Prestige Brands’ OTC Sector is Healthy

Prestige Brands Holdings—which touts a diverse product stable with brands as Dramamine motion sickness medication, Comet household cleaners and E.P.T. pregnancy tests—says second quarter revenues increased 13.7% over the prior year period to a record $206.1 million, including the impact of foreign currency fluctuations, and discal first half year revenues were $398.2 million, up 21.8% over the prior year period including the impact of foreign currency fluctuations and in line with outlook previously provided.
 
Reported revenues for the second quarter of fiscal 2016 were $206.1 million, an increase of 13.7% over the prior year comparable quarter’s revenues of $181.3 million. Reported revenues for the six month period ended September 30, 2015 totaled $398.2 million, an increase of 21.8% over the prior year comparable six month period’s revenues of $327.0 million. Foreign currency fluctuations negatively impacted reported revenues for both the fiscal second quarter and six month periods by $5.3 million and $8.0 million, respectively, the company said.
 
The results of both the fiscal second quarter and six month periods reflect continued strong consumption levels across the company’s core over-the-counter (OTC) healthcare brands, continued growth in the international business, as well as contributions from the acquisitions of Insight Pharmaceuticals (Insight) and Hydralyte.
 
Reported revenues for the North American OTC Healthcare segment were $163.9 million for the second quarter of fiscal 2016, 19.0% higher than the prior year comparable quarter's revenues. For the first six months of the current fiscal year, reported revenues for the North American OTC Healthcare segment were $319.6 million, an increase of 28.8% over the prior year comparable period.
 
Reported revenues for the international OTC healthcare segment for the second quarter of fiscal 2016 were $17.4 million, 1.5% higher than the prior year comparable period’s results. For the first six months of the current fiscal year, reported revenues for the International OTC Healthcare segment were $31.6 million, an increase of 2.4%. These results include the impact of foreign currency fluctuations.
 
Revenues for the household cleaning segment were $24.7 million for the second quarter of fiscal 2016, a decrease of 6.2% over the prior year comparable quarter's revenues. Prestige Brands said the decrease in revenues was due largely to differences in the timing of promotional programs and new product introductions in the prior year comparable period. For the first six months of the current fiscal year, reported revenues for the household cleaning segment were $47.0 million, a drop of just 1.9% over the prior year comparable six month period.