Prestige Consumer Healthcare Inc. (NYSE:PBH) Q2 2024 Earnings Call Transcript

Keonhee Kim: Great. That’s helpful. And as more large pharmas kind of spin out their consumer division, as J&J this year and Sanofi kind of planning to do the same thing by next year. Do you think you’ll feel more competitive pressures in the industry? Or do you expect the landscape to be more or less same as usual?

Ron Lombardi: Yes. We would expect it to be more of the same whether these big consumer health care companies are embedded in a big global CPG company or independent like we’ve seen Kenvue and Haleon lately. They’re focused on different things than we are. They’re looking for move-the-needle opportunities which are big brands, big categories, different regions that we compete in as part of their business objectives. So we’re going to continue to focus on those niche smaller categories that we can be successful in can define the categories and we’ll likely look for opportunities to acquire brands that they may shed as they further focus on those bigger opportunities. So nothing new there. That’s been the case for the last 10 to 20 years. So more of the same.

Keonhee Kim: Got it. That’s helpful. And just one last question for me. With the FDA cracking down on products across different categories, such as the oral decongestion pills and eye drops, do you feel pretty strongly about your portfolio? Or are there any threats that maybe we should be thinking about?

Ron Lombardi: Yes. So quality is the starting point for everything we do here, right? We need to deliver and sell a quality product that delivers against what the consumer expects out of it. So we start there. The recent announcements around recalls of sterile eye care products that have been sourced outside of North America and from suppliers that aren’t necessarily proven over the long term is just a reminder of the importance of it and just something that we continue to focus on.

Operator: Thank you. I’m showing no further questions at this time. I would now like to turn it back to Ron Lombardi, President and CEO, for closing remarks.

Ron Lombardi: Thank you, operator, and thanks to everyone who’s joined us on the call today, and we look forward to updating you on our next quarterly call. Have a great day.

Operator: Thank you. This does conclude the program, and you may now disconnect.