Company: PBH
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001295947-25-000039
Chunk: 14

Company: Prestige Consumer Healthcare Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 14
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2024, primarily due to increased inflation costs and product mix.

Contribution Margin

Contribution margin is our segment measure of profitability.  It is defined as gross profit less advertising and marketing expenses.

The following table presents our contribution margin and contribution margin as a percentage of total segment revenues, by segment for each of the periods presented.

Three Months Ended September 30, (In thousands)Increase (Decrease)Contribution Margin2025%2024%Amount%North American OTC Healthcare$96,375 41.8 $97,140 40.5 $(765)(0.8)International OTC Healthcare16,503 38.1 18,833 42.8 (2,330)(12.4) $112,878 41.2 $115,973 40.9 $(3,095)(2.7)

North American OTC Healthcare Segment

Contribution margin for the North American OTC Healthcare segment decreased $0.8 million, or 0.8%, during the three months ended September 30, 2025 versus the three months ended September 30, 2024.  As a percentage of North American OTC Healthcare revenues, contribution margin increased to 41.8% during the three months ended September 30, 2025 from 40.5% during the three months ended September 30, 2024.  The contribution margin increase as a percentage of revenues was primarily due to the increase in gross profit margin above and a decrease in advertising and marketing spend during the quarter attributable to timing.

International OTC Healthcare Segment

Contribution margin for the International OTC Healthcare segment decreased $2.3 million, or 12.4%, during the three months ended September 30, 2025 versus the three months ended September 30, 2024.  As a percentage of International OTC Healthcare revenues, contribution margin decreased to 38.1% during the three months ended September 30, 2025 from 42.8% during the three months ended September 30, 2024.  The contribution margin decrease as a percentage of revenues was primarily due to the decrease in gross profit margin above.

24

General and Administrative

General and administrative expenses were $28.0 million for the three months ended September 30, 2025 and $26.1 million for the three months ended September 30, 2024.  The $1.9 million increase in general and administrative