Realized Third Quarter Double-Digit Gross
Profit, Operating Income and EPS Growth
Year-Over-Year
Delivered Third Quarter Gross Margin and
Operating Margin Expansion Year-Over-Year and
Sequentially
Achieved Fifth Consecutive Quarter of
Double-Digit Adjusted Gross Profit, Adjusted Operating Income and
Adjusted EPS Growth Year-Over-Year
DUBLIN, Nov. 7, 2023
/PRNewswire/ --
Third Quarter 2023 Highlights:
- Third quarter net sales of $1.1 billion grew 2.2% versus the prior year
quarter. Organic1 net sales decreased 1.2%, including
-2.8 percentage points from purposeful SKU prioritization actions
to enhance margins as part of the Company's Supply Chain
Reinvention Program and the HRA Pharma ("HRA") distributor
transitions.
- Consumer Self-Care International ("CSCI") net sales
increased 11.2% compared to the prior year quarter and organic net
sales increased 6.2%, including -1.4 percentage points impact from
the HRA distributor transition. Consumer Self-Care Americas
("CSCA") net sales decreased 2.6% compared to the prior year
quarter, including -3.6 percentage points from purposeful SKU
prioritization actions.
- Third quarter GAAP ("reported") gross margin was
36.6%, a 360 basis points improvement compared to the prior year
quarter. Non-GAAP ("adjusted") gross margin was 39.5%, a 300 basis
points improvement compared to the prior year quarter, and an 80
basis points improvement compared to the second quarter of
2023.
- Third quarter reported earnings per share ("EPS") was
$0.11, compared to a loss of
$(0.39) in the prior year
quarter.
- Adjusted diluted EPS was $0.64, compared to $0.56 in the prior year quarter, an increase of
14.3%. Adjusted diluted EPS included an unfavorable impact of
$0.03 from the HRA distributor
transition as part of the integration plan to capture
synergies.
- Third quarter operating cash flow was $125 million, leading to an operating cash flow
conversion2 of 143%, and cash and cash equivalents on
the balance sheet closed at $598
million.
- Company updates its fiscal 2023 organic net sales and total
net sales growth outlook range to 1.0%-3.0% and 4.0%-6.0%,
respectively, versus the prior year. The Company also updates its
adjusted diluted EPS range outlook to $2.50-$2.60 (see
Fiscal 2023 Outlook section below).
Year-to-Date 2023 Highlights:
- Year-to-date 2023 net sales were $3.5
billion, an increase of 6.1% versus the prior year period.
Organic net sales increased 2.4%, including -1.9 percentage points
from purposeful SKU prioritization actions and the HRA distributor
transitions.
- CSCI year-to-date net sales of $1.3
billion grew 12.7% versus the prior year period, with
organic growth of 8.6%. CSCA year-to-date net sales of $2.2 billion grew 2.7% compared to the prior year
period, while organic net sales decreased 1.0%, including -2.6
percentage points from purposeful SKU prioritization
actions.
- Year-to-date GAAP ("reported") gross margin was 35.8%, a 330
basis points improvement compared to the prior year period.
Non-GAAP ("adjusted") gross margin was 38.5%, a 300 basis points
improvement compared to the prior year period.
- Year-to-date reported EPS was $0.17, as compared to a loss of $(0.88) in the prior year period.
- Year-to-date adjusted diluted EPS was $1.72, as compared to $1.32 in the prior year period, an increase of
30.3%. Adjusted diluted EPS included an unfavorable impact of
$0.14 from the HRA distributor
transition as part of the integration plan to capture
synergies.
(1)
|
See attached Appendix for details. Change in net
sales on an organic basis, also referred to as an increase or
decrease in organic net sales, excludes the effects of
acquisitions, divestitures, exited product lines and the impact of
currency.
|
(2)
|
See attached Appendix for details. Operating cash
flow conversion is calculated as operating cash flow as a
percentage of adjusted net income.
|
(3)
|
All tables and data may not add due to
rounding.
|
/PRNewswire/ -- Perrigo Company plc (NYSE: PRGO) ("Perrigo" or
the "Company"), a leading provider of Consumer Self-Care
Products, today announced financial results from continuing
operations for the third quarter ended September 30, 2023. All
comparisons are against the prior year fiscal third quarter, unless
otherwise noted.
President and CEO, Patrick
Lockwood-Taylor commented, "I have immersed myself in all
facets of our global business since becoming CEO four months ago
and remain excited about our opportunities ahead. We have created a
'One Perrigo' blueprint that will guide us to build an operating
model where our portfolio, operating systems and behaviors will be
simplified, standardized and scaled. This will position us to win
in self-care through the creation of a sustainable and value
accretive growth engine that will drive Perrigo for the
long-term."
Lockwood-Taylor concluded, "The Perrigo team delivered third
quarter double-digit gross profit, operating income and EPS growth
year-over-year led by strong business fundamentals across the
global portfolio, which more than offset continued volatility in
infant formula. While we have updated our expectations for infant
formula and the adverse impact from currency translation, the
strength of our diversified portfolio, greater than originally
anticipated margin expansion and a lower expected adjusted tax rate
allows us to maintain the mid-to-lower end of our original 2023 EPS
guidance range."
Refer to Tables I through VIII at the end of this press release
for a reconciliation of non-GAAP adjustments to the current year
and prior year periods and additional non-GAAP information. The
Company's reported results are included in the attached
Consolidated Statements of Operations, Balance Sheets and
Statements of Cash Flows.
Third Quarter Perrigo 2023 Results from Continuing
Operations
Third Quarter 2023 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Foreign
Exchange
Impact
|
Constant
Currency Net
Sales
|
Net
Divestitures,
Acquisitions,
& Product
Line Exits
|
Organic
Net Sales
Growth
|
CSCA
|
(2.6) %
|
— %
|
(2.6) %
|
(2.6) %
|
(5.1) %
|
CSCI
|
11.2 %
|
(6.0) %
|
5.2 %
|
1.0 %
|
6.2 %
|
Total
Perrigo
|
2.2 %
|
(2.1) %
|
0.1 %
|
(1.4) %
|
(1.2) %
|
Reported net sales of $1.1 billion
increased $24 million, or 2.2%,
driven primarily by 1) +2.5 percentage points from the acquisition
of the Gateway infant formula facility and the U.S. and Canadian
Good Start® infant formula brand ("Gateway"), and
2) +2.1 percentage points from foreign currency translation. This
growth was partially offset by a decrease in organic net sales of
1.2% including a -2.8 percentage points impact from SKU
prioritization actions and the HRA distributor transitions.
Organic net sales were driven primarily by strategic pricing
actions of +4.7 percentage points and new products sales. This
growth was more than offset by 1) -2.3 percentage points from
purposeful SKU prioritization actions, 2) lower net sales in legacy
U.S. Nutrition due primarily to lower manufacturing
productivity stemming from the U.S. Food and Drug Administration's
("FDA") evolving industry guidelines on infant formula
manufacturing, and 3) -0.5 percentage points related to HRA
distributor transitions as part of the integration plan to capture
synergies.
Reported gross margin was 36.6%, a 360 basis points increase
versus the prior year quarter. Adjusted gross margin expanded 300
basis points to 39.5% driven by strategic pricing actions, benefits
from purposeful SKU prioritization actions and higher margin new
products. These positive initiatives were partially offset by
higher cost of goods sold inflation in CSCI and lower manufacturing
productivity in U.S. Nutrition. These same factors drove
gross profit growth versus the prior year quarter.
Reported operating income was $62
million compared to $33
million in the prior year period. Adjusted operating income
grew $17 million, or 13.0%, to
$150 million driven by gross profit
flow-through described above, in addition to favorable currency
translation and lower distribution expenses. These benefits were
partially offset by higher operating expenses, driven primarily by
the addition of Gateway.
Reported net income was $15 million, or $0.11 per diluted share, compared to a reported
net loss of $52 million, or
($0.39) per diluted share, in the
prior year. Excluding certain charges as outlined in Table I, third
quarter 2023 adjusted net income was $87
million, or $0.64 per diluted
share, compared to $76 million, or $0.56 per diluted share, in the prior year. Third
quarter adjusted EPS included an unfavorable impact of $0.03 due to the HRA distributor transitions.
Third Quarter 2023 Business Segment Results from Continuing
Operations
Consumer Self-Care Americas Segment
Third Quarter 2023 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Foreign
Exchange
Impact
|
Constant
Currency Net
Sales
|
Net
Divestitures,
Acquisitions, &
Product Line Exits
|
Organic
Net Sales
Growth
|
CSCA
|
(2.6) %
|
— %
|
(2.6) %
|
(2.6) %
|
(5.1) %
|
CSCA reported net sales of $704 million decreased 2.6%,
including +3.8 percentage points from the addition of Gateway.
Organic net sales decreased 5.1% as strategic pricing actions and
new product sales were more than offset by 1) -3.6 percentage
points due to purposeful SKU prioritization actions to enhance
margins as part of the Company's Supply Chain Reinvention Program,
2) lower net sales in legacy U.S. Nutrition due primarily to
lower manufacturing productivity, and 3) lower net sales of branded
OTC products. Primary category drivers are provided below.
Nutrition
Net sales of $131 million increased
5.1% due primarily to the Gateway acquisition. This benefit was
partially offset by lower net sales in legacy infant formula due to
lower manufacturing productivity stemming from the FDA's evolving
industry guidelines on infant formula manufacturing and exited
product lines.
Upper Respiratory
Net sales of $130 million
decreased 1.5% due primarily to the launch and channel fill of
Nasonex® in the prior year quarter and exited
product lines, partially offset by higher net sales of cough cold
products, led by store brand Guaifenesin-based offerings,
and the new product launch of store brand Cough Relief Liquid
Honey.
Digestive Health
Net sales of $117 million
decreased 2.1% due primarily to lower net sales of store brand
Proton Pump Inhibitors, partially offset by higher net sales
of store brand laxatives, including Polyethylene Glycol 3350
Orange.
Pain & Sleep-Aids
Net sales of $94 million
decreased 9.5% due primarily to purposeful SKU prioritization
actions in adult analgesic offerings to focus capacity on higher
margin products, partially offset by sales of new products,
including store brand Dual Action Acetaminophen 250mg and
Ibuprofen 125mg Tablets, and higher demand for children's
analgesics products.
Healthy Lifestyle
Net sales of $79 million
increased 7.6% due primarily to higher volumes and market share
gains in smoking cessation products.
Oral Care
Net sales of $77 million decreased 8.5%
due primarily to purposeful SKU prioritization actions and timing
of promotions compared to the prior year quarter, partially offset
by higher net sales of store brand teeth whitening products and
power toothbrush handles.
Skin Care
Net sales of $48 million decreased 2.7%
due primarily to exited product lines, partially offset by strong
performance of Mederma®.
Women's Health
Net sales of $10 million decreased
17.7% due primarily to purposeful SKU prioritization actions in
feminine hygiene.
Vitamins, Minerals, and Supplements ("VMS") and
Other
Net sales of $18 million decreased 24.4% due
primarily to purposeful SKU prioritization actions.
Reported gross margin was 31.8%, a 550 basis points increase
versus the prior year quarter. Adjusted gross margin expanded 430
basis points to 32.5% driven by 1) strategic pricing actions, 2)
productivity savings in U.S. OTC and U.S. Oral Care, 3)
benefits from SKU prioritization actions and exited product lines,
and 4) the addition of the higher margin Gateway acquisition. These
benefits were partially offset by lower manufacturing productivity
in U.S. Nutrition.
Reported operating income was $91 million compared to
$75 million in the prior year quarter. Adjusted operating
income increased $4 million, or 3.5%, to $108 million driven by gross profit flow-through
resulting from strategic pricing actions, productivity savings in
U.S. OTC and U.S. Oral Care, and the addition of
Gateway. These benefits were partially offset by higher operating
expenses, driven primarily by the addition of operating expenses
related to Gateway, lower manufacturing productivity in U.S.
Nutrition and Opill® pre-launch
investments.
Consumer Self-Care International Segment
Third Quarter 2023 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Foreign
Exchange
Impact
|
Constant
Currency Net
Sales
|
Net
Divestitures,
Acquisitions, &
Product Line
Exits
|
Organic
Net Sales
Growth
|
CSCI
|
11.2 %
|
(6.0) %
|
5.2 %
|
1.0 %
|
6.2 %
|
CSCI reported net sales increased 11.2% and constant currency
net sales increased 5.2%. Reported net sales growth included a
favorable impact of +6.0 percentage points related to foreign
currency translation and an unfavorable impact of -1.4 percentage
points related to HRA distributor transitions. Organic net sales
increased 6.2% driven by strategic pricing actions and new
products. Primary category drivers are provided below.
Skin Care
Net sales of $87 million increased
6.9%, or an increase of 4.4% excluding the impact of currency,
driven primarily by the Sebamed and ACO brands,
partially offset by lower net sales in wound care products.
Upper Respiratory
Net sales of $78 million
increased 13.0%, or 5.1% excluding the impact of currency, due
primarily to higher demand for cough cold products, including
Coldrex and Bronchostop. Net sales of U.K. store
brand cough cold products were also higher compared to the prior
year period.
Pain & Sleep-Aids
Net sales of $61 million
increased 32.5%, or an increase of 23.0% excluding the impact of
currency, due primarily to quarterly phasing of Solpadeine,
higher net sales in store brands and increased demand for
Nytol.
Healthy Lifestyle
Net sales of $52 million
increased 10.1%, or 4.4% excluding the impact of currency, due
primarily to higher net sales of anti-parasite offerings that
continue to outpace strong category growth and higher demand for
smoking cessation products. This growth was partially offset by
lower category consumption in weight loss, impacting XLS
Medical.
VMS
Net sales of $46 million decreased 0.6%, or
7.5% excluding the impact of currency, due primarily to lower
category consumption, impacting sales of Davitamon and
Abtei.
Women's Health
Net sales of $29 million decreased
0.7%, or 7.0% excluding the impact of currency, due primarily to
lower net sales in contraceptive products, which were primarily
impacted by distributor transitions.
Oral Care
Net sales of $25 million increased
14.3%, or 6.5% excluding the impact of currency, due primarily to
higher net sales of power toothbrush handles,
Plackers® and improved service levels compared to
the prior year.
Digestive Health and Other
Net sales of
$43 million increased 14.6%, or 10.8% excluding the impact of
currency, due primarily to higher net sales of store brand
digestive health products and distribution brands.
Reported gross margin was 44.5%, a decrease of 120 basis points
compared to the prior year quarter. Adjusted gross margin decreased
120 basis points to 51.2% as strategic pricing actions and higher
margin new products were more than offset by less favorable product
mix and higher cost of goods sold inflation.
Reported operating income was $14
million for the quarter compared to $1 million in the prior year. Adjusted operating
income increased $18 million, or
28.2%, to $80 million due primarily
to the same factors as the adjusted gross margin, in addition to
favorable currency translation and lower advertising and promotion
investments. These benefits were partially offset by higher
administrative expenses.
Fiscal 2023 Outlook
The Company's fiscal year 2023 updated outlook is provided
below:
- Reported net sales growth of 4.0% to 6.0% compared to the prior
year, versus the previous range of 7.0% to 11.0%,
- Organic net sales growth of 1.0% to 3.0% compared to the prior
year, versus the previous range of 3.0% to 6.0%,
- Interest expense of approximately $180
million,
- Full year adjusted tax rate of approximately ~14.0%, versus the
previous expectation of ~17.0%,
- Adjusted diluted EPS range of between $2.50 to $2.60
versus the previous range of $2.50 to
$2.70, and
- Operating cash flow conversion (operating cash flow as a
percentage of adjusted net income) of approximately 100%.
About Perrigo
Perrigo Company plc (NYSE: PRGO) is a leading provider of
Consumer Self-Care Products and over-the-counter (OTC) health and
wellness solutions that enhance individual well-being by empowering
consumers to proactively prevent or treat conditions that can be
self-managed. Visit Perrigo online at www.perrigo.com.
Webcast and Conference Call Information
The earnings conference call will be available live on
Tuesday, November 7, 2023 at
8:30 A.M. (EST) via webcast to
interested parties in the investor relations section of the Perrigo
website at http://perrigo.investorroom.com/events-webcasts or by
phone at 888-317-6003, International 412-317-6061, and reference ID
# 0043209. A taped replay of the call will be available beginning
at approximately 12:00 P.M. (EST)
Tuesday, November 7, until midnight Tuesday, November 14, 2023. To listen to the
replay, dial 877-344-7529, International 412-317-0088, and use
access code 7630596.
Forward-Looking Statements
Certain statements in this press release are "forward-looking
statements." These statements relate to future events or the
Company's future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In some
cases, forward-looking statements can be identified by terminology
such as "may," "will," "could," "would," "should," "expect,"
"forecast," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential" or the negative of those terms or other
comparable terminology. The Company has based these forward-looking
statements on its current expectations, assumptions, estimates and
projections. While the Company believes these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond the
Company's control, including: supply chain impacts on the Company's
business, including those caused or exacerbated by armed conflict,
trade and other economic sanctions and/or disease; general
economic, credit, and market conditions; the impact of the war in
Ukraine and any escalation
thereof, including the effects of economic and political sanctions
imposed by the United States,
United Kingdom, European Union,
and other countries related thereto; the outbreak or escalation of
conflict in other regions where we do business; future impairment
charges, if we determine that the carrying amount of specific
assets may not be recoverable from the expected future cash flows
of such assets; customer acceptance of new products; competition
from other industry participants, some of whom have greater
marketing resources or larger market shares in certain product
categories than the Company does; pricing pressures from customers
and consumers; resolution of uncertain tax positions and any
litigation relating thereto, ongoing or future government
investigations and regulatory initiatives; uncertainty regarding
the Company's ability to obtain and maintain its regulatory
approvals; potential costs and reputational impact of product
recalls or sales halts; potential adverse changes to U.S. and
foreign tax, healthcare and other government policy; the effect of
the coronavirus (COVID-19) pandemic and its variants; the timing,
amount and cost of any share repurchases (or the absence thereof);
fluctuations in currency exchange rates and interest rates; the
Company's ability to achieve the benefits expected from the sale of
its Rx business and the risk that potential costs or liabilities
incurred or retained in connection with that transaction may exceed
the Company's estimates or adversely affect the Company's business
or operations; the Company's ability to achieve the benefits
expected from the acquisitions of Héra SAS ("HRA Pharma") and
Nestlé's Gateway infant formula plant along with the U.S. and
Canadian rights to the GoodStart® infant formula brand and other
related formula brands ("Gateway") and/or the risks that the
Company's synergy estimates are inaccurate or that the Company
faces higher than anticipated integration or other costs in
connection with the acquisitions; risks associated with the
integration of HRA Pharma and Gateway, including the risk that
growth rates are adversely affected by any delay in the integration
of sales and distribution networks; the consummation and success of
other announced and unannounced acquisitions or dispositions, and
the Company's ability to realize the desired benefits thereof; and
the Company's ability to execute and achieve the desired benefits
of announced cost-reduction efforts and other strategic initiatives
and investments, including the Company's ability to achieve the
expected benefits from its Supply Chain Reinvention Program.
Adverse results with respect to pending litigation could have a
material adverse impact on the Company's operating results, cash
flows and liquidity, and could ultimately require the use of
corporate assets to pay damages, reducing assets that would
otherwise be available for other corporate purposes. These and
other important factors, including those discussed under "Risk
Factors" in the Company's Form 10-K for the year ended December 31, 2022, as well as the Company's
subsequent filings with the United States Securities and Exchange
Commission, may cause actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. The forward-looking statements in this
press release are made only as of the date hereof, and unless
otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Non-GAAP Measures
This press release contains certain non-GAAP measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
different from the most directly comparable measure calculated and
presented in accordance with U.S. Generally Accepted Accounting
Principles (GAAP) in the statements of operations, balance sheets
or statements of cash flows of the Company. Pursuant to the
requirements of the U.S. Securities and Exchange Commission, the
Company has provided reconciliations to the most directly
comparable U.S. GAAP measures for the following non-GAAP financial
measures referred to in this press release:
- net sales growth on an organic basis, which excludes
acquisitions, divested businesses, and the impact of currency,
- adjusted gross profit,
- adjusted net income,
- adjusted operating income,
- adjusted diluted earnings per share,
- constant currency net sales growth, adjusted operating income
and adjusted diluted earnings per share,
- adjusted gross margin, and
- adjusted operating margin.
These non-GAAP financial measures should be considered as
supplements to the GAAP reported measures, should not be considered
replacements for, or superior to the GAAP measures and may not be
comparable to similarly named measures used by other companies. The
Company presents these non-GAAP financial measures in order to
provide transparency to our investors because they are measures
that management uses to assess both management performance and the
financial performance of our operations and to allocate resources.
In addition, management believes that these measures may assist
investors with understanding and evaluating our initiatives to
drive improved financial performance and enables investors to
supplementally compare our operating performance with the operating
performance of our competitors including with those of our
competitors having different capital structures. While we have
excluded certain of these items from historical non-GAAP financial
measures, there is no guarantee that the items excluded from
non-GAAP financial measures will not continue into future
periods. For instance, we expect to continue to experience charges
for facility exit and impairment charges and inventory write-downs
related to store closures as the Company continues to complete a
multi-year strategic initiative designed to improve overall
performance. We also expect to continue to experience and report
restructuring-related charges associated with continued execution
of our strategic initiatives.
The Company provides non-GAAP financial measures as additional
information that it believes is useful to investors and analysts in
evaluating the performance of the Company's ongoing operating
trends, facilitating comparability between periods and, where
applicable, with companies in similar industries and assessing the
Company's prospects for future performance. These non-GAAP
financial measures exclude items, such as impairment charges,
restructuring charges, and acquisition and integration-related
charges, that by their nature affect comparability of operational
performance or that we believe obscure underlying business
operational trends. The intangible asset amortization excluded from
these non-GAAP financial measure represents the entire amount
recorded within the Company's GAAP financial statements and is
excluded because the amortization, unlike the related revenue, is
not affected by operations of any particular period unless an
intangible asset becomes impaired or the estimated useful life of
an intangible asset is revised. The revenue generated by the
associated intangible assets has not been excluded from the related
non-GAAP financial measure. The non-GAAP measures the Company
provides are consistent with how management analyzes and assesses
the operating performance of the Company, and disclosing them
provides investor insight into management's view of the business.
Management uses these adjusted financial measures for planning and
forecasting in future periods, and evaluating segment and overall
operating performance. In addition, management uses certain of the
profit measures as factors in determining compensation.
Non-GAAP measures related to profit measurements, which include
adjusted gross profit, adjusted net income, adjusted diluted EPS,
constant currency adjusted diluted EPS, constant currency adjusted
operating income, adjusted gross margin and adjusted operating
margin are useful to investors as they provide them with
supplemental information to enhance their understanding of the
Company's underlying business performance and trends, and enhance
the ability of investors and analysts to compare the Company's
period-to-period financial results. Management believes that
adjusted gross margin and adjusted operating margin are useful to
investors, in addition to the reasons discussed above, by allowing
them to more easily compare and analyze trends in the Company's
peer business group and assisting them in comparing the Company's
overall performance to that of its competitors. The Company also
discloses net sales growth excluding the impact of currency on an
organic basis. The Company believes these supplemental financial
measures provide investors with consistency in financial reporting,
enabling meaningful comparisons of past and present underlying
operating results, and also facilitate analysis of the Company's
operating performance and acquisition and divestiture trends.
A copy of this press release, including the reconciliations, is
available on the Company's website at www.perrigo.com.
PERRIGO COMPANY
PLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
2023
|
|
October 1,
2022
|
|
September
30,
2023
|
|
October 1,
2022
|
Net sales
|
$
1,123.8
|
|
$
1,100.2
|
|
$
3,498.7
|
|
$
3,296.3
|
Cost of
sales
|
712.6
|
|
737.3
|
|
2,245.6
|
|
2,223.5
|
Gross
profit
|
411.2
|
|
362.9
|
|
1,253.1
|
|
1,072.8
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Distribution
|
27.8
|
|
30.6
|
|
85.0
|
|
84.5
|
Research and
development
|
29.6
|
|
29.8
|
|
92.9
|
|
90.5
|
Selling
|
150.2
|
|
144.5
|
|
489.2
|
|
431.0
|
Administration
|
126.0
|
|
105.9
|
|
393.6
|
|
386.0
|
Restructuring
|
15.5
|
|
19.1
|
|
25.7
|
|
32.2
|
Other operating
(income) expense, net
|
—
|
|
(0.1)
|
|
(0.8)
|
|
0.7
|
Total operating
expenses
|
349.1
|
|
329.8
|
|
1,085.6
|
|
1,024.9
|
|
|
|
|
|
|
|
|
Operating
income
|
62.1
|
|
33.1
|
|
167.5
|
|
47.9
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
43.5
|
|
41.0
|
|
131.1
|
|
115.1
|
Other (income) expense,
net
|
(0.6)
|
|
(4.0)
|
|
(9.6)
|
|
48.7
|
(Gain) loss on
extinguishment of debt
|
—
|
|
(0.4)
|
|
—
|
|
8.9
|
Income (loss) from
continuing operations before income taxes
|
19.2
|
|
(3.5)
|
|
46.0
|
|
(124.8)
|
Income tax expense
(benefit)
|
3.8
|
|
48.6
|
|
22.7
|
|
(6.6)
|
Income (loss) from
continuing operations
|
15.4
|
|
(52.1)
|
|
23.3
|
|
(118.2)
|
Income (loss) from
discontinued operations, net of tax
|
(1.2)
|
|
2.7
|
|
(3.7)
|
|
1.3
|
Net income
(loss)
|
$
14.2
|
|
$
(49.4)
|
|
$
19.6
|
|
$
(116.9)
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.11
|
|
$
(0.39)
|
|
$
0.17
|
|
$
(0.88)
|
Discontinued
operations
|
(0.01)
|
|
0.02
|
|
(0.03)
|
|
0.01
|
Basic earnings (loss)
per share
|
$
0.10
|
|
$
(0.37)
|
|
$
0.14
|
|
$
(0.87)
|
Diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.11
|
|
$
(0.39)
|
|
$
0.17
|
|
$
(0.88)
|
Discontinued
operations
|
(0.01)
|
|
0.02
|
|
(0.03)
|
|
0.01
|
Diluted earnings
(loss) per share
|
$
0.10
|
|
$
(0.37)
|
|
$
0.14
|
|
$
(0.87)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
135.5
|
|
134.6
|
|
135.2
|
|
134.4
|
Diluted
|
136.9
|
|
134.6
|
|
136.6
|
|
134.4
|
PERRIGO COMPANY
PLC
CONSOLIDATED BALANCE
SHEETS
(in millions, except
per share amounts)
(unaudited)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
598.3
|
|
$
600.7
|
Accounts receivable,
net of allowance for credit losses of $8.2 and $6.8,
respectively
|
737.8
|
|
697.1
|
Inventories
|
1,149.5
|
|
1,150.3
|
Prepaid expenses and
other current assets
|
279.7
|
|
271.8
|
Total current
assets
|
2,765.3
|
|
2,719.9
|
Property, plant and
equipment, net
|
902.9
|
|
926.3
|
Operating lease
assets
|
199.9
|
|
217.1
|
Goodwill and
indefinite-lived intangible assets
|
3,554.7
|
|
3,549.0
|
Definite-lived
intangible assets, net
|
2,941.4
|
|
3,230.2
|
Deferred income
taxes
|
6.8
|
|
7.1
|
Other non-current
assets
|
387.3
|
|
367.7
|
Total non-current
assets
|
7,993.0
|
|
8,297.4
|
Total
assets
|
$
10,758.3
|
|
$
11,017.3
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$
433.1
|
|
$
537.3
|
Payroll and related
taxes
|
108.8
|
|
136.4
|
Accrued customer
programs
|
156.3
|
|
139.1
|
Other accrued
liabilities
|
262.3
|
|
250.2
|
Accrued income
taxes
|
9.8
|
|
14.4
|
Current
indebtedness
|
38.1
|
|
36.2
|
Total current
liabilities
|
1,008.4
|
|
1,113.6
|
Long-term debt, less
current portion
|
4,048.5
|
|
4,070.4
|
Deferred income
taxes
|
349.4
|
|
368.2
|
Other non-current
liabilities
|
613.9
|
|
623.0
|
Total non-current
liabilities
|
5,011.8
|
|
5,061.6
|
Total
liabilities
|
6,020.2
|
|
6,175.2
|
Contingencies -
Refer to Note 16
|
|
|
|
Shareholders'
equity
|
|
|
|
Controlling
interests:
|
|
|
|
Preferred shares,
$0.0001 par value per share, 10 shares authorized
|
—
|
|
—
|
Ordinary shares,
€0.001 par value per share, 10,000 shares authorized
|
6,864.2
|
|
6,936.7
|
Accumulated other
comprehensive income
|
(78.1)
|
|
(27.0)
|
Retained earnings
(accumulated deficit)
|
(2,048.0)
|
|
(2,067.6)
|
Total shareholders'
equity
|
4,738.1
|
|
4,842.1
|
Total liabilities and
shareholders' equity
|
$
10,758.3
|
|
$
11,017.3
|
|
|
|
|
Supplemental
Disclosures of Balance Sheet Information
|
|
|
|
Preferred shares,
issued and outstanding
|
—
|
|
—
|
Ordinary shares,
issued and outstanding
|
135.5
|
|
134.7
|
PERRIGO COMPANY
PLC
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
millions)
(unaudited)
|
|
|
Nine Months
Ended
|
|
September 30,
2023
|
|
October 1,
2022
|
Cash Flows From (For)
Operating Activities
|
|
|
|
Net income
(loss)
|
$
19.6
|
|
$
(116.9)
|
Adjustments to derive
cash flows:
|
|
|
|
Depreciation
and amortization
|
273.6
|
|
241.5
|
Share-based
compensation
|
58.2
|
|
46.7
|
Restructuring
charges
|
25.7
|
|
32.2
|
Amortization of
debt discount (premium)
|
1.8
|
|
(2.8)
|
Foreign
currency remeasurement loss
|
—
|
|
39.4
|
Loss on sale of
business
|
—
|
|
1.4
|
Deferred income
taxes
|
12.3
|
|
(19.6)
|
Gain on sale of
assets
|
(4.0)
|
|
(5.8)
|
Other non-cash
adjustments, net
|
(2.7)
|
|
3.4
|
Subtotal
|
384.5
|
|
219.5
|
Increase (decrease) in
cash due to:
|
|
|
|
Accounts
receivable
|
(70.6)
|
|
(38.6)
|
Accounts
payable
|
(92.9)
|
|
46.1
|
Payroll and
related taxes
|
(52.7)
|
|
(40.5)
|
Accrued income
taxes
|
(54.4)
|
|
(50.1)
|
Inventories
|
(5.5)
|
|
(78.8)
|
Accrued
liabilities
|
13.2
|
|
19.0
|
Prepaid
expenses and other current assets
|
35.9
|
|
6.7
|
Accrued
customer programs
|
20.5
|
|
15.7
|
Other
operating, net
|
18.8
|
|
22.4
|
Subtotal
|
(187.7)
|
|
(98.1)
|
Net cash from
operating activities
|
196.8
|
|
121.4
|
Cash Flows From (For)
Investing Activities
|
|
|
|
Additions to property,
plant and equipment
|
(75.0)
|
|
(70.0)
|
Acquisitions of
businesses, net of cash acquired
|
—
|
|
(1,901.4)
|
Settlement of
acquisition-related foreign currency derivatives
|
—
|
|
(37.1)
|
Asset
acquisitions
|
—
|
|
(10.3)
|
Net proceeds from sale
of businesses
|
—
|
|
58.7
|
Proceeds from sale of
assets
|
2.0
|
|
24.8
|
Proceeds from royalty
rights
|
18.3
|
|
2.7
|
Net cash for investing
activities
|
(54.7)
|
|
(1,932.6)
|
Cash Flows From (For)
Financing Activities
|
|
|
|
Cash
dividends
|
(112.1)
|
|
(107.0)
|
Payments on long-term
debt
|
(24.0)
|
|
(964.8)
|
Issuances of long-term
debt
|
—
|
|
1,587.3
|
Payments for debt
issuance costs
|
—
|
|
(20.9)
|
Premiums on early debt
retirement
|
—
|
|
(12.2)
|
Proceeds on
seller-financed divestiture
|
|
|
4.3
|
Other financing,
net
|
(6.5)
|
|
(22.6)
|
Net cash (for) from
financing activities
|
(142.6)
|
|
464.1
|
Effect of exchange rate
changes on cash and cash equivalents
|
(1.9)
|
|
(63.5)
|
Net decrease in cash
and cash equivalents
|
(2.4)
|
|
(1,410.6)
|
Cash and cash
equivalents of continuing operations, beginning of
period
|
600.7
|
|
1,864.9
|
Cash and cash
equivalents held for sale, beginning of period
|
—
|
|
14.4
|
Cash and cash
equivalents of continuing operations, end of period
|
$
598.3
|
|
$
468.7
|
TABLE
I
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Gross
Profit
|
Operating
Income
|
Income from
Continuing
Operations(1)
|
Diluted
Earnings per
Share(1)
|
|
Gross
Profit
|
Operating
Income
|
Income (Loss)
from Continuing
Operations(1)
|
Diluted
Earnings (Loss)
per Share(1)
|
Reported
|
$
411.2
|
$
62.1
|
$
15.4
|
$
0.11
|
|
$
362.9
|
$
33.1
|
$
(52.1)
|
$
(0.39)
|
As a % of reported net
sales(2)
|
36.6 %
|
5.5 %
|
1.4 %
|
|
|
33.0 %
|
3.0 %
|
(4.7) %
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible assets
|
32.5
|
68.3
|
68.3
|
0.50
|
|
34.6
|
68.2
|
68.7
|
0.50
|
Restructuring charges
and other termination benefits
|
—
|
15.1
|
15.1
|
0.11
|
|
—
|
19.5
|
19.5
|
0.15
|
Unusual
litigation
|
—
|
2.5
|
2.5
|
0.02
|
|
—
|
0.8
|
0.8
|
0.01
|
Acquisition and
integration-related charges and
contingent consideration adjustments
|
—
|
0.7
|
0.7
|
0.01
|
|
3.7
|
11.5
|
11.5
|
0.08
|
Gain on investment
securities
|
—
|
—
|
—
|
—
|
|
—
|
(0.1)
|
—
|
—
|
Loss on early debt
extinguishment
|
—
|
—
|
—
|
—
|
|
—
|
—
|
(0.3)
|
—
|
Other
(3)
|
(0.1)
|
1.7
|
1.8
|
0.01
|
|
—
|
—
|
—
|
—
|
Non-GAAP tax
adjustments(4)
|
—
|
—
|
(16.8)
|
(0.12)
|
|
—
|
—
|
27.5
|
0.21
|
Adjusted
|
$
443.6
|
$
150.3
|
$
87.0
|
$
0.64
|
|
$
401.2
|
$
133.0
|
$
75.6
|
$
0.56
|
As a % of reported net
sales(2)
|
39.5 %
|
13.4 %
|
7.7 %
|
|
|
36.5 %
|
12.1 %
|
6.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
Reported
|
136.9
|
|
|
|
|
134.6
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income(5)
|
—
|
|
|
|
|
1.6
|
|
|
|
Adjusted
|
136.9
|
|
|
|
|
136.2
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
(2) Reported net sales
for the three months ended September 30, 2023 and October 1, 2022
were $1,123.8 and $1,100.2, respectively.
|
(3) Other pre-tax
adjustments include $1.0 million related to professional consulting
fees for potential divestitures and $0.8 million related to a
foreign jurisdiction transfer tax payment.
|
(4) Non-GAAP tax
adjustments for the Three Months Ended September 30, 2023 are
primarily due to $13.4 million of tax expense related to pre-tax
non-GAAP adjustments, the interim tax accounting requirements in
ASC740 - Income Taxes, plus the removal of (1) $2.8 million of tax
benefit related to audit settlements and (2) $1.0 million of tax
benefit related to valuation allowance. Non-GAAP tax adjustments
for the Three Months Ended October 1, 2022 are primarily due to
$28.6 million tax benefit related to pre-tax non-GAAP adjustments
and the effect of the interim tax accounting requirements in ASC
740, Income Taxes, plus the removal of $1.5 million of tax benefit
for nonrecurring legal entity restructuring.
|
(5) In the period of a
net loss, reported diluted shares outstanding equal basic shares
outstanding.
|
TABLE I
(Continued)
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Gross
Profit
|
Operating
Income
|
Income from
Continuing
Operations(1)
|
Diluted
Earnings per
Share(1)
|
|
Gross
Profit
|
Operating
Income
|
Income (Loss)
from Continuing
Operations(1)
|
Diluted
Earnings (Loss)
per Share(1)
|
Reported
|
$
1,253.1
|
$
167.5
|
$
23.3
|
$
0.17
|
|
$
1,072.8
|
$
47.9
|
$
(118.2)
|
$
(0.88)
|
As a % of reported net
sales(2)
|
35.8 %
|
4.8 %
|
0.7 %
|
|
|
32.5 %
|
1.5 %
|
(3.6) %
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible assets
|
95.1
|
203.5
|
204.6
|
1.49
|
|
86.8
|
179.7
|
181.2
|
1.34
|
Restructuring charges
and other termination benefits
|
0.1
|
24.3
|
24.3
|
0.18
|
|
—
|
33.3
|
33.3
|
0.25
|
Acquisition and
integration-related charges and
contingent consideration adjustments
|
—
|
7.1
|
7.1
|
0.05
|
|
10.2
|
71.1
|
127.1
|
0.94
|
Unusual
litigation
|
—
|
7.7
|
7.7
|
0.06
|
|
—
|
3.6
|
3.6
|
0.03
|
Loss on early debt
extinguishment
|
—
|
—
|
—
|
—
|
|
—
|
—
|
8.9
|
0.07
|
Impairment
charges
|
—
|
—
|
—
|
—
|
|
—
|
4.6
|
4.6
|
0.03
|
Gain on divestitures
and investment securities
|
—
|
(4.6)
|
(4.7)
|
(0.03)
|
|
—
|
(3.9)
|
(2.0)
|
(0.02)
|
Milestone payments
received related to royalty rights
|
—
|
—
|
(10.0)
|
(0.07)
|
|
—
|
—
|
—
|
—
|
Other(3)
|
(0.1)
|
1.7
|
1.8
|
0.01
|
|
—
|
—
|
—
|
—
|
Non-GAAP tax
adjustments(4)
|
—
|
—
|
(19.4)
|
(0.14)
|
|
—
|
—
|
(59.2)
|
(0.44)
|
Adjusted
|
$
1,348.2
|
$
407.2
|
$
234.6
|
$
1.72
|
|
$
1,169.8
|
$
336.3
|
$
179.3
|
$
1.32
|
As a % of reported net
sales(2)
|
38.5 %
|
11.6 %
|
6.7 %
|
|
|
35.5 %
|
10.2 %
|
5.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
Reported
|
136.6
|
|
|
|
|
134.4
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income(5)
|
—
|
|
|
|
|
1.3
|
|
|
|
Adjusted
|
136.6
|
|
|
|
|
135.7
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
(2) Reported net sales
for the nine months ended September 30, 2023 and
October 1, 2022 were $3,498.7 and $3,296.3,
respectively.
|
(3) Other pre-tax
adjustments include $1.0 million related to professional consulting
fees for potential divestitures and $0.8 million related to a
foreign jurisdiction transfer tax payment.
|
(4) Non-GAAP tax
adjustments for the Nine Months Ended September 30, 2023 are
primarily due to $39.6 million of tax expense related to pre-tax
non-GAAP adjustments, the interim tax accounting requirements in
ASC740 - Income Taxes, plus the removal of (1) $17.8 million of tax
expense related to audit settlements and (2) $2.1 million of tax
expense related to valuation allowance. Non-GAAP tax adjustments
for the Nine Months Ended October 1, 2022 are primarily due to
$45.7 million of tax expense related to pre-tax non-GAAP
adjustments, and the removal of (1) $17.2 million tax benefit on
dispositions of entities, offset by (2) $4.5 million tax expense
for non-recurring legal entity restructuring.
|
(5) In the period of a
net loss, reported diluted shares outstanding equal basic shares
outstanding.
|
TABLE
II
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Reported
|
$
29.6
|
$
304.0
|
$
15.5
|
|
$
29.8
|
$
281.0
|
$
19.0
|
As a % of reported net
sales(1)
|
2.6 %
|
27.0 %
|
1.4 %
|
|
2.7 %
|
25.5 %
|
1.7 %
|
Effective tax
rate
|
|
|
|
|
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
(0.2)
|
(35.5)
|
—
|
|
(0.6)
|
(33.0)
|
—
|
Restructuring charges
and other termination benefits
|
—
|
—
|
(15.0)
|
|
—
|
(0.4)
|
(19.1)
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
(0.7)
|
—
|
|
—
|
(7.8)
|
—
|
Unusual
litigation
|
—
|
(2.5)
|
—
|
|
—
|
(0.8)
|
—
|
Loss on investment
securities
|
—
|
—
|
—
|
|
—
|
—
|
0.1
|
Other
(2)
|
—
|
(1.8)
|
—
|
|
—
|
—
|
—
|
Adjusted
|
$
29.3
|
$
263.4
|
$
0.5
|
|
$
29.2
|
$
239.0
|
$
—
|
As a % of reported net
sales (1)
|
2.6 %
|
23.5 %
|
— %
|
|
2.7 %
|
21.7 %
|
— %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
(1) Reported net sales
for the three months ended September 30, 2023 and
October 1, 2022 were $1,123.8 and $1,100.2,
respectively.
|
(2) Other pre-tax
adjustments include $1.0 million related to professional consulting
fees for potential divestitures and $0.8 million related to a
foreign jurisdiction transfer tax payment.
|
TABLE II
(Continued)
PERRIGO
COMPANY PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Reported
|
$
92.9
|
$
967.8
|
$
24.9
|
|
$
90.5
|
$
901.5
|
$
32.9
|
As a % of reported net
sales (1)
|
2.7 %
|
27.6 %
|
0.7 %
|
|
2.7 %
|
27.3 %
|
1.0 %
|
Effective tax
rate
|
|
|
|
|
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
(0.3)
|
(108.1)
|
—
|
|
(1.3)
|
(91.6)
|
—
|
Restructuring charges
and other termination benefits
|
—
|
(0.8)
|
(23.4)
|
|
—
|
(1.1)
|
(32.2)
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
(7.1)
|
—
|
|
—
|
(60.9)
|
—
|
Unusual
litigation
|
—
|
(7.7)
|
—
|
|
—
|
(3.6)
|
—
|
Impairment
charges
|
—
|
—
|
—
|
|
—
|
—
|
(4.6)
|
Loss on divestitures
and investment securities
|
—
|
4.6
|
—
|
|
—
|
—
|
3.9
|
Other(2)
|
—
|
(1.8)
|
|
|
—
|
—
|
—
|
Adjusted
|
$
92.6
|
$
846.9
|
$
1.5
|
|
$
89.2
|
$
744.3
|
$
—
|
As a % of reported net
sales (1)
|
2.6 %
|
24.2 %
|
— %
|
|
2.7 %
|
22.6 %
|
— %
|
|
|
|
|
|
|
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Reported net sales
for the nine months ended September 30, 2023 and
October 1, 2022 were $3,498.7 and $3,296.3,
respectively.
|
(2) Other pre-tax
adjustments include $1.0 million related to professional consulting
fees for potential divestitures and $0.8 million related to a
foreign jurisdiction transfer tax payment.
|
TABLE
III
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Interest and
Other
|
Income Tax
Expense
|
|
Interest and
Other
|
Income Tax
Expense
|
Reported
|
$
42.9
|
$
3.8
|
|
$
36.6
|
$
48.6
|
As a % of reported net
sales (1)
|
3.8 %
|
0.3 %
|
|
3.3 %
|
4.4 %
|
Effective tax
rate
|
|
19.7 %
|
|
|
n/m
|
Pre-tax
adjustments:
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
—
|
—
|
|
(0.5)
|
—
|
Gain on investment
securities
|
—
|
—
|
|
(0.1)
|
—
|
Loss on early debt
extinguishment
|
—
|
—
|
|
0.3
|
—
|
Other
|
(0.1)
|
—
|
|
—
|
—
|
Non-GAAP tax
adjustments(2)
|
—
|
16.8
|
|
—
|
(27.5)
|
Adjusted
|
$
42.8
|
$
20.6
|
|
$
36.3
|
$
21.1
|
As a % of reported net
sales (1)
|
3.8 %
|
1.8 %
|
|
3.3 %
|
1.9 %
|
Adjusted effective tax
rate
|
|
19.2 %
|
|
|
21.8 %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Reported net sales
for the three months ended September 30, 2023 and
October 1, 2022 were $1,123.8 and $1,100.2,
respectively.
|
(2) Non-GAAP tax
adjustments for the Three Months Ended September 30, 2023 are
primarily due to $13.4 million of tax expense related to pre-tax
non-GAAP adjustments, the interim tax accounting requirements in
ASC740 - Income Taxes, plus the removal of (1) $2.8 million of tax
benefit related to audit settlements and (2) $1.0 million of tax
benefit related to valuation allowance. Non-GAAP tax
adjustments for the Three Months Ended October 1, 2022 are
primarily due to $28.6 million tax benefit related to pre-tax
non-GAAP adjustments and the effect of the interim tax accounting
requirements in ASC 740, Income Taxes, plus the removal of $1.5
million of tax benefit for nonrecurring legal entity
restructuring.
|
TABLE III
(Continued)
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Interest and
Other
|
Income Tax
Expense
|
|
Interest and
Other
|
Income Tax
Expense (Benefit)
|
Reported
|
$
121.5
|
$
22.7
|
|
$
172.7
|
$
(6.6)
|
As a % of reported net
sales (1)
|
3.5 %
|
0.6 %
|
|
5.2 %
|
(0.2) %
|
Effective tax
rate
|
|
49.5 %
|
|
|
5.3 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
—
|
|
(56.0)
|
—
|
Amortization expense
primarily related to acquired intangible assets
|
(1.1)
|
—
|
|
(1.5)
|
—
|
Loss on early debt
extinguishment
|
—
|
—
|
|
(8.9)
|
—
|
Loss (gain) on
divestitures and investment securities
|
0.1
|
—
|
|
(1.9)
|
—
|
Milestone payments
received related to royalty rights
|
10.0
|
—
|
|
—
|
—
|
Other
|
(0.1)
|
—
|
|
—
|
—
|
Non-GAAP tax
adjustments(2)
|
—
|
19.4
|
|
—
|
59.2
|
Adjusted
|
$
130.4
|
$
42.2
|
|
$
104.4
|
$
52.6
|
As a % of reported net
sales (1)
|
3.7 %
|
1.2 %
|
|
3.2 %
|
1.6 %
|
Adjusted effective tax
rate
|
|
15.2 %
|
|
|
22.7 %
|
|
|
|
|
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Reported net sales
for the nine months ended September 30, 2023 and
October 1, 2022 were $3,498.7 and $3,296.3,
respectively.
|
(2) Non-GAAP tax
adjustments for the Nine Months Ended September 30, 2023 are
primarily due to $39.6 million of tax expense related to pre-tax
non-GAAP adjustments, the interim tax accounting requirements in
ASC740 - Income Taxes, plus the removal of (1) $17.8 million of tax
expense related to audit settlements and (2) $2.1 million of tax
expense related to valuation allowance. Non-GAAP tax adjustments
for the Nine Months Ended October 1, 2022 are primarily due to
$45.7 million of tax expense related to pre-tax non-GAAP
adjustments, and the removal of (1) $17.2 million tax benefit on
dispositions of entities, offset by (2) $4.5 million tax expense
for non-recurring legal entity restructuring.
|
TABLE
IV
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in
millions)
(unaudited)
|
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
October 1, 2022
|
Consumer Self-Care
Americas
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
224.0
|
$
19.6
|
$
111.1
|
$
91.1
|
|
$
190.3
|
$
16.7
|
$
91.6
|
$
75.2
|
As a % of reported net
sales(1)
|
31.8 %
|
2.8 %
|
15.8 %
|
12.9 %
|
|
26.3 %
|
2.3 %
|
12.7 %
|
10.4 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
4.5
|
—
|
(10.1)
|
14.5
|
|
7.1
|
—
|
(7.4)
|
14.6
|
Restructuring charges
and other termination benefits
|
—
|
—
|
—
|
2.1
|
|
—
|
—
|
(0.4)
|
7.2
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
—
|
—
|
(0.5)
|
0.5
|
|
5.9
|
—
|
(1.6)
|
7.5
|
Adjusted
|
$
228.5
|
$ 19.6
|
$
100.5
|
$
108.1
|
|
$
203.3
|
$ 16.7
|
$ 82.2
|
$
104.4
|
As a % of reported net
sales
|
32.5 %
|
2.8 %
|
14.3 %
|
15.4 %
|
|
28.2 %
|
2.3 %
|
11.4 %
|
14.5 %
|
|
|
Three Months Ended
September 30, 2023
|
|
Three Months Ended
October 1, 2022
|
Consumer Self-Care
International
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
187.2
|
$
10.0
|
$
151.2
|
$
13.6
|
|
$
172.6
|
$
13.1
|
$
151.8
|
$
1.3
|
As a % of reported net
sales(1)
|
44.5 %
|
2.4 %
|
36.0 %
|
3.2 %
|
|
45.7 %
|
3.5 %
|
40.2 %
|
0.3 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
28.0
|
(0.2)
|
(25.5)
|
53.7
|
|
27.4
|
(0.6)
|
(25.6)
|
53.5
|
Restructuring charges
and other termination benefits
|
—
|
—
|
—
|
12.5
|
|
—
|
—
|
—
|
6.4
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
—
|
—
|
—
|
—
|
|
(2.1)
|
—
|
(3.0)
|
0.9
|
Other
|
(0.1)
|
—
|
—
|
(0.1)
|
|
—
|
—
|
—
|
—
|
Adjusted
|
$
215.1
|
$
9.7
|
$
125.7
|
$ 79.7
|
|
$
197.9
|
$ 12.5
|
$
123.2
|
$ 62.1
|
As a % of reported net
sales
|
51.2 %
|
2.3 %
|
29.9 %
|
19.0 %
|
|
52.4 %
|
3.3 %
|
32.6 %
|
16.4 %
|
|
|
|
|
|
|
|
|
|
|
Note: amounts may not
add due to rounding. Percentages are based
on actuals.
|
(1) CSCA reported net
sales for the three months ended September 30, 2023 and
October 1, 2022 were $703.5 million and $722.3 million,
respectively. CSCI reported net sales for the three months ended
September 30, 2023 and October 1, 2022 were $420.3
million and $377.9 million, respectively.
|
TABLE IV
(CONTINUED)
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in
millions)
(unaudited)
|
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
October 1, 2022
|
Consumer Self-Care
Americas
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
659.3
|
$
54.5
|
$
328.1
|
$
272.0
|
|
$
555.0
|
$
51.9
|
$
260.0
|
$
240.0
|
As a % of reported net
sales (1)
|
29.7 %
|
2.5 %
|
14.8 %
|
12.3 %
|
|
25.7 %
|
2.4 %
|
12.0 %
|
11.1 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
12.8
|
—
|
(30.4)
|
43.1
|
|
18.6
|
—
|
(22.1)
|
40.6
|
Restructuring charges
and other termination benefits
|
0.1
|
—
|
—
|
4.4
|
|
—
|
—
|
(0.4)
|
7.3
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
—
|
(1.8)
|
1.8
|
|
10.7
|
—
|
(1.6)
|
12.5
|
(Gain) loss on
investment securities
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
(3.9)
|
Adjusted
|
$
672.2
|
$ 54.5
|
$
296.0
|
$
321.4
|
|
$
584.3
|
$ 51.9
|
$
235.9
|
$
296.5
|
As a % of reported net
sales (1)
|
30.3 %
|
2.5 %
|
13.4 %
|
14.5 %
|
|
27.0 %
|
2.4 %
|
10.9 %
|
13.7 %
|
|
|
Nine Months Ended
September 30, 2023
|
|
Nine Months Ended
October 1, 2022
|
Consumer Self-Care
International
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
593.8
|
$
38.3
|
$
493.5
|
$
43.6
|
|
$
517.8
|
$
38.6
|
$
452.1
|
$
19.0
|
As a % of reported net
sales (1)
|
46.4 %
|
3.0 %
|
38.5 %
|
3.4 %
|
|
45.6 %
|
3.4 %
|
39.8 %
|
1.7 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible
assets
|
82.4
|
(0.3)
|
(77.7)
|
160.3
|
|
68.2
|
(1.3)
|
(69.4)
|
139.0
|
Restructuring charges
and other termination benefits
|
—
|
—
|
(0.8)
|
19.2
|
|
—
|
—
|
—
|
8.1
|
Acquisition and
integration-related charges and contingent
consideration
adjustments
|
—
|
—
|
(1.5)
|
1.5
|
|
(0.5)
|
—
|
(3.4)
|
2.8
|
(Gain) loss on
divestitures and investment securities
|
—
|
—
|
4.6
|
(4.6)
|
|
—
|
—
|
—
|
—
|
Other
|
(0.1)
|
—
|
—
|
(0.1)
|
|
—
|
—
|
—
|
—
|
Adjusted
|
$
676.1
|
$ 38.1
|
$
418.1
|
$
220.0
|
|
$
585.5
|
$ 37.3
|
$
379.3
|
$
168.9
|
As a % of reported net
sales (1)
|
52.8 %
|
3.0 %
|
32.6 %
|
17.2 %
|
|
51.5 %
|
3.3 %
|
33.4 %
|
14.9 %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
(1) CSCA reported net
sales for the nine months ended September 30, 2023 and
October 1, 2022 were $2,217.9 million and $2,160.2 million,
respectively. CSCI reported net sales for the nine months ended
September 30, 2023 and October 1, 2022 were $1,280.7
million and $1,136.1 million, respectively.
|
TABLE
V
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
CONSOLIDATED AND
SELECTED SEGMENT INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
Consolidated
Continuing Operations
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
Net Sales
|
$
1,123.8
|
|
$
1,100.2
|
|
2.2 %
|
|
$
3,498.7
|
|
$
3,296.3
|
|
6.1 %
|
Less: Currency
impact(1)
|
22.4
|
|
—
|
|
(2.1) %
|
|
(12.7)
|
|
—
|
|
0.4 %
|
Constant currency net
sales
|
$
1,101.4
|
|
$
1,100.2
|
|
0.1 %
|
|
$
3,511.4
|
|
$
3,296.3
|
|
6.5 %
|
Less:
Divestitures(2)
|
—
|
|
—
|
|
— %
|
|
—
|
|
19.3
|
|
0.7 %
|
Less: Exited product
lines(4)
|
1.0
|
|
13.4
|
|
1.1 %
|
|
9.1
|
|
40.5
|
|
1.0 %
|
Less:
Acquisitions(3)
|
27.0
|
|
—
|
|
(2.5) %
|
|
188.8
|
|
—
|
|
(5.8) %
|
Organic net
sales
|
$
1,073.4
|
|
$
1,086.8
|
|
(1.2) %
|
|
$
3,313.4
|
|
3,236.7
|
|
2.4 %
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
Consumer Self-Care
Americas
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
Net Sales
|
$
703.5
|
|
$
722.3
|
|
(2.6) %
|
|
$
2,217.9
|
|
$
2,160.2
|
|
2.7 %
|
Less: Currency
impact(1)
|
(0.3)
|
|
—
|
|
— %
|
|
(1.5)
|
|
—
|
|
— %
|
Constant currency net
sales
|
$
703.9
|
|
$
722.3
|
|
(2.6) %
|
|
$
2,219.4
|
|
$
2,160.2
|
|
2.7 %
|
Less:
Divestitures(2)
|
—
|
|
—
|
|
— %
|
|
—
|
|
19.3
|
|
0.9 %
|
Less: Exited product
lines(4)
|
1.0
|
|
10.0
|
|
1.2 %
|
|
8.2
|
|
30.1
|
|
1.1 %
|
Less:
Acquisitions(3)
|
27.0
|
|
—
|
|
(3.8) %
|
|
120.6
|
|
—
|
|
(5.5) %
|
Organic net
sales
|
$
675.8
|
|
$
712.3
|
|
(5.1) %
|
|
$
2,090.6
|
|
$
2,111.0
|
|
(1.0) %
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
Consumer Self-Care
International
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
Net Sales
|
$
420.3
|
|
$
377.9
|
|
11.2 %
|
|
$
1,280.7
|
|
$
1,136.1
|
|
12.7 %
|
Less: Currency
impact(1)
|
22.7
|
|
—
|
|
(6.0) %
|
|
(11.2)
|
|
—
|
|
1.0 %
|
Constant currency net
sales
|
$
397.6
|
|
$
377.9
|
|
5.2 %
|
|
$
1,291.9
|
|
$
1,136.1
|
|
13.7 %
|
Less:
Divestitures(2)
|
—
|
|
—
|
|
— %
|
|
—
|
|
—
|
|
— %
|
Less: Exited product
lines(4)
|
—
|
|
3.4
|
|
1.0 %
|
|
0.9
|
|
10.4
|
|
1.0 %
|
Less:
Acquisitions(3)
|
—
|
|
—
|
|
— %
|
|
68.3
|
|
—
|
|
(6.1) %
|
Organic net
sales
|
$
397.6
|
|
$
374.5
|
|
6.2 %
|
|
$
1,222.8
|
|
$
1,125.7
|
|
8.6 %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Currency impact is
calculated using the exchange rates used to translate our financial
statements in the comparable prior year period to show what current
period US dollar results would have been if such currency exchange
rates had not changed.
|
(2) Represents
divestitures of Latin American businesses and
ScarAway®.
|
(3) Represents
acquisition of HRA Pharma in CSCA and CSCI on a constant currency
basis (four months of sales for the first half of 2023, as it was
acquired on April 29, 2022), and Nestlé's Gateway Infant Formula
Plant and Good Start® infant formula brand in
CSCA.
|
(4) Exited product
lines represents strategic actions taken across multiple product
categories as part of our Supply Chain Reinvention Program,
primarily driven by Nutritional drinks within the Nutrition
category.
|
TABLE
VI
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
CSCA Net
Sales
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
Nutrition
|
$
130.7
|
|
$ 124.4
|
|
5.1 %
|
|
$
435.4
|
|
$
376.7
|
|
15.6 %
|
|
Upper
Respiratory
|
130.2
|
|
132.2
|
|
(1.5) %
|
|
422.2
|
|
430.9
|
|
(2.0) %
|
|
Digestive
Health
|
117.1
|
|
119.6
|
|
(2.1) %
|
|
368.0
|
|
363.3
|
|
1.3 %
|
|
Pain and
Sleep-Aids
|
94.1
|
|
104.0
|
|
(9.5) %
|
|
295.0
|
|
309.5
|
|
(4.7) %
|
|
Healthy
Lifestyle
|
79.4
|
|
73.8
|
|
7.6 %
|
|
220.1
|
|
208.7
|
|
5.5 %
|
|
Oral Care
|
76.5
|
|
83.6
|
|
(8.5) %
|
|
237.8
|
|
230.6
|
|
3.1 %
|
|
Skin Care
|
47.6
|
|
48.9
|
|
(2.7) %
|
|
150.7
|
|
138.4
|
|
8.9 %
|
|
Women's
Health
|
10.2
|
|
12.4
|
|
(17.7) %
|
|
34.6
|
|
32.6
|
|
6.1 %
|
|
VMS and Other
CSCA
|
17.7
|
|
23.4
|
|
(24.4) %
|
|
54.1
|
|
69.5
|
|
(22.2) %
|
|
Total CSCA Net
Sales
|
$
703.5
|
|
$ 722.3
|
|
(2.6) %
|
|
$
2,217.9
|
|
$
2,160.2
|
|
2.7 %
|
|
|
Three Months
Ended
|
|
|
|
|
|
Constant
Currency
Change (1)
|
|
Nine Months
Ended
|
|
|
|
|
|
Constant
Currency
Change (1)
|
CSCI Net
Sales
|
September 30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
Currency
Impact (1)
|
|
|
September
30,
2023
|
|
October 1,
2022
|
|
%
Change
|
|
Currency
Impact (1)
|
|
Skin Care
|
$
86.7
|
|
$ 81.1
|
|
6.9 %
|
|
(2.5) %
|
|
4.4 %
|
|
$
293.1
|
|
$
257.5
|
|
13.8 %
|
|
4.4 %
|
|
18.2 %
|
Upper
Respiratory
|
78.2
|
|
69.2
|
|
13.0 %
|
|
(7.9) %
|
|
5.1 %
|
|
227.9
|
|
194.5
|
|
17.2 %
|
|
(0.3) %
|
|
16.9 %
|
Pain and
Sleep-Aids
|
61.1
|
|
46.1
|
|
32.5 %
|
|
(9.5) %
|
|
23.0 %
|
|
163.8
|
|
149.2
|
|
9.8 %
|
|
(0.3) %
|
|
9.5 %
|
Healthy
Lifestyle
|
52.4
|
|
47.6
|
|
10.1 %
|
|
(5.7) %
|
|
4.4 %
|
|
179.4
|
|
165.6
|
|
8.3 %
|
|
(0.2) %
|
|
8.1 %
|
VMS
|
46.1
|
|
46.4
|
|
(0.6) %
|
|
(6.9) %
|
|
(7.5) %
|
|
135.4
|
|
138.2
|
|
(2.0) %
|
|
(1.1) %
|
|
(3.1) %
|
Women's
Health
|
28.5
|
|
28.7
|
|
(0.7) %
|
|
(6.3) %
|
|
(7.0) %
|
|
89.5
|
|
65.7
|
|
36.2 %
|
|
(0.6) %
|
|
35.6 %
|
Oral Care
|
24.8
|
|
21.7
|
|
14.3 %
|
|
(7.8) %
|
|
6.5 %
|
|
75.5
|
|
71.2
|
|
6.0 %
|
|
— %
|
|
6.0 %
|
Digestive Health and
Other CSCI
|
42.5
|
|
37.1
|
|
14.6 %
|
|
(3.8) %
|
|
10.8 %
|
|
116.1
|
|
94.2
|
|
23.2 %
|
|
3.6 %
|
|
26.8 %
|
Total CSCI Net
Sales
|
$
420.3
|
|
$ 377.9
|
|
11.2 %
|
|
(6.0) %
|
|
5.2 %
|
|
$
1,280.7
|
|
$
1,136.1
|
|
12.7 %
|
|
1.0 %
|
|
13.7 %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Currency impact is
calculated using the exchange rates used to translate our financial
statements in the comparable prior year period to show what current
period US dollar results would have been if such currency exchange
rates had not changed.
|
TABLE
VII
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
CONSOLIDATED AND
SELECTED SEGMENT INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
Consolidated
Continuing Operations
|
|
September 30,
2023
|
|
October 1,
2022
|
|
Total
Change
|
|
September 30,
2023
|
|
October 1,
2022
|
|
Total
Change
|
Adjusted gross
margin
|
|
39.5 %
|
|
36.5 %
|
|
|
|
300 bps
|
|
38.5 %
|
|
35.5 %
|
|
0
|
|
300 bps
|
Adjusted operating
income
|
|
$ 150.3
|
|
$ 133.0
|
|
$ 17.3
|
|
13.0 %
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
$ 0.64
|
|
$ 0.56
|
|
|
|
14.3 %
|
|
$ 1.72
|
|
$ 1.32
|
|
0.4
|
|
30.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Self-Care
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
51.2 %
|
|
52.4 %
|
|
|
|
(120) bps
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$ 79.7
|
|
$ 62.1
|
|
$ 17.5
|
|
28.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Self-Care
Americas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
32.5 %
|
|
28.2 %
|
|
|
|
430 bps
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$ 108.1
|
|
$ 104.4
|
|
$
3.7
|
|
3.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Continuing Operations
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Conversion
|
|
September 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$87.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from
operating activities
|
|
$124.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
conversion
|
|
143 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Sequential
Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Consolidated
Continuing Operations
|
|
September 30,
2023
|
|
July 1,
2023
|
|
Total
Change
|
|
Adjusted gross
margin
|
|
39.5 %
|
|
38.7 %
|
|
|
|
80 bps
|
|
|
|
|
|
|
|
|
|
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
TABLE
VIII
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
CONSOLIDATED AND
SELECTED SEGMENT INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Full
Year
|
|
2023
Guidance
|
Reported Diluted
EPS
|
$0.40 -
$0.50
|
Pre-tax
adjustments:(1)
|
|
Amortization
expense primarily related to acquired intangible assets
|
2.00
|
Restructuring
charges and other termination benefits
|
0.32
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
0.07
|
Unusual
litigation
|
0.07
|
(Gain) loss on
divestitures and investment securities
|
(0.03)
|
Milestone payments
received related to royalty rights
|
(0.07)
|
Non-GAAP tax
adjustments(2)
|
(0.25)
|
Adjusted Diluted
EPS
|
$2.50 -
$2.60
|
|
|
Reported Net Sales
Growth
|
4.0% -
6.0%
|
Acquisitions,
Divestitures, Exited Product Lines and HRA 1x distribution
transition
|
3.0 %
|
Organic Net Sales
Growth
|
1.0% -
3.0%
|
|
|
Reported Effective
Tax Rate
|
30.6 %
|
Non-GAAP tax
adjustments
|
(16.6) %
|
Adjusted Effective Tax
Rate
|
14.0 %
|
|
Note: amounts may not
add due to rounding. Percentages are based on actuals.
|
|
(1) Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
(2) The non-GAAP tax
adjustments are tax effect of pre-tax non-GAAP
adjustments.
|
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SOURCE Perrigo Company plc