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Perrigo PRGO reported adjusted earnings of 60 cents per share in the first quarter of 2025, beating the Zacks Consensus Estimate of 56 cents. The reported figure increased 107% year over year, primarily driven by improved margins and lower variable expenses.
Net sales declined 3.5% year over year to $1.04 billion, missing the Zacks Consensus Estimate of $1.08 billion. The downside was due to the loss of sales stemming from exited businesses and product lines, and unfavorable currency movements.
During the quarter, sales dropped 2% year over year on account of exited businesses and product lines and another 1.2% from unfavorable currency movement. At constant currency (excluding foreign currency translation), sales fell 2.4%. Organic net sales (excluding the effects of acquisitions and divestitures and the impact of currency) declined 0.4%.
More on PRGO’s Earnings
Perrigo reports its results under the following segments: Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).
CSCA: The segment’s net sales in the quarter came in at $621 million, down 3.6% year over year. Though sales grew across the Nutrition and Upper Respiratory categories, they were more than offset by lost distribution in U.S. Store Brand, a tough comparison in Women's Health following last year’s Opill launch, and lower sales in the Digestive Health category. Organic net sales also declined 3.6%. The reported segment sales missed the Zacks Consensus Estimate of $657 million and our model estimate of $638 million.
CSCI: The segment reported net sales of $423 million, down 3.4% from the year-ago period’s levels due to unfavorable impact from divested businesses, exited product lines and currency translation. At constant currency rates, sales were down 0.6% year over year. Organically, sales increased 4.5%. CSCI sales missed both the Zacks Consensus Estimate and our model estimate of $432 million and $434 million, respectively.
PRGO’s 2025 Guidance
Perrigo widened its full-year sales outlook due to macroeconomic uncertainty, including the potential impact of new tariffs. It now expects total net sales growth in the range of 0-3% year over year, compared to the prior guidance of 1-3%.
While PRGO expects tariffs to raise costs, especially in its Oral Care segment that relies heavily on Chinese sourcing, it believes the impact will be manageable. With 85% of its finished goods produced in the United States, the company plans to offset most of the pressure through price adjustments, shifting production to domestic facilities and other supply chain strategies. These reassurances likely contributed to the 5% rise in Perrigo shares during premarket trading.
