Perrigo Company plc · NYSE:PRGO
Perrigo — Q2 FY2011 Earnings Presentation
23 slides from Perrigo's earnings presentation, Feb 1, 2011
Slide 1: Perrigo Fiscal 2011 Second Quarter Conference Call
Perrigo Fiscal 2011 Second Quarter Conference Call February 1, 2011 Quality, Affordable Healthcare Products
Slide 2: 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 the Company’s future
Slide 3: Net Sales Performance
Net Sales Performance From Continuing Operations ($ in millions) Q2 2011 Q2 2010 % Change Y/Y Consolidated Perrigo $ 717.5 $ 582.4 23.2% Consumer Healthcare $ 430.0 $ 417.0 3.1% Nutritionals $ 133.5 $ 61.0 118.7% Rx Pharmaceuticals $ 97.5 $ 56.8 71.8% API $ 40.3 $ 35.3 14.3% 3 Quality, Affordable He
Slide 4: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 13.0% Total OTC & Vitamins (*VMS) -2.2% 1.8% 13.8% Total OTC -4.4% 0.4% 28.6% Analgesics -16.5% -4.5% 11.2% Cough, Cold, Allergy, Sinus -5.4% -1.4% 12.5% Gastrointestinal 3.5% 5.9% 11.2% Smoking Cessation -9.7% 0.2% 9.8% Vitamins (*V
Slide 5: GAAP Financials Perrigo Consolidated
GAAP Financials From Continuing Operations Perrigo Consolidated Q2 2011 Q2 2010 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 718 $ 582 23% Cost of Sales 468 385 22% Gross Profit 250 198 26% Distribution 9 7 25% R&D 25 21 19% SG&A 84 72 17% Operating Income 132 98 35% Income fro
Slide 6: Adjusted Financials
Adjusted Financials From Continuing Operations Three Months Ended % Chan December 25, 2010 December 26, 2009 Non-GAAP Non-GAAP (in millions, except per share data) GAAP Adjustments As adjusted GAAP Adjustments As adjusted Net sales $ 718 $ - $ 718 $ 582 $ - $ 582 Cost of sales 468 7 (a) 461 385 5 (a
Slide 7: Adjusted Financials Perrigo Consolidated
Adjusted Financials* From Continuing Operations Perrigo Consolidated % Change Change as Q2 2011 Q2 2010 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 718 $ 582 23% Adjusted Cost of Sales 461 380 21% Adjusted Gross Profit 257 203 27% 100 bps Distribution 9 7 25% R&D 25 21 19%
Slide 8: Adjusted Segment Financials Consumer Healthcare
Adjusted Segment Financials* From Continuing Operations Consumer Healthcare Change as a Q2 2011 Q2 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 430 $ 417 3% Adjusted Cost of Sales 292 274 7% Adjusted Gross Profit 138 143 -3% -220 bps Adjusted Operating Expenses 61 57 7% Adjusted Operatin
Slide 9: Adjusted Segment Financials Nutritionals
Adjusted Segment Financials* From Continuing Operations Nutritionals Change as a Q2 2011 Q2 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 133 $ 61 119% Adjusted Cost of Sales 85 52 65% Adjusted Gross Profit 49 10 410% 2080 bps Adjusted Operating Expenses 23 6 249% Adjusted Operating Incom
Slide 10: Adjusted Segment Financials Rx Pharmaceuticals
Adjusted Segment Financials* From Continuing Operations Rx Pharmaceuticals Change as a Q2 2011 Q2 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 98 $ 57 72% Adjusted Cost of Sales 51 26 96% Adjusted Gross Profit 47 31 52% -630 bps Operating Expenses 11 10 12% Adjusted Operating Income $ 36
Slide 11: Adjusted Segment Financials API
Adjusted Segment Financials* From Continuing Operations API Change as a Q2 2011 Q2 2010 % Change Y/Y ($ in millions) % to sales Net Sales $ 40 $ 35 14% Adjusted Cost of Sales 22 21 8% Adjusted Gross Profit 18 15 23% 310 bps Adjusted Operating Expenses 8 9 -19% Adjusted Operating Income $ 11 $ 5 95%
Slide 12: FY2010 & FY2011 Adjusted Diluted EPS Reconciliation
FY2010 & FY2011 Adjusted Diluted EPS Reconciliation* From Continuing Operations FY 11 Guidance Y/Y Growth Reported Diluted EPS from Continuing Operations Range $3.28 - $3.43 +36% to +42% Deal-related intangible amortization (1,2) 0.355 Charges associated with acquisition costs (2) 0.061 Charge assoc
Slide 13: Perrigo FY11 Revised Guidance
Perrigo FY11 Revised Guidance* From Continuing Operations Consolidated Revenue Growth 20% to 23% from Fiscal 2010 Adj. Consolidated Gross Margin 35% to 36% of Net Sales Adj. Consolidated Operating Margin 19% to 20% of Net Sales Adjusted Diluted EPS $3.75 to $3.90 (24% to 29% Y/Y Growth**) Cash Flow
Slide 14: CHC New Product Innovation
CHC New Product Innovation Publicly disclosed products Q3 FY2008 Q1 FY2009 Cetirizine & Famotidine Q3 FY2009 Omeprazole Complete FY2010 FY2011 Pipeline Ibuprofen PM Polyethylene Generic version of Allegra® Glycol 3350 Generic version of Zantac® 150 $5 Billion in potential branded sales with new SB A
Slide 15: Rx New Product Innovation
Rx New Product Innovation Publicly disclosed products Q3 FY2010 Ichthammol Ointment Q4 FY2010 FY2011 Aldara® Mesalamine Enema Kit Analpram E® Cream AG Generic Nasacort® Cream, 5% AG Ciclopirox Shampoo 1% Generic Evoclin® Foam 1% Generic Xyzal® Tablets Analpram HC® Cream Adapalene Cream, 0.1% HalfLyt
Slide 16: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 17: Table I
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table I (in thousands, except per share amounts) (unaudited) Three Months Ended Consolidated December 25, 2010 December 26, 2009 % Change Non-GAAP Non-GAAP As GAAP Adjustments As adjusted GAAP Adjustments As adjusted GAAP Adj. Net sales $ 717,515 $
Slide 18: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS Table II RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare December 25, 2010 December 26, 2009 % Change Non-GAAP Non-GAAP As GAAP Adjustments As adjusted GAAP Adjustments As adjusted GAAP Adj. Net sales $ 429,996
Slide 19: Table II (Continued)
REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II (Continued) (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals December 25, 2010 December 26, 2009 % Change Non-GAAP Non-GAAP As GAAP Adjustments As adjusted GAAP Adjustments As adjusted GAAP Adj. Net sales $ 97,534 $ - $
Slide 20: Table III
FY 2011 GUIDANCE AND FY 2010 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* FY11 reported diluted EPS from continuing operations range $3.28 - $3.43 Deal-related amortization (1,2) 0.355 Charges associated with acquisition costs (2) 0.061 Charge associa
Slide 21: Table IV
FY 2011 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Consolidated Reported consolidated gross margin range 33.5% - 34.5% Deal-related amortization (1,2) 1.2% Inventory step-up (2) 0.3% Adjusted consolidated gross margin range 35.0% - 36.0% Reporte
Slide 22: Table IV (Continued)
FY 2011 GUIDANCE Table IV (Continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2011 Guidance* Nutritionals Reported gross margin range 31.6% - 33.6% Deal-related amortization (1) 2.4% Adjusted gross margin range 34.0% - 36.0% Reported operating margin range 13.4% - 14.4% Deal
Slide 23: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) 12/25/2010 Total debt $ 890,971 Less: Cash and cash equivalents (134,779) Total net debt 756,192 Total shareholders' equity 1,308,040 Total capital $ 2,064,232 Net debt to total capital ratio 36.6% 23 Quality, Aff