Perrigo Reports First Quarter 2025 Financial Results From Continuing Operations

In This Article:

Advancing 'Three-S' Plan to Stabilize, Streamline and Strengthen Perrigo, which was Detailed at February 2025 Investor Day

Delivered Strong First Quarter 2025 Adjusted EPS Growth and Margin Expansion, Driven by Infant Formula and OTC Brands

Widened 2025 Net Sales Target Ranges, Due Primarily to Macroeconomic Uncertainty; Reaffirmed All Other Previously Provided 2025 Financial Targets, Including Adj. EPS Range

DUBLIN, May 7, 2025 /PRNewswire/ --

Perrigo Company (PRNewsfoto/Perrigo Company plc)
Perrigo Company (PRNewsfoto/Perrigo Company plc)

First Quarter 2025 Highlights:

  • Net sales of $1.04 billion declined 3.5%, due primarily to an unfavorable impact of 3.2% from divested businesses, exited product lines and currency translation.

  • Organic1 net sales decreased 0.4% as higher net sales in the Nutrition, Upper Respiratory and Healthy Lifestyle categories were more than offset by previously disclosed net lost distribution of lower margin products in U.S. Store Brand of 0.8%, the lack of a prior year benefit in the Women's Health category of 1.4% from initial retailer stocking of Opill® which launched at the end of the quarter, and lower net sales in the Digestive Health category.

  • Excluding previously disclosed net lost distribution of lower margin products in U.S. Store Brand of 0.8%, and the lack of a prior year benefit in the Women's Health category of 1.4% from initial retailer stocking of Opill®, organic net sales grew 1.8%.

  • Consumer Self-Care International ("CSCI") net sales of $423 million declined 3.4% compared to the prior year quarter, including an unfavorable impact of 7.9% from divested businesses, exited product lines and currency translation. CSCI organic net sales grew 4.5% due primarily to growth in the Upper Respiratory, Pain and Sleep Aids and Healthy Lifestyle categories.

  • Consumer Self-Care Americas ("CSCA") net sales of $621 million were down 3.6% compared to the prior year quarter as higher net sales in the Nutrition and Upper Respiratory categories were more than offset by previously disclosed net lost distribution of lower margin products of 1.3%, the lack of a prior year benefit in the Women's Health category of 2.3% from initial retailer stocking of Opill® which launched at the end of the prior year quarter, and lower net sales in the Digestive Health category.

  • GAAP ("reported") gross margin was 37.6%, an increase of 450 basis points compared to the prior year quarter. Non-GAAP ("adjusted") gross margin expanded 440 basis points to 41.0% driven primarily by infant formula business recovery and the Company's Supply Chain Reinvention program.

  • Reported operating income was $47 million compared to a loss of $(55) million in the prior year quarter. Adjusted operating income of $147 million increased $54 million, or 57.6%, compared to the prior year period due primarily to infant formula business recovery and benefits from 'Project Energize' (see "Project Energize" section below for details).

  • Reported operating margin was 4.5%, an increase of 960 basis points compared to the prior year quarter. Adjusted operating margin expanded 550 basis points to 14.0% driven primarily by adjusted gross margin expansion and benefits from Project Energize.

  • Reported diluted earnings per share ("EPS") were breakeven in the first quarter 2025, compared to reported diluted EPS of $0.03 in the prior year quarter.

  • Adjusted diluted EPS of $0.60, compared to $0.29 in the prior year quarter, increased $0.31, or 106.9%, per share, driven by the increase in adjusted operating income and lower interest expense due to lower total debt outstanding. First quarter 2025 adjusted diluted EPS included a higher tax rate compared to the prior year equating to $0.03 per adjusted diluted share, in addition to an impact from divested businesses, exited product lines and currency translation of $0.04 per adjusted diluted share.