Prestige Consumer Healthcare (PBH) risk factors, FY2025 10-K

Risks Related to our Business and Industry

1. 01Price increases for raw materials, packaging, labor, energy and transportation costs, and other manufacturer, logistics provider or distributor demands, could continue to have an adverse impact on our margins
2. 02The high level of competition in our industry, much of which comes from competitors with greater resources, could adversely affect our business, financial condition and results of operations
3. 03Disruption in our third-party distribution center or our manufacturing facilities may prevent us from meeting customer demand, and our sales and financial condition may materially suffer as a result
4. 04Any future outbreak of other highly infectious diseases or public health emergencies could have a material adverse impact on our results of operations and financial condition
5. 05Consumption trends for our products may not correlate to our results of operations
6. 06Product liability claims and product recalls and related negative publicity could adversely affect our sales and operating results
7. 07We could also be required for a variety of reasons to initiate product recalls, which we have done on several occasions. Any product recalls could have a material adverse effect on our business, financial condition and results of operations

Risks Related to Acquisitions and Product Development

1. 08Achievement of our strategic objectives includes the acquisition, or potentially the disposition, of certain brands or product lines, and these acquisitions and dispositions may not be successful
2. 09In the event that we decide to divest of a brand or product line, we may encounter difficulty finding, or be unable to find, a buyer on acceptable terms in a timely manner
3. 10If new products and product line extensions do not gain widespread customer acceptance or are otherwise discontinued, our financial performance could be impacted

Regulatory Risks

1. 11We face risks associated with doing business internationally
2. 12Regulatory matters governing our industry could have a significant negative effect on our sales and operating costs
3. 13The adoption of new regulations or changes in the interpretation of existing regulations may result in significant compliance costs or the cessation of product sales and may adversely affect the marketing of our products, which could have a material adverse effect on our financial condition and results of operations
4. 14We are subject to increasing focus on Environmental and Sustainability issues

Risks Related to Intellectual Property and Data Privacy and Security

1. 15If we are unable to protect our intellectual property rights, our ability to compete effectively in the market for our products could be negatively impacted
2. 16We depend on third parties for intellectual property relating to some of the products we sell, and our inability to maintain or enter into future license agreements may result in our failure to meet customer demand, which would adversely affect our business, operating results and financial condition
3. 17Virtually all of our assets consist of goodwill and intangible assets and are subject to impairment risk
4. 18regulatory, legal and tax requirements, collecting and storing customer, consumer, employee, investor and other stakeholder information and personal data and other processes necessary to manage the Company's business

Risks Related to our Financing

1. 19At March 31, 2025, our total indebtedness, including current maturities, was approximately $1.0 billion
2. 20Our capital structure and ability to engage in strategic transactions is limited in significant respects by the restrictive covenants in our revolving credit facility and the indentures governing our senior notes
3. 21Our ability to engage in these types of transactions is generally limited by the terms of the revolving credit facility and the indentures governing the senior notes, even if we believe that a specific transaction would positively contribute to our future growth, operating results or profitability
4. 22The senior credit facility and the indentures governing the senior notes contain cross-default provisions that could result in the acceleration of all of our indebtedness
5. 23Litigation may adversely affect our business, financial condition and results of operations
6. 24We depend on our key personnel, and the loss of the services provided by any of our executive officers or other key employees could harm our business and results of operations
7. 25Provisions in our amended and restated certificate of incorporation and Delaware law may discourage potential acquirers of our Company, which could adversely affect the value of our securities
8. 26Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns or a determination of tax jurisdiction could adversely affect our results