Delivered Adjusted Diluted Earnings Per Share
Results Above Projection, Due Primarily to Timing of Infant Formula
Shipments; Reaffirm 2024 Financial Outlook
Advanced Augmenting and Strengthening of
Infant Formula Facilities, Recovery of Manufacturing Volumes
Underway
Progressed Blueprint to Build One Perrigo; On
Target to Deliver Project Energize Goals; Announced Today in a
Separate Press Release the Executive Transition for the Consumer
Self-Care International Business
Recently Announced Plan to Divest HRA Rare
Diseases Business; Expects to Redeploy Proceeds for Debt
Paydown
DUBLIN, May 7, 2024
/PRNewswire/ --
First Quarter 2024 Highlights:
- First quarter net sales of $1.1 billion declined 8.4% versus the prior year
quarter. First quarter organic1 net sales decreased
7.0%, due primarily to 1) -4.3 percentage points impact due to
lower net sales in infant formula, driven by actions to augment and
strengthen the infant formula network, and 2) -3.6 percentage
points impact from purposeful SKU prioritization actions to enhance
margins as part of the Company's Supply Chain Reinvention Program.
These two factors more than offset +0.9 percentage points impact
from organic net sales growth in the rest of the business.
- Consumer Self-Care International ("CSCI") net sales
increased 4.7% compared to the prior year quarter as organic net
sales grew 7.0%. Consumer Self-Care Americas ("CSCA") net sales
decreased 15.7% compared to the prior year quarter, including an
impact of -6.7 percentage points from infant formula and -5.6
percentage points from SKU prioritization actions.
- First quarter GAAP ("reported") gross margin was
33.1%, a 190 basis points decline compared to the prior year
quarter. Non-GAAP ("adjusted") gross margin of 36.5% declined 90
basis points, including a -280 basis points impact from infant
formula.
- First quarter reported diluted earnings per share
("EPS") was $0.03, compared to a loss
of $(0.01) in the prior year
quarter.
- Adjusted diluted EPS was $0.29, compared to $0.45 in the prior year quarter, a decline of
35.6%, due primarily to a -$0.30
impact from infant formula.
- Cash and cash equivalents2 on the balance sheet
as of March 30, 2024 were
$659 million.
- Launched Opill®, the first-ever over-the-counter
birth control pill in the U.S., to major retailers
nationwide.
Reaffirms Fiscal Year 2024 Outlook:
- First quarter 2024 adjusted diluted EPS was ahead of
projection by approximately $0.06 due
to timing of infant formula shipments to customers previously
expected during the second quarter 2024.
- Company reaffirms its fiscal 2024 organic net sales and
total net sales growth outlook of 1.0%-3.0% and flat, respectively,
versus the prior year. The Company also reaffirms its fiscal 2024
adjusted diluted EPS range outlook of $2.50-$2.65.
(1) See attached
Appendix for details. Change in net sales on an organic basis
excludes the effects of acquisitions, divestitures, exited product
lines and the impact of currency.
|
(2) The Company has
$7.0 million of restricted cash as of March 30, 2024 in Cash, cash
equivalents and restricted cash on the Consolidated Balance Sheets.
The Company entered into an agreement to extend a credit line to an
existing customer in exchange for a cash security deposit. The
agreement requires the cash to be held in a separate account and
will be returned to the customer at the expiration of the agreement
provided all credits have been paid as agreed.
|
(3) All tables and
data may not add due to rounding. Percentages are based on
actuals.
|
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
first quarter ended March 30, 2024. All comparisons are
against the prior year fiscal first quarter, unless otherwise
noted.
President and CEO, Patrick
Lockwood-Taylor commented, "During the first quarter, we
continued to progress our blueprint to build One Perrigo by implementing Project Energize, a
growth and efficiency program, as we further align to create
sustainable, value accretive growth."
Lockwood-Taylor continued, "We also delivered a good first
quarter by advancing our operational priorities, including the
successful launch of Opill®, the first-ever
over-the-counter oral contraceptive in the U.S., at more than
65,000 retail stores nationwide. Elsewhere, many of our key brands
delivered healthy growth, leading to another quarter of strong
topline growth in CSCI, while U.S. retailer de-stocking of store
brand offerings across most categories impacted growth in CSCA.
Quality improvement actions in infant formula are progressing well,
and manufacturing volumes are expected to ramp in the second half
of the year. The financial impact from infant formula in the
quarter was expected and sizable, but I am proud that the team
delivered meaningful year-over-year gross and operating margin
expansion across the rest of the business. We remain focused on
delivering on our operational priorities and outlook, while
continuing to build One
Perrigo."
Refer to Tables I through VII 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.
Project Energize
Perrigo has successfully transformed into a pure-play consumer
self-care company and is embarking on the next stage of its
self-care journey - evolving to One
Perrigo. This evolution will create sustainable, value
accretive growth through a blended-branded business model that
better positions the Company to win in self-care.
As part of the Company's sustainable, value accretive growth
strategy, the Company launched Project Energize - a global
investment and efficiency program to drive the next evolution of
capabilities and organizational agility. This three-year program is
expected to produce significant benefits in the Company's long-term
business performance by enabling our One
Perrigo growth strategy, increasing organizational agility
and mitigating impacts from stabilizing and strengthening infant
formula.
Project Energize was initiated during the first quarter of 2024
and is expected to deliver an annualized pre-tax savings in the
range of $140 million to $170 million by 2026. The Company expects to
reinvest $40 million to $60 million of these savings to drive its
blended-branded business model. Restructuring and related charges
associated with these actions are estimated to be in the range of
$140 million to $160 million, including $20 million to $40
million in investments to enhance capabilities and are
expected to be substantially incurred by the end of 2026.
Restructuring activities as part of Project Energize are expected
to result in the net reduction of approximately 6% of total Perrigo
roles. To date, Project Energize has achieved approximately
$17 million in savings.
Executive Transition for the CSCI Business
Perrigo today announced in a separate press release that
Svend Andersen, Executive Vice
President and President, CSCI, intends to retire from the Company
in December of this year. Roberto
Khoury, a strong leader with more than 20 years of
experience cultivating successful branded consumer products and
pan-European brands, will be appointed to lead the business. To
ensure business continuity and a seamless transition, Mr. Andersen
will continue to lead CSCI, working closely with Mr. Khoury, until
August 1, 2024, at which point Mr.
Khoury will assume the role of Executive Vice President and
President of CSCI, and Mr. Andersen will step down to serve in an
advisory role until his retirement.
Lockwood-Taylor commented, "On behalf of the Board of Directors,
the management team and the more than 9,000 Perrigo colleagues
worldwide, I want to express our gratitude to Svend for his
invaluable contributions and dedication to the growth and success
of the organization. His leadership and commitment have helped
position CSCI and Perrigo as a global leader in self-care and I
congratulate him on his well-earned retirement."
Lockwood-Taylor concluded, "We are delighted to welcome Roberto
to Perrigo, and I am confident that his fresh perspectives and deep
consumer insights will focus the CSCI business on scale brands,
while delighting consumers with winning innovation. We are also
thrilled to have him as part of the leadership team as we continue
our journey to consumerize, simplify and scale One Perrigo."
Perrigo First Quarter 2024 Results from Continuing
Operations
First Quarter 2024 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Constant
Currency Net
Sales
|
Product Line
Exits
|
Organic
Net Sales
Growth
|
CSCA
|
(15.7) %
|
(15.7) %
|
(1.1) %
|
(14.6) %
|
CSCI
|
4.7 %
|
5.5 %
|
(1.5) %
|
7.0 %
|
Total
Perrigo
|
(8.4) %
|
(8.2) %
|
(1.2) %
|
(7.0) %
|
Reported net sales of $1.1 billion
decreased $100 million, or 8.4%, driven by a decline in
organic net sales of 7.0%, -1.2 percentage points from exited
product lines and -0.3 percentage points from foreign currency
translation.
Organic net sales were impacted primarily by 1) -4.3 percentage
points from lower net sales in infant formula, driven
by actions to augment and strengthen the infant formula network,
and 2) -3.6 percentage points from purposeful SKU prioritization
actions to enhance margins as part of the Company's Supply Chain
Reinvention Program.
These two factors more than offset +0.9 percentage points
organic net sales growth in the rest of the business, which
comprised strategic pricing actions of +3.0 percentage points and
volume/mix of -2.1 percentage points. This growth was led by
branded product offerings in CSCI, e-commerce and new products,
including the launch of Opill® in the U.S., which
was partially offset by inventory de-stocking at U.S. retail
customers, resulting in lower net sales of store brand offerings
across most CSCA categories.
Reported gross profit of $358
million, decreased $56
million, or 13.5%. Adjusted gross profit of $396 million decreased $47
million, or 10.7%, driven by the decline in net sales,
actions to augment and strengthen infant formula, and higher cost
of goods sold inflation in Europe.
These factors were partially offset by savings from the Company's
Supply Chain Reinvention Program.
Reported gross margin was 33.1%, a 190 basis points decrease
versus the prior year quarter. Adjusted gross margin declined 90
basis points to 36.5% driven by the same factors as adjusted gross
profit, partially offset by benefits from purposeful SKU
prioritization actions. Adjusted gross margin included an impact of
-280 basis points from infant formula.
Reported operating loss of $(55)
million, decreased $104
million compared to operating income of $49 million in the prior year period, due
primarily to restructuring charges related to Project Energize and
unusual litigation costs. Adjusted operating income declined
$27 million to $93 million as the decrease in gross profit was
partially offset by Project Energize cost savings and lower
variable expenses.
Reported operating margin was (5.1)%, a 920 basis point decrease
versus the prior year quarter. Adjusted operating margin was 8.6%,
a decrease of 150 basis points versus the prior year quarter due
primarily to infant formula.
Reported net income was $4 million, or $0.03 per diluted share, compared to a reported
net loss of $(1) million, or
($0.01) per diluted share, in the
prior year. First quarter 2024 adjusted net income was $40 million, or $0.29 per diluted share, compared to
$61 million, or $0.45 per
diluted share, in the prior year, due primarily to a -$0.30 impact from infant formula.
First Quarter 2024 Business Segment Results from Continuing
Operations
Consumer Self-Care Americas Segment
First Quarter 2024 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Constant
Currency Net
Sales
|
Product Line
Exits
|
Organic
Net Sales
Growth
|
CSCA
|
(15.7) %
|
(15.7) %
|
(1.1) %
|
(14.6) %
|
CSCA reported net sales of $644 million decreased
$120 million, or 15.7%, driven primarily by a decline in
organic net sales of 14.6% and -1.1 percentage points from exited
product lines.
Organic net sales were impacted by 1) -6.7 percentage points
impact from lower net sales in infant formula driven by actions to
augment and strengthen the infant formula network, 2)
-5.6 percentage points impact from purposeful SKU
prioritization actions to enhance margins as part of the Company's
Supply Chain Reinvention Program, and 3) -2.3 percentage points
impact in all other product lines as growth in e-commerce and new
products, including the launch of Opill®, was
more than offset by inventory de-stocking at retail customers,
resulting in lower net sales of store brand offerings across most
categories, and lower distribution in Oral Care.
Reported gross profit of $154 million decreased
$57 million, or 27.2%. Adjusted gross profit declined
$52 million to $163 million driven by the decline in net
sales and actions to augment and strengthen infant formula.
These factors were partially offset by Supply Chain Reinvention
savings.
Reported gross margin was 23.8%, a 380 basis points decrease
versus the prior year quarter. Adjusted gross margin declined 280
basis points to 25.3% driven by the same factors as adjusted gross
profit, partially offset by benefits from SKU prioritization
actions and higher margin new products, including
Opill®. Adjusted gross margin included an impact
of -520 basis points from infant formula.
Reported operating income was $16 million compared to
$83 million in the prior year quarter. Adjusted operating
income decreased $47 million, or 46.9%, to $53 million as the decrease in adjusted gross
profit was partially offset by Project Energize cost savings.
Reported operating margin was 2.4%, a 850 basis points decrease
versus the prior year quarter. Adjusted operating margin declined
480 basis points to 8.2% due primarily to infant formula.
Consumer Self-Care International Segment
First Quarter 2024 Net Sales Change
Compared to Prior Year(3)
|
|
Reported
Net Sales
Growth
|
Constant
Currency Net
Sales
|
Product Line
Exits
|
Organic
Net Sales
Growth
|
CSCI
|
4.7 %
|
5.5 %
|
(1.5) %
|
7.0 %
|
CSCI reported net sales growth was 4.7%, including -0.7
percentage points from foreign currency translation and -1.5
percentage points stemming from exited products.
Organic net sales increased 7.0% driven by growth in the Skin
Care and Women's Health categories, strategic pricing
actions and new products. This growth was partially offset by lower
net sales in the Upper Respiratory and Healthy
Lifestyle categories, partially driven by supply
constraints.
Reported gross profit of $204
million increased $1 million,
or 0.6%. Adjusted gross profit grew $4
million to $232 million as
strategic pricing actions, new products and Supply Chain
Reinvention savings were partially offset by lower volume/mix and
higher cost of goods sold inflation.
Reported gross margin was 46.6%, a decrease of 200 basis points
compared to the prior year quarter. Adjusted gross margin decreased
150 basis points to 53.0% driven by less favorable product
volume/mix.
Reported operating income was $27
million compared to $21
million in the prior year quarter. Adjusted operating income
increased $16 million, or 22.5%, to
$86 million due primarily to higher
adjusted gross profit, lower operating expenses driven by Project
Energize cost savings, and the realization of synergies from the
2022 acquisition of HRA.
Reported operating margin was 6.1%, a 100 basis
points increase versus the prior year quarter. Adjusted
operating margin increased 290 basis points to 19.7% due
primarily to operating leverage.
Cash Flow and Balance Sheet
First quarter 2024 cash from operations was a loss of
$(1) million compared to cash flow of
$19 million last year. Capital
expenditures were $25 million
compared to $23 million in the prior
year. The Company returned $38
million to shareholders through dividends during the
quarter. Cash and cash equivalents2 on the balance sheet
as of March 30, 2024 were $659
million. Total debt was $4.1
billion as of March 30, 2024, flat compared to the
prior year.
Fiscal 2024 Outlook
The Company reaffirms its fiscal year 2024 outlook:
- Organic net sales growth of 1.0% to 3.0% compared to the prior
year,
- Reported net sales flat compared to the prior year,
- Interest expense of approximately $180
million,
- Full year adjusted tax rate of approximately ~20.5%,
- Adjusted diluted EPS range of between $2.50 to $2.65
including
- mid-teens adjusted EPS growth, excluding infant formula from
both years, and
- Operating cash flow conversion (operating cash flow as a
percentage of adjusted net income) of approximately 90% -
100%.
The Company cannot reconcile its expected organic net sales
growth, adjusted diluted earnings per share to diluted earnings per
share or adjusted tax rate under "Fiscal 2024 Outlook" without
unreasonable effort because certain items that impact net income
and other reconciling metrics are out of the Company's control
and/or cannot be reasonably predicted at this time. These items
include, but are not limited to uncertainty of non-recurring infant
formula related charges and timing and amount of restructuring
charges and the income tax effects of these items or other income
tax-related events.
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 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 888-664-6383, International 416-764-8650, and
reference ID # 910565. A taped replay of the call will be available
beginning at approximately 12:00 P.M. (EST)
Tuesday, May 7, until midnight Tuesday, May 15, 2024. To listen to the replay,
dial 888-390-0541, International 416-764-8677, and use access code
910565#.
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, or other
epidemic or pandemic disease; the timing, amount and cost of any
share repurchases (or the absence thereof) and/or any refinancing
of outstanding debt at or prior to maturity; fluctuations in
currency exchange rates and interest rates; consummation and
success of the proposed sale of the HRA Rare Diseases portfolio,
including the risk that the parties fail to obtain the required
regulatory approvals or to fulfill the other conditions to closing
on the expected timeframe or at all, the occurrence of any other
event, change or circumstance that could delay the transaction or
result in the termination of the sale agreement or that the Company
faces higher than anticipated costs in connection with the proposed
sale; and the risk that potential costs or liabilities incurred or
retained in connection with the sale of the Company's RX business
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 ongoing restructuring programs described
herein. 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, 2023, 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, exited product lines, and the
impact of currency,
- adjusted gross profit,
- adjusted net income,
- adjusted operating income,
- adjusted diluted earnings per share,
- adjusted operating margin, and
- adjusted gross 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 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 operating
income, adjusted diluted EPS, 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
|
|
March 30,
2024
|
|
April 1,
2023
|
Net sales
|
$
1,082.1
|
|
$
1,181.7
|
Cost of
sales
|
724.4
|
|
767.9
|
Gross
profit
|
357.7
|
|
413.8
|
|
|
|
|
Operating
expenses
|
|
|
|
Distribution
|
24.9
|
|
28.6
|
Research and
development
|
29.0
|
|
31.1
|
Selling
|
150.3
|
|
167.9
|
Administration
|
130.4
|
|
135.0
|
Restructuring
|
44.3
|
|
3.4
|
Other operating
expense (income), net
|
34.0
|
|
(0.7)
|
Total operating
expenses
|
412.9
|
|
365.3
|
|
|
|
|
Operating (loss)
income
|
(55.2)
|
|
48.5
|
|
|
|
|
Interest expense,
net
|
43.0
|
|
43.7
|
Other (income) expense,
net
|
0.4
|
|
0.5
|
Income (loss) from
continuing operations before income taxes
|
(98.6)
|
|
4.3
|
Income tax (benefit)
expense
|
(102.7)
|
|
5.4
|
Income (loss) from
continuing operations
|
4.1
|
|
(1.1)
|
Income (loss) from
discontinued operations, net of tax
|
(2.1)
|
|
(1.9)
|
Net income
(loss)
|
$
2.0
|
|
$
(3.0)
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
Basic
|
|
|
|
Continuing
operations
|
$
0.03
|
|
$
(0.01)
|
Discontinued
operations
|
(0.02)
|
|
(0.01)
|
Basic earnings (loss)
per share
|
$
0.01
|
|
$
(0.02)
|
Diluted
|
|
|
|
Continuing
operations
|
$
0.03
|
|
$
(0.01)
|
Discontinued
operations
|
(0.02)
|
|
(0.01)
|
Diluted earnings
(loss) per share
|
$
0.01
|
|
$
(0.02)
|
|
|
|
|
Weighted-average shares
outstanding
|
|
|
|
Basic
|
136.6
|
|
134.9
|
Diluted
|
137.6
|
|
134.9
|
PERRIGO COMPANY
PLC
CONSOLIDATED BALANCE
SHEETS
(in millions, except
per share amounts)
(unaudited)
|
|
|
March 30,
2024
|
|
December 31,
2023
|
Assets
|
|
|
|
Cash, cash equivalents
and restricted cash
|
$
658.5
|
|
$
751.3
|
Accounts receivable,
net of allowance for credit losses of $8.1 and $7.8,
respectively
|
780.0
|
|
739.6
|
Inventories
|
1,121.3
|
|
1,140.9
|
Prepaid expenses and
other current assets
|
246.6
|
|
201.1
|
Total current
assets
|
2,806.4
|
|
2,832.9
|
Property, plant and
equipment, net
|
911.4
|
|
916.4
|
Operating lease
assets
|
176.7
|
|
183.6
|
Goodwill and
indefinite-lived intangible assets
|
3,498.1
|
|
3,534.4
|
Definite-lived
intangible assets, net
|
2,870.3
|
|
2,980.8
|
Deferred income
taxes
|
28.0
|
|
25.8
|
Other non-current
assets
|
349.4
|
|
335.2
|
Total non-current
assets
|
7,833.9
|
|
7,976.2
|
Total
assets
|
$
10,640.3
|
|
$
10,809.1
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$
453.7
|
|
$
477.7
|
Payroll and related
taxes
|
114.4
|
|
127.0
|
Accrued customer
programs
|
179.1
|
|
163.5
|
Other accrued
liabilities
|
359.0
|
|
335.4
|
Accrued income
taxes
|
7.7
|
|
42.1
|
Current
indebtedness
|
440.6
|
|
440.6
|
Total current
liabilities
|
1,554.5
|
|
1,586.3
|
Long-term debt, less
current portion
|
3,624.9
|
|
3,632.8
|
Deferred income
taxes
|
247.7
|
|
262.3
|
Other non-current
liabilities
|
526.2
|
|
559.8
|
Total non-current
liabilities
|
4,398.8
|
|
4,454.9
|
Total
liabilities
|
5,953.3
|
|
6,041.2
|
Contingencies -
Refer to Note 15
|
|
|
|
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
|
6,803.0
|
|
6,837.5
|
Accumulated other
comprehensive income
|
(37.7)
|
|
10.7
|
Retained earnings
(accumulated deficit)
|
(2,078.3)
|
|
(2,080.3)
|
Total shareholders'
equity
|
4,687.0
|
|
4,767.9
|
Total liabilities and
shareholders' equity
|
$
10,640.3
|
|
$
10,809.1
|
|
|
|
|
Supplemental
Disclosures of Balance Sheet Information
|
|
|
|
Preferred shares,
issued and outstanding
|
—
|
|
—
|
Ordinary shares,
issued and outstanding
|
136.3
|
|
135.5
|
PERRIGO COMPANY
PLC
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
millions)
(unaudited)
|
|
|
Three Months
Ended
|
|
March 30,
2024
|
|
April 1,
2023
|
Cash Flows From (For)
Operating Activities
|
|
|
|
Net income
(loss)
|
$
2.0
|
|
$
(3.0)
|
Adjustments to derive
cash flows:
|
|
|
|
Depreciation and
amortization
|
81.4
|
|
88.7
|
Restructuring
charges
|
44.3
|
|
3.4
|
Share-based
compensation
|
15.6
|
|
24.9
|
Amortization of debt
discount
|
0.4
|
|
0.7
|
Gain on sale of
assets
|
—
|
|
(3.9)
|
Deferred income
taxes
|
(11.0)
|
|
(9.9)
|
Other non-cash
adjustments, net
|
(7.4)
|
|
6.4
|
Subtotal
|
125.3
|
|
107.3
|
Increase (decrease) in
cash due to:
|
|
|
|
Accrued income
taxes
|
(81.6)
|
|
2.5
|
Accounts
receivable
|
(51.9)
|
|
(39.8)
|
Payroll and related
taxes
|
(51.6)
|
|
(34.3)
|
Accounts
payable
|
(16.7)
|
|
(29.8)
|
Prepaid expenses and
other current assets
|
(1.7)
|
|
17.1
|
Inventories
|
10.6
|
|
(28.6)
|
Accrued customer
programs
|
18.2
|
|
6.8
|
Accrued
liabilities
|
30.6
|
|
8.0
|
Other operating,
net
|
17.4
|
|
10.2
|
Subtotal
|
(126.7)
|
|
(87.9)
|
Net cash (for) from
operating activities
|
(1.4)
|
|
19.4
|
Cash Flows From (For)
Investing Activities
|
|
|
|
Additions to property,
plant and equipment
|
(25.1)
|
|
(23.2)
|
Proceeds from sale of
assets
|
—
|
|
1.8
|
Proceeds from royalty
rights
|
1.6
|
|
1.8
|
Net cash for investing
activities
|
(23.5)
|
|
(19.6)
|
Cash Flows For
Financing Activities
|
|
|
|
Cash
dividends
|
(37.6)
|
|
(36.2)
|
Payments on long-term
debt
|
(9.8)
|
|
(5.9)
|
Other financing,
net
|
(13.0)
|
|
(8.6)
|
Net cash for financing
activities
|
(60.4)
|
|
(50.7)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(7.5)
|
|
3.2
|
Net decrease in cash
and cash equivalents
|
(92.8)
|
|
(47.7)
|
Cash, cash equivalents
and restricted cash of continuing operations, beginning of
period
|
751.3
|
|
600.7
|
Cash, cash equivalents
and restricted cash of continuing operations, end of
period
|
$
658.5
|
|
$
553.0
|
TABLE
I
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months Ended
March 30, 2024
|
|
Three Months Ended
April 1, 2023
|
Consolidated
Continuing Operations
|
Gross
Profit
|
Operating
Income (Loss)
|
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
|
$
357.7
|
$
(55.2)
|
$
4.1
|
$
0.03
|
|
$
413.8
|
$
48.5
|
$
(1.1)
|
$
(0.01)
|
As a % of reported net
sales(2)
|
33.1 %
|
(5.1) %
|
0.4 %
|
|
|
35.0 %
|
4.1 %
|
(0.1) %
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible assets
|
32.8
|
58.7
|
59.2
|
0.43
|
|
29.0
|
65.6
|
66.2
|
0.48
|
Restructuring charges
and other termination benefits
|
0.2
|
44.3
|
44.3
|
0.32
|
|
—
|
3.4
|
3.4
|
0.03
|
Unusual
litigation
|
—
|
37.2
|
37.2
|
0.27
|
|
—
|
3.1
|
3.1
|
0.02
|
Infant formula
remediation
|
4.9
|
5.8
|
5.8
|
0.04
|
|
—
|
—
|
—
|
—
|
Acquisition and
integration-related charges and
contingent consideration adjustments
|
—
|
0.4
|
0.4
|
—
|
|
—
|
3.5
|
3.5
|
0.03
|
(Gain) loss on
divestitures and investment securities
|
—
|
—
|
—
|
—
|
|
—
|
(4.6)
|
(4.8)
|
(0.03)
|
Other
(3)
|
—
|
1.8
|
1.9
|
0.01
|
|
—
|
—
|
—
|
—
|
Non-GAAP tax
adjustments(4)
|
—
|
—
|
(112.7)
|
(0.82)
|
|
—
|
—
|
(9.4)
|
(0.07)
|
Adjusted
|
$
395.5
|
$
93.0
|
$
40.2
|
$
0.29
|
|
$
442.8
|
$
119.6
|
$
61.0
|
$
0.45
|
As a % of reported net
sales(2)
|
36.5 %
|
8.6 %
|
3.7 %
|
|
|
37.5 %
|
10.1 %
|
5.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
|
Reported
|
137.6
|
|
|
|
|
134.9
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income(5)
|
—
|
|
|
|
|
1.6
|
|
|
|
Adjusted
|
137.6
|
|
|
|
|
136.5
|
|
Note: amounts may not
add or recalculate 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 March 30, 2024 and April 1,
2023 were $1,082.1 million and $1,181.7 million,
respectively.
|
(3) Other pre-tax
adjustments include $1.1 million related to professional consulting
fees for potential divestitures and $0.8 million related to legal
fees incurred during the Irish NOA settlement.
|
(4) Non-GAAP tax
adjustments for the three months ended March 30, 2024 are
primarily due to $28.4 million of tax expense on pre-tax non-GAAP
adjustments, the interim tax accounting requirements in ASC 740 –
Income Taxes, which includes the removal of $84.1 million tax
impact related to the planned inter-company sales of intellectual
property. Non-GAAP tax adjustments for the three months ended
April 1, 2023 are primarily due to $12.4 million of tax
expense related to pre-tax non-GAAP adjustments and the interim tax
accounting requirements in ASC 740 - Income Taxes, plus the removal
of $3.0 million of tax expense related to a valuation allowance in
France.
|
(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
March 30, 2024
|
|
Three Months Ended
April 1, 2023
|
Consolidated
Continuing Operations
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Reported
|
$
29.0
|
$
339.6
|
$
44.3
|
|
$
31.1
|
$
330.8
|
$
3.4
|
As a % of reported net
sales(1)
|
2.7 %
|
31.4 %
|
4.1 %
|
|
2.6 %
|
28.0 %
|
0.3 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible assets
|
(0.2)
|
(25.7)
|
—
|
|
0.2
|
(36.9)
|
—
|
Restructuring charges
and other termination benefits
|
—
|
—
|
(44.1)
|
|
—
|
—
|
(3.4)
|
Acquisition and
integration-related charges and
contingent consideration adjustments
|
—
|
(0.4)
|
—
|
|
—
|
(3.5)
|
—
|
Unusual
litigation
|
—
|
(37.2)
|
—
|
|
—
|
(3.1)
|
—
|
Infant formula
remediation
|
—
|
(0.9)
|
—
|
|
—
|
—
|
—
|
Loss on investment
securities
|
—
|
—
|
—
|
|
—
|
4.6
|
—
|
Other
(2)
|
—
|
(1.9)
|
—
|
|
—
|
—
|
—
|
Adjusted
|
$
28.7
|
$
273.6
|
$
0.2
|
|
$
31.3
|
$
291.9
|
$
—
|
As a % of reported net
sales (1)
|
2.7 %
|
25.3 %
|
— %
|
|
2.6 %
|
24.7 %
|
— %
|
|
Note: amounts may not
add or recalculate due to rounding. Percentages are based on
actuals.
|
|
(1) Reported net sales
for the three months ended March 30, 2024 and April 1,
2023 were $1,082.1 million and $1,181.7 million,
respectively.
|
(2) Other pre-tax
adjustments include $1.1 million related to professional consulting
fees for potential divestitures and $0.8 million related to legal
fees incurred during the Irish NOA settlement.
|
TABLE
III
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED
CONSOLIDATED INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months Ended
March 30, 2024
|
|
Three Months Ended
April 1, 2023
|
Consolidated
Continuing Operations
|
Interest and
Other
|
Income Tax
Expense
(Benefit)
|
|
Interest and
Other
|
Income Tax
Expense
(Benefit)
|
Reported
|
$
43.4
|
$
(102.7)
|
|
$
44.2
|
$
5.4
|
As a % of reported net
sales (1)
|
4.0 %
|
(9.5) %
|
|
3.7 %
|
0.5 %
|
Effective tax
rate
|
|
104.2 %
|
|
|
123.8 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
(0.5)
|
—
|
|
(0.5)
|
—
|
(Gain) loss on
investment securities
|
—
|
—
|
|
—
|
—
|
Non-GAAP tax
adjustments(2)
|
—
|
112.7
|
|
—
|
9.4
|
Adjusted
|
$
42.7
|
$
10.0
|
|
$
43.8
|
$
14.8
|
As a % of reported net
sales (1)
|
3.9 %
|
0.9 %
|
|
3.7 %
|
1.2 %
|
Adjusted effective tax
rate
|
|
20.0 %
|
|
|
19.5 %
|
|
Note: amounts may not
add or recalculate due to rounding. Percentages are based on
actuals.
|
|
(1) Reported net sales
for the three months ended March 30, 2024 and April 1,
2023 were $1,082.1 million and $1,181.7 million,
respectively.
|
(2) Non-GAAP tax
adjustments for the three months ended March 30, 2024 are
primarily due to $28.4 million of tax expense on pre-tax non-GAAP
adjustments, the interim tax accounting requirements in ASC 740 –
Income Taxes, which includes the removal of $84.1 million tax
impact related to the planned inter-company sales of intellectual
property. Non-GAAP tax adjustments for the three months ended
April 1, 2023 are primarily due to $12.4 million of tax
expense related to pre-tax non-GAAP adjustments and the interim tax
accounting requirements in ASC 740 - Income Taxes, plus the removal
of $3.0 million of tax expense related to a valuation allowance in
France.
|
TABLE
IV
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in
millions)
(unaudited)
|
|
|
Three Months Ended
March 30, 2024
|
|
Three Months Ended
April 1, 2023
|
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
|
$
153.5
|
$ 16.4
|
$
105.0
|
$ 15.7
|
|
$
210.8
|
$ 18.0
|
$
108.3
|
$ 83.2
|
As a % of reported net
sales(1)
|
23.8 %
|
2.5 %
|
16.3 %
|
2.4 %
|
|
27.6 %
|
2.4 %
|
14.2 %
|
10.9 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
4.6
|
—
|
(10.0)
|
14.6
|
|
3.8
|
—
|
(10.1)
|
13.9
|
Infant formula
remediation
|
4.9
|
—
|
(0.9)
|
5.8
|
|
—
|
—
|
—
|
—
|
Restructuring charges
and other termination benefits
|
0.2
|
—
|
—
|
16.6
|
|
—
|
—
|
—
|
1.2
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
—
|
—
|
—
|
|
—
|
—
|
(0.8)
|
0.8
|
Adjusted
|
$
163.2
|
$ 16.4
|
$ 94.0
|
$ 52.7
|
|
$
214.7
|
$ 18.0
|
$ 97.4
|
$ 99.2
|
As a % of reported net
sales
|
25.3 %
|
2.5 %
|
14.6 %
|
8.2 %
|
|
28.1 %
|
2.4 %
|
12.8 %
|
13.0 %
|
|
Three Months Ended
March 30, 2024
|
|
Three Months Ended
April 1, 2023
|
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
|
$
204.2
|
$ 12.6
|
$
149.5
|
$ 26.5
|
|
$
203.0
|
$ 13.1
|
$
167.9
|
$ 21.3
|
As a % of reported net
sales(1)
|
46.6 %
|
2.9 %
|
34.1 %
|
6.1 %
|
|
48.6 %
|
3.1 %
|
40.2 %
|
5.1 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
28.1
|
(0.2)
|
(15.7)
|
44.0
|
|
25.2
|
0.2
|
(26.8)
|
51.7
|
Restructuring charges
and other termination benefits
|
—
|
—
|
—
|
15.5
|
|
—
|
—
|
—
|
0.9
|
(Gain) loss on
divestitures
|
—
|
—
|
—
|
—
|
|
—
|
—
|
4.6
|
(4.6)
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
—
|
—
|
—
|
|
—
|
—
|
(1.1)
|
1.1
|
Adjusted
|
$
232.3
|
$ 12.4
|
$
133.8
|
$ 86.1
|
|
$
228.2
|
$ 13.3
|
$
144.6
|
$ 70.3
|
As a % of reported net
sales
|
53.0 %
|
2.8 %
|
30.6 %
|
19.7 %
|
|
54.6 %
|
3.2 %
|
34.6 %
|
16.8 %
|
|
|
|
|
|
|
|
|
|
|
Note: amounts may not
add or recalculate due to rounding. Percentages are based on
actuals.
|
|
(1) CSCA reported net
sales for the three months ended March 30, 2024 and
April 1, 2023 were $644.1 million and $763.7 million,
respectively. CSCI reported net sales for the three months ended
March 30, 2024 and April 1, 2023 were $437.9 million and
$418.1 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
|
|
|
Consolidated
Continuing Operations
|
March 30,
2024
|
|
April 1,
2023
|
|
%
Change
|
Net Sales
|
$
1,082.1
|
|
$
1,181.7
|
|
(8.4) %
|
Less: Currency
impact(1)
|
(3.0)
|
|
—
|
|
(0.3) %
|
Constant currency net
sales
|
$
1,085.0
|
|
$
1,181.7
|
|
(8.2) %
|
Less: Exited product
lines(2)
|
5.9
|
|
21.2
|
|
(1.2) %
|
Organic net
sales
|
$
1,079.1
|
|
$
1,160.5
|
|
(7.0) %
|
|
|
Three Months
Ended
|
|
|
Consumer Self-Care
Americas
|
March 30,
2024
|
|
April 1,
2023
|
|
%
Change
|
Net Sales
|
$
644.1
|
|
$
763.7
|
|
(15.7) %
|
Less: Currency
impact(1)
|
—
|
|
—
|
|
— %
|
Constant currency net
sales
|
$
644.1
|
|
$
763.7
|
|
(15.7) %
|
Less: Exited product
lines(2)
|
0.2
|
|
9.6
|
|
(1.1) %
|
Organic net
sales
|
$
643.9
|
|
$
754.1
|
|
(14.6) %
|
|
|
Three Months
Ended
|
|
|
Consumer Self-Care
International
|
March 30,
2024
|
|
April 1,
2023
|
|
%
Change
|
Net Sales
|
$
437.9
|
|
$
418.1
|
|
4.7 %
|
Less: Currency
impact(1)
|
(3.0)
|
|
—
|
|
(0.7) %
|
Constant currency net
sales
|
$
440.9
|
|
$
418.1
|
|
5.5 %
|
Less: Exited product
lines(2)
|
5.7
|
|
11.6
|
|
(1.5) %
|
Organic net
sales
|
$
435.2
|
|
$
406.5
|
|
7.0 %
|
|
Note: amounts may not
add or recalculate 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) Exited product
lines represents strategic actions taken across multiple product
categories as part of our Supply Chain Reinvention Program,
primarily driven by exited products within the Skincare category in
CSCA and CSCI, the Nutrition category in CSCA and Upper Respiratory
in CSCI.
|
TABLE
VI
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
CSCA Net
Sales(1)
|
March 30,
2024
|
|
April 1,
2023
|
|
%
Change
|
Upper
Respiratory
|
130.3
|
|
153.7
|
|
(15.2) %
|
Digestive
Health
|
122.2
|
|
124.0
|
|
(1.4) %
|
Nutrition
|
$
90.6
|
|
$
138.5
|
|
(34.5) %
|
Pain and
Sleep-Aids
|
82.6
|
|
103.4
|
|
(20.2) %
|
Healthy
Lifestyle
|
71.3
|
|
73.4
|
|
(2.8) %
|
Oral Care
|
64.7
|
|
83.3
|
|
(22.3) %
|
Skin Care
|
49.6
|
|
69.8
|
|
(28.9) %
|
Women's
Health
|
27.2
|
|
12.3
|
|
121.5 %
|
VMS and Other
CSCA
|
5.6
|
|
5.3
|
|
3.0 %
|
Total CSCA Net
Sales
|
$
644.1
|
|
$
763.7
|
|
(15.7) %
|
|
Note: amounts may not
add or recalculate due to rounding. Percentages are based on
actuals.
|
|
(1) We updated our
global reporting product categories as a result of legacy Rx sales
being moved out of Other CSCA and into respective categories. These
product categories have been adjusted retroactively to reflect the
changes and have no impact on historical financial position,
results of operations, or cash flows.
|
Primary CSCA First Quarter Category Drivers:
- Upper Respiratory: Net sales of $130 million decreased 15.2% due primarily to
inventory de-stocking at U.S. retail customers, resulting in lower
net sales of cough cold and allergy products, in addition to strong
net sales in the prior year quarter. The category was also impacted
by 2.7 percentage points reduction from exited product lines and
portfolio optimization actions.
- Digestive Health: Net sales of $122 million decreased 1.4% as higher volumes of
laxative products, including Polyethylene Glycol, were more
than offset by a 5.3 percentage points reduction from portfolio
optimization actions.
- Nutrition: Net sales of $91
million decreased 34.5% due primarily to lower shipments to
customers as the company works through its infant formula plant
remediation plans, in addition to a -1.8 percentage points impact
from exited product lines.
- Pain & Sleep-Aids: Net sales of $83 million decreased 20.2% due primarily to
exited product lines and purposeful SKU prioritization actions
which had an aggregate impact of -13.0 percentage points. In
addition, inventory reductions by U.S. retail customers resulted in
lower net sales of pain and sleep-aid products. These impacts more
than offset new products, including store brand Acetaminophen
250mg and Ibuprofen 125mg Tablets.
- Healthy Lifestyle: Net sales of $71 million decreased 2.8% due primarily to
inventory de-stocking at U.S. retail customers, resulting in lower
net sales of smoking cessation products, and lower category
consumption compared to the prior year.
- Oral Care: Net sales of $65
million decreased 22.3% due primarily to lower distribution
at specific retail customers and the comparison to strong sales in
the prior year as customer inventories recovered and
normalized.
- Skin Care: Net sales of $50
million decreased 28.9% due primarily to exited product
lines and portfolio optimization actions which had an aggregate
impact of -30.9 percentage points. These headwinds more than offset
strong double-digit growth of Mederma®.
- Women's Health: Net sales of $27
million increased 121.5% due primarily to the new product
launch and channel fill of Opill®, which was
partially offset by a -11.7 percentage points impact from exited
product lines and portfolio optimization actions.
- Vitamins, Minerals, and Supplements ("VMS") and Other:
Net sales of $6 million increased
3.0%.
TABLE VI
(Continued)
PERRIGO COMPANY
PLC
RECONCILIATION OF
NON-GAAP MEASURES
SELECTED SEGMENT
INFORMATION
(in millions, except
per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
Constant
Currency
Change (1)
|
CSCI Net
Sales
|
March 30,
2024
|
|
April 1,
2023
|
|
%
Change
|
|
Currency
Impact (1)
|
|
Skin Care
|
$
114.7
|
|
$
83.4
|
|
37.5 %
|
|
3.4 %
|
|
41.0 %
|
Upper
Respiratory
|
69.1
|
|
84.8
|
|
(18.5) %
|
|
(1.7) %
|
|
(20.2) %
|
Healthy
Lifestyle
|
64.6
|
|
66.4
|
|
(2.7) %
|
|
7.4 %
|
|
4.7 %
|
Pain and
Sleep-Aids
|
51.4
|
|
49.9
|
|
3.0 %
|
|
(3.8) %
|
|
(0.9) %
|
VMS
|
44.6
|
|
47.8
|
|
(6.7) %
|
|
(1.0) %
|
|
(7.8) %
|
Women's
Health
|
32.0
|
|
29.1
|
|
10.1 %
|
|
(0.3) %
|
|
9.9 %
|
Oral Care
|
28.7
|
|
29.1
|
|
(1.5) %
|
|
(2.0) %
|
|
(3.5) %
|
Digestive Health and
Other CSCI
|
32.8
|
|
27.6
|
|
18.9 %
|
|
(1.0) %
|
|
17.9 %
|
Total CSCI Net
Sales
|
$
437.9
|
|
$
418.1
|
|
4.7 %
|
|
0.7 %
|
|
5.5 %
|
|
Note: amounts may not
add or recalculate 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.
|
Primary CSCI First Quarter Category Drivers:
- Skin Care: Net sales of $115
million increased 37.5%, or 41.0% excluding the impact of
currency, due to strong growth in Compeed driven by the new
product launch of Compeed Spots and the absence of prior
year distribution transitions. Category growth was also driven by
performance of ACO and Sebamed, partially offset by a
2.2 percentage point reduction from exited product lines.
- Upper Respiratory: Net sales of $69 million decreased 18.5%, or 20.2% excluding
the impact of currency, due primarily to lower net sales of cough
cold products stemming from lower incidence of cough cold
throughout the E.U. compared to the prior year and supply
constraints on several products in the category. The category was
also impacted by a 2.4 percentage points reduction from exited
product lines.
- Healthy Lifestyle: Net sales of $65 million decreased 2.7%, or an increase of
4.7% excluding the impact of currency, due primarily to the
seasonal sell in of anti-parasite products including Jungle
Formula and Paranix, partially offset by lower category
consumption in weight loss, impacting XLS Medical. The
category was impacted by a 1.3 percentage points reduction from
exited product lines.
- Pain & Sleep-Aids: Net sales of $51 million increased 3.0%, or a decrease of 0.9%
excluding the impact of currency, due primarily to lower net sales
of store brand products.
- VMS: Net sales of $45
million decreased 6.7%, or 7.8% excluding the impact of
currency, due primarily to timing of sales of Granufink and
Abte, in addition to promotional phasing of
Davitamon.
- Women's Health: Net sales of $32
million increased 10.1%, or 9.9% excluding the impact of
currency, due primarily to higher net sales of contraceptive
products including EllaOne, driven by the absence of prior year
distribution transitions.
- Oral Care: Net sales of $29
million decreased 1.5%, or 3.5% excluding the impact of
currency, due primarily to lower net sales of store brand
offerings.
- Digestive Health and Other: Net sales of $33 million increased 18.9%, or 17.9% excluding
the impact of currency, due primarily to higher net sales of store
brand digestive health products.
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
|
|
|
|
|
Consolidated
Continuing Operations
|
|
March 30,
2024
|
|
April 1,
2023
|
|
Total
Change
|
Adjusted gross
profit
|
|
$ 395.5
|
|
$ 442.8
|
|
$
(47.4)
|
|
(10.7) %
|
Adjusted gross
margin
|
|
36.5 %
|
|
37.5 %
|
|
|
|
(90) bps
|
Adjusted operating
income
|
|
$ 93.0
|
|
$ 119.6
|
|
$
(26.6)
|
|
|
Adjusted operating
margin
|
|
8.6 %
|
|
10.1 %
|
|
|
|
(150) bps
|
|
|
|
|
|
|
|
|
|
Consumer Self-Care
International
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 232.3
|
|
$ 228.2
|
|
$
4.1
|
|
|
Adjusted gross
margin
|
|
53.0 %
|
|
54.6 %
|
|
|
|
(150) bps
|
Adjusted operating
income
|
|
$ 86.1
|
|
$ 70.3
|
|
$
15.8
|
|
22.5 %
|
Adjusted operating
margin
|
|
19.7 %
|
|
16.8 %
|
|
|
|
290 bps
|
|
|
|
|
|
|
|
|
|
Consumer Self-Care
Americas
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 163.2
|
|
$ 214.7
|
|
$
(51.5)
|
|
|
Adjusted gross
margin
|
|
25.3 %
|
|
28.1 %
|
|
|
|
(280) bps
|
Adjusted operating
income
|
|
$ 52.7
|
|
$ 99.2
|
|
$
(46.5)
|
|
(46.9) %
|
Adjusted operating
margin
|
|
8.2 %
|
|
13.0 %
|
|
|
|
(480) bps
|
|
Note: amounts may not
add or recalculate due to rounding. Percentages are based
on actuals.
|
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SOURCE Perrigo Company plc