Prestige Consumer Healthcare Inc.
Over-the-Counter Consumer HealthcareFounded 2005- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Prestige Consumer Healthcare Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$1.13B
Market Cap
$4.2B
Net Income
$195M
Employees
385
Converting more than 90% of net income into free cash flow is the defining financial characteristic of Prestige Consumer Healthcare. Net income of $195 million in fiscal year 2024 on $1.13 billion in revenue at a 17.3% net margin understates the cash generation because the asset-light model — no owned manufacturing, minimal capital expenditure requirements — means very little of the earnings is consumed by reinvestment in physical assets. The 58.5% gross margin in FY2024 is not stable by accident. It reflects a portfolio concentrated in OTC categories where the cost to manufacture the product is low relative to what consumers pay for the brand's reassurance value, and where private label competition exists but has not succeeded in displacing the category leader despite lower prices. Monistat's category position, for example, has held across multiple decades of private label challenge. Clear Eyes has maintained shelf position despite store brand alternatives at significantly lower price points. Revenue grew from $1.05 billion in 2022 to $1.08 billion in 2023 to $1.13 billion in 2024 — consistent, unspectacular growth. Market capitalization of $4.2 billion at roughly 3.7 times revenue reflects a premium for the free cash flow quality and the durability of the category leadership positions. Adjusted EBITDA margins above 30% on $1.13 billion in revenue generate enough cash to fund both brand investment and meaningful debt reduction or shareholder returns. The North American OTC Healthcare segment accounts for 85% of total net sales, with Digestive Health, Eye Care, and Fungal Care as the largest therapeutic categories. That concentration means the financial results are driven by a relatively small number of brands in a relatively small number of categories — which is both the source of the margin quality and the source of the concentration risk if any of those category positions deteriorated significantly.
Revenue Trend Analysis
YoY Change
+4.6%
2-Year CAGR
+3.7%
Peak Year
2024
Trend
Consistent Growth
Prestige Consumer Healthcare Inc. has reported revenue across 3 fiscal years, compounding at +3.7% annually over 2 years. The most recent year saw a 4.6% increase versus the prior year. Revenue peaked in 2024 at $1.1B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $1.1B | $195M | +4.6% |
| FY2023 | $1.1B | — | +2.9% |
| FY2022 | $1.1B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Prestige Consumer Healthcare reported revenue of approximately $1.13 billion for fiscal year 2024, which ended March 31, 2024. The company reports two operating segments. North America OTC Healthcare contributed approximately $940 million, representing 83 percent of total revenue, driven by Clear Eyes, Compound W, BC Powder, Goody's, Dramamine, DenTek, Boudreaux's Butt Paste, Chloraseptic, and other US brands. International OTC Healthcare contributed approximately $190 million, representing 17 percent of revenue, led by the Care Pharmaceuticals business in Australia and a growing presence in Canada and selected other markets. Gross margin was approximately 56 percent. Adjusted EBITDA was approximately $390 million, representing a margin of around 34 percent, in line with the company's long-stated 30-percent-plus target. Net income was approximately $230 million. Free cash flow exceeded $260 million, with capex of under $10 million reflecting the asset-light manufacturing model. The revenue mix is highly diversified at the brand level, with no single brand contributing more than 15 percent of total revenue, which reduces the impact of any individual brand decline.
Prestige Consumer Healthcare consistently delivers adjusted EBITDA margins above 30 percent, with fiscal 2024 reaching approximately 34 percent. Three structural factors drive that. First, the brand portfolio is concentrated in niche categories where Prestige holds number one or two share without meaningful competitive intensity, which keeps gross margins above 55 percent. Second, the asset-light contract-manufacturing model means capex runs below 1 percent of sales, so depreciation does not weigh on margins the way it does for vertically integrated CPG peers. Third, corporate overhead is unusually lean: total employee count sits below 400, including manufacturing oversight, regulatory and quality, marketing, finance, and executive. Centralized functions support roughly 25 brands without proportional staff growth, giving operating leverage as the company adds brands through M&A. The trade-off for these margins is slower top-line growth, typically low single digits organically, since Prestige does not invest heavily in category-creation R&D or premium brand-building. Margin durability has proven significant. EBITDA margins have stayed within a tight band even through pandemic disruption, inflation surges, and changes in retail mix.
Prestige Consumer Healthcare typically operates with net leverage of 3 to 4 times trailing adjusted EBITDA, materially lower than aggressive roll-up peers like Post Holdings but higher than blue-chip CPG companies. As of fiscal 2024, total long-term debt was approximately $1.1 billion, comprised primarily of a senior secured term loan and senior unsecured notes maturing between 2027 and 2031. Net leverage at fiscal 2024 year-end sat in the high 2 to low 3 times range, reflecting consistent debt paydown since the last large acquisition. The capital structure is designed to support continued M&A while maintaining investment-grade-adjacent ratings, currently Ba2 from Moody's and BB from S&P, with stable outlooks. Interest expense ran approximately $40 to $45 million in fiscal 2024, partly insulated from rising rates because much of the debt is fixed-rate senior notes. Free cash flow comfortably covers interest with multiple times of headroom. Management has signaled willingness to relever to 4.5 to 5 times for a transformational acquisition, then deleverage back to the 3 times target over 18 to 24 months, a pattern observed after both the 2014 and 2017 deals.
Prestige Consumer Healthcare generates approximately $260 million in free cash flow annually as of fiscal 2024, equal to roughly 23 percent of revenue, an unusually high conversion ratio for a consumer-products company. The capital allocation hierarchy is well defined. First priority is debt service, including scheduled principal repayments and opportunistic accelerated paydown on the term loan. Second priority is bolt-on acquisitions, typically in the $50 million to $500 million range, with larger transformational deals funded by levering up temporarily. Third priority is opportunistic share repurchases under a board-authorized buyback program, used during periods of stock-price weakness rather than as a regular return-of-capital tool. The company does not pay a regular dividend, on the view that retained cash provides optionality for the next acquisition cycle. Capital expenditures consume only $8 to $12 million annually given the outsourced manufacturing model, leaving most operating cash flow available for the priorities above. In fiscal years without large acquisitions, debt paydown dominates the deployment, which is why net leverage has trended down since the 2017 Fleet and Care deals.
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CorpDigest. "Prestige Consumer Healthcare Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/prestige-consumer/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Prestige Consumer Healthcare Inc. reported $1B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/prestige-consumer/financials" target="_blank" rel="noopener">CorpDigest — Prestige Consumer Healthcare Inc. financials</a></div>