Perrigo Company Plc · NYSE:PRGO
Perrigo — Q1 2025 Earnings Presentation
32 slides from Perrigo's earnings presentation, May 7, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 7, 2025
Slide 2: Bradley Joseph, VP Investor Relations & Corporate Communications
Bradley Joseph VP Investor Relations & Corporate Communications
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financi
Slide 4: Patrick Lockwood-Taylor, President and CEO
Patrick Lockwood-Taylor President and CEO
Slide 5: Advancing Our 'Three-S Plan'
Advancing Our ‘Three-S Plan’ What We Said What We Delivered Stabilize • Secured new business awards to overcome known net CSCA Store Brand Share lost distribution of lower margin products in Q2’25 CSCA Nutrition by Ensuring Consistent and • Q1’25 infant formula net sales +19% YoY Reliable Supply of
Slide 6: Aligning Expectations with Current Uncertain Macroeconomic Environment
Aligning Expectations with Current Uncertain Macroeconomic Environment What Has Changed What is the Impact U.S. OTC European OTC • A more prudent outlook to reflect Category Growth1 Category Growth2 macroeconomic uncertainty Latest Available +1.7% +3.2% • Widening 2025 reported and organic net sales
Slide 7: Perrigo is the Largest OTC Manufacturer by Volume in America
Perrigo is the Largest OTC Manufacturer by Volume in America 11 85% Majority 5,000+ U.S. Manufacturing Finished Goods Material & Employees in Plants Made in the USA Components the USA Sourced from USA 7
Slide 8: Plans in Place to Offset Expected Tariff Impacts
Plans in Place to Offset Expected Tariff Impacts Est. Impact of Known Tariffs Offsetting Actions • Global COGS gross increase • Strategic price actions of roughly 1% in 2025 • Insourcing manufacturing • Global COGS gross increase to Perrigo U.S. facilities of ~5.5% on a full-year basis • Impacts onl
Slide 9: Perrigo's Unique Business Model Provides Opportunities in Current Macro Environment
Perrigo’s Unique Business Model Provides Opportunities in Current Macro Environment • Opportunity for mid-tier and store brand share gains due to weakening consumer confidence • U.S. OTC store brand share +50bps over the latest 4-weeks1 as consumers quickly adjust buying patterns • Contract business
Slide 10: Delivered Strong Q1'25 Adj. EPS Growth and Margin Expansion
Delivered Strong Q1’25 2025 Adj. EPS Growth and Margin Expansion, Led by Infant Formula Perrigo Q1’25 Financial Highlights Q1’25 YoY Highlights YoY YoY Organic Q1’25 Change Change • Excluding prior year known net lost distribution and Opill® sell-in, organic net sales grew 1.8% Net Sales $1,044 -3.5
Slide 11: Infant Formula & OTC Brand Growth Offset by Prior Year Net Lost Distribution
Infant Formula & OTC Brand Growth More Than Offset by Prior Year Net Lost Distribution and Opill® Retail Stocking Organic Net Sales % Change YoY OTC Brands Organic Net Sales +5.9% YoY by Global Category (excluding PY Opill® retail stocking from launch) Upper Respiratory 7.4% +23% Pain and Sleep-Aids
Slide 12: Expect CSCA Store Brand New Awards to Outpace Losses
Expect CSCA Store Brand New Awards to Outpace Losses, Providing Tailwind in H2’25 CSCA Store Brand Net New Awards/Losses ($M) Comments • Impact of Q3’24 net lost distribution annualizes in Q2’25 $0M • Already secured new business awards Lapping 2024 net lost distribution, ramp up in Q2’25 coupled wi
Slide 13: Infant Formula Industry Dynamics Continue to Evolve
Infant Formula Industry Dynamics Continue to Evolve Current Infant Formula Store Brand Volume Drivers of Store Brand Industry Dynamics Market Share1 Share Acceleration in 2H’25 17.8% • U.S. birth rate remains flat to 16.8% • Activating store brand promotional down 15.8% activity to maintain appropri
Slide 14: Key Takeaways
Key Takeaways Delivered strong Q1’25 financial results Confident in actions to offset uncertain macro environment; unique opportunities to grow in current environment Widening 2025 topline ranges; reaffirming all other 2025 and 2027 financial targets 14
Slide 15: Eduardo Bezerra, EVP, Chief Financial Officer
Eduardo Bezerra EVP, Chief Financial Officer
Slide 16: Q1'25 Non-GAAP Adjustments
Q1’25 Non-GAAP Adjustments Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals. (1) Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. (2) Reported net s
Slide 17: Perrigo Q1'25 Financial Results
Delivered Strong Q1’25 2025 Adj. EPS Growth and Margin Expansion, Led by Infant Formula Perrigo Q1’25 Financial Results Constant ($ in millions, except margin) Q1 2025 $ Change YoY % Change YoY Currency % Change Organic % Change Drivers Net Sales $1,044 ($38) (3.5%) (2.4%) (0.4%) Adjusted Gross Prof
Slide 18: Continuing Trend of Adj. Margin Expansion YoY
Continuing Trend of Adj. Margin Expansion YoY Perrigo Adj. Gross and Operating Margin 41.0% +440bps 41.0% 27.0% YoY 36.5% 39.0% 37.0% 22.0% 35.0% 33.0% 17.0% 14.0% +550bps 31.0% YoY 29.0% 12.0% 27.0% 8.6% 25.0% 7.0% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Adj. Gross Margin Adj. Operating Margin Note: amounts
Slide 19: Net Sales YoY – Segment Highlights
Net Sales YoY – Segment Highlights CSCI Q1’25 CSCA Q1’25 Net Sales YoY Net Sales YoY Organic Change -3.6% Organic Growth +4.5% $644M YoY Growth -3.6% YoY Change $621M -3.4% $438M Excluding known net lost $423M distribution and PY Opill® retail stocking, organic net sales were flat Q1'24 CSCA Nutriti
Slide 20: Adj. Operating Income YoY – Segment Highlights
Adj. Operating Income YoY – Segment Highlights CSCI Q1’25 CSCA Q1’25 Adj. Operating Income YoY Adj. Operating Income YoY YoY Growth +90.0% Organic Growth +10.0% $100M YoY Growth +0.2% $86M $86M $53M Q1'24 CSCI Adj. Business Currency Translation, Q1'25 CSCI Adj. Q1'24 CSCA Adj. Business Currency Q1'2
Slide 21: Adj. EPS YoY Driven by Infant Formula Recovery and Project Energize
Adj. EPS YoY Driven by Infant Formula Recovery and Project Energize Perrigo Adj. EPS YoY Growth +106.9% $0.60 $0.29 Q1'24 Business Higher Tax Rate Lower Interest Currency Translation, Q1'25 Adj. EPS Performance Expense Divested Business Adj. EPS & Exited Product Lines Note: amounts may not add due t
Slide 22: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Q1’25 Cash & Cash Usage Reaffirm Projected 2025 Cash and Leverage • Q1’25 cash on balance sheet of $410 million • Actions to optimize cash in uncertain macro environment: • Paused Oral Care input purchases • Drivers of Q1’25 operating cash outflow: from China + Cash gener
Slide 23: Widening 2025 Net Sales Ranges, Reaffirming All FY 2025 Targets
FY 2025 Targets FY 2025 Targets Metric as of 5/7/25 as of 2/28/25 (constant currency to FY’24) (constant currency to FY’24) Reported Net Sales Growth 0% - 3% 1% - 3% Organic Net Sales Growth 1.5% - 4.5% 2.5% - 4.5% Widening 2025 Adj. Gross Margin ~40% ~40% Net Sales Ranges, Reaffirming All Adj. Oper
Slide 24: Thank You
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Slide 25: Appendix
a; — Perrigo nicotine gum nicotine polacrilex gum, 2 mg (nicatine) HISDMER PHYSIOMER’ Ap pe n d Ix STOP SMOKING AID a PHYSIOMER naproxen sod film-coated tablet. Uliprstal acetate “Fave one tablet as soon as possible set Take ometad sex or contraceptive fll
Slide 26: Table I
TABLE! PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ‘SELECTED CONSOLIDATED INFORMATION {in millions, except per share amounts) (unaudited) Three Months Ended March 29, 2025 Three Months Ended March 30, 2024 Income from _Diluted Income from Diluted Consolidated Continuing Operations Prot S
Slide 27: Table II
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ‘SELECTED CONSOLIDATED INFORMATION (in millions) (unaudited) Three Months Ended March 29, 2025 ‘Three Months Ended March 30, 2024 DSG&A —_—Restructuring DSG&A Consolidated Continuing Operations R&DExponse Expense ‘and Other R&D Expense
Slide 28: Table III
TABLE It PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions) (unaudited) ‘Throe Months Ended March 29, 2025, ‘Throe Months Ended March 30, 2024 Income Tax Expense Consolidated Continuing Operations Interest and Other__Income Tax Expense Intorest an
Slide 29: Table IV
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES: SELECTED SEGMENT INFORMATION ‘Three Months Ended March 30, 2024 Gross. R&D = DSG&A_— Operating Profit Expense Expense _Income $1535 $ 164 $ 1050 $ 157 238% 25% 163% 24% 46 - (10.0) 146 49 - (0.9) 58 02 = = 166 $1632 8 164 $ 940 $ 527
Slide 30: Table V
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 29,2025 March 30,2024 __% Change Net Sales Ey 10439 § 1,082.4 (35)% Less: Curr
Slide 31: Table VI
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) Consolidated Continuing Operations Three Months Ended Constant Currency Currency, Divestiture Organic Net Sales March 29,2025 March 30,2024 %Change _
Slide 32: Table VII
TABLE VII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES CONSOLIDATED AND SELECTED SEGMENT INFORMATION (in millions, except per share amounts) (unaudited) Consolidated Continuing Operations: Adjusted gross profit Adjusted gross margin Less: Currency impact”? ‘Constant currency adjusted gros