Prestige Brands: Fiscal 2013 focus on driving core OTC growth
IRVINGTON, N.Y. — Prestige Brands closed out its fiscal 2012 ended March 31 on a high note with $441.1 million in revenues for the year, up 31.1%. And fiscal 2013 is looking promising as the company will have full-year contributions from its 17 acquired over-the-counter brands from GlaxoSmithKline.
Organic revenues for the company grew $10.7 million, or 3.2%, during fiscal 2012, compared with the prior-year 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, Prestige reported.
Prestige will still be on the hunt for more OTC brand acquisitions, Prestige president and CEO Matthew Mannelly said.
“We have transformed Prestige into the largest independent OTC products company in the U.S. with a proven ability to generate consistent organic growth in our core OTC business," he said. "Our M&A strategy in action has transformed Prestige into a company with approximately 90% of profits derived from higher growth, higher margin OTC brands."
But future M&A opportunities isn't the primary focus, Mannelly said. "Our day job is to drive core OTC organic growth," he told analysts Thursday morning. "We will be increasing spending behind each of [our] brands. By having multiple brands [in a given category], it really provides us multiple opportunities with the trade. Almost two-thirds of our portfolio are brands that are No. 1 and No. 2 in their categories."
Prestige is building a strong heritage within the pediatric space. According to the company, Prestige’s pediatric platform, including PediaCare and Little Remedies, represents approximately 10% of revenues after the impact of the GSK acquisition.
Prestige broke down its revenue share by product category:
Analgesics (BC, Goody's, Ecotrin, Stanback, Percogesic) currently make up 17% of revenues;
Cough and cold (Little Remedies, Chloraseptic, PediaCare, Luden's) 17%;
Digestives (Beano, Dramamine, Fiber Choice, Gaviscon, Tagamet, Phazyme) 14%;
Eye care and ear care (Clear Eyes, Debrox, Murine) 14%;
Dermatologicals (Compound W, New Skin, Dermoplast) 9%;
Oral care (The Doctor's, Efferdent, Effergrip, Gly-Oxide) 8%; and
Sleep aids (Nytol, Sominex, Sleep-eze) 1%.
Mannelly also identified the five key GSK-acquired brands that Prestige will be focusing on in terms of both dedicated marketing support and new product development: BC, Goody's, Debrox, Gaviscon and Beano.
For this month, Prestige unveiled five new product introductions Thursday morning during a conference call with analysts — Chloraseptic Warming Sore Throat, Clear Eyes Cooling Comfort, Dramamine for Kids, Efferdent Power Clean Crystals and Comet Stainless Steel.