Q2 Results Round-up: Prestige, Bausch Health

Among the latest Q2 2021 results announced in the past week, two global Top 20 CHC companies – Prestige Consumer Healthcare (ranked No. 14) and Bausch Health (ranked No. 16) – reported strong performances. There was also dynamic Q2 growth reported by DSM Nutrition, Beiersdorf and several other marketers, pointing again to a strong recovery for the global CHC market in the second quarter of the year.

Prestige Consumer Healthcare revenues grew by 17.3% in fiscal Q1 2022 (1 Apr-30 Jun 2021) to US$269mn, the second highest level in the company’s history.

  • North America OTC Healthcare sales were US$242mn vs US$211mn in the comparable quarter. This was driven by a strong performance across a majority of key brands vs their respective categories and increased demand in certain Covid-impacted categories such as motion sickness and travel-related channel
  • International OTC Healthcare sales totalled US$26.8mn vs US$18.7mn. The increase related primarily to a rise in consumer activity in Australia, which drove a sharp spike in demand for Hydralyte and other brands disrupted by the pandemic, along with a foreign currency benefit of around US$2mn

Comment from CEO, Ron Lombardi: While the strong performance was partially attributable to lapping an unusual prior year period, the attributes of our leading brands and our continued market share gains over the past 12 months have us well positioned to benefit as consumer habits continue to shift and evolve. This leaves us well positioned to anticipate continued market share, revenue and earnings growth in the remainder of the year. In addition, we anticipate TheraTears and other brands, acquired [from Akorn] on 1st July 2021, to add incremental revenue and earnings to our base business momentum.

Source: Bausch Health.

Bausch Health reported a 26% rise in revenues (+23% both at constant currency and organically) in Q2 2021 to C$2.1bn (US$1.7bn), primarily owing to higher volumes resulting from the recovery from the pandemic. Eye health business Bausch + Lomb reported a 38% rise in revenues (+3% organically) to C$934mn (US$748mn). Within that, Global Consumer Products was up by 9% on an organic basis to C$341mn (US$273mn), with the US Consumer business up 20% driven by Ocuvite and PreserVision eye vitamins, coupled with the strong Lumify performance. Bausch reported that its share of the US eye vitamin category has grown from 75.6% in Q2 2020 to 77.9% in Q2 2021. The International Consumer business declined by 2%, mainly owing to the recall of a multi-purpose solution in Europe because of a quality issue at a third-party supplier.

While Global Consumer Products, which will be spun off with Bausch + Lomb into a separate business, showed healthy growth, it was slower than all other divisions. In an earnings call, Chairman & CEO Joseph Papa noted that the company, which is “dedicated to unlocking value for shareholders”, was making “good progress” with the spin off and had filed an S-1 with the US Securities & Exchange Commission. The company also announced that it would pursue an initial public offering for Solta Medical. This will result in the creation of Bausch + Lomb, a pure-play, integrated eye health company; Bausch Pharma, a global diversified pharmaceuticals business; and Solta Medical, a leading global provider in medical aesthetics.

We are pleased to announce that our APAC e-Conference 2021 will take place on 23 November! Join Nicholas and the team to Face the Future together. With speakers and sessions being added to the agenda soon, watch this space. To register, or to find out more, please contact elizabeth.bernos@NicholasHall.com.