Prestige Consumer Healthcare Reports $249.5M Revenue, Plans Acquisition of Pillar5 Pharma

Prestige Consumer Healthcare Inc. reported total revenues of $249.5 million for the three months ended June 30, 2025, reflecting a decrease of $17.6 million, or 6.6%, compared to $267.1 million in the same period last year. The decline was primarily driven by a significant drop in sales within the Eye & Ear Care and Dermatologicals categories, particularly due to supply constraints affecting the Clear Eyes product line. Despite the overall revenue decrease, the International OTC Healthcare segment saw a revenue increase of $2.1 million, or 6.1%, attributed to growth in the Women's Health and Dermatologicals categories.

The company's gross profit for the quarter was $140.3 million, down from $146.0 million a year earlier, marking a decrease of $5.7 million, or 3.9%. However, gross profit as a percentage of total revenues improved to 56.2%, up from 54.7% in the prior year, largely due to a favorable product mix and reduced air freight costs. Operating income was reported at $71.8 million, slightly down from $72.0 million in the previous year, while net income decreased to $47.5 million from $49.1 million, resulting in diluted earnings per share of $0.95 compared to $0.98 in the prior year.

In terms of operational developments, Prestige Consumer Healthcare has been actively managing its supply chain amid ongoing economic uncertainties, including inflation and global supply chain disruptions. The company has experienced shortages and delays in product availability, particularly affecting its eye care products. As of June 30, 2025, the company had cash and cash equivalents of $139.5 million, an increase of $41.6 million from the previous quarter, supported by a net cash provided by operating activities of $79.0 million, up from $54.8 million a year earlier.

Strategically, Prestige Consumer Healthcare announced plans to acquire Pillar5 Pharma Inc., a leading sterile ophthalmic manufacturer, for approximately $100 million. This acquisition is part of the company's long-term strategy to enhance its eye care production capacity and is expected to close in the third quarter of fiscal 2026. The company continues to focus on expanding its product offerings and market presence, leveraging its established distribution network and brand strength.

Looking ahead, Prestige Consumer Healthcare anticipates ongoing challenges due to economic volatility, including potential impacts on demand and pricing pressures. The company remains committed to navigating these challenges while pursuing growth through strategic acquisitions and product innovation. Management expects that cash generated from operations, along with existing credit facilities, will be sufficient to support working capital and capital expenditures in the near term.