Inquired if the accretion for Breathe Right was still in the same ballpark as previously thought, and noted LaCorium had little initial accretion assumed.

Chris Sacco confirmed the annualized accretion for Breathe Right was still expected to be around $0.25, with some temporary variability in the first couple of quarters due to timing and initial integration costs. LaCorium had minimal initial accretion assumed. “For Breathe Right, we talked about an annualized rate of about $0.25 of accretion, right? And in a normal environment, I would say we absolutely still support that.”

Asked about the strong 57% gross margin outlook, current cost pressures, and long-term margin opportunities with new M&A.

Chris Sacco clarified the revised gross margin guide is entirely due to acquisitions, with the base business guide unchanged. She noted primary cost pressure from diesel but stated the company manages to a low to mid-30s EBITDA margin, reinvesting cost savings into the business. “on the gross margin revised guide up, it's entirely based on the acquisitions. We're holding our base guide for gross margin.”

Asked for an update on Clear Eyes' current position relative to its peak, progress at Pillar5, and the timeline for regaining market leadership.

Ron Lombardi stated Clear Eyes is significantly down from peak due to supply issues. He outlined a multi-year recovery plan: consistent high-quality supply from Pillar5 (expected to improve in H2 FY27), rebuilding safety stocks, restoring full SKU offering, and reinvesting in marketing. Phil Terpolilli noted Clear Eyes is less than 3% of sales today. “clearly, the Clear Eyes franchise is down significantly from its peak levels a few years ago, right, again, driven by product availability.”

PBH

Prestige Consumer Healthcare (PBH) Q1 FY27 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q1 FY27)· Health Care· Aug 6, 2026

Source: earnings call transcript

Executive summary

Prestige Consumer Healthcare Q1 FY27 — Strong Start with Strategic Acquisitions and Record Free Cash Flow

Prestige Consumer Healthcare delivered a strong Q1 FY27, exceeding sales and earnings expectations, driven by a diversified portfolio and strategic acquisitions. The company successfully integrated the Breathe Right portfolio and LaCorium Health, enhancing diversification and scale. Despite some supply volatility for Clear Eyes and international order timing, management remains confident in its full-year outlook, emphasizing disciplined capital allocation and debt reduction.

Highlights

Sales increased 6.5% to $265.7 million, reflecting broad-based strength across the portfolio.
Adjusted free cash flow reached a quarterly record of $83.7 million, providing additional capital allocation flexibility.
Successfully completed integration of the Breathe Right portfolio (contributing $5.9 million revenue in Q1) and LaCorium Health acquisitions.
North America organic revenue grew 4.2%, led by strong performance in GI (Fleet, Dramamine) and dermatologicals (Compound W).
Full-year FY27 revenue guidance raised to $1.29 billion-$1.315 billion, and adjusted diluted EPS guidance raised to $4.55-$4.65, driven by acquisitions.

Concerns

Clear Eyes sales were below expectations due to supply constraints, leading to a decline in brand revenue in Q1.
International segment organic revenue decreased 2.1% versus prior year, affected by the timing of distributor orders.
Adjusted gross margin was down 120 basis points versus the prior year, primarily due to higher transportation costs and mix.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year FY27 Revenue	$1.29 billion-$1.315 billion high materiality	FY27	High
Full-year FY27 Organic Revenue Growth	1%-3% high materiality	FY27	High
Full-year FY27 Adjusted Diluted EPS	$4.55-$4.65 high materiality	FY27	High
Full-year FY27 Adjusted Free Cash Flow	$270 million or more medium materiality	FY27	High
Full-year FY27 Year-end Leverage Ratio	just below 4x medium materiality	FY27	High
Q2 FY27 Revenue	$328 million to $331 million medium materiality	Q2 · FY27	High
Q2 FY27 Adjusted Diluted EPS	$1.06 to $1.08 medium materiality	Q2 · FY27	High
Full-year FY27 Adjusted Gross Margin	just over 57% medium materiality	FY27	High
Q2 FY27 Adjusted Gross Margin	just over 57% medium materiality	Q2 · FY27	High
Full-year FY27 Advertising and Marketing Rate	approximately 14.5% of sales low materiality	FY27	High
Q2 FY27 Advertising and Marketing Rate	approximately 14.5% of sales low materiality	Q2 · FY27	High
Full-year FY27 Adjusted G&A as % of Sales	approximately 10% low materiality	FY27	High
International Segment Organic Revenue Growth	5% or more low materiality	Full year · FY27	Medium
Breathe Right Annualized Accretion	$0.25 medium materiality	Annualized	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
North America Growth excludes FX and the Breathe Right acquisition. Q1 benefited from some e-commerce order volatility at the expense of Q2. GI: continued strength (Fleet, Dramamine)Dermatologicals: strong growth (Compound W)Ear and Eye Care: Clear Eyes supply constrained, TheraTears and Debrox strong growthe-commerce: strong double-digit consumption growth	—	4.2%	—	—
International Organic growth. Still expects a return to the segment organic revenue long-term growth target of 5% or more for the full year. Positive consumption trendsSales affected by timing of distributor orders	—	-2.1%	—	—

Product announcements

Product	Type	Timeline	Details
Breathe Right Menthol	launch	introduced in 2025
Breathe Right Sport	launch	launching now

Deals & partnerships

Breathe Right portfolio Acquisition of the Breathe Right nasal strips portfolio.

Closed on June 12. Largely integrated into Prestige's operations within 60 days, running through systems and warehouse network.

LaCorium Health Acquisition of LaCorium Health, primarily based in Australia, including its Dermal Therapy brand.

Closed on July 1. Dermal Therapy brand holds a leading position in therapeutic skin care categories. Employees integrated into Care Pharma office in Sydney; broader integration to proceed methodically over the balance of the year.

Risks & headwinds

Clear Eyes supply constraints Q1 FY27, Q2 FY27 (expected output variability)

sales that were below our expectations; leading to a decline in brand revenue; less than 3% of sales today

Mitigation:Investment in Pillar5 facility, management changes at Pillar5, multi-year recovery plan including rebuilding safety stocks, restoring full SKU offering, and marketing investment.

International segment organic revenue decline Q1 FY27

-2.1%

Mitigation:Attributed to timing of distributor orders; still expects return to 5%+ organic growth for full year.

Higher transportation costs and mix impact on gross margin Q1 FY27

down 120 basis points versus the prior year

Mitigation:Factored into outlook; company manages to low to mid-30s EBITDA margin, reinvesting cost savings.

Business environment uncertainty ongoing

remains heightened due to supply chain constraints, high inflation and geopolitical events

Mitigation:Best estimate based on the information available as of today's date (safe harbor).

What to watch in Q2 FY27

Clear Eyes supply consistency and output

H2 FY27

Current volatile and was constrained in Q1

Target greater stability in the second half, supporting sequential improvements in eye care shipments

Why it matters

Critical for the multi-year recovery plan to return Clear Eyes to its leadership position and contribute meaningfully to sales.

Looking ahead, we believe the facility is positioned for greater stability in the second half, supporting sequential improvements in eye care shipments.

Find out whether PBH delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the long-term growth expectations for Breathe Right and LaCorium, and their EPS contribution for the year.

Ron Lombardi reiterated optimism for the long-term outlook of the acquisitions, consistent with prior guidance. Chris Sacco stated the acquisitions are projected to add about 3 points of EPS growth for the year, noting some near-term timing variability but confidence in driving sales and profitability.

“the acquisitions, obviously, higher sales growth projected for the year. It's about 3 points of EPS growth.”

asked by Susan Anderson · answered by Christine Sacco

2 min read 5 chapters

Detailed narrative

Strategic Acquisitions and Integration Progress

Prestige completed two key acquisitions: the Breathe Right portfolio on June 12 and LaCorium Health on July 1. The Breathe Right integration is largely complete, with the business now running through Prestige's systems and warehouse network, contributing $5.9 million in Q1 revenue.

LaCorium Health's integration will proceed methodically over the balance of the year, benefiting from co-location with Care Pharma in Australia and expected synergies from distributor optimization and sales integration.

Clear Eyes Recovery Strategy and Pillar5 Investment

The company is focused on a multi-year strategy to return Clear Eyes to its leadership position, which has seen significant declines from peak levels due to product availability. This involves continued investment in the Pillar5 manufacturing facility to strengthen supply capabilities and improve consistency.

Management expects greater stability in the second half of FY27, supporting sequential improvements in eye care shipments, with the long-term goal of expanding capacity to fully support demand and rebuild safety stocks.

Enhanced Portfolio Diversification and Growth Opportunities

The recent acquisitions further enhance Prestige's portfolio diversity, balancing revenue across eight categories. Breathe Right creates a new 'wellness, sleep and other' category, representing a low teens percentage of pro forma revenue, while LaCorium strengthens the skin care category. Management sees multiple avenues for long-term growth for the iconic Breathe Right brand, including leveraging its heritage through social media marketing, driving innovation (e.g., Menthol and Sport variants), and international expansion across its 20+ country presence.

Disciplined Capital Allocation and Debt Reduction

Prestige generated a record $83.7 million in adjusted free cash flow in Q1, providing flexibility for capital allocation. The company funded the acquisitions with a new 7-year Term Loan B and priced $400 million of new unsecured notes, extending debt maturity to 2031.

Management is committed to disciplined debt reduction throughout FY27, targeting a year-end leverage ratio of just below 4x, to strengthen the balance sheet and enable future capital deployment opportunities.

Consumer Environment and Channel Shifts

In its categories, Prestige continues to observe fairly stable consumption trends, particularly strong growth in GI brands (Dramamine, Fleet) and dermatologicals (Compound W). The primary consumer behavior observed is a search for value, leading to channel shifts. The company noted strong double-digit consumption growth in e-commerce and mass channels, where price shopping is easier, indicating a continued focus on value-driven purchasing.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.