Prestige Consumer Healthcare (PBH) Q1 2027 earnings summary

Executive summary

• Q1 revenue reached $265.7 million, up 6.5% year-over-year, with organic growth of 3.2% and strong performance in GI and Dermatological categories; acquisitions of Breathe Right® and LaCorium completed, expected to add over 20% to annualized revenue.

• Adjusted EBITDA rose 5.5% to $84.1 million, and adjusted diluted EPS increased to $0.98 from $0.95; reported diluted EPS was $0.61 due to acquisition-related costs.

• Record adjusted free cash flow of $83.7 million was generated, supporting capital allocation flexibility and rapid deleveraging.

• Net income declined to $29.2 million from $47.5 million year-over-year, primarily due to higher acquisition-related costs and increased interest expense.

• Gross profit margin declined to 51.3% from 56.2% year-over-year, impacted by acquisition-related inventory step-up and facility optimization costs.

Financial highlights

• Adjusted gross margin was 55.0%, down from 56.2% year-over-year; GAAP gross margin was 51.3%.

• Adjusted EBITDA margin was 31.6%; operating margin was 19.8%, down from 28.8% year-over-year.

• Adjusted operating income grew 4.9% to $75.3 million; operating income was $52.5 million, down from $71.8 million year-over-year.

• Adjusted net income for Q1 was $46.5 million.

• Net cash from operating activities was $70.8 million; adjusted free cash flow was $83.7 million.

Outlook and guidance

• Fiscal 2027 revenue guidance raised to $1.290–$1.315 billion, reflecting acquisition contributions and organic growth of 1–3%.

• Adjusted diluted EPS guidance increased to $4.55–$4.65; adjusted free cash flow expected to be at least $270 million.

• Gross margin anticipated just above 57% due to acquisitions.

• Management expects continued volatility in economic conditions, with ongoing supply chain and inflationary pressures.

• Debt reduction remains a priority for the remainder of FY27.