Prestige Consumer Healthcare (PBH) Small-Cap Virtual Conference summary

Strategic overview and investment thesis

• Focuses on leading, needs-based OTC brands with a three-pillar strategy: brand investment, efficient operations, and strong free cash flow generation.

• Maintains gross margin guidance of about 57% and EBITDA margin in the low to mid 30% range.

• Free cash flow guidance for the year is $270 million or more, supporting M&A, debt reduction, and share repurchases.

Recent performance and key drivers

• FY 2026 revenue declined 4.3% due to supply constraints in the Clear Eyes brand, while free cash flow remained strong at $246 million.

• Organic growth guidance for the next three years is 2%-3%, with top-line CAGR of about 10%.

• Clear Eyes supply remains the largest variable impacting near-term and FY 2027 guidance.

Consumer behavior and channel trends

• Needs-based products see consistent demand, with minimal trade-down to private label.

• Consumers are shifting from higher-priced channels to value retailers like Walmart, dollar stores, and Amazon.

• Channel management ensures profitability is maintained despite these shifts.