Perrigo Company Plc · NYSE:PRGO
Perrigo — Q3 2023 Earnings Presentation
27 slides from Perrigo's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Earnings Results
Adding HR photos Third Quarter 2023 Earnings Results November 7, 2023
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.” 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: Delivered Another Solid Quarter in Q3'23
Delivered Another Solid Quarter in Q3’23 Q3 Financial Results Key Highlights YoY ($ in millions, except margin; on an adjusted basis except net sales) • Net sales growth +2.2%, including -2.8 Total Perrigo Q3’23 YoY Chg. percentage points from SKU prioritization and distributor transitions Net Sales
Slide 6: Business Fundamentals Remain Strong
Business Fundamentals Remain Strong CSCI Q3 YoY Highlights 1 U.S. OTC Q3 YoY Highlights U.S. Store Brand vs. National Brand Volume Share 2 Higher consumption Latest 13 in several Weeks: areas +0.7 share points including: • Cough Cold & U.S. Store Brand vs. National Pain Brand Dollar Share 2 • Skin C
Slide 7: Continuing to Navigate Current Infant Formula Industry Volatility
Continuing to Navigate Current Infant Formula Industry Volatility • Two decades of producing high-quality, safe and Long History of effective infant formula Producing Infant Formula • Perrigo plays an important role in this essential category • Shortened production campaigns to perform more Respondi
Slide 8: Opill Pre-Launch Activities Underway; On-Track for Q1'24 Launch
Opill® Pre-Launch Activities Underway; Remain On-Track for Q1’24 Launch Opill® Journey and Pre-Launch Activities Continuous Sees Opill® Clicks and Education/ Re-targeting Conversion • Pre-launch activities Visits Signs Up Ad (Platform Agnostic) Opill.com (Platform underway Agnostic) • Expect Opill®
Slide 9: Perrigo is Truly a Unique Business – for Consumers, Customers and Investors
Perrigo is Truly a Unique Business – for Consumers, Customers and Investors Diversified and Massive Market Unmatched Size Leading Provider of Differentiated Blended- Opportunity and Scale Value and Access Branded Business • Long-term secular tailwinds in self- • Provide 65B doses every year • Online
Slide 10: Four Pillars to Drive Strategic Roadmap of 'One Perrigo'
Four Pillars to Drive Strategic Roadmap of ‘One Perrigo’ Four Pillars Plan to Operationalize To Deliver Deliver A Sustainable And Drive Category Consumer- Portfolio Growth with Preferred Brands Our Customers Value Accretive & Innovation Configuration, Growth Engine Investment, and Power Our Operatio
Slide 11: We Will Continue Focusing to Win!
We Will Continue Focusing to Win! Establish Sustainable and Value Execute to Drive Success Accretive Growth Engine • Deliver consumer led innovation • Focus on operational excellence and continue delivering our trusted self- • Drive category growth with our care products customers • Continue to impr
Slide 12: Eduardo Bezerra, EVP & CFO
Eduardo Bezerra, EVP & CFO
Slide 13: Non-GAAP Adjustments
Non-GAAP Adjustments ‘Three Months Ended September 30, 2023 Three Months Ended October 1, 2022 Gross "acome from Diluted income (Loss) Diluted Consolidated Continuing Operations Profit i one) Shara Gross Profit income Operations" per Reported Ss 412 $ 624 $ 54 § O41 Ss 3629 § a4 Ss (62.4) $ (0.39) A
Slide 14: Third Quarter Earnings Results
Third Quarter Earnings Results Third Quarter Results YTD Results • Q3 organic net sales -1.2% Constant Constant Perrigo Q3 2023 Q3 2022 $ Change % Change YoY YoY Currency % % Change YoY Currency % YoY, including -2.8 ppts from ($ in millions, except margin) Change Change SKU prioritization and HRA N
Slide 15: Meaningful Adjusted Gross and Operating Margin Expansion Year-Over-Year
Perrigo Achieved Meaningful Adjusted Gross and Operating Margin Expansion Year-Over-Year Adj. Gross Margin Growth YoY Adj. Operating Margin Growth YoY +300bps +130bps Total Perrigo 36.5% 39.5% 12.1% 13.4% Q3'22 Q3'23 Q3'22 Q3'23 +430bps +90bps 32.5% CSCA 14.5% 15.4% 28.2% Q3'22 Q3'23 Q3'22 Q3'23 -12
Slide 16: Solid Cash Generation in Q3; On-Track for FY'23 Cash Flow Conversion
Solid Cash Generation in Q3; Remain On-Track for FY’23 Operating Cash Flow Conversion of ~100% Cash Metrics Q3’23 Cash Metrics YTD’23 $598M in Cash & Operating Cash Flow Cash Equivalents of $197M 84% Operating Cash Flow Operating Cash Flow Conversion 2 of $125M 143% Operating Cash Flow $75M in Capit
Slide 17: Updating Our 2023 Outlook
Updating Our 2023 Outlook FY 2023 Outlook1,2 Assumptions3 As of As of 8/8/2023 11/7/2023 Drivers of Change • Normal cough cold season in U.S. and Europe; in better position to capitalize in Organic Net Sales Growth 3.0% - 6.0% 1.0% - 3.0% • Infant formula dynamics U.S. if season is strong YoY • Q4 i
Slide 18: Q&A
To make lives better by bringing quality, affordable Self-Care Products that consumers trust everywhere they are sold Q&A
Slide 19: Table I Reconciliation of Non-GAAP Measures
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 19
Slide 20: Table I (Continued) Reconciliation of Non-GAAP Measures
TABLE I (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 20
Slide 21: Table I (Continued) Reconciliation of Non-GAAP Measures
TABLE I (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 21
Slide 22: Table II Reconciliation of Non-GAAP Measures
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 22
Slide 23: Table II (Continued) Reconciliation of Non-GAAP Measures
TABLE II (Continued) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 23
Slide 24: Table III Reconciliation of Non-GAAP Measures
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 24
Slide 25: Table IV Reconciliation of Non-GAAP Measures
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 25
Slide 26: Table V Reconciliation of Non-GAAP Measures
TABLE V PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 26
Slide 27: Table VI Reconciliation of Non-GAAP Measures
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 27