Perrigo Company Plc · NYSE:PRGO
Perrigo — Q2 2022 Earnings Presentation
40 slides from Perrigo's earnings presentation, Aug 9, 2022
Slide 1: Second Quarter 2022 Financial Results
Adding HR photos Second Quarter 2022 Financial Results August 9, 2022
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: A Big Quarter For Perrigo & Its Stakeholders!
A Big Quarter For Perrigo & Its Stakeholders! Revenue Growth Accelerated: +20.2% vs. YA (constant currency); +17.2% Organic Major Product Categories & Channels Growing HRA Acquisition Contributing Meaningfully to Results Redefined Growth Pillars to Include Women’s Health & Skin Care Launched Nasonex
Slide 6: Continuing to Execute, Despite Severe Macro-Economic Headwinds
Continuing to Execute, Despite Severe Macro-Economic Headwinds Perrigo Q2 2022 Financial Highlights Reported Net Sales $1,122M % Change YoY +14.3% Constant Currency Net Sales +20.2% % Change YoY Organic Net Sales % Change YoY +17.2% Adjusted Diluted EPS $0.43 % Change YoY -14.0% Constant Currency Ad
Slide 7: Sales Growth Momentum Continued in Q2 2022
Sales Growth Momentum Continued in Q2 2022 Quarterly Net Sales Growth YoY (ex-currency) Includes 660bps +20.2% benefit from the acquisition of HRA +9.7% +5.7% +3.1% CSCA -0.3% CSCI Total -9.1% Q1:21 Q2:21 Q3:21 Q4:21 Q1:22 Q2:22 7 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to
Slide 8: HRA is Already Making Significant Contributions!
HRA is Already Making Significant Contributions! +$65M Q2 Constant Currency Net Sales +220bps Benefit to Perrigo Adjusted Gross Margin YoY On Track to Deliver Synergies 8 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts.
Slide 9: Two New Global Product Categories to Align With HRA Acquisition
Two New Global Product Categories to Align With HRA Acquisition Women’s Health Skin Care Comprised of the legacy women's health portfolio of Comprised of Compeed®, Mederma® and the legacy HRA, including ellaOne® and Hana®, and legacy Perrigo "Skincare and Personal Hygiene" category, Perrigo women's
Slide 10: Accelerated Perrigo Growth Driven by Addition of HRA, Global Cough/Cold & U.S. Infant Formula
Accelerated Perrigo Growth Driven by Addition of HRA, Global Cough/Cold & U.S. Infant Formula Q2 2022 Net Sales Growth YoY Q2 2022 Perrigo Category (ex-currency) Net Sales Growth YoY (ex-currency) 25.8% Women's Health 77.0% 20.2% Upper Respiratory 44.4% 17.0% Nutrition 30.6% Skin Care 30.2% Other 29
Slide 11: Consumer Demand Remains Robust!
Consumer Demand Remains Robust! Q2:22 U.S. Consumer Takeaway Q2:22 European Consumer Takeaway (IRI MULO 13-weeks ended 7/10/22 vs. Prior Year)1 (Internal Estimates vs. Prior Year)2 27.5% +6.7% +1.6% 6.4% -2.2% Essential Essential Self-care Self-care Oral Care Nutrition OTC Products Products 11 1. So
Slide 12: And U.S. OTC Store Brands Gain Share From National Brands
And U.S. OTC Store Brands Gain Share From National Brands Total OTC Store Brand vs. National Brand Market Share ($ share) 73.7% 71.8% 71.3% 71.4% 71.3% 70.9% 70.4% Store Brand gained +3.3 Share Points YTD 28.2% 28.7% 28.6% 28.7% 29.1% 29.6% 26.3% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Stor
Slide 13: Perrigo Infant Formula Also Gained, Due to New Products, Contract Sales and a National Brand Recall
Perrigo Infant Formula Also Gained, Due to New Products, Contract Sales and a National Brand Recall CSCA Nutrition Net Sales Growth Growth Driven by: $140 +30.6% • Store brand formula, the launch of $120 Hypoallergenic store brand formula and $100 the contract business $80 • National brand recall la
Slide 14: Perrigo Global E-Commerce Business Continues to Grow
Perrigo Global E-Commerce Business Continues to Grow E-commerce as % of Total Perrigo Net Sales +25% 1H’22 YoY Growth 15% 10% Growth Driven by 5% Both Segments 0% CY'18 CY'19 CY'20 CY'21 1H'22 Growth in Both Omni & Traditional Channels 14
Slide 15: Perrigo's First Branded Rx-to-OTC Switch Approved & Launched: NASONEX 24HR
Perrigo’s First Branded Rx-to-OTC Switch Approved & Launched: NASONEX TM 24HR 15
Slide 16: Filed for FDA Approval of Opill, Potentially the First Ever Rx-to-OTC Switch for a Daily Oral Contraceptive
Filed for FDA Approval of Opill®, Potentially the First Ever Rx- to-OTC Switch for a Daily Oral Contraceptive Strong Unmet Need For Affordable Daily Oral Contraceptives Represent Access To An OTC Oral Contraceptive1 an Attractive Market Opportunity2 Market Half of the 6.1 million annual pregnancies
Slide 17: Adjusted Gross Margin Recovery Progressing as Expected, Despite Further Input Cost Headwinds
Adjusted Gross Margin Recovery Progressing as Expected, Despite Further Input Cost Headwinds Total Perrigo Adjusted Gross Margin Growth Driven by: (Est.): 37% - 39% • Inflation-related price increases 36.5% • Contributions from HRA • Elimination of COVID-19 costs 33.4% • Sale of Latin American busin
Slide 18: Global Supply Chain Reinvention Initiative: Optimizing the Newly Formed Perrigo Consumer Self-Care Supply Chain
Global Supply Chain Reinvention Initiative: Optimizing the Newly Formed Perrigo Consumer Self-Care Supply Chain A multi-year program to “Optimize" by making a more nimble, resilient and efficient operation and drive margin expansion Supply Chain Reinvention Expands Toolbox 1. Redefines integrated bu
Slide 19: We Are Excited About Our Future, While Planning Pragmatically Given the Challenges in the Current Environment
We Are Excited About Our Future, While Planning Pragmatically Given the Challenges in the Current Environment Opportunity Self-Care Strategy is Correct! • Further store brand market share gains, due to a potential recession • Recession may drive lower input costs • Opill® approval in 2023 Continued
Slide 20: Eduardo Bezerra, EVP & CFO
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Slide 21: Introduction & First Impressions from The CFO
Introduction & First Impressions from The CFO EXPERIENCE TOP PRIORITIES • Joined Perrigo in May 2022 as Executive Vice President Delivering and Chief Financial Officer 1 Financial Results • Senior Vice President and Chief Financial Officer for Del Monte Fresh Produce, Inc., from 2019 to 2022 Gross M
Slide 22: Second Quarter 2022 GAAP to Non-GAAP Reconciliation
Second Quarter 2022 GAAP to Non-GAAP Reconciliation 22
Slide 23: Perrigo – Second Quarter 2022
Perrigo – Second Quarter 2022 Constant Sequential Perrigo Q2 2022 YoY $ Change YoY % Change Currency % Organic % Change Improvement Change ($ in millions, except margin) vs Q1’22 Net Sales $1,122 $141 14.3% 20.2% 17.2% Adjusted Gross Profit $409 $33 8.7% 17.0% Adjusted Gross Profit Margin % 36.5% --
Slide 24: CSC Americas – Second Quarter 2022
CSC Americas – Second Quarter 2022 Sequential CSCA Q2 2022 YoY $ Change YoY % Change Organic % Change Improvement ($ in millions, except margin) vs Q1’22 Net Sales $728 $106 17.0% 21.2% Adjusted Gross Profit $203 $6 3.0% Adjusted Gross Profit Margin % 27.9% --- (380) Bps +290 bps Adjusted Operating
Slide 25: CSC International – Second Quarter 2022
CSC International – Second Quarter 2022 Constant Organic CSCI Q2 2022 YoY $ Change YoY % Change Currency % Change % ($ in millions, except margin) Change Net Sales $394 $35 9.7% 25.8% 10.6% Adjusted Gross Profit $206 $27 15.0% 31.9% Adjusted Gross Profit Margin % 52.3% --- 240 Bps Adjusted Operating
Slide 26: Balance Sheet & Capital Allocation Priorities
Balance Sheet & Capital Allocation Priorities Capital Allocation Priorities Cash & Cash Continued dividend growth Equivalents Assessing capital investments to optimize supply chain $485M as of 07/02/2022 Debt paydown Potential share repurchases 26
Slide 27: Updating Our 2022 Outlook
Updating Our 2022 Outlook Increasing Organic Net Sales Growth YoY Outlook to 9.0%-10.0% (from 8.0%-9.0%) Reaffirming USD Net Sales Growth YoY Outlook of 8.5%-9.5% Increase in organic net sales growth outlook expected to be offset by the worsening impact of currency translation Updating Adjusted Dilu
Slide 28: To make lives better by bringing quality, affordable Self-Care Products that consumers trust everywhere they are sold
To make lives better by bringing quality, affordable Self-Care Products that consumers trust everywhere they are sold
Slide 29: Table I: Reconciliation of Non-GAAP Measures
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 29
Slide 30: Table I (Continued): Reconciliation of Non-GAAP Measures
TABLE I (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 30
Slide 31: Table I (Continued): Reconciliation of Non-GAAP Measures
TABLE I (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 31
Slide 32: Table I (Continued): Reconciliation of Non-GAAP Measures
TABLE I (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 32
Slide 33: Table II: Reconciliation of Non-GAAP Measures
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED SEGMENT INFORMATION (in millions) (unaudited) 33
Slide 34: Table II (Continued): Reconciliation of Non-GAAP Measures
TABLE II (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED SEGMENT INFORMATION (in millions) (unaudited) 34
Slide 35: Adjusted Net Sales Growth – Consolidated
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ADJUSTED NET SALES GROWTH – CONSOLIDATED AND SEGMENT INFORMATION (in millions) (unaudited) 35
Slide 36: Adjusted Net Sales Growth – Consolidated
TABLE III (CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ADJUSTED NET SALES GROWTH – CONSOLIDATED AND SEGMENT INFORMATION (in millions) (unaudited) 36
Slide 37: Adjusted Net Sales Growth – Consolidated
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ADJUSTED NET SALES GROWTH – CONSOLIDATED AND SEGMENT INFORMATION (in millions) (unaudited) 37
Slide 38: Table V: Reconciliation of Non-GAAP Measures
TABLE V PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED AND SEGMENT INFORMATION (in millions) (unaudited) 38
Slide 39: Table VI: Reconciliation of Non-GAAP Measures
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED AND SEGMENT INFORMATION (in millions) (unaudited) 39
Slide 40: Adjusted Net Sales Growth – Consolidated
TABLE VII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES ADJUSTED NET SALES GROWTH – CONSOLIDATED (in millions) (unaudited) 40