Prestige Brands revenues surge by 53.4% in Q2 2012

Prestige Brands Holdings, a marketer and distributor of healthcare, personal care and household products, has posted a 53.4% increase in revenues to $161.9m in the second fiscal quarter ended 30 September 2012, as against $105.5m for the same quarter in the previous year.

The firm’s net sales for the current quarter grew by 64.8% to $161.32m, up from $104.57m for the corresponding period in 2011.

Prestige Brands has reported a gross profit of $90.54m for the second quarter, compared to $53.90m for the same period in the previous year.

Prestige Brands CEO Matthew Mannelly said the firm’s successful performance in second quarter was driven by its strategic initiatives in three key areas, such as the full integration of the brands acquired from GSK, the effectiveness of increased advertising and promotion support behind core brands, and the firm’s focus to execution resulting in core over-the-counter (OTC) growth.

"Core OTC growth increased 11.3% in the second quarter, representing the ninth consecutive quarter of organic growth, category outperformance, and market share gains," Mannelly added.

The firm said the revenues for the OTC healthcare segment in the second quarter grew 74.3% to $137.9m, compared to $79.2m for the same period in the previous year.

The rise in revenues in the OTC segment was a consequence of the effectiveness of the increased marketing and advertising support behind core OTC brands, besides the acquisition of 17 North American brands from GlaxoSmithKline (GSK).

Prestige Brands Holdings is a US-based personal care and home cleaning products manufacturer, whose portfolio includes Cutex nail products, Chloraseptic sore throat products, Clear Eyes eye care products, Compound W wart remover, Dramamine nausea and motion sickness reliever, Efferdent oral care products and Luden’s cough and cold products, among others.