Prestige Consumer Healthcare (PBH) Q4 2024 earnings summary

Executive summary

• FY24 revenue was $1,125.4M, down 0.2% reported and up 0.2% organically; adjusted net income was $211.3M and adjusted EPS was $4.21, flat YoY.

• Strong brand consumption and International OTC growth supported results, while late-Q4 supply constraints, concentrated in Eye Care, limited retailer order fulfillment.

Financial highlights

• Q4 revenue was $277.0M, down 3.1% reported and 2.9% organically; Q4 adjusted net income was $51.4M versus $53.7M and adjusted diluted EPS was $1.02 versus $1.07.

• FY24 gross profit was $624.4M, with a 55.5% margin versus 55.4% in FY23; Q4 gross margin was 54.8% versus 53.8%.

• FY24 adjusted operating income was $342.4M, down 1.5%; adjusted EBITDA was $373.9M, down 1.1%, with a 33.2% margin versus 33.5%.

• FY24 reported net income was $209.3M versus a net loss of $82.3M; diluted EPS was $4.17 versus a loss of $1.65.

Outlook and guidance

• FY25 revenue guidance is $1,125M–$1,140M, with organic growth of ~1% excluding FX.

• FY25 diluted EPS guidance is $4.40–$4.46, with 5%–6% growth expected from supply recovery, gross margin expansion, and lower interest expense.

• Supply challenges, largely in Eye Care, are expected through H1 FY25, with gradual improvement toward historic levels in H2.

• FY25 free cash flow is expected to be at least $240M; projected operating cash flow of $250M less $10M of capex reconciles to $240M.

• Long-term targets are 2.0%–3.0% organic growth and 6.0%–8.0% EPS growth, supported by high free cash flow and M&A.