PRNewswire, 30 June 2020
Report entitled “Time To Nix Management” outlines how Prestige Consumer Healthcare Inc. (“PBH”, “Prestige” or “the Company”) faces 40%-60% downside risk to approximately $15 to $23 per share. The full contents of the report can be reviewed at www.sprucepointcap.com.
Spruce Point believes that it is time to replace the CEO and CFO of Prestige for their repeated inability to meet financial targets over the past 5 years. Under the current leadership, PBH’s OTC consumer product brands have languished, while its debt load has multiplied and its organic revenue growth teeters on turning negative. Just yesterday, in its proxy statement filing, the Company admitted it could not offer credible 1- to 3-year financial goals; in our view this is not what investors should expect from a consumer staples company that analysts suggest is recession resistant. We believe COVID-19 has reshaped the retail landscape, leaving Prestige ill-equipped to succeed in an environment favoring greater e-commerce consumer purchasing.
