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.
A means to the ends
ENGLEWOOD CLIFFS, N.J. — Unilever is taking what it considers to be a breakthrough approach to hair care — by focusing on the scalp, rather than the ends — with its Clear Scalp and Hair Therapy line that hit North America in May. Already found in more than 40 markets around the world, Clear is Unilever’s fastest-growing hair brand, the company stated. Now formulated for the North American consumer, the Clear Scalp and Hair Therapy collection includes customized product ranges for women, men and African-American women.
ReportersNotebook — Beauty Care, 5/21/12
SUPPLIER NEWS — Lornamead has launched its new Finesse Color Lock styling products. Finesse Color Lock styling products contain a patented polymer system with water-resistant, film-forming properties. The polymer sets hair style and also helps seal in hair color pigments, allowing hair to retain up to 75% more color through repeated shampooing, the company stated. Finesse Color Lock products have a suggested retail price of $3.99. The line includes a Color Lock mousse and hair spray.
Tom’s of Maine has introduced a new line of men’s deodorants. Free from artificial preservatives, including parabens and synthetic fragrance, Tom’s of Maine’s new Clean Confidence and Mountain Spring deodorants are formulated to provide 24-hour odor protection. The deodorants have a suggested retail price of $4.99.
Dr. LeWinn by Kinerase, the first line of skin care products sold in the mass market that offers exclusive clinical strength kinetin in anti-aging formulas, is launching at retail in June its new Wrinkle Repair day and night cream. It has a suggested retail price of $25.
Desert Essence is expanding its Coconut Hair Care line with the launch of new styling products designed to help meet the styling needs of hair, from smoothing to defining curls and heat protection. All three products — a hair lotion, hair cream, and defrizzer and heat protection spray — are 100% vegan and free of silicones, wheat and gluten. The products are priced at $9.99.