Perrigo Company Plc · NYSE:PRGO
Perrigo — Q1 2023 Earnings Presentation
32 slides from Perrigo's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Quarterly Update
Adding HR photos First Quarter 2023 Quarterly Update May 9, 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: Murray S. Kessler, President & CEO
Murray S. Kessler, President & CEO
Slide 5: Positive Feedback After Outlining 3-Year Optimizing and Accelerating Strategy at Investor Day
Positive Feedback After Outlining Perrigo’s 3-Year Optimizing and Accelerating Strategy at Virtual Investor Day BY THE NUMBERS: POSITIVE FEEDBACK: >500 >650 unique viewers watched the unique viewers watched the live webcast webcast replay >7,800 >37.5K unique page views of Perrigo IR unique views/hi
Slide 6: Solid Progress Optimizing and Accelerating Perrigo, Strong Q1 2023 Results
Already Making Solid Progress Optimizing and Accelerating Perrigo, While Achieving Strong Q1:2023 Financial Results Realizing Benefits Progressing Supply Opill ® FDA AdCom from Acquisitions Chain Reinvention Begins Today Double-Digit Top and Adj. GM Expanded Consumer Demand Bottom-Line Growth +400bp
Slide 7: Realizing Benefits from Acquisitions & Progressing Supply Chain Reinvention Program
Realizing Benefits from Acquisitions & Progressing Supply Chain Reinvention Program Integration of HRA • Achieving expected synergies with lower than anticipated headcount • Transition of product sales/distribution into Perrigo on -track; Q1’23 unfavorable impact to net sales of $12M and adj. EPS of
Slide 8: FDA Advisory Committee to Discuss Opill Begins Today
FDA Advisory Committee to Discuss Opill® Begins Today • Almost half of the 6.1M pregnancies in the U.S. each The Potential First Ever year are unintended Rx-to-OTC Switch of Daily Birth Control in • OTC availability has potential to substantially improve the U.S. health outcomes • Women face unneces
Slide 9: Achieved Double-Digit Top and Bottom-Line Growth, Adj. Gross Margin +400bps
Achieved Double-Digit Top and Bottom-Line Growth, in Addition to Adj. Gross Margin Expansion of +400bps YoY Q1 2023 Financial Highlights YoY Constant Currency Net Sales Growth +13.0% Organic Net Sales Growth +6.4% Adj. Gross Margin 37.5% Adj. Gross Margin Vs YA +400bps Adj Op. Inc. Growth +37.8% Adj
Slide 10: Results Driven by Strong Performance Across the Perrigo Portfolio
Results Driven by Strong Performance Across the Perrigo Portfolio Compeed® gaining distribution; +19% consumption growth in latest 13-weeks YoY Strong performance in E.U. Anti- E.U. total market Parasites & Insect consumption at 4- Repellent year high U.S. Oral Care up U.S. OTC 20%, gained >2 pts sh
Slide 11: Global Consumer Demand Remains Strong, Elevated Cough/Cold Trends Continued
Global Consumer Demand Remains Strong, Elevated Cough/Cold Illness Trends Continued Q1 2023 Net Sales Growth YoY Q1 2023 Perrigo Category (constant currency) Net Sales Growth YoY (constant currency) Women's Health 95.4% +23.6% Other 60.2% Skin Care 26.7% +13.0% Oral Care 16.1% +7.6% Healthy lifestyl
Slide 12: Key Takeaways
KEY TAKEAWAYS • Realizing benefits from acquisitions; business integrations and synergies remain on-track • Supply Chain Reinvention Program progressing well • Remain optimistic about the potential for Opill® • Achieved double-digit top and bottom-line growth Q1’23 YoY • Adjusted gross margin recove
Slide 13: Eduardo Bezerra, EVP & CFO
Eduardo Bezerra, EVP & CFO
Slide 14: First Quarter 2023 GAAP to Non-GAAP Reconciliation
First Quarter 2023 GAAP to Non-GAAP Reconciliation n/m 14
Slide 15: Perrigo – First Quarter 2023
Perrigo – First Quarter 2023 Constant Perrigo Q1 2023 $ Change YoY % Change YoY Currency % Organic % Change ($ in millions, except margin) Change Net Sales $1,182 $107 10.0% 13.0% 6.4% Adjusted Gross Profit $443 $84 23.3% 28.2% Adjusted Gross Profit Margin % 37.5% --- 400bps 450bps Adjusted Operatin
Slide 16: Adjusted Gross Margin Expanded +400bps YoY
Perrigo Adjusted Gross Margin Expanded +400bps YoY, Driven by Both Base Business and Accretive Acquisitions Perrigo Adj. Gross Margin Growth YoY CSCA Adj. Gross Margin CSCI Adj. Gross Margin Perrigo Adj. Gross Margin +310bps +470bps +400bps OTC: +450bps Oral Care: +360bps 54.6% 37.5% 28.1% 25.0% 49.
Slide 17: Adjusted Operating Margin Expansion +200bps YoY
Leading to Perrigo Adjusted Operating Margin Expansion +200bps YoY Perrigo Adj. Operating Margin Growth YoY CSCA Adj. Operating Margin CSCI Adj. Operating Margin Perrigo Adj. Operating Margin +70bps +230bps +200bps 13.0% 16.8% 12.3% 14.5% 10.1% 8.1% Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 1. See attache
Slide 18: Balance Sheet and Operating Cash Flow Metrics Q1'23
Balance Sheet and Operating Cash Flow Metrics Q1’23 As of April 01, 2023 ($ in millions) Operating Cash Flow Q1’23 $19M Operating Cash Flow Conversion 32% Capital Expenditures in the Quarter $23M Dividends Paid in the Quarter $36M Cash Balance as of April 1, 2023 $553M 18 1. See attached Appendix fo
Slide 19: Reaffirming 2023 Outlook
Reaffirming 2023 Outlook, Continue to Expect Strong Topline and Bottom-Line Growth, Along With Margin Expansion 2023 Outlook1,2 Assumptions Target Amount • Acquisitions: HRA annualizes April 29, 2023; Gateway infant formula annualizes November 1, 2023 Reported Net Sales 7.0% - 11.0% • Divestitures:
Slide 20: Murray S. Kessler, President & CEO
Murray S. Kessler, President & CEO
Slide 21: Pieces Are All in Place for Meaningful Value Creation
Pieces Are All in Place for Meaningful Value Creation! Returned Perrigo to Topline Growth Reconfigured Portfolio to Consumer Self-Care – 14 Deals Led Perrigo through Pandemic & Supply Chain Crisis Built World-Class Team & Infrastructure Restored Adj. Gross Margin Returned Perrigo to Bottom-line Grow
Slide 22: Mission and Q&A
To make lives better by bringing quality, affordable Self-Care Products that consumers trust everywhere they are sold Q&A
Slide 23: Table I Reconciliation of Non-GAAP Measures
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 23
Slide 24: 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) 24
Slide 25: Table II Reconciliation of Non-GAAP Measures
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 25
Slide 26: Table III Reconciliation of Non-GAAP Measures
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 26
Slide 27: Table III (Continued) Reconciliation of Non-GAAP Measures
TABLE III (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 27
Slide 28: Table IV Reconciliation of Non-GAAP Measures
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 28
Slide 29: Table IV (Continued) Reconciliation of Non-GAAP Measures
TABLE IV (CONTINUED) 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 SELECTED CONSOLIDATED INFORMATION (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 SELECTED CONSOLIDATED INFORMATION (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 SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) Trailing Twelve Months Ended April 1, 2023 December 31, 2022 Reported income (loss) from continuing operations $ (131) $ (131) Income tax expense (b