Perrigo Company plc · NYSE:PRGO
Perrigo — Q1 FY2012 Earnings Presentation
24 slides from Perrigo's earnings presentation, Oct 27, 2011
Slide 1: Perrigo Fiscal 2012 First Quarter Conference Call
Perrigo Fiscal 2012 First Quarter Conference Call October 27, 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: Perrigo Consolidated – GAAP Financials
Perrigo Consolidated – GAAP Financials From Continuing Operations Q1 2012 Q1 2011 % Change Y/Y ($ in millions, except per share amounts) Net Sales $ 725 $ 641 13% Cost of Sales 498 427 16% Gross Profit 228 214 6% Distribution 10 8 23% R&D 20 18 11% SG&A 96 76 26% Operating Income 102 112 (9%) Income
Slide 4: Perrigo Consolidated – Q1 FY 2012 Adjusted Financials
Perrigo Consolidated – Q1 FY 2012 Adjusted Financials* From Continuing Operations % Change Change as Q1 2012 Q1 2011 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 725 $ 641 13% Adjusted Cost of Sales 455 420 8% Adjusted Gross Profit 270 221 22% 270 bps Distribution 10 8 23%
Slide 5: Net Sales Performance by Segment – Adjusted Financials
Net Sales Performance by Segment – Adjusted Financials* From Continuing Operations ($in millions) Q1 2012 Q1 2011 % Change Y/Y Consolidated Perrigo $ 725 $ 641 13% Adjusted Operating Income 154 123 25% Consumer Healthcare 412 396 4% Adjusted Operating Income 67 73 (9%) Nutritionals 120 123 (2%) Adju
Slide 6: All Category Update – 52 Weeks
All Category Update – 52 Weeks Store Brand National Brand Category 9.1% Total OTC & VMS* -0.6% 2.2% 11.0% Total OTC -2.4% 1.5% 13.7% Analgesics -7.1% -0.1% 14.3% Cough, Cold, Allergy, Sinus -2.2% 2.1% 12.5% Gastrointestinal -3.0% 1.5% 4.6% Smoking Cessation -2.3% 1.2% 1.4% Vitamins (*VMS) 6.1% 4.8%
Slide 7: Consumer Healthcare Segment – Adjusted Financials
Consumer Healthcare Segment – Adjusted Financials* From Continuing Operations Change as a % Q1 2012 Q1 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 412 $ 396 4% Adjusted Cost of Sales 284 270 5% Adjusted Gross Profit 128 126 1% (90) bps Adjusted Operating Expenses 61 53 15% Adjusted Operat
Slide 8: Nutritionals Segment – Adjusted Financials
Nutritionals Segment – Adjusted Financials* From Continuing Operations Change as a % Q1 2012 Q1 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 120 $ 123 (2%) Adjusted Cost of Sales 83 81 3% Adjusted Gross Profit 36 41 (12%) (330) bps Adjusted Operating Expenses 18 18 2% Adjusted Operating In
Slide 9: Rx Segment – Adjusted Financials
Rx Segment – Adjusted Financials* From Continuing Operations Change as a % Q1 2012 Q1 2011 % Change Y/Y ($ in millions) to sales Net Sales $ 128 $ 69 84% Adjusted Cost of Sales 50 39 29% Adjusted Gross Profit 77 30 156% 1,700 bps Adjusted Operating Expenses 16 10 63% Adjusted Operating Income $ 61 $
Slide 10: API Segment – Adjusted Financials
API Segment – Adjusted Financials* From Continuing Operations Change as a % Q1 2012 Q1 2011 % Change Y/Y to sales ($ in millions) Net Sales $ 48 $ 37 28% Adjusted Cost of Sales 25 20 26% Adjusted Gross Profit 22 17 30% 80 bps Operating Expenses 7 6 13% Adjusted Operating Income $ 15 $ 11 40% 280 bps
Slide 11: Perrigo Updated FY12 Guidance by Segment
Perrigo Updated FY12 Guidance by Segment* From Continuing Operations FY 2012 Guidance Updated FY 2012 Guidance 8/16/11 Conference Call 10/27/11 Conference Call CONSUMER HEALTHCARE Revenue Growth Y/Y 12% - 14% 12% - 14% Adjusted Gross Margin % 32% - 33% 32% - 33% Adjusted Operating Margin % 18% - 19%
Slide 12: Perrigo Consolidated Updated FY12 Guidance
Perrigo Consolidated Updated FY12 Guidance* From Continuing Operations FY 2012 Guidance Updated FY 2012 Guidance 8/16/11 Conference Call 10/27/11 Conference Call CONSOLIDATED PERRIGO Revenue Growth Y/Y 15% - 18% 17% - 20% Adjusted Gross Margin % 35% - 38% 35% - 38% Adjusted R&D as % to Sales Approxi
Slide 13: New Product Innovation – FY2012 Pipeline
New Product Innovation – FY2012 Pipeline Publicly disclosed products Potential Rx to OTC switches • $5B in branded sales potential over the next 3 years • $10B in branded sales potential over the next 5 years Expect to launch >45 new products, resulting in >$190M of revenue in FY 2012 OTC Pipeline H
Slide 14: New Product Innovation – FY2012 Pipeline
New Product Innovation – FY2012 Pipeline Publicly disclosed products Potential Rx to OTC switches • $5B in branded sales potential over the next 3 years • $10B in branded sales potential over the next 5 years Expect to launch >45 new products, resulting in >$190M of revenue in FY 2012 Nutritionals P
Slide 15: China Premium Infant Formula Partnership
China Premium Infant Formula Partnership Founder Pharma Agreement Chinese infant formula market ~$5BN Non-exclusive supply agreement with sales in U.S. dollars • Sales at higher gross and operating margins than corporate average • Sales recognition at U.S. port • Sales expected to ramp up over next
Slide 16: Appendix
Appendix 16 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 September 24, 2011 September 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 725,295
Slide 18: Table II
PERRIGO COMPANY REPORTABLE SEGMENTS Table II RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Consumer Healthcare September 24, 2011 September 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sales $ 411,6
Slide 19: Table II (Continued)
PERRIGO COMPANY REPORTABLE SEGMENTS Table II (Continued) RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Three Months Ended Rx Pharmaceuticals September 24, 2011 September 25, 2010 % Change Non-GAAP Non-GAAP As GAAP Adjustments As Adjusted GAAP Adjustments As Adjusted GAAP Adj. Net sa
Slide 20: Table III
PERRIGO COMPANY FY 2012 GUIDANCE AND FY 2011 EPS Table III RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance* FY12 reported diluted EPS from continuing operations range $3.92 - $4.07 Deal-related amortization (1) 0.52 Charge associated with inventory step-up 0.18 Charges
Slide 21: Table IV
PERRIGO COMPANY FY 2012 GUIDANCE Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Consolidated Reported consolidated gross margin range 32.5% - 35.5% Deal-related amortization (1) 1.7% Inventory step-up 0.8% Adjusted consolidated gross margin range 35% - 38% Re
Slide 22: Table IV (continued)
PERRIGO COMPANY FY 2012 GUIDANCE Table IV (continued) RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2012 Guidance Nutritionals Reported gross margin range 28.1% - 30.1% Deal-related amortization (1) 2.9% Adjusted gross margin range 31% - 33% Reported operating margin range 9.4% -
Slide 23: Table V
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table V (in thousands) (unaudited) 9/24/2011 Total debt $ 1,199,537 Less: Cash and cash equivalents (116,615) Total net debt 1,082,922 Total shareholders' equity 1,544,441 Total capital $ 2,627,363 Net debt to total capital ratio 41.2% Consolidated
Slide 24: Table VI
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES Table VI (in thousands) (unaudited) Net Sales for the Three Months Ended Consolidated September 24, 2011 September 25, 2010 % Change Net sales, as reported $ 725,295 $ 641,322 13% Less: Paddock acquisition (38,900) - Net sales, organic $ 686,395 $