Prestige Consumer Healthcare Inc (PBH) 2025 Q4 法說會逐字稿

Good day and thank you for standing by, Welcome to the Prestige Consumer Healthcare's fourth quarter 2025, earnings conference call.

(Operator Instructions).

I would now like to hand the conference over to your speaker today, Phil Terpolilli, Vice President, Investor Relations and treasury, please go ahead.

Thanks, operator, and thank you to everyone who has joined today. On the call with me are Ron Lombardi, our Chairman, President and CEO, and Christine Sacco, our CFO and COO.

On today's call, we review our full year fiscal 2025, results, discuss our full year outlook, and then take questions from analysts.

A slide presentation accompanies today's call. It can be accessed by visiting prestige Consumerhealthcare.com, clicking on the investors link, and then on today's webcast and presentation.

Remember, some of the information contained in the presentation today includes Non-GAAP financial measures. Reconciliations to the nearest GAAP financial measures are included in our earnings release and slide presentations.

On today's call, Man will make forward-looking statements around risks and uncertainties. They're detailed in a complete safe harbor disclosure on page two of the slide presentation which accompanies the call.

These are important to review and contemplate. Business environment uncertainty remains heightened due to evolving US and international tariffs, supply chain constraints, and inflation, which have numerous potential impacts. This means results could change at any time, and the forecasted impact of risk considerations is the best estimate based on the information available as of today's date.

Additional information concerning risk factors and cautionary statements are available in our most recent SEC filings and our most recent company 10K.

I'm now handed over to our CEO Ron Lombardi.--

I think so. Let's begin on slide 5.

We are very pleased with our record fiscal 2025 results, which delivered a year of solid revenue and earnings growth thanks to our diversified portfolio of brands and proven business attributes.

Net revenue of over $1.1 billion increased just over 1% versus the prior year consistent with our forecast.

Our international segment growth continues to deliver growth in excess of 5%, while in North America, many of our GI brands such as Dramamine and Fleet continue to experience superior results. We've also continued to see stabilization for the Summer's Eve brand within the women's health category, which was a key priority we discussed at the start of the year.

For profitability, we expanded gross margins slightly anticipate further expansion in fiscal 2026, which Chris will discuss later.

This helped generate solid adjusted EPS of $4.52 up approximately 7%, consistent to our long-term growth objective.

We continue to execute a steady and disciplined capital allocation strategy using our strong fiscal 2025 free cash flow, which was in excess of $240 million to finish the year at 2.4 times leverage while still executing value enhancing capital deployment. Chris will review our go forward capital allocation priorities later.

Now with that, let's turn to the next section for a reminder of a few of the ways our unique business strategy looks to generate consistent long-term performance.

To begin, slide 7 is a reminder of our marketing agility. One of the benefits of having a wide ranging portfolio of brands is the ability to adjust our brand building strategy and allocations in real time, focusing investments around the best near term opportunities wherever they arise.

In fiscal 2025, we faced supply challenges for Clear eyes, which we discussed last May. We worked quickly to refocus marketing efforts around the rest of our eye and ear care portfolio Ferritis, Drops, and Syrup, each of which had unique opportunities available to invest behind. For Thetiers, we leveraged its well recognized heritage as a dry ice solution in multiple ways to generate solid growth of approximately 10%. For [Stey] and D Box, two brands synonymous with their categories, a combination of innovation and accelerated marketing investments helped that incremental growth. The result was clear, as shown on the left of the slide. These three brands outperformed their combined category growth by over 3% points and are well positioned for continued growth.

This agility and investments is a unique strength of our business, and we will continuously look to pivot into the best marketing opportunities that drive superior revenue growth.

Now let's turn to slide 8 to discuss the e-commerce channel.

Beyond executing successful marketing, we are focused on aligning our investments into channels that are important to consumers. We continue to see consumer shift channels most prominently towards e-commerce, where our long-term investments have enabled continued success.

Even with robust growth over the last 5 years, we continue to maintain a consistent double digit sales growth profile. For fiscal 2025, we experienced solid consumption growth with strong performance across our key partners thanks to multiple tactics and solid retail partnerships.

Each of our individual brands develops and maintains its own e-commerce strategy, including continuous improvements to the user experience to help retain loyal consumers. For example, a recent refresh of the Sy website helps consumers educate themselves around sty symptoms and relief options.

Equally important is engaging content that can help drive traffic and conversion of new users. We've had wide ranging success across our portfolio with some examples shown on the right side of the page.

So we reviewed both marketing and channel opportunities. Now let's turn to slide 9 to discuss innovation.

Innovation continues to be a key part of Prestigious brand building tool kit. We operate with a multi-year pipeline of new product development concepts to ensure we generate new skews that match the needs of consumers.

As shown on the page, the tactical elements to success for the various products launched in fiscal 2026 are wide ranging. Most importantly, all of our innovation seeks to provide better consumer experiences. Each is designed to satisfy key consumer interests like launching a new flavor adding of an efficacious ingredient or a new claim.

Some of the latest products highlights these attributes include the recent launch of watermelon and pineapple flavor for [hydrolyte], as well as the [monostat] maintain kit, which contains boric acid in two formats and an all in one odor solution designed for PH balance while addressing odor and discharge.

Incrementally, some innovations often seek to build on improving consumer experience through new technologies or form factors. An example of this we've discussed in the past was the launch of compound nitrofreeze, a work treatment solution with extreme freezing technology not available in other OTC treatments.

For fiscal 2026, we have numerous new form factors across multiple products, including the launch of Summer's Eve whole body deodorant and the recent launch of Fleet's oral stool softener.

Lastly, many of our product launches help expand our brands into adjacent categories, leveraging their history of efficacy and strong brand heritage with consumers. One recent example is goodies plus headache, pain and mental alertness, which takes Goody's proven history of fast pain relief combined with added caffeine to help consumers get back to the things they enjoy faster.

So in summary, we have a long history of innovation, another great year planned for 2026, and the continuous new product pipeline that should help drive consistent organic sales growth over time.

With that, I'll turn it to Chris to discuss the financials.

Thanks, Ron. Good morning, everyone. Let's turn to slide 11 and review our fourth quarter and full year fiscal 2025 results. As a reminder, the information in today's presentation includes certain Non-GAAP information that is reconciled to the closest GAAP measure in our earnings release.

Please note, I'll also be discussing our initial fiscal 2026 outlook in greater detail by line item. This is also available in summary form in the appendix of today's slide presentation.

Q4 was particularly strong and above our outlook, featuring record quarterly revenue and adjusted EBITDA and EPS.

Q4 revenue of $296.5 million increased 7% or 7.9% excluding FX versus the prior year.

In the North America segment, we experienced broad-based growth which included nice growth in both the women's health and GI categories led by Summer's Eve, Dramamine, and Sweet.

International segment sales grew 7.1%, excluding FX, driven by hydro light.

Adjusted EBITDA a margin grew noticeably versus the prior year, both from the timing of certain marketing spend, as well as a favorable prior year comparison of supply chain challenges.

Adjusted diluted EPS of $1.32 was a quarterly record, up sharply versus $1.02 in the prior year thanks to a combination of factors including the favorable revenue comparison, gross margin expansion, and lower interest expense.

Let's turn to slide 12 for detail around consolidated results.

For fiscal 2025, revenues increased 120 basis points organically versus the prior year.

Excluding FX, North America and international segment revenues increased 30 basis points and 6.4% respectively versus the prior year. Our international segment experienced solid growth in excess of 5% thanks to strong performance in Australia, including the Hydrolight brand, which continues to grow household penetration and overall usage.

In North America, we were pleased with continued strong broad-based growth in the GI category, which helped offset declines from challenged cough and cold sales and the anticipated gradual supply recovery for clear eyes, which we anticipate will continue in fiscal 2026.

For summer's Eve, we experienced the second quarter in a row of year over year sales growth in Q4 thanks to the brand's refreshed marketing and innovation strategies.

E-commerce remains a highlight in our fastest growing channel, up double digits once again in fiscal 2025 and now representing high 10 as a percentage of sales.

E-commerce channel shipment growth accelerated in Q4, outpacing consumption, which we believe was in anticipation of certain tariff actions.

Our outlook assumes this order timing resulted in an approximate $7 million benefit to Q4, which will come out of Q1.

Total company growth margin of 55.8% for fiscal 2025 was up 30 basis points versus the prior year, including material improvement in Q4 to approximately 57%.

For both fiscal 2026 and for Q1, we anticipate gross margin of approximately 56.5% driven primarily by cost saving measures.

Please note this gross margin forecast includes approximately $15 million in estimated tariff costs, which is about $20 million on an annualized basis.

Ron will discuss the tariff and macro backdrop in more detail later, but we have confidence that our needs-based consumer healthcare brands and their leading market shares leave us well positioned.

Advertising and marketing was 13.7% as a percentage of sales for fiscal 2025 up in dollars. For fiscal 2026, we expect A&M of approximately 14% of sales, both for fiscal 2026 and Q1. This higher percentage is enabled through reinvestment of forecasted gross margin expansion consistent with our long-term strategy.

G&A expenses were 9.5% of sales in fiscal 2025 as anticipated.

We'd anticipate a slight increase in G&A on a percentage basis in fiscal 2026.

For Q1, G&A in dollars should be consistent with the prior year.

Finally, adjust EPS of $4.52 compared to $4.21 in the prior year driven by revenue growth and lower interest expense.

Thanks to our debt reduction efforts, we anticipate interest expense of approximately $39 million in fiscal 2026.

Our full year normalized tax rate of 23.7% was consistent with our long term expectations, and we anticipate a similar tax rate of approximately 24% again in fiscal 2026.

Finally, I'd like to point out these results are adjusted to exclude certain non-cash, non-strategic trade name impairments which are discussed in further detail in our press release.

Now let's turn to slide 13 and discuss cash flow.

For fiscal 2025, we generated $243 million in free cash flow, up approximately 2% versus the prior year.

As shown on the left side of the slide, this performance is another example of our steady long-term free cash flow generation thanks to our unique business attributes which continue to enable further net leverage reduction while still leaving capital available for other priorities.

In the fiscal year we reduced our variable term loan debt balance to zero.

We purchased over $50 million in shares, and built some cash on the balance sheet in advance of future M&A opportunities.

With this balanced approach, we achieved a covenant defined leverage ratio 2.4 times at the end of March.

Looking ahead, we'd anticipate a continuation of our disciplined but flexible capital allocation strategy. Let's review those priorities on slide 14.

Our improved leverage ratio, robust free cash flow, and consistent business performance gives us strategic flexibility with our capital deployment moving forward.

We still anticipate approximately $1 billion of free cash flow over the next 4 years, which is after the important long-term marketing investments we continue to make in our strategic brands. We remain committed to our waterfall of priorities shown on the page that add value for our shareholders.

First, we'll continue to evaluate M&A as part of a disciplined capital deployment strategy. We continue to see OTC fragmentation as an opportunity to acquire future brands and portfolios.

Next, we anticipate additional share repurchases under our multi-year share repurchase authorization to offset dilution and return capital to shareholders.

Last, we anticipate building further cash on the balance sheet in fiscal 2026 to enhance flexibility around the priorities above.

As a reminder, the remainder of our unsecured debt is fixed at attractive rates with maturities in 2028 and 2031, so further debt reduction is less attractive from here.

So in summary, we have both a healthy leveraged position and steady free cash flow profile which is highly beneficial to enabling disciplined value added capital allocation.

With that, I'll turn it back to Ron.

Thanks Chris. Let's turn to slide 16 to discuss the current environment.

As we begin fiscal 2026, market conditions remain fast changing and hard to predict. To start, as everyone is well aware, tariff volatility and uncertainty continues to be complex for businesses to navigate. The potential impacts are broad, including both the direct costs of a finished good being tariffed, as well as the wider inflationary impact. These risks are reducing consumer optimism broadly, where consumers are actively reviewing their spending decisions. Fortunately, we believe our unique business model leaves us well positioned to help navigate this challenging environment. Many of these attributes were proven to be beneficial during COVID.

To start, we have a wide ranging portfolio of needs-based products. We have approximately 20 strategic brands across 7 distinct product categories, each of which is broadly distributed. This allows us to be available with a product that is important to maintaining our consumers' health regardless of economic conditions.

Second, we have a diverse and predominantly domestic supplier base that is a strategic advantage. Approximately 80% of our direct domestic cost of goods comes from local manufacturing from numerous suppliers, and we have a modest exposure to high tariff countries. We also have many products produced elsewhere in North America that are currently exempt from tariffs under USMCA.

Third, we are moving with urgency to identify cost saving levers across our supply chain to help mitigate any near-term tariff impacts and resulting long-term inflation.

Lastly, with a portfolio of leading brands, we are well positioned to take surgical pricing as necessary.

So in summary, our broad portfolio of needs-based brands, diverse and mostly domestic supply base, and a focus around cost savings leaves us well positioned to navigate the current environment.

With that, let's turn to slide 17 for our initial outlook that reflects this backdrop.

Even with this fluid macro environment thanks to our proven business strategy, we achieved a consistent revenue performance in fiscal 2025 and believe we are on track to do so again in fiscal 2026.

For fiscal 2026, we anticipate revenues of $1.140 To $1.155 with an FX headwind expected of about a point. This includes an organic revenue growth forecast of approximately 1% to 2% versus the prior year.

For Q1 revenues are anticipated of $258 to $260 million down versus the prior year, largely reflecting the timing of Q4 e-commerce orders which Chris discussed earlier, as well as the timing of expected eye care deliveries between Q1 and Q2.

We anticipate diluted EPS of approximately $4.70 to $4.82 for the full year or about 4% to 7% EPS growth.

This is thanks to higher expected sales, gross margin expansion, and lower interest.

We expect first quarter EPS between $0.98 and $1.

These profitability assumptions include what we know about the tariff environment as of today. We currently anticipate tariff impacts of approximately $150 million for fiscal 2026.

Even with these projected impacts, we are still forecasting gross margin expansion to about 56.5% thanks to our strategic cost savings efforts and tactical pricing, we've been executing for some time.

Lastly, we anticipate free cash flow of $245 million or more thanks to our strong financial profile.

A stable free cash flow will continue to enable multiple capital deployment priorities that will drive upside and maximize shareholder value.

With that, I'll open it up for questions. Operator.

Thank you.(Operator Instructions).

And our first question comes from Rupesh Parik of Oppenheimer. Your line is open.

Good morning, and thanks for taking my question. So I just want to go back to your organic sales growth guide of 1% to 2%. So it sounds like, maybe there's a half point or so headwind just really to that shift in timing of, or I guess the pull forward to Q4 versus Q1, but just anything else, that drives it below your 2% to 3% longer term algorithm.

Yeah, hey, good morning, Rupesh. This is Chris. So a couple of things to contemplate in our initial guide, which is a bit wider than it has been in the prior year, right?

First, given the macro environment that Ron touched on a little earlier, just as you're hearing from just about every company in every industry, there's heightened volatility and uncertainty today.

To your point, we did talk about in the prepared remarks the timing of certain e-commerce orders. We highlighted those as about $7 million which we believed was pulled forward. And FX remains difficult to predict, we saw some highly unusual swings in two of our major exposures, primarily the Australian dollar and the Canadian dollar. So overall we think we're being prudent in our guide given the current environment.

Okay, so it sounds like just more, consumption just more conservatism versus any weakening you're seeing in your business, I guess quarter day is that the right way to think about that?

That's a fair way to think about it, yeah, okay.

Okay, great. And then second on Clear eyes, just the latest in terms of how you think about the recovery for Clear eyes, do you guys expect to get back to, maybe normal normal this year from, I guess in stocks or retailers and just where you'd like to be with the business.

Yeah, good morning, Rupesh. So for starters, there's really no change in the clear eye supply chain plan that we began to talk about about a year ago, where we're looking to expand capacity at the existing suppliers and bring on two new suppliers in fiscal 2026 like we saw in fiscal 2025, the quarterly shipment results can be lumpy. We anticipate them being a bit lumpy. As the current suppliers take production down to do upgrades and expand capacity, and we work with them to manage that so that we have the best managed timing from quarter to quarter.

In addition to that, we would expect that. The second half of the year will begin to see the bigger recovery year over year and just in absolute dollars versus the first half as that added capacity and the new suppliers come online.

Okay great thank you I'll pass it along.

Thanks.

Thank you.

And our next question comes from Susan Anderson of Canaccord your line is open.

Hi, good morning. Thanks for taking my questions. Nice job on the quarter and ending the year. I guess maybe just to follow up on the women's health category, definitely saw some nice growth in fourth quarter, I guess. How are you feeling about both brands, some and [Moostat] heading into this year, and then do you feel like the brands are in a good position to grow and do you plan any new innovation as well for this year? Thanks.

Yeah, good morning, Susan. So Women's Health and Summer's Eve in particular we feel really good about the progress that the brand made during fiscal 2025. Each quarter the brand improved quarter to quarter, and we actually were able to grow enough in the second half of fiscal 2025 to get Summer's Eve to a full year level of growth year over year.

Even with starting off with a pretty big decline in the first quarter, so we feel really good about the results of our efforts focused on redoing our marketing messaging and our marketing communication tools, the new products that we launched in fiscal 2025, the ultimate odor protection in both wash spray and wipes forms has been the best launch for Summer's Eve in a really long time. And then we've got a number of other products that I touched upon in our comments today, including whole body deodorant amongst others that we feel really good about as we head into 2026. So all in all, we expect that our women's health franchises will get back to a position of being able to grow over the long term.

Okay, that sounds good. And then maybe if I could just ask about cold cost down for this year, obviously it was like a great year going into fiscal year 2026, I guess how's your inventory there? Do you feel like there will be some restocking just given that late surge we had, in the cold cost season? Thanks.

Yeah, so going into fiscal 2025, our outlook for cough cold shipments of our products was that we thought we'd be flat in 2025 to 2024, and we actually ended up being down a bit. But thanks to the benefit of a diverse portfolio, it didn't impact our results at all for the year, but we thought we'd be flat in 2025. We ended up being down. And our outlook for 2026 is that 2026, our shipments again will be flat to 2025 level. Hard to predict what cold incident levels will be, what the retailers will do for inventory management, what's in the shelf in the bathrooms of our consumers at home. So we're starting off with that forecast as we head into 2026.

Okay, great, then you just add one more. So with your leverage down to 2.4%, another year strong free cash flow, and then looking in the continued strong cash flow for this year, I guess how are you thinking about your capital allocation strategy? Are you seeing any attractive assets out there that you could potentially add to your portfolio? Thanks.

Good morning, Susan. It's Chris. So to your point, at the 2.4 times leverage we feel well positioned to demonstrate multiple uses of our capital just as we did in fiscal 2025, right? We did about $50 million in repurchases this year. We paid off our term loan, which was $135 million during the year. We built about $50 million of cash on the balance sheet, and so I think. The story for 2026 is going to be a balanced approach, right? Obviously our preference is M&A. We continue to see a lot of things out there given the fragmentation of the industry and you know I think you'll see a balanced approach in us doing some share repurchases but also building some cash on the balance sheet because we want to be well positioned when something that fits our criteria is actionable.

Okay, great. Thanks so much. Good luck the rest of the year.

Thanks.

Thank you.

Our next question comes from [Keith Davis of Jeffrey's]. Your line is open.

Hey, good morning. Thanks for the question. I wanted to just drill down a little bit on the consumer uncertainty. It doesn't sound like it's impacting your business, that kind of makes sense given your portfolio, but I'm curious how you might look to evolve your innovation or marketing plans as the year progresses, just as some of the consumer uncertainty persists. It could also be a time where. The consumer is a little less receptive to marketing or innovation. So I'm curious how you guys might look to adapt or evolve even if it's prioritizing different channels if the uncertainty persists through the year.

Thank you.

Yeah, good morning, Keith. So you know what we've seen in the past during challenging economic times or fluid fluid times is that, needs-based categories tend to be the last place that consumers look to make a change. They stick with their trusted brands that's worked for them. So what we have seen though over time is that where consumers choose to purchase the product will evolve, and we've started to see that.

In fiscal 2025, so they may look for the best value proposition.

Whether it's price or a different price point offering, and with our broad distribution and our varied product offerings within our brand, we're well suited to meet whatever the consumer might be looking for. So we'll look to see where the consumer is evolving to and we'll realign our investments to better support or best support where the consumer is looking for the products and that proposition that best fits their need at that moment, so. I think I commented on this today in the prepared remarks.

One of the things that we do well here is pivot quickly and change to meet a dynamic evolving environment. We saw that in 2025 when we pivoted and made changes to eye Care investment as we dealt with clear-eyed supply and took advantage of Ferrites Drops and Syrup opportunities, so we'll continue to be fluid and work best to meet where the consumer ends up this year.

Thank you.

And our next question comes from Glenn West of William Blair. Your line is open.

Hi everyone, this is Glen West in for John Anderson. I was hoping to ask about the, hot topic of tariffs. You guys obviously called out the $15 million dollar headwind.

I assume that's kind of taking into account that the current tariff environment stays as it is for the full year obviously and then you talked about being able to offset it with cost savings levers. I was wondering if you guys could give us a little more color what levers you have there and then you also mentioned maybe the ability to take surgical pricing. I'm wondering if that's kind of just, -if there's anything left over that we can't mitigate with our levers, we'll obviously offset dollar for dollar with extra pricing, so maybe just overall color on on your plans there.

Hey, good morning, Glenn. This is Chris. So you're correct in your assumption. We are assuming in our guide that all tariffs that are in place or scheduled to be in place as of today, Ron mentioned in the prepared remarks, the USMCA exemptions, the elevated Chinese tariff rate, global baseline and reciprocal. I would just point out that reciprocal tariffs aren't very meaningful to us and have been factored in our guide, but just given our limited exposure to that.

And we're working closely with all of our suppliers to identify and close exposures that can result in savings for fiscal 2026 and beyond, you asked about levers, when we have dual sourcing or alternative sourcing even for APIs for some of our. Backers, everything's on the table and we're looking and working closely with our external partners to mitigate the costs, and that will obviously be where we go first. But to your point, we do anticipate taking some surgical pricing if need be, but our efforts are going to start with cost savings.

Okay, that's helpful. And then if I could sneak in one more just on the e-commerce channel up to, high percentage, of sales at this point, is that still like really mainly North America or or how is the roll out kind of going internationally, is e-commerce picking up internationally at all.

So. Yeah, so Glenn, this is Ron. The e-commerce is still largely US centric. We don't see.

The growth in online purchases in the other countries where we are doing business, so in the UK and Australia and even in Canada, e-commerce just hasn't grown to the extent that it has in the US. It doesn't mean that we're not looking for opportunities and working with our retail partners in those regions to help them invest and grow those channels, but for now it's very much US centric.

Okay, thank you guys very much for the time. I'll hand back in the queue.

Okay, thanks.

Thank you.(Operator Instructions). And our next question comes from Anthony Lebiedzinski - Sidoti & Company. Your line is open.

Good morning, everyone and thank you for taking the questions and certainly nice results for 4.

Just, wondering, so obviously as you pointed out, the vast majority of your products are sourced in the US or North America. Just wondering if there are any opportunities that you think that for those that are sourced outside of the US, are there any domestic suppliers that are out there or you think you're kind of tapped out with that?

Yeah, we're certainly looking where we can, I would say obviously the most meaningful impact, about half of our tariffs is relating to China, limited exposure, but just given the magnitude of the rate, and we'll look to see if there are other countries even outside of the US obviously that don't have the same impact. As the impact China's having, but again, for us, I think it's a little bit similar to COVID, where, for tariffs for us at about $15 million this year we feel is manageable. We'll look to offset it with a lot of levers of cost savings and given the brand's positioning, surgical pricing if necessary.

Got it. Okay. And then you've talked about the innovation of, it's not the first time, but I'm just wondering if you look, towards this year.

Are you as far as like the number of products that you're looking to launch, is that comparable to to past years or do you guys target a specific percentage of sales that you want to come from new products, just wondering how you think about that and what's the margin profile for the new products, that you're looking to roll out.

Yeah, so good morning, Anthony. So the first part of it is, we tend to see a fairly steady impact from new products each year. We don't target a certain percentage of sales to come out of new products in innovation each year. We just look to have great ideas.

That our teams work on over a long period of time. It can take 2 or 3 years to launch new products or bring new innovation to the OTC market. So it's something that has to be a focus over the long term for us to be successful over time.

Anthony, this is just to piggyback on Ron, from a margin perspective, we have an edict that all of our innovation needs to be margin accretive to the brand, right when we don't have, we don't take price if we don't have associated cost impacts and so the way to march our margins forward continually is usually through this innovation.

Got it. Well, thank you very much and best of luck.

Thanks.

Thank you.

And our next question comes from Douglas Lane, Water Tower Research line is open.

Yeah, Hi, thanks and good morning, everybody. Just one thing, I noticed that the Opella deal closed this week, and that's a big transaction, and I just wondered if that impacts you either competitively or perhaps it could be an M&A catalyst for you.

Yeah, good morning, Doug. So I guess Opella is the next in line of the spinouts of the big pharma. So we've been through this a little bit before. It really doesn't do anything to change the competitive landscape of where we're focused or the competitors in those spaces. And over time, we've seen the big pharma spinouts potentially be opportunities for brands that may come to market. So it's more of the same with the latest spin-out for us.

Okay, thank you, that's helpful.

Okay.

Thank you. I show no further questions at this time. I'd like to turn it back to Ron Lombardi for closing remarks.

Thanks, operator, and again, thanks to everyone for taking the time to join us today. As we've discussed throughout this call, the current environment is fluid, but we believe our unique business attributes and strategy has us well positioned to navigate the upcoming year successfully. So thanks again for joining us and have a great day.

This concludes today's conference call.

Thank you for participating and you may now disconnect.