Prestige Consumer Healthcare Inc. Barclays 19th Annual Global Consumer Staples Conference

Sure. Thanks. Thanks to everyone for joining us this afternoon. Prestige Consumer Healthcare is a consumer healthcare-focused company. We have about 80% of our revenues coming from North America and the balance outside. Maybe it is best just to step back for a second and talk about calendar 2027, excuse me, calendar 2026 and fiscal 2027 for a second. We have had a number of big changes in the company, although it is really more of the same for us, even though we have had a number of meaningful transactions in the last nine months. We started the calendar year off by acquiring a key sterile eye care supplier, Pillar5 up in Canada to better position us for long-term support of our key Clear Eyes and TheraTears brands.

We followed that up in June by closing on the company's largest acquisition in our history with a $1 billion acquisition of Breathe Right and a number of other brands from a PE seller, and then followed that up with a June 1st closing of a business based out of Australia that is added to our Care Pharmaceuticals business in Australia. Lots of change in the last nine months and, as I think back, boy, it has been a quick nine months. Lots of change, but I said earlier, it is more of the same, right? Prestige has been focused on building out a portfolio that we believe positions us for long-term growth and meaningful cash flow generation to create value. We saw that with these transactions I just described.

On a pro forma basis, taking account for the recent acquisitions, sales are now approaching $1.4 billion. We would expect top-line sales growth of about 10% over the next three years as we integrate those acquisitions, get them going, and recover our Clear Eyes business. EPS growth would be pretty close to that. Then I think just as importantly, if not more importantly, we would expect to generate around $900 million of free cash flow over the next three years as well to help deleverage and pay off the debt that we put in place to do the acquisitions. More of the same. We've continued to add and build out the portfolio. We continue to expand outside of North America. The Breathe Right business came with a nice business in Europe.

It's very additive to what we've got going on, and the LaCorium Health acquisition in Australia is certainly additive to what we've got going on there.

Yeah. In a lot of ways, we're doing many of the same things that the big spun-out consumer healthcare companies are doing, where we're looking to grow our brands in categories, looking to grow the categories as well. The difference is we've focused on niche categories where our brands can define the space and take on the responsibility of growing the category. I always like to use Dramamine as the best example of that. We bought it from a big pharma company back in January of 2011, and in the last 16, 15 years, we've been able to grow it by 5 or 6x because we focused on it, right? We talked to the consumer to learn that they were looking to treat motion sickness and nausea in a way that wouldn't make them drowsy.

There wasn't a child or a children's SKU out there, so we launched a chewable one. So we got feedback from consumers about what they were looking for, why they didn't treat, why they mistreated, and looked to bring propositions to help them take care of their health.

Sure. We start by thinking about defining the space the way consumers think about it, right? Which is, how do they think about taking care of themselves? On one end of the spectrum, folks may think about eating right, exercising, getting good sleep to promote wellness. In the middle, it may be OTC type products. Over-the-counter, you're taking care of your own health. On the far right would be medical intervention, whether it's prescription drugs that come from a doctor, GLP-1s is a great example of that, all the way up to surgeries to address medical situations. We see ourselves in the middle, in that kind of OTC space. Now, we've got a number of products in our product offering that aren't OTC, but consumers think about them as OTC medicines or treating a disease state.

We want to line up with how consumers are thinking about taking care of themselves and offering efficacious product that works to address what they're looking to deal with. I think the second part of your question is, how might we do it differently? How might we have a competitive advantage? It goes back to, and I mentioned this a couple of times already, thinking about the consumer, getting consumer insight, and we do it brand by brand. We don't think about women's health and get insights around women's health. We get insights around Monistat and how women are thinking about taking care of vaginal yeast infections. Summer's Eve is a hygiene-oriented product, so we talk to women to get insight on that. Same thing with GI, right?

We'll get consumer insight on motion sickness and nausea for Dramamine, and then we'll get specific information around Fleet for constipation. Our focus is trying to grow the categories and brands, brand by brand, rather than thinking about competing in large categories. I think that's both the advantage and the difference in how we approach growing the brands that we have versus the big players.