Perrigo Reports Second Quarter 2025 Financial Results From Continuing Operations
Company Advanced its 'Three-S' Plan (Stabilize, Streamline, and Strengthen) with Recently Announced Agreement to Sell Dermacosmetics Business, Scaling of Global Operating Growth Model, and Upgraded Brand Building Capabilities that are Delivering Results
Solid Execution Amid Challenging Market Consumption Trends
Reaffirms Full Year 2025 Adj.
Second Quarter 2025 YoY Highlights :
-
Net Sales :$1.06 billion , down 0.9% year-over-year. Favorable currency translation (+1.7%) was more than offset by the impact of divestitures and exited products (-2.5%) and a slight decline in organic1 net sales (-0.1%). -
Organic
Net Sales : Growth primarily in Pain & Sleep Aids, Nutrition, and Upper Respiratory categories was offset by declines primarily inDigestive Health andOral Care . -
Reported Operating Income:
$45 million vs. a loss of$27 million in the prior year. -
Adjusted Operating Income:
$135 million , down$4 million (2.9%), reflecting isolated production variability in infant formula leading to an increase in product scrap in the quarter, lower plant overhead absorption in OTC andOral Care , and the impact of divestitures and exited products — partially offset by reduced advertising and promotional (A&P) spend, Project Energize benefits, and favorable FX. Organic operating income was flat. - Operating Margin: Reported: 4.3% (+680 basis points YoY); Adjusted: 12.8% (-30 basis points or flat organically YoY).
-
Diluted EPS:
Reported EPS:
$0.00 , improved from$(0.77) in the prior year. Adjusted EPS:$0.57 , up$0.04 (+7.5% or +12.5% organically), driven by lower interest expense from reduced debt. Includes a$0.05 headwind from divestitures and exited products, and a$0.03 tailwind from FX.
Second Quarter 2025 YoY Segment Highlights :
-
Net Sales :$434 million , up 0.7%. -
Organic net sales growth of +2.7%, driven by Pain & Sleep Aids and Upper Respiratory, partially offset by
Skin Care and VMS (Vitamins, Minerals and Supplements). - Currency tailwind of +4.2%; divestitures and exited products impact of -6.2%.
Consumer Self-Care Americas (CSCA):
-
Net sales:
$622 million , down 1.9%. -
Net sales growth was led by Nutrition, Upper Respiratory, and Healthy Lifestyle, which were more than offset primarily by declines in
Digestive Health andOral Care . -
Perrigo OTC store brands gained unit and volume share(2) during the quarter.
First Half 2025 YoY Highlights :
-
Net Sales :$2.10 billion , down 2.2% year-over-year, reflecting 1) -1.9% net impact from divestitures, exited products and favorable FX, and 2) -0.3% organic decline. -
Organic
Net Sales : The absence of prior-year Opill® launch stocking benefit inWomen's Health of -0.7% and previously disclosed lost distribution of lower-marginU.S. store brand products of -0.2% were mostly offset by growth of +0.7% in the rest of the business. -
Reported Operating Income:
$92 million vs. a loss of$(82) million in the prior year period. -
Adjusted Operating Income:
$282 million , up +21.3%, driven by higher gross profit and benefits from Project Energize and Supply Chain Reinvention, partially offset by lower plant overhead absorption and OTC volumes, divestitures and exited products. -
Diluted EPS:
Reported loss per share:
$0.00 , improved from$(0.74) in the prior year period. Adjusted EPS:$1.17 , up from$0.83 (+41.0%, or +53.3% organically). Includes$0.08 negative impact from divestitures and exited products, and$0.02 benefit from FX. -
Operating Cash Flow YTD:
$11 million , reflecting cash outflow of$(65) million in the first quarter and cash inflow of+$76 million in the second quarter. Cash and cash equivalents on the balance sheet as ofJune 28, 2025 , were$454 million .
First Half 2025 YoY Segment Highlights :
-
Net sales:
$857 million , down 1.4%. - Organic net sales growth of +3.6%, led by Pain & Sleep Aids, notably from Solpadeine® supply restoration, and Upper Respiratory, with improved product supply of a key product and slightly higher cough cold incidence levels in Q1 YoY.
Consumer Self-Care Americas (CSCA):
-
Net sales:
$1.24 billion , down 2.8%. -
Organic net sales declined 2.7%, as growth in Nutrition, led by recovery in infant formula, and Upper Respiratory, driven by higher cough cold incidence levels in Q1 YoY, was more than offset by lower net sales in
Digestive Health , due to reduced consumption of specific molecules, -1.2% from the absence of prior-year Opill® launch benefit, and -0.7% from lostU.S. store brand distribution.
Fiscal Year 2025 Outlook:
- While reported and organic net sales growth are expected to be towards the lower end of their respective ranges, due primarily to infant formula industry dynamics and market consumption trends, the Company reaffirms all of its full-year 2025 financial targets. (See "Fiscal 2025 Outlook" section for details.)
(1) See attached Appendix for details. Change in net sales on an organic basis excludes the effects of acquisitions, divestitures and exited products, and the impact of currency. |
(2) Share gains according to Circana 13-weeks ending |
(3) All tables and data may not add due to rounding. Percentages are based on actuals. |
(4) Free cash flow derived from operating cash flow less capital expenditures. |
President and CEO
Lockwood-Taylor concluded, "The previously announced sale of our Dermacosmetics business, which is expected to close in the first quarter of 2026, sharpens our organizational focus. Expected net proceeds from this transaction will be prioritized towards strengthening our balance sheet and accelerating our net leverage goals. While recovery in our infant formula business continues, it is slower than anticipated. This, coupled with challenging market consumption, has led to our expectations for 2025 topline growth to be towards the lower ends of our previously stated ranges. However, our share gains, operating discipline and cost efficiencies are enabling us to reaffirm our full-year earnings outlook. Our unique offerings continue to support agile execution in a dynamic environment, and we remain confident in
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 Condensed Consolidated Statements of Operations, Balance Sheets and Statements of Cash Flows.
Project Energize
Project Energize, launched during the first quarter of 2024, is 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 its One
Project Energize is expected to deliver annualized pre-tax savings in the range of
Second Quarter 2025 Net Sales Change Compared to Prior Year(3) |
|||||
|
Reported
|
Foreign
Exchange |
Constant |
Divested |
Organic
|
CSCA |
(1.9) % |
— % |
(1.9) % |
— % |
(1.9) % |
CSCI |
0.7 % |
4.2 % |
(3.5) % |
(6.2) % |
2.7 % |
Total |
(0.9) % |
1.7 % |
(2.6) % |
(2.5) % |
(0.1) % |
Second Quarter 2025 Change Compared to Prior Year(3) |
|||
(in millions, except earnings per share; see attached Tables I-VII for reconciliation to GAAP) |
|||
|
Three Months |
Three Months |
Percentage |
|
|
|
(0.9) % |
|
|
|
|
Reported Gross Profit |
|
|
(8.1) % |
Reported Gross Margin |
34.4 % |
37.0 % |
(260) bps |
Reported Operating Income (Loss) |
|
( |
nm |
Reported Operating Margin |
4.3 % |
(2.5) % |
680 bps |
Reported Net Income |
( |
( |
nm |
Reported Diluted (Loss) Earnings Per Share |
|
( |
nm |
|
|
|
|
Adjusted Gross Profit |
|
|
(6.9) % |
Adjusted Gross Margin |
38.1 % |
40.6 % |
(250) bps |
Adjusted Operating Income |
|
|
(2.9) % |
Adjusted Operating Margin |
12.8 % |
13.1 % |
(30) bps |
Adjusted Net Income |
|
|
7.7 % |
Adjusted Diluted EPS |
|
|
7.5 % |
|
(3) All tables and data may not add due to rounding. Percentages are based on actuals. |
Net sales of
Organic net sales comprised net pricing of -0.6% and volume/mix of +0.5%.
Organic net sales were -0.1% as growth was driven by higher net sales in 1) the Pain and Sleep-Aids category, led by improved supply of the Solpadeine® brand, 2) the Nutrition category, driven by continued recovery in the infant formula business, and 3) the Upper Respiratory category, primarily from new distribution and share gains in
Reported gross profit of
Reported gross margin was 34.4%, a decrease of 260 basis points. Adjusted gross margin decreased 250 basis points to 38.1%, due primarily to the same factors as adjusted gross profit, partially offset by favorable brand/store brand mix. Divested businesses and exited products unfavorably impacted gross margin by 70 basis points.
Reported operating income was
Reported operating margin was 4.3%, an increase of 680 basis points. Adjusted operating margin of 12.8% decreased 30 basis points versus the prior year quarter due primarily to the same factors as adjusted operating income and included an unfavorable impact of 50 basis points from divested businesses and exited products.
Reported net loss was
Second Quarter 2025 Business Segment Results from Continuing Operations
Consumer Self-Care Americas Segment (CSCA)
Second Quarter 2025 Net Sales Change Compared to Prior Year(3) |
|||||
|
Reported
|
Foreign
Exchange |
Constant |
Divested |
Organic
|
CSCA |
(1.9) % |
— % |
(1.9) % |
— % |
(1.9) % |
Second Quarter 2025 Change Compared to Prior Year(3) |
|
|||
(in millions, except earnings per share; see attached Tables I-VII for reconciliation to GAAP) |
|
|||
|
Three Months |
Three Months |
Percentage |
|
CSCA Net Sales |
|
|
(1.9) % |
|
|
|
|
|
|
Reported Gross Profit |
|
|
(14.2) % |
|
Reported Gross Margin |
26.2 % |
29.9 % |
(370) bps |
|
Reported Operating Income |
|
|
(34.9) % |
|
Reported Operating Margin |
7.3 % |
10.9 % |
(360) bps |
|
|
|
|
|
|
Adjusted Gross Profit |
|
|
(12.8) % |
|
Adjusted Gross Margin |
28.2 % |
31.7 % |
(350) bps |
|
Adjusted Operating Income |
|
|
(22.2) % |
|
Adjusted Operating Margin |
11.4 % |
14.4 % |
(300) bps |
|
|
(3) All tables and data may not add due to rounding. Percentages are based on actuals. |
CSCA net sales of $622 million declined $12 million, or 1.9%, as higher net sales in the 1) Nutrition category, due primarily to continued recovery of infant formula, 2) Healthy Lifestyle category, stemming from store brand share gains in smoking cessation products, and 3) Upper Respiratory category, primarily from new distribution in
Reported gross profit of $163 million decreased $27 million, or 14.2%. Adjusted gross profit decreased $26 million, or 12.8%, to $176 million as Supply Chain Reinvention and Project Energize benefits were more than offset by lower plant overhead absorption in OTC and
Reported gross margin of 26.2% decreased 370 basis points. Adjusted gross margin decreased 350 basis points to 28.2%, driven by the same factors as adjusted gross profit.
Reported operating income was $45 million compared to $69 million, a decrease of $24 million, or 34.9%. Adjusted operating income decreased $20 million, or 22.2%, to
Reported operating margin of 7.3% decreased 360 basis points. Adjusted operating margin decreased 300 basis points to 11.4%, driven by the same factors as adjusted operating income.
Consumer Self-Care International Segment (CSCI)
Second Quarter 2025 Net Sales Change Compared to Prior Year(3) |
|||||
|
Reported
|
Foreign
Exchange |
Constant |
Divested |
Organic
|
CSCI |
0.7 % |
4.2 % |
(3.5) % |
(6.2) % |
2.7 % |
Second Quarter 2025 Change Compared to Prior Year(3) |
|||
(in millions, except earnings per share; see attached Tables I-VII for reconciliation to GAAP) |
|||
|
Three Months |
Three Months |
Percentage |
CSCI Net Sales |
|
|
0.7 % |
|
|
|
|
Reported Gross Profit |
|
|
(2.3) % |
Reported Gross Margin |
46.1 % |
47.5 % |
(140) bps |
Reported Operating Income |
|
( |
nm |
Reported Operating Margin |
13.6 % |
(2.4) % |
1,600 bps |
|
|
|
|
Adjusted Gross Profit |
|
|
(1.7) % |
Adjusted Gross Margin |
52.4 % |
53.6 % |
(130) bps |
Adjusted Operating Income |
|
|
13.0 % |
Adjusted Operating Margin |
23.6 % |
21.0 % |
260 bps |
|
(3) All tables and data may not add due to rounding. Percentages are based on actuals. |
CSCI net sales of $434 million increased 0.7%, or $3 million, as organic net sales growth of 2.7% and favorable currency translation of 4.2% were partially offset by divested businesses and exited products of 6.2%.
Organic net sales growth was primarily driven by higher net sales in the 1) Pain and Sleep Aids category, led by improved supply of the Solpadeine® brand, 2) Upper Respiratory category, led by restored supply of the Physiomer®brand, and 3)
Reported gross profit of
Reported gross margin of 46.1% decreased 140 basis points. Adjusted gross margin declined 130 basis points to 52.4%, driven primarily by the same factors as adjusted gross profit. Divested businesses and exited products had an unfavorable impact of 90 basis points.
Reported operating income was
Reported operating margin was 13.6%, a 1,600 basis points increase. Adjusted operating margin expanded 260 basis points to 23.6%, as operating leverage more than offset the unfavorable impact of 70 basis points from divested businesses and exited products.
Cash Flow and Balance Sheet
Year-to-date operating cash flow was
Year-to-date capital expenditures were
Cash and cash equivalents on the balance sheet as of
Known Impacts from Macroeconomic Uncertainty
Based on current assessments, excluding any potential impact from pharmaceutical tariffs that may cover ingredients used in the manufacturing of OTC products, the Company estimates a gross increase to global cost of goods sold in 2025 beginning in the fourth quarter of approximately
The Company believes that its unique business model with 100+ molecules across 100% price point coverage and significant
Please refer to
Fiscal 2025 Outlook
The Company reaffirms its fiscal year 2025 outlook. Reported and organic net sales growth are expected towards the lower end of their respective ranges, primarily due to infant formula industry dynamics and challenging market consumption trends. Details provided below:
- Reported net sales growth of 0% to 3%.
- Organic net sales growth of 1.5% to 4.5%.
- Adjusted gross margin of approximately 40%.
- Adjusted operating margin of approximately 15%.
- Adjusted diluted EPS range of
$2.90 to$3.10 , equating to growth of 13% to 21%. - Operating cash flow conversion to adjusted net income of approximately 100%.
- Free cash flow4 as a percentage of net sales of approximately 6%.
- Net leverage of approximately 3.5x adjusted EBITDA.
About
For more information, visit www.perrigo.com.
Webcast and Conference Call Information
Forward-Looking Statements
Certain statements in this report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this report, including certain statements contained in "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "forecast," "predict," "potential" or the negative of those terms or other comparable terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe 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 our control, including: our ability to complete the proposed divestment of the Dermacosmetics branded business, receipt of works council and regulatory approval regarding the transaction, performance by counterparties to the transaction and the likelihood of satisfying the deferred payment milestones associated with the transaction, supply chain impacts on our business, including those caused or exacerbated by armed conflict, trade and other economic sanctions and/or disease; general economic, credit, and market conditions; increased or new tariffs by the
Non-GAAP Measures
The Company cannot reconcile its expected organic net sales growth, adjusted gross margin, adjusted operating margin, adjusted diluted earnings per share to diluted earnings per share, operating cash flow conversion, adjusted net income, free cash flow or adjusted tax rate under "Fiscal 2025 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.
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
- net sales growth on an organic basis, which excludes acquisitions, divested businesses, exited product lines, and the impact of currency,
- constant currency net sales growth,
- adjusted gross profit,
- adjusted gross margin,
- organic gross profit,
- adjusted operating income,
- adjusted operating margin,
- organic operating income,
- organic operating margin,
- adjusted net income,
- adjusted diluted earnings per share,
- organic diluted earnings per share,
- and free cash flow.
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 amortization expense, unusual litigation, 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 measures 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 may include adjusted net income, adjusted gross profit, adjusted operating income, adjusted diluted earnings per share, adjusted gross margin, adjusted operating margin, organic gross profit, organic operating income, organic operating margin, organic diluted earnings per share, free cash flow, and constant currency net sales, 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.
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(in millions, except per share amounts) |
||||||||||||||
(unaudited) |
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|
||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|||||||
Net sales |
$ 1,056.3 |
|
$ 1,065.5 |
|
$ 2,100.2 |
|
$ 2,147.5 |
|||||||
Cost of sales |
693.4 |
|
670.8 |
|
1,345.0 |
|
1,395.1 |
|||||||
Gross profit |
362.9 |
|
394.7 |
|
755.2 |
|
752.4 |
|||||||
|
|
|
|
|
|
|
|
|||||||
Operating expenses |
|
|
|
|
|
|
|
|||||||
Distribution |
23.6 |
|
24.6 |
|
46.4 |
|
49.5 |
|||||||
Research and development |
22.0 |
|
29.4 |
|
48.7 |
|
58.4 |
|||||||
Selling |
136.5 |
|
150.1 |
|
282.7 |
|
300.4 |
|||||||
Administration |
113.0 |
|
126.1 |
|
225.2 |
|
256.4 |
|||||||
Impairment charges |
1.5 |
|
34.1 |
|
4.6 |
|
34.1 |
|||||||
Restructuring |
8.7 |
|
36.9 |
|
38.1 |
|
81.3 |
|||||||
Other operating (income) expense, net |
12.2 |
|
20.0 |
|
17.2 |
|
54.0 |
|||||||
Total operating expenses |
317.5 |
|
421.2 |
|
662.9 |
|
834.1 |
|||||||
|
|
|
|
|
|
|
|
|||||||
Operating income (loss) |
45.4 |
|
(26.5) |
|
92.3 |
|
(81.7) |
|||||||
|
|
|
|
|
|
|
|
|||||||
Interest expense, net |
39.6 |
|
44.1 |
|
78.6 |
|
87.1 |
|||||||
Other (income) expense, net |
2.6 |
|
3.4 |
|
2.2 |
|
3.8 |
|||||||
Income (loss) from continuing operations before income taxes |
3.2 |
|
(74.0) |
|
11.5 |
|
(172.6) |
|||||||
Income tax expense (benefit) |
3.7 |
|
31.7 |
|
11.9 |
|
(71.0) |
|||||||
Income (loss) from continuing operations |
(0.5) |
|
(105.7) |
|
(0.4) |
|
(101.6) |
|||||||
Loss from discontinued operations, net of tax |
(7.9) |
|
(2.7) |
|
(14.4) |
|
(4.8) |
|||||||
Net income (loss) |
$ (8.4) |
|
$ (108.4) |
|
$ (14.8) |
|
$ (106.4) |
|||||||
|
|
|
|
|
|
|
|
|||||||
Earnings (loss) per share |
|
|
|
|
|
|
|
|||||||
Basic |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ (—) |
|
$ (0.77) |
|
$ (—) |
|
$ (0.74) |
|||||||
Discontinued operations |
(0.06) |
|
(0.02) |
|
(0.10) |
|
(0.04) |
|||||||
Basic earnings (loss) per share |
$ (0.06) |
|
$ (0.79) |
|
$ (0.10) |
|
$ (0.78) |
|||||||
Diluted |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ (—) |
|
$ (0.77) |
|
$ (—) |
|
$ (0.74) |
|||||||
Discontinued operations |
(0.06) |
|
(0.02) |
|
(0.10) |
|
(0.04) |
|||||||
Diluted earnings (loss) per share |
$ (0.06) |
|
$ (0.79) |
|
$ (0.10) |
|
$ (0.78) |
|||||||
|
|
|
|
|
|
|
|
|||||||
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
138.2 |
|
137.1 |
|
138.0 |
|
136.9 |
|||||||
Diluted |
138.2 |
|
137.1 |
|
138.0 |
|
136.9 |
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(in millions, except per share amounts) |
||||||
(unaudited) |
||||||
|
||||||
|
|
|
|
|||
Assets |
|
|
|
|||
Cash and cash equivalents |
$ 454.2 |
|
$ 558.8 |
|||
Accounts receivable, net of allowance for credit losses of |
678.2 |
|
642.3 |
|||
Inventories |
1,215.5 |
|
1,081.8 |
|||
Prepaid expenses and other current assets |
267.1 |
|
199.0 |
|||
Total current assets |
2,615.0 |
|
2,481.9 |
|||
Property, plant and equipment, net |
913.9 |
|
917.8 |
|||
Operating lease assets |
172.8 |
|
175.2 |
|||
|
3,484.7 |
|
3,325.4 |
|||
Definite-lived intangible assets, net |
2,558.0 |
|
2,423.7 |
|||
Deferred income taxes |
48.1 |
|
5.1 |
|||
Other non-current assets |
301.6 |
|
318.6 |
|||
Total non-current assets |
7,479.1 |
|
7,165.8 |
|||
Total assets |
$ 10,094.1 |
|
$ 9,647.7 |
|||
Liabilities and Shareholders' Equity |
|
|
|
|||
Liabilities |
|
|
|
|||
Accounts payable |
$ 489.0 |
|
$ 495.2 |
|||
Payroll and related taxes |
122.4 |
|
123.2 |
|||
Accrued customer programs |
140.1 |
|
133.3 |
|||
Other accrued liabilities |
327.9 |
|
238.7 |
|||
Accrued income taxes |
10.3 |
|
17.4 |
|||
Current indebtedness |
36.4 |
|
36.4 |
|||
Total current liabilities |
1,126.1 |
|
1,044.2 |
|||
Non-current liabilities |
|
|
|
|||
Long-term debt, less current portion |
3,615.5 |
|
3,581.7 |
|||
Deferred income taxes |
206.8 |
|
203.2 |
|||
Other non-current liabilities |
673.4 |
|
499.2 |
|||
Total non-current liabilities |
4,495.7 |
|
4,284.1 |
|||
Total liabilities |
5,621.8 |
|
5,328.3 |
|||
Contingencies - Refer to Note 16 |
|
|
|
|||
Shareholders' equity |
|
|
|
|||
Controlling interests: |
|
|
|
|||
Preferred shares, |
— |
|
— |
|||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized |
6,664.2 |
|
6,733.9 |
|||
Accumulated other comprehensive income (loss) |
75.0 |
|
(162.4) |
|||
Retained earnings (accumulated deficit) |
(2,266.9) |
|
(2,252.1) |
|||
Total shareholders' equity |
4,472.3 |
|
4,319.4 |
|||
Total liabilities and shareholders' equity |
$ 10,094.1 |
|
$ 9,647.7 |
|||
|
|
|
|
|||
Supplemental Disclosures of Balance Sheet Information |
|
|
|
|||
Preferred shares, issued and outstanding |
— |
|
— |
|||
Ordinary shares, issued and outstanding |
137.6 |
|
136.5 |
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(in millions) |
||||||
(unaudited) |
||||||
|
||||||
|
Six Months Ended |
|||||
|
|
|
|
|||
Cash Flows From (For) Operating Activities |
|
|
|
|||
Net income (loss) |
$ (14.8) |
|
$ (106.4) |
|||
Adjustments to derive cash flows: |
|
|
|
|||
Depreciation and amortization |
166.2 |
|
163.3 |
|||
Restructuring charges |
35.0 |
|
38.3 |
|||
Share-based compensation |
28.4 |
|
38.6 |
|||
Impairment charges |
4.6 |
|
34.1 |
|||
Amortization of debt discount |
4.4 |
|
0.7 |
|||
Settlement of interest rate derivatives |
— |
|
41.2 |
|||
Deferred income taxes |
9.6 |
|
1.3 |
|||
Loss on sale of business |
1.6 |
|
— |
|||
Other non-cash adjustments, net |
(9.0) |
|
15.9 |
|||
Subtotal |
226.0 |
|
227.0 |
|||
(Decrease) increase in cash due to: |
|
|
|
|||
Inventories |
(97.4) |
|
(2.9) |
|||
Accrued income taxes |
(54.5) |
|
(130.8) |
|||
Other accrued liabilities |
(29.3) |
|
(16.9) |
|||
Payroll and related taxes |
(23.6) |
|
(69.6) |
|||
Accounts payable |
(19.9) |
|
13.9 |
|||
Accounts receivable |
(5.9) |
|
(17.3) |
|||
Accrued customer programs |
(0.6) |
|
5.8 |
|||
Prepaid expenses and other current assets |
16.6 |
|
12.2 |
|||
Other operating, net |
— |
|
(13.3) |
|||
Subtotal |
(214.6) |
|
(218.9) |
|||
Net cash from operating activities |
11.4 |
|
8.1 |
|||
Cash Flows From (For) Investing Activities |
|
|
|
|||
Net proceeds from sale of businesses |
14.4 |
|
— |
|||
Proceeds from royalty rights |
2.7 |
|
2.5 |
|||
Asset acquisitions |
(1.5) |
|
— |
|||
Additions to property, plant and equipment |
(44.7) |
|
(53.5) |
|||
Settlement of foreign currency derivatives |
— |
|
(45.8) |
|||
Other investing, net |
(0.4) |
|
— |
|||
Net cash for investing activities |
(29.5) |
|
(96.8) |
|||
Cash Flows From (For) Financing Activities |
|
|
|
|||
Payments on long-term debt |
(17.6) |
|
(19.6) |
|||
Cash dividends |
(79.5) |
|
(75.3) |
|||
Other financing, net |
(18.7) |
|
(15.3) |
|||
Net cash for financing activities |
(115.8) |
|
(110.2) |
|||
Effect of exchange rate changes on cash and cash equivalents |
29.3 |
|
(9.6) |
|||
Net decrease in cash and cash equivalents |
(104.6) |
|
(208.5) |
|||
Cash and cash equivalents of continuing operations, beginning of period |
558.8 |
|
751.3 |
|||
Cash and cash equivalents of continuing operations, end of period |
$ 454.2 |
|
$ 542.8 |
TABLE I |
||||||||||||||||||
|
||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
|
||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||
Consolidated Continuing Operations |
Gross Profit |
Operating |
Income (Loss) |
Diluted |
|
Gross Profit |
Operating |
Income (Loss) |
Diluted |
|||||||||
Reported |
$ 362.9 |
$ 45.4 |
$ (0.5) |
$ — |
|
$ 394.7 |
$ (26.5) |
$ (105.7) |
$ (0.77) |
|||||||||
As a % of reported net sales(2) |
34.4 % |
4.3 % |
— % |
|
|
37.0 % |
(2.5) % |
(9.9) % |
|
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
35.5 |
56.8 |
57.3 |
0.41 |
|
33.8 |
57.8 |
58.3 |
0.42 |
|||||||||
Unusual litigation |
— |
15.4 |
15.4 |
0.11 |
|
— |
26.4 |
26.4 |
0.19 |
|||||||||
Restructuring charges and other termination benefits |
— |
8.7 |
8.7 |
0.06 |
|
0.1 |
37.2 |
37.2 |
0.27 |
|||||||||
Loss on divestitures |
— |
— |
1.8 |
0.01 |
|
— |
— |
— |
— |
|||||||||
Impairment charges (3) |
— |
1.5 |
1.5 |
0.01 |
|
— |
34.1 |
34.1 |
0.25 |
|||||||||
Infant formula remediation |
— |
— |
— |
— |
|
3.9 |
4.8 |
4.8 |
0.03 |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
— |
|
— |
1.5 |
1.5 |
0.01 |
|||||||||
Other (4) |
4.3 |
7.4 |
7.4 |
0.05 |
|
— |
4.1 |
4.1 |
0.03 |
|||||||||
Non-GAAP tax adjustments(5) |
— |
— |
(12.4) |
(0.09) |
|
— |
— |
12.9 |
0.09 |
|||||||||
Adjusted |
$ 402.8 |
$ 135.2 |
$ 79.2 |
$ 0.57 |
|
$ 432.5 |
$ 139.3 |
$ 73.5 |
$ 0.53 |
|||||||||
As a % of reported net sales(2) |
38.1 % |
12.8 % |
7.5 % |
|
|
40.6 % |
13.1 % |
6.9 % |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average shares outstanding (in millions) |
|
|
|
|
|
|
||||||||||||
|
|
|
Reported |
138.2 |
|
|
|
|
137.1 |
|||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income(6) |
0.4 |
|
|
|
|
0.4 |
||||||||||||
|
|
|
Adjusted |
138.6 |
|
|
|
|
137.5 |
|
|
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 |
(3) |
During the three months ended |
(4) |
Other pre-tax adjustments for the three months ended |
(5) |
Non-GAAP tax adjustments for the three months ended |
(6) |
In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE I (Continued) |
||||||||||||||||||
|
||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
|
||||||||||||||||||
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||||
Consolidated Continuing Operations |
Gross Profit |
Operating |
Income (Loss) |
Diluted Earnings |
|
Gross Profit |
Operating |
Income (Loss) |
Diluted Earnings |
|||||||||
Reported |
$ 755.2 |
$ 92.3 |
$ (0.4) |
$ — |
|
$ 752.4 |
$ (81.7) |
$ (101.6) |
$ (0.74) |
|||||||||
As a % of reported net sales(2) |
36.0 % |
4.4 % |
— % |
|
|
35.0 % |
(3.8) % |
(4.7) % |
|
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
70.0 |
111.8 |
112.8 |
0.82 |
|
66.5 |
116.5 |
117.5 |
0.86 |
|||||||||
Restructuring charges and other termination benefits |
— |
38.1 |
38.1 |
0.28 |
|
0.3 |
81.5 |
81.5 |
0.60 |
|||||||||
Unusual litigation |
— |
24.3 |
24.3 |
0.18 |
|
— |
63.6 |
63.6 |
0.46 |
|||||||||
Impairment charges(3) |
— |
4.6 |
4.6 |
0.03 |
|
— |
34.1 |
34.1 |
0.25 |
|||||||||
Loss on divestitures |
— |
— |
2.0 |
0.01 |
|
— |
— |
— |
— |
|||||||||
Infant formula remediation |
0.9 |
0.9 |
0.9 |
0.01 |
|
8.8 |
10.5 |
10.5 |
0.08 |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
— |
|
— |
1.8 |
1.8 |
0.01 |
|||||||||
Other(4) |
4.3 |
9.8 |
9.8 |
0.07 |
|
— |
5.9 |
6.0 |
0.04 |
|||||||||
Non-GAAP tax adjustments(5) |
— |
— |
(29.7) |
(0.21) |
|
— |
— |
(99.8) |
(0.73) |
|||||||||
Adjusted |
$ 830.5 |
$ 281.8 |
$ 162.4 |
$ 1.17 |
|
$ 828.0 |
$ 232.3 |
$ 113.8 |
$ 0.83 |
|||||||||
As a % of reported net sales(2) |
39.5 % |
13.4 % |
7.7 % |
|
|
38.6 % |
10.8 % |
5.3 % |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average shares outstanding (in millions) |
|
|
|
|
|
|
||||||||||||
|
|
|
Reported |
138.0 |
|
|
|
|
136.9 |
|||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income(6) |
0.7 |
|
|
|
|
0.7 |
||||||||||||
|
|
|
Adjusted |
138.7 |
|
|
|
|
137.6 |
|
|
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 six months ended |
(3) |
During the six months ended |
(4) |
Other pre-tax adjustments for the six months ended |
(5) |
Non-GAAP tax adjustments for the six months ended |
(6) |
In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE II |
||||||||||||||||
|
||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||
Consolidated Continuing Operations |
R&D Expense |
DSG&A |
Restructuring, |
|
R&D Expense |
DSG&A |
Restructuring, |
|||||||||
Reported |
$ 22.0 |
$ 273.1 |
$ 22.4 |
|
$ 29.4 |
$ 300.8 |
$ 91.0 |
|||||||||
As a % of reported net sales(1) |
2.1 % |
25.9 % |
2.1 % |
|
2.8 % |
28.2 % |
8.5 % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
— |
(21.2) |
— |
|
(0.2) |
(23.8) |
— |
|||||||||
Unusual litigation |
— |
(3.2) |
(12.2) |
|
— |
(6.4) |
(20.0) |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
(8.7) |
|
— |
(0.2) |
(36.9) |
|||||||||
Impairment charges(2) |
— |
— |
(1.5) |
|
— |
— |
(34.1) |
|||||||||
Infant formula remediation |
— |
— |
— |
|
— |
(0.9) |
— |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
|
— |
(1.5) |
— |
|||||||||
Other (3) |
(0.2) |
(2.9) |
— |
|
— |
(4.1) |
— |
|||||||||
Adjusted |
$ 21.8 |
$ 245.8 |
$ — |
|
$ 29.2 |
$ 264.0 |
$ — |
|||||||||
As a % of reported net sales (1) |
2.1 % |
23.3 % |
— % |
|
2.7 % |
24.8 % |
— % |
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
|
|
|
(1) |
Reported net sales for the three months ended |
(2) |
During the three months ended |
(3) |
Other pre-tax adjustments for the three months ended |
(4) |
Certain prior period amounts have been reclassified from DSG&A Expense to Restructuring, Impairments and Other for comparability purposes. |
TABLE II (Continued) |
||||||||||||||||
|
||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
||||||||||||||||
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||
Consolidated Continuing Operations |
R&D Expense |
DSG&A |
Restructuring, |
|
R&D Expense |
DSG&A |
Restructuring, |
|||||||||
Reported |
$ 48.7 |
$ 554.3 |
$ 59.9 |
|
$ 58.4 |
$ 606.3 |
$ 169.4 |
|||||||||
As a % of reported net sales (1) |
2.3 % |
26.4 % |
2.9 % |
|
2.7 % |
28.2 % |
7.9 % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
(0.2) |
(41.5) |
— |
|
(0.4) |
(49.5) |
— |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
(38.1) |
|
— |
(0.2) |
(81.1) |
|||||||||
Unusual litigation |
— |
(7.2) |
(17.1) |
|
— |
(9.6) |
(54.0) |
|||||||||
Impairment charges(2) |
— |
— |
(4.6) |
|
— |
— |
(34.1) |
|||||||||
Infant formula remediation |
— |
— |
— |
|
— |
(1.8) |
— |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
|
— |
(1.8) |
— |
|||||||||
Other(3) |
(0.2) |
(5.3) |
— |
|
— |
(6.0) |
— |
|||||||||
Adjusted |
$ 48.3 |
$ 500.4 |
$ — |
|
$ 57.9 |
$ 537.6 |
$ 0.2 |
|||||||||
As a % of reported net sales (1) |
2.3 % |
23.8 % |
— % |
|
2.7 % |
25.0 % |
— % |
|||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
|
|
|
(1) |
Reported net sales for the six months ended |
(2) |
During the six months ended |
(3) |
Other pre-tax adjustments for the six months ended |
(4) |
Certain prior period amounts have been reclassified from DSG&A Expense to Restructuring, Impairments and Other for comparability purposes. |
TABLE III |
||||||||||
|
||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||
(in millions, except per share amounts) |
||||||||||
(unaudited) |
||||||||||
|
||||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||
Consolidated Continuing Operations |
Interest and Other |
Income Tax Expense |
|
Interest and Other |
Income Tax Expense |
|||||
Reported |
$ 42.2 |
$ 3.7 |
|
$ 47.5 |
$ 31.7 |
|||||
As a % of reported net sales (1) |
4.0 % |
0.3 % |
|
4.5 % |
3.0 % |
|||||
Effective tax rate |
|
115.7 % |
|
|
(42.8) % |
|||||
Pre-tax adjustments: |
|
|
|
|
|
|||||
Loss on divestitures |
(1.8) |
— |
|
— |
— |
|||||
Amortization expense related primarily to acquired intangible assets |
(0.5) |
— |
|
(0.5) |
— |
|||||
Non-GAAP tax adjustments(2) |
— |
12.4 |
|
— |
(12.9) |
|||||
Adjusted |
$ 39.9 |
$ 16.0 |
|
$ 46.9 |
$ 18.8 |
|||||
As a % of reported net sales (1) |
3.8 % |
1.5 % |
|
4.4 % |
1.8 % |
|||||
Adjusted effective tax rate |
|
16.8 % |
|
|
20.4 % |
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
|
|
|
(1) |
Reported net sales for the three months ended |
(2) |
Non-GAAP tax adjustments for the three months ended |
TABLE III (Continued) |
||||||||||
|
||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||
SELECTED CONSOLIDATED INFORMATION |
||||||||||
(in millions, except per share amounts) |
||||||||||
(unaudited) |
||||||||||
|
||||||||||
|
Six Months Ended |
|
Six Months Ended |
|||||||
Consolidated Continuing Operations |
Interest and Other |
Income Tax Expense |
|
Interest and Other |
Income Tax Expense |
|||||
Reported |
$ 80.8 |
$ 11.9 |
|
$ 90.9 |
$ (71.0) |
|||||
As a % of reported net sales (1) |
3.9 % |
0.6 % |
|
4.2 % |
(3.3) % |
|||||
Effective tax rate |
|
103.6 % |
|
|
41.1 % |
|||||
Pre-tax adjustments: |
|
|
|
|
|
|||||
Amortization expense primarily related to acquired intangible assets |
(1.0) |
— |
|
(1.1) |
— |
|||||
Loss on divestitures |
(2.0) |
— |
|
— |
— |
|||||
Non-GAAP tax adjustments(2) |
— |
29.7 |
|
— |
99.8 |
|||||
Adjusted |
$ 77.9 |
$ 41.5 |
|
$ 89.6 |
$ 28.8 |
|||||
As a % of reported net sales (1) |
3.7 % |
2.0 % |
|
4.2 % |
1.3 % |
|||||
Adjusted effective tax rate |
|
20.4 % |
|
|
20.2 % |
|||||
|
|
|
|
|
|
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
|
|
|
(1) |
Reported net sales for the six months ended |
(2) |
Non-GAAP tax adjustments for the six months ended |
TABLE IV |
||||||||||||||||||
|
||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||
SELECTED SEGMENT INFORMATION |
||||||||||||||||||
(in millions) |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
|
||||||||||||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||
Consumer Self-Care Americas |
Gross Profit |
R&D |
DSG&A |
Operating Income |
|
Gross Profit |
R&D |
DSG&A |
Operating Income |
|||||||||
Reported |
$ 162.8 |
$ 11.8 |
$ 99.2 |
$ 45.1 |
|
$ 189.7 |
$ 15.0 |
$ 103.4 |
$ 69.3 |
|||||||||
As a % of reported net sales(1) |
26.2 % |
1.9 % |
15.9 % |
7.3 % |
|
29.9 % |
2.4 % |
16.3 % |
10.9 % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
8.4 |
— |
(6.2) |
14.6 |
|
7.6 |
— |
(7.5) |
15.1 |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
— |
5.1 |
|
0.1 |
— |
— |
2.2 |
|||||||||
Unusual litigation |
— |
— |
(0.5) |
0.5 |
|
— |
— |
— |
— |
|||||||||
Infant formula remediation |
— |
— |
— |
— |
|
3.9 |
— |
(0.9) |
4.8 |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
— |
|
— |
— |
(0.1) |
0.1 |
|||||||||
Impairment charges (2) |
— |
— |
— |
1.5 |
|
— |
— |
— |
— |
|||||||||
Other (3) |
4.4 |
(0.2) |
0.1 |
4.4 |
|
— |
— |
— |
— |
|||||||||
Adjusted |
$ 175.5 |
$ 11.7 |
$ 92.6 |
$ 71.2 |
|
$ 201.3 |
$ 15.0 |
$ 94.9 |
$ 91.4 |
|||||||||
As a % of reported net sales(1) |
28.2 % |
1.9 % |
14.9 % |
11.4 % |
|
31.7 % |
2.4 % |
15.0 % |
14.4 % |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Three Months Ended |
|||||||||||||||
|
Gross Profit |
R&D |
DSG&A |
Operating |
|
Gross Profit |
R&D |
DSG&A |
Operating Income |
|||||||||
Reported |
$ 200.2 |
$ 10.2 |
$ 129.6 |
$ 59.2 |
|
$ 205.0 |
$ 14.4 |
$ 142.6 |
$ (10.3) |
|||||||||
As a % of reported net sales(1) |
46.1 % |
2.3 % |
29.8 % |
13.6 % |
|
47.5 % |
3.3 % |
33.1 % |
(2.4) % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
27.2 |
— |
(15.0) |
42.2 |
|
26.2 |
(0.2) |
(16.3) |
42.7 |
|||||||||
Impairment charges (2) |
— |
— |
— |
— |
|
— |
— |
— |
34.1 |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
— |
1.1 |
|
— |
— |
— |
24.2 |
|||||||||
Adjusted |
$ 227.4 |
$ 10.2 |
$ 114.6 |
$ 102.5 |
|
$ 231.3 |
$ 14.2 |
$ 126.3 |
$ 90.7 |
|||||||||
As a % of reported net sales(1) |
52.4 % |
2.3 % |
26.4 % |
23.6 % |
|
53.6 % |
3.3 % |
29.3 % |
21.0 % |
|
|
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 |
(2) |
During the three months ended |
(3) |
Other pre-tax adjustments for the three months ended |
TABLE IV (CONTINUED) |
||||||||||||||||||
|
||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||
SELECTED SEGMENT INFORMATION |
||||||||||||||||||
(in millions) |
||||||||||||||||||
(unaudited) |
||||||||||||||||||
|
||||||||||||||||||
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||||
Consumer Self-Care Americas |
Gross |
R&D |
DSG&A |
Operating |
|
Gross |
R&D |
DSG&A |
Operating |
|||||||||
Reported |
$ 362.8 |
$ 27.0 |
$ 200.2 |
$ 109.1 |
|
$ 343.3 |
$ 31.3 |
$ 208.4 |
$ 85.0 |
|||||||||
As a % of reported net sales (1) |
29.2 % |
2.2 % |
16.1 % |
8.8 % |
|
26.9 % |
2.5 % |
16.3 % |
6.6 % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
17.4 |
— |
(12.4) |
29.8 |
|
12.2 |
— |
(17.5) |
29.7 |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
— |
25.2 |
|
0.3 |
— |
— |
18.7 |
|||||||||
Impairment charges (2) |
— |
— |
— |
1.5 |
|
— |
— |
— |
— |
|||||||||
Infant formula remediation |
0.9 |
— |
— |
0.9 |
|
8.8 |
— |
(1.8) |
10.5 |
|||||||||
Unusual litigation |
— |
— |
(0.5) |
0.5 |
|
— |
— |
— |
— |
|||||||||
Acquisition and integration-related charges and contingent consideration adjustments |
— |
— |
— |
— |
|
— |
— |
(0.2) |
0.2 |
|||||||||
Other (3) |
4.4 |
(0.2) |
0.1 |
4.4 |
|
— |
— |
— |
— |
|||||||||
Adjusted |
$ 385.5 |
$ 26.8 |
$ 187.4 |
$ 171.3 |
|
$ 364.5 |
$ 31.3 |
$ 189.0 |
$ 144.1 |
|||||||||
As a % of reported net sales (1) |
31.0 % |
2.2 % |
15.1 % |
13.8 % |
|
28.5 % |
2.5 % |
14.8 % |
11.3 % |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||||
|
Gross Profit |
R&D |
DSG&A |
Operating |
|
Gross |
R&D |
DSG&A |
Operating |
|||||||||
Reported |
$ 392.5 |
$ 21.8 |
$ 263.8 |
$ 98.8 |
|
$ 409.2 |
$ 27.0 |
$ 292.1 |
$ 16.2 |
|||||||||
As a % of reported net sales (1) |
45.8 % |
2.5 % |
30.8 % |
11.5 % |
|
47.1 % |
3.1 % |
33.6 % |
1.9 % |
|||||||||
Pre-tax adjustments: |
|
|
|
|
|
|
|
|
|
|||||||||
Amortization expense related primarily to acquired intangible assets |
52.6 |
(0.2) |
(29.2) |
82.0 |
|
54.4 |
(0.4) |
(32.0) |
86.8 |
|||||||||
Restructuring charges and other termination benefits |
— |
— |
— |
5.0 |
|
— |
— |
— |
39.8 |
|||||||||
Impairment charges (2) |
— |
— |
— |
3.1 |
|
— |
— |
— |
34.1 |
|||||||||
Adjusted |
$ 445.1 |
$ 21.5 |
$ 234.7 |
$ 188.8 |
|
$ 463.6 |
$ 26.6 |
$ 260.1 |
$ 176.8 |
|||||||||
As a % of reported net sales (1) |
51.9 % |
2.5 % |
27.4 % |
22.0 % |
|
53.3 % |
3.1 % |
29.9 % |
20.3 % |
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
|
|
|
(1) |
CSCA reported net sales for the six months ended |
(2) |
During the six months ended |
(3) |
Other pre-tax adjustments for the six months ended |
TABLE V |
||||||||||||||||||||||
|
||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||||
CONSOLIDATED AND SELECTED SEGMENT INFORMATION |
||||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||
|
||||||||||||||||||||||
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|||||||||||||||
Consolidated Continuing Operations |
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|||||||||||
|
$ 1,056.3 |
|
$ 1,065.5 |
|
(0.9) % |
|
$ 2,100.2 |
|
$ 2,147.5 |
|
(2.2) % |
|||||||||||
Less: Currency impact(1) |
18.1 |
|
— |
|
1.7 % |
|
5.5 |
|
— |
|
0.3 % |
|||||||||||
Constant currency net sales |
$ 1,038.2 |
|
$ 1,065.5 |
|
(2.6) % |
|
$ 2,094.7 |
|
$ 2,147.5 |
|
(2.5) % |
|||||||||||
Less: Divestitures(2) |
— |
|
26.2 |
|
(2.5) % |
|
— |
|
47.5 |
|
(2.2) % |
|||||||||||
Organic net sales |
$ 1,038.2 |
|
$ 1,039.3 |
|
(0.1) % |
|
$ 2,094.7 |
|
$ 2,100.1 |
|
(0.3) % |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|||||||||||||||
Consumer Self-Care Americas |
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|||||||||||
|
$ 622.0 |
|
$ 634.1 |
|
(1.9) % |
|
$ 1,242.8 |
|
$ 1,278.3 |
|
(2.8) % |
|||||||||||
Less: Currency impact(1) |
(0.1) |
|
— |
|
— % |
|
(0.5) |
|
— |
|
(0.1) % |
|||||||||||
Constant currency net sales |
$ 622.1 |
|
$ 634.1 |
|
(1.9) % |
|
$ 1,243.3 |
|
$ 1,278.3 |
|
(2.7) % |
|||||||||||
Organic net sales |
$ 622.1 |
|
$ 634.1 |
|
(1.9) % |
|
$ 1,243.3 |
|
$ 1,278.3 |
|
(2.7) % |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|||||||||||
|
$ 434.3 |
|
$ 431.3 |
|
0.7 % |
|
$ 857.4 |
|
$ 869.3 |
|
(1.4) % |
|||||||||||
Less: Currency impact(1) |
18.2 |
|
— |
|
4.2 % |
|
6.0 |
|
— |
|
0.7 % |
|||||||||||
Constant currency net sales |
$ 416.1 |
|
$ 431.3 |
|
(3.5) % |
|
$ 851.4 |
|
$ 869.3 |
|
(2.1) % |
|||||||||||
Less: Divestitures(2) |
— |
|
26.2 |
|
(6.2) % |
|
— |
|
47.5 |
|
(5.7) % |
|||||||||||
Organic net sales |
$ 416.1 |
|
$ 405.2 |
|
2.7 % |
|
$ 851.4 |
|
$ 821.8 |
|
3.6 % |
|
|
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) |
Represents divestiture of the Rare Diseases reporting unit, Hospital and Specialty Business, Richard Bittner Business and branded asset sales in CSCI. |
TABLE VI |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION |
||||||||||||||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
||||||||||||||||||||
CSCA Net Sales |
|
|
|
|
Change |
|
|
|
|
|
Change |
|
||||||||||||||||||||
Upper Respiratory |
$ 123.3 |
|
$ 118.8 |
|
$ 4.5 |
|
3.8 % |
|
$ 261.2 |
|
$ 249.1 |
|
$ 12.1 |
|
4.9 % |
|
||||||||||||||||
|
109.7 |
|
126.0 |
|
(16.3) |
|
(12.9) % |
|
212.7 |
|
248.2 |
|
(35.5) |
|
(14.3) % |
|
||||||||||||||||
Nutrition |
95.6 |
|
86.1 |
|
9.5 |
|
10.9 % |
|
200.3 |
|
176.7 |
|
23.6 |
|
13.4 % |
|
||||||||||||||||
Pain and Sleep-Aids |
80.2 |
|
81.6 |
|
(1.4) |
|
(1.7) % |
|
156.8 |
|
164.2 |
|
(7.4) |
|
(4.5) % |
|
||||||||||||||||
Healthy Lifestyle |
73.7 |
|
69.1 |
|
4.6 |
|
6.6 % |
|
144.1 |
|
140.4 |
|
3.7 |
|
2.6 % |
|
||||||||||||||||
|
60.0 |
|
73.2 |
|
(13.2) |
|
(18.1) % |
|
122.0 |
|
137.9 |
|
(15.9) |
|
(11.5) % |
|
||||||||||||||||
|
57.8 |
|
57.1 |
|
0.7 |
|
1.2 % |
|
106.3 |
|
106.7 |
|
(0.4) |
|
(0.4) % |
|
||||||||||||||||
|
18.7 |
|
16.8 |
|
1.9 |
|
11.1 % |
|
33.7 |
|
44.0 |
|
(10.3) |
|
(23.4) % |
|
||||||||||||||||
VMS and Other CSCA |
3.1 |
|
5.4 |
|
(2.3) |
|
(42.9) % |
|
5.6 |
|
11.1 |
|
(5.5) |
|
(49.5) % |
|
||||||||||||||||
Total CSCA Net Sales |
$ 622.0 |
|
$ 634.1 |
|
$ (12.1) |
|
(1.9) % |
|
$ 1,242.8 |
|
$ 1,278.3 |
|
$ (35.5) |
|
(2.8) % |
|
|
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. |
CSCA Second Quarter Primary Category Drivers:
-
Upper Respiratory: Net sales of
$123 million increased 3.8% due primarily to new business wins and store brand share gains amid lower consumption in allergy, leading to higher net sales of allergy products including store brand versions of Fluticasone and Fexofenadine. -
Nutrition: Net sales of
$96 million increased 10.9% due primarily to a 25% increase in net sales of store brand infant formula and contract manufacturing of infant formula driven by continuing business recovery, partially offset by lower net sales in the Good Start® infant formula brand due to lost distribution. -
Digestive Health : Net sales of$110 million decreased 12.9% due primarily to lower consumption and pricing of proton pump inhibitors, including Omeprazole, Esomeprazole and Lansoprazole, partially offset byPerrigo store brand share gains. These dynamics more than offset higher net sales of Polyethylene Glycol, wherePerrigo also gained store brand market share. -
Pain & Sleep-Aids: Net sales of
$80 million decreased 1.7% due primarily to lower category consumption of children's analgesics medicines and lower dollar share compared to the prior year. -
Healthy Lifestyle: Net sales of
$74 million increased 6.6% due primarily to new distribution and market share gains, offsetting lower category consumption of nicotine replacement therapy products. -
Oral Care : Net sales of$60 million decreased 18.1% due primarily to lost distribution of lower margin products at specific retail customers and the absence of Plackers® dental flossers promotions compared to the prior year. -
Skin Care : Net sales of$58 million increased 1.2% driven by growth in the Mederma® brand and higher net sales in the Minoxidil franchise. -
Women's Health : Net sales of$19 million increased 11.1% due primarily to growth of Opill®, as the prior year quarter reflected a relatively light sales period following the strong retail sell-in that occurred immediately after the product's launch inMarch 2024 . -
Vitamins, Minerals, and Supplements ("VMS") and Other: Net sales of
$3 million decreased 42.9%.
TABLE VI (Continued) |
||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION |
||||||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
Constant |
|
Six Months Ended |
|
|
|
|
|
Constant |
|||||||||||||||||||||||
CSCI Net Sales |
|
|
|
|
% |
|
Less: |
|
|
|
|
|
|
% |
|
Less: |
|
|||||||||||||||||||||
|
$ 122.9 |
|
$ 127.7 |
|
(3.8) % |
|
3.0 % |
|
(6.8) % |
|
$ 234.4 |
|
$ 242.4 |
|
(3.3) % |
|
— % |
|
(3.3) % |
|||||||||||||||||||
Upper Respiratory |
55.4 |
|
50.7 |
|
9.2 % |
|
6.0 % |
|
3.2 % |
|
128.9 |
|
119.8 |
|
7.6 % |
|
0.9 % |
|
6.6 % |
|||||||||||||||||||
Healthy Lifestyle |
60.7 |
|
57.5 |
|
5.7 % |
|
2.0 % |
|
3.8 % |
|
127.3 |
|
122.1 |
|
4.3 % |
|
(1.5) % |
|
5.8 % |
|||||||||||||||||||
Pain and Sleep-Aids |
63.5 |
|
50.3 |
|
26.4 % |
|
6.8 % |
|
19.6 % |
|
117.1 |
|
101.7 |
|
15.2 % |
|
2.9 % |
|
12.3 % |
|||||||||||||||||||
VMS |
38.6 |
|
39.9 |
|
(3.2) % |
|
4.8 % |
|
(8.0) % |
|
76.2 |
|
84.5 |
|
(9.7) % |
|
0.9 % |
|
(10.6) % |
|||||||||||||||||||
|
41.1 |
|
36.9 |
|
11.4 % |
|
5.7 % |
|
5.7 % |
|
73.5 |
|
68.9 |
|
6.6 % |
|
1.7 % |
|
4.9 % |
|||||||||||||||||||
|
25.2 |
|
23.0 |
|
9.5 % |
|
6.0 % |
|
3.5 % |
|
47.7 |
|
51.7 |
|
(7.7) % |
|
1.8 % |
|
(9.5) % |
|||||||||||||||||||
|
26.8 |
|
45.3 |
|
(40.9) % |
|
3.0 % |
|
(43.9) % |
|
52.3 |
|
78.1 |
|
(33.1) % |
|
1.1 % |
|
(34.2) % |
|||||||||||||||||||
Total CSCI Net Sales |
$ 434.3 |
|
$ 431.3 |
|
0.7 % |
|
4.2 % |
|
(3.5) % |
|
$ 857.4 |
|
$ 869.3 |
|
(1.4) % |
|
0.7 % |
|
(2.1) % |
|
|
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. |
CSCI Second Quarter Primary Category Drivers:
-
Skin Care : Net sales of$123 million decreased 3.8%, or a decrease of 6.8% excluding the impact of currency, due to the impact of 6.0% from the reclassification of certain brands into other categories in addition to the impact of 1.9% from exited products. Absent these impacts,Skin Care increased 1.2% due to share growth in Compeed® and Sebamed®, despite the soft seasonal trends. -
Upper Respiratory: Net sales of
$55 million increased 9.2%, or an increase of 3.2% excluding the impact of currency, due primarily to restored supply of the Physiomer® brand and new distribution, partially offset by lower net sales of cough cold products due to lower year-over-year incidence and 2.0% from exited products. -
Healthy Lifestyle: Net sales of
$61 million increased 5.7%, or an increase of 3.8% excluding the impact of currency, driven by growth in mosquito repellent products including Jungle Formula®, higher demand for the Lyclear® antiparasites brand and store brand smoking cessation offerings. This growth was partially offset by timing of sales for NiQuitin® and the strategic deprioritization of products within the weight loss sub-category. -
Pain & Sleep-Aids: Net sales of
$64 million increased 26.4%, or an increase of 19.6% excluding the impact of currency, due primarily to restored supply of Solpadeine®, partially offset by 4.7% from divested businesses and exited products. -
VMS: Net sales of
$39 million decreased 3.2%, or a decrease of 8.0% excluding the impact of currency, due primarily to deprioritization of the nutraceuticals portfolio in addition to 2.0% from exited products. -
Women's Health : Net sales of$41 million increased 11.4%, or an increase of 5.7% excluding the impact of currency, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains. -
Oral Care : Net sales of$25 million increased 9.5%, or an increase of 3.5% excluding the impact of currency, due primarily to higher net sales of store brand products, partially offset by 1.7% from exited products. -
Digestive Health and Other: Net sales of$27 million decreased 40.9%, or a decrease of 43.9% excluding the impact of currency, primarily due to divested businesses, including HRA Pharma Rare Diseases, and exited products.
TABLE VII |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
||||||||||||||||||||||||||||||||
CONSOLIDATED AND SELECTED SEGMENT INFORMATION |
||||||||||||||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
|
|
|
Six Months Ended |
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
Total Change |
|
|
|
|
|
Total Change |
||||||||||||||||||||
Consolidated Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross profit |
|
$ 402.8 |
|
$ 432.5 |
|
$ (29.7) |
|
(6.9) % |
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross margin |
|
38.1 % |
|
40.6 % |
|
|
|
(250) bps |
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Currency impact(1) |
|
11.0 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Divestitures(2) |
|
— |
|
17.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Organic gross profit |
|
$ 391.8 |
|
$ 414.7 |
|
$ (22.9) |
|
(5.5) % |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating income |
|
$ 135.2 |
|
$ 139.3 |
|
$ (4.1) |
|
(2.9) % |
|
$ 281.8 |
|
$ 232.3 |
|
$ 49.5 |
|
21.3 % |
||||||||||||||||
Adjusted operating margin |
|
12.8 % |
|
13.1 % |
|
|
|
(30) bps |
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Currency impact(1) |
|
5.6 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Divestitures(2) |
|
— |
|
9.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Organic operating income |
|
$ 129.6 |
|
$ 130.2 |
|
$ (0.6) |
|
(0.4) % |
|
|
|
|
|
|
|
|
||||||||||||||||
Organic operating margin |
|
12.5 % |
|
12.5 % |
|
|
|
— bps |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted net income |
|
$ 79.2 |
|
$ 73.5 |
|
|
|
7.7 % |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted EPS |
|
$ 0.57 |
|
$ 0.53 |
|
$ 0.04 |
|
7.5 % |
|
$ 1.17 |
|
$ 0.83 |
|
$ 0.34 |
|
41.0 % |
||||||||||||||||
Less: Currency impact(1) |
|
0.03 |
|
— |
|
|
|
|
|
0.02 |
|
— |
|
|
|
|
||||||||||||||||
Less: Divestitures(2) |
|
— |
|
0.05 |
|
|
|
|
|
— |
|
0.08 |
|
|
|
|
||||||||||||||||
Organic EPS |
|
$ 0.54 |
|
$ 0.48 |
|
$ 0.06 |
|
12.5 % |
|
$ 1.15 |
|
$ 0.75 |
|
$ 0.40 |
|
53.3 % |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consumer Self-Care Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross profit |
|
$ 175.5 |
|
$ 201.3 |
|
$ (25.8) |
|
(12.8) % |
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross margin |
|
28.2 % |
|
31.7 % |
|
|
|
(350) bps |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating income |
|
$ 71.2 |
|
$ 91.4 |
|
$ (20.3) |
|
(22.2) % |
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating margin |
|
11.4 % |
|
14.4 % |
|
|
|
(300) bps |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross profit |
|
$ 227.4 |
|
$ 231.3 |
|
$ (3.9) |
|
(1.7) % |
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted gross margin |
|
52.4 % |
|
53.6 % |
|
|
|
(130) bps |
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Currency impact(1) |
|
10.2 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Less: Divestitures(2) |
|
— |
|
17.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Organic gross profit |
|
$ 217.2 |
|
$ 213.5 |
|
$ 3.6 |
|
1.7 % |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating income |
|
$ 102.5 |
|
$ 90.7 |
|
$ 11.8 |
|
13.0 % |
|
|
|
|
|
|
|
|
||||||||||||||||
Adjusted operating margin |
|
23.6 % |
|
21.0 % |
|
|
|
260 bps |
|
|
|
|
|
|
|
|
|
|
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) |
Represents divestiture of the Rare Diseases reporting unit, Hospital and Specialty Business, Richard Bittner Business and branded asset sales in CSCI. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/perrigo-reports-second-quarter-2025-financial-results-from-continuing-operations-302523035.html
SOURCE