Prestige Consumer Healthcare Inc. (PBH): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of Prestige Consumer Healthcare Inc.'s (PBH) portfolio, and the BCG Matrix is defintely the right tool to simplify their $1.1378 billion business into four actionable buckets. Honestly, seeing the numbers laid out like this shows where the real engine is-like the North American OTC segment driving $960.0 million in FY2025 revenue and generating $243.3 million in free cash flow-and where the tough calls are needed, such as managing the declining Cough & Cold category or figuring out how to scale up Question Marks like Clear Eyes despite supply chain headaches. Let's cut through the noise and see exactly which brands are Stars demanding investment, which are Cash Cows funding the future, which Dogs need harvesting, and which Question Marks could be the next big thing if we just get the supply chain right.

Background of Prestige Consumer Healthcare Inc. (PBH)

You're looking at Prestige Consumer Healthcare Inc. (PBH), a company that develops, manufactures, markets, distributes, and sells a range of over-the-counter (OTC) health and personal care products. They operate across North America, Australia, and other international markets. Honestly, their business model centers on managing a portfolio of established brands, which gives them a certain stability in the consumer staples space.

Prestige Consumer Healthcare Inc. organizes its operations into two main segments: North American OTC Healthcare and International OTC Healthcare. The company sells its products through mass merchandisers, drug stores, food stores, dollar stores, convenience stores, club stores, and, increasingly, e-commerce channels. They were founded way back in 1996 and are headquartered in Tarrytown, New York, though you might remember them by their former name, Prestige Brands Holdings, Inc., before the August 2018 change.

Let's look at the numbers from their most recent full fiscal year, FY2025, which ended on March 31, 2025. Prestige Consumer Healthcare Inc. reported record total revenues of $1,137.8 million, marking a 1.1% increase over the prior year. If you strip out currency effects, the organic revenue growth was 1.2% for the full year. The fourth quarter, however, showed more zip, with revenues hitting $296.5 million, a 7.0% increase year-over-year.

The profitability engine is where things got interesting. For fiscal 2025, reported net income was $214.6 million, and the adjusted diluted earnings per share (EPS) came in at $4.52, which is a 7.4% jump from the year before. That operational efficiency translated directly into cash; Non-GAAP free cash flow for the year was $243.3 million. This strong cash generation helped them reduce their covenant-defined leverage ratio to a very manageable 2.4x by year-end.

A key part of their market strength is brand dominance. For the full fiscal year 2025, approximately 61.5% of their total revenue came from major brands that hold a number one market position. These include brands like BC and Goody's, Chloraseptic, Dramamine, Monistat, and Summer's Eve, among others. Also, note that international sales are growing their footprint, making up 15.6% of total revenues in 2025.

You should know the key product categories they manage. This portfolio is diverse, covering everything from analgesic powders and motion sickness relief (Dramamine) to feminine care (Summer's Eve) and gastrointestinal remedies (Gaviscon, Fleet). They also have strong positions in eye care (Clear Eyes) and dental care (DenTek). This diversity, as CEO Ron Lombardi noted, helps minimize reliance on any single product or category.

Prestige Consumer Healthcare Inc. (PBH) - BCG Matrix: Stars

Stars are business units or products operating in high-growth markets where Prestige Consumer Healthcare Inc. holds a strong market share, demanding significant investment to maintain leadership.

The International OTC Healthcare segment, driven by the Hydralyte® brand, is positioned as a Star due to its high growth rate within the portfolio. For the fiscal year 2025, this segment reported revenues of $177.8 million, representing an increase of approximately 6.4% over the prior year's reported revenues of $$167.1$ million.

In North America, the Women's Health category, anchored by the Summer's Eve brand, is showing strong momentum. The category, alongside the Gastrointestinal category, experienced the largest dollar growth in North America for the fiscal year 2025. Specifically, North American OTC revenues for Summer's Eve saw a 7.7% increase in the fourth quarter of fiscal 2025.

The Gastrointestinal (GI) category, featuring brands like Dramamine and Fleet, was a primary driver of dollar growth within the North American segment. The GI category's strength contributed to the North American OTC Healthcare segment's total reported revenues of $960.0 million for fiscal year 2025.

The E-commerce channel represents a high-growth area for Prestige Consumer Healthcare Inc., maintaining a strong sales profile. In fiscal year 2025, e-commerce sales represented a significant high-teens percentage of total revenue. This channel's success contributed to the record reported revenues of $296.5 million in the fourth quarter of fiscal 2025.

Here are the key financial figures associated with these high-growth areas for fiscal year 2025:

These units are consuming cash to fuel their market share gains and growth trajectory, which is consistent with the Star quadrant's profile. If this growth is sustained until the market growth slows, these assets are expected to transition into Cash Cows for Prestige Consumer Healthcare Inc.

Prestige Consumer Healthcare Inc. (PBH) - BCG Matrix: Cash Cows

You're analyzing the bedrock of Prestige Consumer Healthcare Inc.'s financial strength, the segment that reliably funds the rest of the portfolio. These are the brands that dominate mature categories, meaning the market isn't expanding fast, but Prestige Consumer Healthcare Inc. owns the biggest piece of the pie.

The North American OTC Healthcare segment is the primary engine here, delivering reported revenues of $960.0 million for the fiscal year 2025. This figure represents the bulk of the company's total reported revenue of $1,137.8 million for the same period. This segment's performance underscores the value of leading established, needs-based brands.

Brands like Compound W and Monistat fit this profile perfectly. Based on the latest available market position data from 2024, these major brands held a number one market position, contributing to the overall stability. While the Women's Health category saw growth in late fiscal 2025 with brands like Summer's Eve, Monistat itself stabilized in fiscal 2025, fitting the low-growth, high-share mold of a Cash Cow. These are the products that don't require massive promotional spending to maintain their shelf space.

The stability of this core portfolio translated directly into significant cash generation. Prestige Consumer Healthcare Inc. reported a robust non-GAAP free cash flow of $243.3 million in fiscal 2025. This is the cash that the business generates after covering its operating expenses and capital expenditures. It's the kind of consistent, high-margin cash flow that management loves to see.

Here's a quick look at how that cash was put to work, showing the 'milking' in action:

You can see the direct application of that cash flow. The company used the gains to reduce its net debt position, evidenced by the leverage ratio falling to 2.4x at year-end March 31, 2025. Also, they returned capital to shareholders through share repurchases totaling approximately $51.5 million during fiscal 2025. This disciplined capital allocation strategy prioritizes deleveraging and boosting shareholder returns using the cash generated by these mature brands. Honestly, this is exactly what you want from a Cash Cow; it funds the corporate overhead and pays down the debt, so you don't have to worry about it.

The focus for these brands is maintaining productivity, not aggressive expansion, which means investments are targeted:

• Maintain current market share for brands like Compound W.
• Invest in infrastructure to improve efficiency and cash flow.
• Support debt reduction efforts.
• Fund share repurchase programs.

The management's fiscal 2026 outlook suggests continued, albeit modest, growth in the low single digits, defintely confirming the low-growth nature of the overall portfolio while relying on the existing strong base. For instance, the initial fiscal 2026 organic revenue growth outlook is only approximately 1% to 2%.

Prestige Consumer Healthcare Inc. (PBH) - BCG Matrix: Dogs

The Cough & Cold category within Prestige Consumer Healthcare Inc. demonstrated performance consistent with a Dog quadrant position in fiscal 2025, showing sales declines that suggest a low-share presence in a slow-growth or declining market segment. This category's performance acted as a drag on the overall North American OTC Healthcare segment revenue growth for the year ended March 31, 2025.

For the fiscal year 2025, Prestige Consumer Healthcare Inc. reported total revenues of $1,137.8 million. The North American OTC Healthcare segment, where Cough & Cold resides, posted revenues of $960.0 million, showing only a marginal increase versus the prior year, partly due to these category declines.

The financial reporting for fiscal 2025 clearly indicated a strategic pruning of the portfolio, manifesting as non-cash tradename impairments tied to non-strategic intangible assets. This action signals that Prestige Consumer Healthcare Inc. is actively managing out or harvesting brands that do not fit the core growth strategy, a typical move for assets categorized as Dogs. The total impairment charges recorded in 2025 amounted to $12.5 million.

These impairments were broken down into two primary non-cash charges:

• Non-strategic indefinite-lived intangible assets: $6.6 million charge.
• Non-strategic finite-lived assets: $5.9 million charge.

The $5.9 million charge related to finite-lived assets was explicitly driven by a deliberate shift in sales focus toward other, more strategic brands within the Prestige Consumer Healthcare Inc. portfolio. This suggests these specific assets, likely older or smaller brands, were not generating sufficient return to justify their carrying value in the face of resource reallocation. The majority of the finite-lived asset impairment, $4.1 million of the $6.6 million indefinite-lived charge, impacted the North American OTC Healthcare segment.

The strategic pivot away from certain assets inherently places older, smaller brands under pressure. When the company directs resources, including marketing spend and shelf space focus, toward high-growth areas like Gastrointestinal and Women's Health categories, the remaining brands often see their market share erode. This erosion is exacerbated as consumer purchasing habits shift, meaning brands lacking strong digital presence or delivery channel integration become candidates for minimization or divestiture, effectively becoming Dogs that consume management attention without providing commensurate cash flow.

Prestige Consumer Healthcare Inc. (PBH) - BCG Matrix: Question Marks

Question Marks represent brands or segments operating in high-growth markets but currently holding a low market share. These units consume cash to fuel growth but have not yet generated significant returns, demanding a strategic decision: invest heavily to capture share or divest.

For Prestige Consumer Healthcare Inc., several areas fit this profile, requiring capital deployment to shift them toward the Star quadrant.

Clear Eyes, a high-demand brand, experienced limitations in fully supplying market demand throughout fiscal year 2025. The anticipated limited ability to supply strong demand for Clear Eyes partially offset the total reported revenue growth of 1.1% for fiscal year 2025, which totaled $1,137.8 million. This brand, which generates over $100 million in annual revenue, saw its performance constrained by supply chain issues in Q4 FY2025. To address this, Prestige Consumer Healthcare entered an agreement in August 2025 to acquire its supplier, Pillar5 Pharma Inc., for CAD 150 million in cash, a transaction expected to close in the third quarter of fiscal 2026 to secure production capacity. The company's net cash provided by operating activities for fiscal year 2025 was $251.5 million.

TheraTears, part of the eye care portfolio, demonstrated positive momentum, achieving approximately 10% growth in fiscal year 2025. This brand was initially acquired in July 2021 for $230 million. Sustained investment is necessary for TheraTears to effectively challenge established market leaders in the competitive eye care space, which is projected to be a $12 billion sector by 2030. The need for continued marketing agility and investment aligns with the Question Mark strategy.

The International OTC segment outside Australia is an area where Prestige Consumer Healthcare is actively exploring growth beyond its core Australian market. For fiscal year 2025, the International OTC Healthcare segment reported revenues of $177.8 million, an increase of approximately 6.4% over the prior year's $167.1 million. While Australia, led by the Hydralyte brand, drove this growth, management noted in the Q4 FY2025 call that they 'continue to explore opportunities for growth with retail partners' in other international regions, including the UK and Canada, where e-commerce growth was limited. This exploration phase requires capital to build out retail partnerships.

New, small acquisitions represent the ongoing need for capital investment to integrate and scale smaller, strategic purchases into market-leading positions. The company is actively seeking M&A, with management stating they expect to generate $1 billion or more of cash flow over the next 4 years to deploy on disciplined investments. The announced acquisition of Pillar5 Pharma for CAD 150 million is a capital-intensive move aimed at vertical integration and securing future capacity, which fits the profile of a necessary investment in a high-potential area.

Here is a summary of the key financial and growth metrics associated with these Question Mark areas as of the latest reporting:

The company's capital allocation strategy in fiscal 2025 included share repurchases totaling approximately $51.5 million for about 0.7 million shares, balancing shareholder returns with the need to fund growth initiatives like those categorized here.

The operational challenges and investment needs for these units can be summarized:

• Clear Eyes: High demand, constrained by supply, requiring CAD 150 million investment in a supplier.
• TheraTears: Achieved 10% growth, requiring sustained investment to challenge leaders.
• International OTC (Ex-Australia): Requires capital to explore retail partnerships outside Australia.
• New Acquisitions: Require integration capital to scale, supported by expected $1 billion in future cash flow.