Prestige Consumer Healthcare (NYSE:PBH) reported a 6.5% revenue increase for the first quarter of fiscal 2027, reaching $265.7 million, fueled by strong brand performance, the integration of Breathe Right, and favorable retailer order timing.
Financial Performance and Strategic Growth
The company’s quarterly revenue grew from $249.5 million in the previous year, with organic revenue—excluding foreign exchange impacts and the Breathe Right acquisition—rising by 3.2%. Profitability metrics also saw an upward trend, as adjusted diluted earnings per share (EPS) climbed to $0.98, up from $0.95, and adjusted EBITDA increased by 5.5%.
Chairman, President, and CEO Ron Lombardi highlighted the company’s operational success, noting, “Our business exceeded sales and earning expectations in the first quarter. We also delivered record adjusted free cash flow, providing additional flexibility for disciplined capital allocation moving forward.”
Category Performance and Supply Chain Updates
North American organic revenue grew by 4.2%, primarily driven by gastrointestinal brands Fleet and Dramamine, alongside dermatological gains from Compound W. While TheraTears and Debrox also performed well, these gains helped mitigate softer sales for Clear Eyes, which continues to face supply constraints.
To address these challenges, Prestige is investing in its Pillar5 sterile ophthalmic manufacturing facility. Lombardi expects output variability to persist through the first half of fiscal 2027, with improvements in eye-care shipments anticipated in the second half of the year. Currently, Clear Eyes accounts for less than 3% of total sales, with management describing its recovery as a multiyear effort to rebuild safety stocks and restore full SKU availability.
International and E-commerce Insights
International organic revenue saw a slight 2.1% decline due to the timing of distributor orders. Despite this, the company maintains its long-term growth target of at least 5% for the international segment. Meanwhile, e-commerce remains a bright spot, with double-digit growth rates continuing, although order timing patterns shifted some revenue from the second quarter into the first.
Expansion Through Strategic Acquisitions
Prestige finalized the acquisition of the Breathe Right portfolio on June 12 and Australia-based LaCorium Health on July 1. Breathe Right contributed $5.9 million to the first-quarter results and is expected to generate approximately $200 million in annual revenue. The brand has been largely integrated into the company’s network in under 60 days.
LaCorium Health, known for the Dermal Therapy brand, is projected to contribute roughly $40 million in annualized revenue. Prestige plans to leverage sales-force integration and supply-chain efficiencies to drive further synergies from these acquisitions over the next two years.
Fiscal 2027 Outlook and Capital Position
Driven by these acquisitions, Prestige raised its full-year revenue outlook to a range of $1.290 billion to $1.315 billion. The company anticipates an adjusted gross margin of slightly over 57% for the remainder of the year. Additionally, Prestige achieved a record $83.7 million in adjusted free cash flow and raised its annual forecast for this metric to at least $270 million.
With a net debt of approximately $2 billion as of June 30, the company has refinanced its debt profile, with its earliest maturity now set for 2031. Management intends to focus on paying down prepayable debt throughout the rest of fiscal 2027.
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