Sales: $312 million
Sales: $312 million. Net loss: $186 million for the year ended March 31, 2009.
Key Personnel: Mark Pettie, chairman and chief executive officer; Peter J. Anderson, chief financial officer; James E. Kelly, chief marketing officer, OTC and personal care products; Lieven Nuyttens, senior vice president, operations; Charles M. Schrank, chief marketing officer, household products; Charles N. Jolly, general counsel and secretary; John Parkinson, senior vice president-international; Jean Boyko, senior vice president, science and technology; David B. Talbert, senior vice president, sales; Stephen R. O’Brien, vice president, human resources.
Major Products: Household Care—Chore Boy, Cinch, Comet and Spic and Span; Personal Care—Cloverine, Cutex, Denorex, Ezo, Kerodex, Prell, Zincon, New Skin.
New Products: Comet Spray Gel Mildew Stain Remover.
Comments: Sales fell more than 4% last year. After posting net income of nearly $34 million the previous year, the company reported a net loss in the fourth quarter of $211.1 million. It includes the effects of a non-cash, pre-tax impairment charge of $249.6 million to reduce the book value of the company’s goodwill and other intangible assets to their estimated fair value. Excluding the impairment charge, net income for the quarter would have been $9 million.
The company competes in three categories: health care (56.6% of sales), household care (37.1%)and personal care (6.3%). Sales of health care products fell 3.7%, as gains for Clear Eyes and New-Skin were offset by declines of wart care brands. During the year, this division relaunched Dermoplast poison ivy treatment under the New-Skin brand to leverage the New-Skin name.
Sales of household cleaners fell 4.2% to $116 million. The 2008 introduction of Comet Mildew SprayGel extended the franchise and helped Comet capture a 10% share of the mildew category and increase the brand’s overall revenues. However, that gain was offset by lower sales of Spic and Span and Chore Boy.
Personal care sales fell 9.5% to $19.7 million. Declining sales of all other brands offset increased sales of Cutex.
Third-party manufacturers manufacture all products for Prestige Brands. As of March 31, 2009, the company had relationships with more than 40 third-party manufacturers, with the top 10 accounting for 81% of sales.