Top Companies Report

32. Prestige Brands

June 29, 2012

Irvington,NY
914.524.6800
www.prestigebrands.com
Sales: $344 million (estimated) for personal care and household products.
Corporate sales: $441.1 million for the year ended March 31, 2012.

Key Personnel: MatthewM.Mannelly, president and CEO; RonLombardi, chief financial officer; TimothyJ.Connors, chief marketing officer; SamuelC.Cowley, general counsel and VP, business development; JohnParkinson, senior vice president, international; JeanBoyko, senior vice president, science and technology; PaulHennessey, vice president, operations.

Major Products: Personal care, skin care, oral and OTC healthcare products including Chap-et Lip Balm, Cloverine, Debrox earwax remover, Dermoplast, Efferdent Denture Cleanser, EffergripDenture Adhesive, Ezo denture, Gly-Oxide Oral Rinse, Kerodex, Kwellada-PLice Treatment, Remedies, New-Skin Liquid Bandage, New-Skin Scar Fade, Outgro, Oxipor Psoriasis Lotion, The Doctor’s Night Guard. Household care products include Comet, Cinch and Spic and Span cleaners and Chore Boy scrubbing pads. The company also sells a number of GI-related medications and pain relievers for oral ingestion.

New Products: Efferdent Power Clean Crystals, Comet Stainless Steel Cleaners, New-Skin Anti-Chafing Spray.

Comments: Prestige Brands Holdings, Inc. record results for the fourth quarter and fiscal year ended March 31, 2012, were driven by strong OTC organic growth and the completion of the acquisition of 17 brands from GlaxoSmithKline, which was the largest acquisition in the company’s history. In that deal, Prestige picked up Beano, BC, Goody’s and Debrox in the US and Gaviscon in Canada, products that mainly fall outside of Happi’s scope.

Corporate revenues for fiscal 2012 were $441.1 million, an increase of 31.1% over the prior year’s revenues of $336.5 million. OTC healthcare sales reached $344.2 million and household products coming in at 93.5 million.

Organic revenues for the company grew 3.2% during fiscal 2012 over the prior year comparable period. Revenues from the GSK acquisition accounted for $30.4 million of the increase. Blacksmith Brands and Dramamine contributed $63.5 million of the increase for the period prior to the anniversary of their respective purchases.

Income from continuing operations for fiscal 2012 of $37.2 million was 27.5% higher than fiscal 2011 income from continuing operations of $29.2 million. Income from continuing operations for fiscal 2012 was impacted by $12.9 million of costs primarily associated with the GSK acquisition and costs associated with the evaluation of the Genomma Lab unsolicited proposal. (That’s right; Avon wasn’t the only company with unwanted advances this past year.)

“In less than three years, our clear and consistent value creation strategy has taken hold,” said Matthew M. Mannelly, president and CEO. “We have transformed Prestige into the largest independent OTC products company in the US with a proven ability to generate consistent organic growth in our core OTC business coupled with a leading free cash flow profile,” he said.

According to Mannelly, the firm’s M&A strategy has transformed Prestige into a company with approximately “90% of profits derived from higher growth, higher margin OTC brands.”

Revenues for the household cleaning segment fell 5.7%, during 2012 versus 2011. Comet revenues decreased primarily due to softer consumer consumption of non-abrasive products, however Chore Boy and Spic and Span revenues increased as a result of increased promotional activity, and expanded distribution and consumer demand for Spic and Span sprays and Chore Boy copper scrubbers, the company said.

Prestige Brands’ principal customer relationships include Walmart, Walgreens, CVS, Target and Dollar Tree—and sales to its top five and 10 customers accounted for approximately 40.0% and 50.1% of total gross sales, respectively, in 2012 compared with approximately 41.7% and 53.0%, respectively, in 2011 and approximately 45.6% and 57.3%, respectively, in 2010. No single customer other than Walmart accounted for more than 10% of the firm’s gross sales in any of those years and none of its other top five customers accounted for less than 3% of our gross sales in any of those years. During 2012, 2011 and 2010, Walmart accounted for approximately 18.9%, 20.3% and 24.4%, respectively, of gross revenues.


 
blog comments powered by Disqus
  • Why Look Good, When You Can Look Perfect?

    Why Look Good, When You Can Look Perfect?

    Tom Branna, Editorial Director||April 4, 2016
    A new way to try-before-you buy is capturing the attention of consumers and the beauty industry.

  • NYSCC Explores Product Innovation

    NYSCC Explores Product Innovation

    Christine Esposito, Associate Editor||March 14, 2016
    New product development, formulation expertise and proper preservation are topics of discussion at February monthly meeting.

  • From Greenville to Guangzhou

    From Greenville to Guangzhou

    Christine Esposito, Associate Editor||March 14, 2016
    South Carolina start-up BabyBlossom has big plans for its nontoxic baby products line...in China.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • The New Spot For Acne Care

    The New Spot For Acne Care

    Tom Branna, Editorial Director||April 1, 2016
    Acne Treatment Research Center opens in Morristown, NJ.

  • The Scalp Microbiome

    The Scalp Microbiome

    Nava Dayan PhD, Dr. Nava Dayan LLC||April 1, 2016
    A review of recent findings and innovative approaches for treating scalp disorders.

  • Multi-Cultural Beauty Update

    Multi-Cultural Beauty Update

    Christine Esposito, Associate Editor||April 1, 2016
    Established brands and start-ups address the needs of multi-cultural beauty consumers.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Inspiring the Next Generation Of Personal Care Products

    Inspiring the Next Generation Of Personal Care Products

    March 1, 2016
    In-Cosmetics 2016 returns to Paris next month, April 12-14, 2016.

  • Playing Doctor

    Playing Doctor

    Christine Esposito, Associate Editor||March 1, 2016
    The OTC aisle offers a wide array of no-prescription-needed treatments.

  • Shielding Skin from Airborne Antagonists

    Shielding Skin from Airborne Antagonists

    Shyam Gupta, Ph.D., John Stanek and Melinda Wochner, Bioderm Research and CoValence Laboratories, Inc.||March 1, 2016
    The enemy, it seems, is all around us. Researchers explain how to alleviate damage caused by a variety of villains.

  • Feel the Burn?

    Feel the Burn?

    Tom Branna, Editorial Director||March 1, 2016
    Sun care product sales rise, but more must be done to make sure compliance rates grow.

  • Innovation On Display

    Melissa Meisel, Associate Editor||February 3, 2016
    P&G Beauty Digital Studio showcases new products for 2016

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • It’s All About Teamwork

    It’s All About Teamwork

    Melissa Meisel , Associate Editor||January 4, 2016
    Collaboration was the theme of the Consumer Specialty Products Association 2015 annual meeting.

  • Making Sense of Smells

    Making Sense of Smells

    Tom Branna, Editorial Director||January 1, 2016
    Household product perfumery is more complex than ever, with a variety of notes obtained from many different sources.

  • In-Cosmetics Paris Has Sights on US

    In-Cosmetics Paris Has Sights on US

    Imogen Matthews , In-Cosmetics||December 2, 2015
    Market focus is on the USA.

  • Just Wild About Harry’s Cosmeticology

    Just Wild About Harry’s Cosmeticology

    Tom Branna, Editorial Director||November 2, 2015
    The ninth edition, edited by Meyer Rosen, has been expanded and improved with an emphasis on the future of the industry.

  • Lush Is Flush with Novel Ideas

    Lush Is Flush with Novel Ideas

    Tom Branna, Editorial Director||November 2, 2015
    New products are the lifeblood of every company. Lush will launch more than 200 of them.

  • Davids and Goliaths

    Davids and Goliaths

    Christine Esposito, Associate Editor||November 2, 2015
    Big brands dominate the oral care category, but a cadre of smaller players vie for customers looking for alternatives.

  • What Do You Mean by Clean?

    What Do You Mean by Clean?

    Tom Branna, Editorial Director||November 2, 2015
    Household cleaning has undergone many changes over the years and more are on the way, as suppliers develop novel ingredients.

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Winner Unmasked

    Winner Unmasked

    October 1, 2015
    Laneige’s Water Sleeping Mask takes home top honors as Happi’s first Anti-Aging Product of the Year.

  • An Arduous Task?

    An Arduous Task?

    Tom Branna, Editorial Director||October 1, 2015
    Elizabeth Arden's JuE Wong is confident that the way to right the company’s ship is by tapping into its rich heritage.