.90, down from $1.06 last year but above expectations; net income was $49.1 million.

• Free cash flow grew to $53.6 million, up from $46.6 million year-over-year.

• Gross margin was 54.7%, down from 55.4% last year due to air freight and inflation.

• EBITDA was $79.7 million (29.8% margin), down from $94.0 million (33.6% margin) last year.

Outlook and guidance

• Full-year FY2025 revenue expected at $1,125–$1,140 million, with organic growth of ~1%.

• Adjusted EPS guidance reaffirmed at $4.40–$4.46 for FY2025, representing 5–6% growth.

• Free cash flow outlook maintained at $240 million or more.

• Q2 revenue expected at $282 million, down slightly year-over-year due to Clear Eyes timing; supply disruptions anticipated to resolve by end of Q2.

• Management expects continued volatility and uncertainty in economic conditions, with ongoing supply chain, inflation, and labor challenges potentially impacting future results.