Perrigo Company Plc · NYSE:PRGO
Perrigo — Q2 2020 Earnings Presentation
24 slides from Perrigo's earnings presentation, Aug 5, 2020
Slide 1: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results August 5, 2020
Slide 2: Bradley Joseph, VP Investor Relations and Corporate Communications
Bradley Joseph, VP Investor Relations and Corporate Communications 2
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 4
Slide 5: A big thank you to ALL colleagues
A big thank you to ALL colleagues 5
Slide 6: Q2 2020 - On Track with Our FY20 Operational Objectives
Q2 2020 - On Track with Our FY20 Operational Objectives And Advancing Transformation to a Consumer Self-Care Company Maintained uninterrupted operations at ALL 27 manufacturing plants worldwide Divested Rosemont for ~$195M in cash at an attractive multiple Provided assurance of liquidity by co
Slide 7: Current Business Dynamics
Current Business Dynamics Reaffirmed 2020 Adj. Diluted EPS Guidance Despite $0.18 - $0.21 from COVID-19 Related Impacts and Divested Rosemont Business KNOWNS UNKNOWNS Best-in-class facility safety and tracing protocols Recovery time for patient visits, non-essential Remote colleagues remain hi
Slide 8: Performing Ahead of Expectations YTD
Performing Ahead of Expectations YTD H1 Net Sales +14% (ex. Divested Businesses and Currency**), Adjusted Operating Income +10%, Adjusted EPS +12% Reported Net Sales YoY Adjusted EPS YoY Financial Highlights Q2 reported net sales of $1.2B $1.2B $1.03 increased 10% YoY, excluding +6% +20% currency
Slide 9: Strong Net Sales Growth Across All Business Segments
Strong Net Sales Growth Across All Business Segments Q2 2020 Net Sales Growth YoY H1 2020 Net Sales Growth YoY Excluding Divested Businesses & Currency** Excluding Divested Businesses & Currency** Perrigo Consolidated 10% Perrigo Consolidated 14% Worldwide Consumer 9% Worldwide Consumer 15% CSC Amer
Slide 10: Highlighted by Organic Net Sales Growth of +3% in Q2 and +7% in H1
Highlighted by Organic** Net Sales Growth of +3% in Q2 and +7% in H1 Consolidated Organic** Growth 12% 11% 10% 8% 7% 6% 6% 4% 3% 3% 2% 0% 0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 TTM Consolidated Organic Growth Annual Organic Growth Target *See attached Appendix for reconciliation of Adjusted (Non
Slide 11: Solid Growth in CSC Americas
Solid Growth in CSC Americas Q2 Net Sales Grew +13% and H1 Net Sales Grew +19%, Excluding Divested Businesses & Currency*** H1 2020 Net Sales Change YoY KEY TAKEAWAYS Excluding Divested Businesses & Currency*** OTC results driven by consumer demand e-Commerce net sales tripled, more than offsett
Slide 12: CSCI Up, Although Portfolio is More Sensitive to Lock Downs
CSCI Up, Although Portfolio is More Sensitive to Lock Downs Net Sales Up +3% in Q2 and +9% in H1, Excluding Divested Business** and Currency H1 2020 Net Sales Excluding Divested Businesses & Currency** KEY TAKEAWAYS Lockdowns, school closings & stay-at-home orders impacted certain product categori
Slide 13: Rx up 10% in H1 as gAlbuterol Launch More Than Offset Base Business Declines
Rx up 10% in H1 as gAlbuterol Launch More Than Offset Base Business Declines Resulting From Lower Patient Visits H1 2020 Net Sales Change YoY KEY TAKEAWAYS $600 $73M incremental sales in Q2 from generic albuterol +10% $528 sulfate $500 $481 $117 Fewer visits to the dermatologist due to COVID-19
Slide 14: Key Guidance Assumptions - H2 2020
Key Guidance Assumptions - H2 2020 Expect Net Sales Growth ~6-7%, Adjusted EPS Range of $3.95 - $4.15 Included in Guidance • Positive demand for essential US OTC products continues • Global e-Commerce performance continues to offset in-store traffic declines • 50% of April/May COVID-19 demand surge
Slide 15: Consumer Self-Care Transformation: eCommerce, Self-Care, Value
Consumer Self-Care Transformation is Succeeding and We Are Well Positioned for the ‘New-Normal’ Leveraging 3 Key Drivers eCommerce Self-Care Value 15
Slide 16: To make lives better by bringing Quality, Affordable Self-Care products
To make lives better by bringing Quality, Affordable Self-Care products that consumers trust everywhere they are sold 16
Slide 17: Ray Silcock, EVP & CFO
Ray Silcock, EVP & CFO Perrigo
Slide 18: Consolidated Summary – Q2 2020
Consolidated Summary – Q2 2020 Restructuring, Consolidated Impairment Interest, Other, and Diluted 3 Months Ending June 27, 2020 Net Gross R&D Expense DSG&A Charges, and Operating Change in Income Tax Net Earnings per (in millions, except per share amounts) Sales Profit Expense Other Income Expense
Slide 19: Worldwide Consumer – Q2/H1 2020
Worldwide Consumer – Q2/H1 2020 Q2 Adjusted Operating Income Increased 16%, Excluding Divested Businesses and Currency** % Change Ex. % Change Worldwide Consumer Q2 YoY Divested H1 YoY $ Ex. Divested ($ in millions) 2020 Change Businesses & 2020 Change Businesses Currency** & Currency** Net Sales $9
Slide 20: CSC Americas – Q2/H1 2020
CSC Americas – Q2/H1 2020 Q2 Adjusted Operating Income Increased 9%, Excluding Divested Businesses and Currency** % Change Ex. % Change Ex. CSC Americas Q2 YoY Divested H1 YoY Divested Businesses & Businesses & ($ in millions) 2020 Change Currency** 2020 Change Currency** Net Sales $628M $46M 13% $1
Slide 21: CSC International – Q2/H1 2020
CSC International – Q2/H1 2020 Q2 Adjusted Operating Income Increased 10%, Excluding Divested Businesses and Currency** % Change Ex. % Change Ex. CSC International Q2 YoY Divested H1 YoY Divested Businesses & Businesses & ($ in millions) 2020 Change Currency** 2020 Change Currency** Net Sales $321M
Slide 22: Rx – Q2/H1 2020
Rx – Q2/H1 2020 Q2 Adjusted Operating Income Increased 4% Rx Q2 YoY YoY % H1 YoY YoY % ($ in millions) 2020 Change Change 2020 Change Change Net Sales $270M $31M 13% $528M $47M 10% Adjusted Gross Profit $107M $7M 7% $216M ($2M) (1%) Adjusted Gross Margin % 39.5% (220 bps) 40.9% (430 bps) Adjusted Op
Slide 23: Balance Sheet and Liquidity Remain Strong
Balance Sheet and Liquidity Remain Strong Refinanced 2021 Bonds with New 2030 Bonds at Attractive 3.15% Coupon; No Debt Due Until Middle of 2022 Select Balance Sheet & Liquidity Measures 6/27/2020 3/28/2020 Cash & Cash Equivalents $1.5B $510M Pro Forma Cash & Cash Equivalents** $850M Total Debt $4.1
Slide 24: To make lives better by bringing Quality, Affordable Self-Care products
To make lives better by bringing Quality, Affordable Self-Care products that consumers trust everywhere they are sold 24