Q1 2026 Prestige Consumer Healthcare Inc Earnings Call Transcript
Key Points
- Prestige Consumer Healthcare Inc (PBH) experienced strong international segment growth with a 7.1% increase in revenues.
- The company achieved a gross margin expansion of 150 basis points to 56.2%, driven by ongoing cost savings efforts.
- Free cash flow reached a quarterly record of $78 million, enabling capital deployment to enhance shareholder value.
- Prestige Consumer Healthcare Inc (PBH) repurchased over 400,000 shares, maintaining a leverage ratio of approximately 2.4 times.
- The acquisition of Pillar 5 is expected to secure and expand long-term supply for the eye care segment, with a new high-speed line anticipated to start production in Q3.
- Q1 sales were approximately $250 million, falling short of the $258 to $260 million forecast due to supply chain constraints in the eye care segment.
- The company faced a significant shortfall in Clear Eyes sales due to a longer-than-anticipated production shutdown.
- North America's segment revenues decreased by 8.4%, contributing to an overall revenue decline of 6.4% organically.
- The retail environment showed increased order volatility, impacting Q2 revenue expectations.
- Prestige Consumer Healthcare Inc (PBH) adjusted its full-year revenue outlook downward, anticipating a 1.5% to 3% organic revenue decline.
Good day and thank you for standing by.
Welcome to the Q1 2026 prestige Consumer Healthcare earnings conference call. At this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question and answer session.
To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised.
To withdraw your question, please press 11 again.
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Phil Turperlili, Vice President, Investor Relations and Treasury. Please go ahead.
Thanks, operator, and thank you to everyone who's joined today on the call with me Ion Lombardi, our Chairman, President and CEO, and Christine Tech, our CFO and COO.
On today's call, we'll review our first quarter fiscal 2026 results, discuss our full year outlook
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