IRVINGTON, N.Y. Prestige Brands credited the strength of its over-the-counter business model for its 20% increase in net income to $9.6 million for its first quarter ended June 30. Total revenues for the quarter reached $73.4 million, up 3%.
“This quarter’s results affirm the strength of our core OTC business model and the overall direction of our strategic plan,” stated Matthew Mannelly, Prestige president and CEO. “We are pleased with the growth of our core OTC brands as well as their long-term potential. We remain confident in achieving our long-term goals, however, we are realistic about the overall economic environment and the challenges we face for the full year,” he said. “In particular, given last years’ heavy retailer buy-in of cough/cold products in anticipation of H1N1, the second quarter will be challenging from a revenue standpoint. Retailers have told us as well as our competitors that this buy-in will not be repeated this year in the second quarter.”
Net revenues of $44.3 million for the OTC segment were 10% higher than the prior-year comparable period results of $40.3 million. The increase was driven by sales of Clear Eyes, Compound W, Wartner, New Skin, Murine Tears, Percogesic and Sleep-Eze in Canada, partially offset by decreases on the Allergen Block products and Earigate.
Of the company’s six core brands, five are in the OTC segment. These include Chloraseptic, Clear Eyes, Compound W, Little Remedies, and The Doctor’s NightGuard. Revenues for these core OTC brands were up 16% in the aggregate over the prior-year comparable quarter.