The following is a summary of the Prestige Consumer Healthcare Inc (PBH) Q4 2024 Earnings Call Transcript:
Financial Performance:
Prestige's Q4 performance fell short due to supply chain pressures and unfulfilled retailer orders but still generated a free cash flow of approximately $240 million for the full year.
The company achieved significant deleveraging with a year-end leverage ratio of 2.8, the lowest in its history.
Fiscal 2024 revenue and adjusted EPS remained unchanged compared to the previous year with Q4 experiencing a revenue drop of 2.9% organically.
For fiscal '25, the revenue is expected to range from $1.125 - $1.140 billion with an organic revenue growth of approximately 1%.
The company plans to initiate a multiyear $300 million share repurchase program with similar cash generation as '24.
Business Progress:
In response to supply chain disruptions, the company is implanting a supply chain continuity strategy and has started commercial production of certain Monistat products.
The international segment witnessed a 10% organic revenue growth and contributes around 15% of the company's sales.
Despite current setbacks, Prestige anticipates strong consumption growth and expects e-commerce growth through strategic investment.
With supply chain issues for Clear Eyes brand and disruptions in Women's Health category, the company foresees recovery over the first half of fiscal '25.
The company Board approved a $300 million multiyear stock buyback plan aimed at offsetting share dilution, and they are considering disciplined M&A as a secondary priority.
More details: Prestige Consumer Healthcare IR
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