Perrigo Company Plc · NYSE:PRGO
Perrigo — Q1 2024 Earnings Presentation
35 slides from Perrigo's earnings presentation, May 7, 2024
Slide 1: Q1/2024 Earnings Presentation – 5/7/24
Q1/2024 Earnings Presentation – 5/7/24
Slide 2: Bradley Joseph, VP Investor Relations
VP Investor Relations & Bradley Joseph Corporate Communications
Slide 3: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation 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 o
Slide 4: Patrick Lockwood-Taylor, President & CEO
Patrick Lockwood-Taylor President & CEO
Slide 5: Recap of Q1'24 Expectations
Recap of Q1’24 Expectations What We Said What We Delivered Adj. EPS will be impacted by efforts ✓ Q1’24 adj. EPS declined 35.6% YoY, but was $0.06 to augment and strengthen infant ahead of projection due to timing of infant formula formula shipments to customers SKU prioritization actions will expan
Slide 6: Perrigo Q1'24 Financial Highlights
Known Impacts from Infant Formula & SKU Prioritization Partially Offset by Strength in Rest of Business Perrigo Q1’24 Financial Highlights YoY Change Comprised of 3 Major Components: YoY 1) YoY Infant 2) YoY SKU 3) YoY Impact from Q1’24 Formula Impact Prioritization Impact Rest of Business Change Or
Slide 7: Q1'24 Perrigo Category Results
Brand Growth in Women’s Health and Skin Care More Than Offset by Infant Formula and U.S. Retail De-Stocking Q1’24 Perrigo Category Results (constant currency) U.S. Launch of Opill ® Women's Health 43.0% Skin Care 9.1% Healthy lifestyle 0.8% Digestive health -1.0% VMS -7.6% Pain and sleep-aids -13.9%
Slide 8: On Track to Deliver 2024 Operational Priorities
On Track to Deliver 2024 Operational Priorities Priority Progress Augment and Strengthen ✓ Making significant progress across infant formula network Infant Formula ✓ Recovery of volumes underway, continue to expect stronger 2H’24 Details to Follow Launch Opill® with ✓ Launched Opill® at more than 65
Slide 9: Making Significant Progress to Augment and Strengthen Infant Formula
Making Significant Progress to Augment and Strengthen Infant Formula Progressing ✓ Large-scale plant resets completed where necessary Efforts ✓ Next phase of action plan in-progress Across Network ✓ Making further enhancements and investments at the site level Volume ✓ All sites moving to campaign s
Slide 10: Opill Launched with Excellence into Major Retail Outlets Across the U.S.
Opill® Launched with Excellence into Major Retail Outlets Across the U.S. Opill® Launch Highlights Broad launch into 65K retail locations across the U.S. 14K displays shipped Ensured shelf execution and out of aisle display Most customer resets occurred throughout April Media activities to build awa
Slide 11: Early Awareness Leading to Opill Consumption; Full Media Campaign Launching
Early Awareness Leading to Opill ® Consumption; Full Media Campaign Launching Now Opill® Media Highlights Opill® Cumulative Weekly Consumption # 1 Top read among all brand announcements issued via PR Newswire in Q1’24 TV Advertising Begins 6.2B impressions1 1.5B impressions1 on social media Opill® L
Slide 12: Phased Approach to Consumerize, Simplify and Scale One Perrigo
Phased Approach to Consumerize, Simplify and Scale One Perrigo Deliver and Achieve Sustainable, Value De-lever Accretive Growth 2024 - 2025 2026+ • Stabilize infant formula, return to • Accelerated branded growth via targeted reliable, profitable operations investments in high potential opportunitie
Slide 13: CSCI Leadership Transition Focused on Continuing to Deliver Long-term Growth
CSCI Leadership Transition Focused on Continuing to Deliver Long-term Growth Svend Andersen Roberto Khoury EVP & President CSCI Incoming EVP & President CSCI Will Step Down in August 2024 and Will Assume CSCI Retire in December 2024 Leadership Role in August 2024 • Led CSCI business for 7 years • Mo
Slide 14: Key Takeaways
Key Takeaways ▪ On Track to Deliver 2024 Operational Priorities: • Continue to augment and strengthen infant formula • Execute Project Energize investments and efficiencies • Launch Opill® with excellence • Drive growth plans • Deliver Supply Chain Reinvention savings • Capture HRA synergies ▪ Conti
Slide 15: Eduardo Bezerra, CFO
Eduardo Bezerra eve «cro Perrigo
Slide 16: Q1'24 Non-GAAP Adjustments
Q1’24 Non-GAAP Adjustments 16
Slide 17: First Quarter Results
Known Impacts from Infant Formula & SKU Prioritization Partially Offset by Strength in Rest of Business First Quarter Results Constant Perrigo Q1 2024 $ Change YoY % Change YoY Currency % ($ in millions, except margin) Change Net Sales $1,082 ($100) (8.4%) (8.2%) Adjusted Gross Profit $396 ($47) (10
Slide 18: CSCI Continues to Perform Well; CSCA Impacted by Infant Formula, SKU Prioritization
CSCI Continues to Perform Well; CSCA Impacted by Infant Formula, SKU Prioritization and U.S. Retail De-Stocking CSCI Q1’24 Highlights CSCA Q1’24 Highlights YoY Change Comprised of 3 Major Components: 1) YoY Infant 2) YoY SKU 3) YoY Impact YoY YoY Formula Prioritization From Rest of Q1’24 Q1’24 Chang
Slide 19: Adj. Margins Expanded vs. PY, Excluding Infant Formula Impact
Adj. Margins Expanded vs. PY, Excluding Infant Formula Impact Perrigo Quarterly Adj. Gross & Operating Margin 40.0% Q1’24 adj. gross 39.0% 19.0% margin +190 bps YoY, 39.4% ex-Infant Formula 38.0% 37.5% 17.0% 37.0% 36.5% 36.0% 15.0% 35.0% 13.0% Q1’24 adj. operating 34.0% 33.4% 12.7% margin +260 bps Y
Slide 20: Perrigo YoY Adj. EPS Bridge
Known Impacts from Infant Formula & SKU Prioritization Partially Offset by Strength in Rest Of Business Q1 2024 Perrigo YoY Adj. EPS Includes -$0.02 impact from exited products 20 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts.
Slide 21: Proceeds from Proposed Divestment of HRA Rare Diseases Business
Proceeds from Proposed Divestment of HRA Rare Diseases Business to be Redeployed for Debt Repayment • Further supports Perrigo’s strategic focus on consumer self-care • Total consideration of up to €275M o Cash upfront of €190M o Potential earnouts based on sales milestones of up to €85M • Total con
Slide 22: On Track to Reduce Net Leverage by End of 2024
On Track to Reduce Net Leverage by End of 2024 Projected 2024 Sources & Uses of Cash $500M - $600M $650M - $750M $659M $500M - $550M Expected Net Expected Cash proceeds from Est. Net Leverage Conversion of proposed Leverage 90% - 100% divestment of HRA 4.8x Rare Diseases ~3.8x - ~4.0x 1. Total debt
Slide 23: No Change to 1H'24 or FY'24 Phasing; Updating Adj. EPS
No Change to 1H’24 or FY’24 Phasing; Updating Adj. EPS Phasing for Q1/Q2 Projected 2024 Adj. EPS Phasing 1H Adj. EPS ~30% 2H Adj. EPS ~70% $2.50 - $2.65 Due to Timing of Infant Formula Shipments Current Assumption Prior Assumption 23 1. Outlook based upon U.S. dollar/euro exchange rate of $1.07/€1.0
Slide 24: Reaffirm FY'24 Outlook
Reaffirm FY’24 Outlook Metric Outlook Comments + New products + Margin recovery pricing actions Organic Net Sales Growth YoY 1.0% - 3.0% + Absence of HRA distributor transitions - Impact from infant formula - SKU prioritization of -1ppt + Expected organic net sales growth offset by: Reported Net Sal
Slide 25: Q&A
Make Lives Better Through Trusted Health and Wellness Solutions, Accessible to All Q&A
Slide 26: Table I Reconciliation of Non-GAAP Measures
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 26
Slide 27: Table II Reconciliation of Non-GAAP Measures
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 27
Slide 28: Table III Reconciliation of Non-GAAP Measures
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 28
Slide 29: Table IV Reconciliation of Non-GAAP Measures
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 29
Slide 30: Table V Reconciliation of Non-GAAP Measures
TABLE V PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 30
Slide 31: Table VI Reconciliation of Non-GAAP Measures
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 31
Slide 32: Table VII Reconciliation of Non-GAAP Measures
TABLE VII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 32
Slide 33: Table VIII Reconciliation of Non-GAAP Measures
TABLE VIII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 33
Slide 34: Table IX Reconciliation of Non-GAAP Measures
TABLE IX PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 34
Slide 35: Table X Reconciliation of Non-GAAP Measures
TABLE X PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 35