In This Article:
-
Infant Formula Net Sales: Increased by 19% year over year.
-
Supply Chain Reinvention Benefits: Delivered an additional $8 million in benefits.
-
Project Energize Savings: Achieved an additional $20 million in annual savings, bringing the total to $159 million.
-
Organic Net Sales: Declined 0.4%, but excluding certain factors, grew 1.8% year over year.
-
Gross Margin: Expanded by 440 basis points to 41%.
-
Operating Margin: Expanded by 550 basis points.
-
EPS Growth: Increased by 107% to $0.60 per share.
-
Gross Profit: Grew 8.1% or 13.8% organically to $428 million.
-
Operating Income: Grew almost 58% or 71% organically to $147 million.
-
Cash on Balance Sheet: $410 million at the end of the first quarter.
-
Net Sales Growth Expectations: Adjusted to between 0% and 3% for the quarter and 1.5% and 4.5% for organic growth.
-
Tariff Impact on COGS: Expected 1% gross increase in 2025, rising to approximately 5.5% on a full-year basis.
-
Adjusted EPS Target: Reaffirmed at $2.90 to $3.10 per share for 2025.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Perrigo Co PLC (NYSE:PRGO) reported a 19% increase in Infant Formula net sales compared to the same quarter last year, indicating a strong recovery in this segment.
-
The company's Supply Chain Reinvention program delivered an additional $8 million in benefits, and Project Energize achieved $20 million in annual savings, reaching a total annual run rate of $159 million.
-
Perrigo Co PLC (NYSE:PRGO) achieved a global service level of 94%, showcasing improvements in operational efficiency.
-
The company's OTC brands experienced solid organic growth of 5.9% year over year, driven by strong sales of key products.
-
Gross margin expanded by 440 basis points to 41%, and operating margin expanded by 550 basis points, reflecting improved profitability.
Negative Points
-
Organic net sales declined by 0.4%, impacted by previously disclosed lost distribution of low-margin products in the US Store Brands segment.
-
The uncertain macroeconomic environment, including inflation, tariffs, and reduced consumer confidence, poses challenges to sales growth.
-
Perrigo Co PLC (NYSE:PRGO) expects a 1% gross increase in global cost of goods sold due to tariffs, with a full-year impact rising to approximately 5.5% of global COGS.
-
The company has widened its 2025 net sales projections due to macroeconomic uncertainties, indicating potential volatility in revenue.
-
Infant Formula sales recovery is tempered by increased marketing and promotions from domestic brands, which have temporarily reduced the price gap between National Brands and Store Brands.