Prestige Consumer Healthcare Inc. reported its financial results for the three and six months ended September 30, 2024, revealing a slight decline in revenue and profitability compared to the previous fiscal period. Total revenues for the three months were $283.8 million, down $2.5 million (0.9%) from $286.3 million in the same period of 2023. For the six months, revenues decreased by $14.7 million (2.6%) to $550.9 million from $565.6 million.

The North American OTC Healthcare segment experienced a revenue decline of $4.6 million (1.9%) for the three months, primarily due to decreases in the Eye & Ear Care, Cough & Cold, and Analgesics categories. However, the Gastrointestinal category saw an increase of $3.2 million (8.3%). In contrast, the International OTC Healthcare segment's revenues rose by $2.1 million (5.0%), driven by growth in the Gastrointestinal and Dermatologicals categories.

Gross profit for the three months ended September 30, 2024, was $157.4 million (55.5%), a decrease of $2.6 million (1.6%) from $160.0 million (55.9%) in the prior year. The North American segment's gross profit fell by $4.9 million (3.6%), while the International segment's gross profit increased by $2.3 million (9.9%).

Operating income for the three months was $84.3 million, down from $88.3 million in 2023. Net income for the quarter increased slightly to $54.4 million from $53.6 million, resulting in basic earnings per share of $1.10, up from $1.08. For the six months, net income decreased to $103.4 million from $106.8 million, with basic earnings per share dropping to $2.08 from $2.15.

The company faced challenges due to economic uncertainty, including global supply chain constraints and inflation, which affected product demand and operational results. Notably, shortages and delays in certain ingredients, particularly in eye care products, impacted performance.

On the balance sheet, cash and cash equivalents increased to $51.5 million from $46.5 million at the end of March 2024. Total current assets rose to $380.7 million, while total current liabilities decreased to $106.9 million. Long-term debt decreased to $1.05 billion from $1.13 billion, reflecting a reduction in average indebtedness and interest expenses.

In terms of strategic developments, the company announced a stock repurchase program of up to $300 million in May 2024, with $37.8 million repurchased in the first half of the fiscal year. The company also extended its Master Logistics Services Agreement with GEODIS Logistics LLC for an additional 65 months, indicating a focus on strengthening its supply chain capabilities.