Perrigo Company Plc · NYSE:PRGO
Perrigo — Q3 2010 Earnings Presentation
21 slides from Perrigo's earnings presentation, Apr 29, 2010
Slide 1: Perrigo 2010 Third Quarter Conference Call
Perrigo 2010 Third Quarter Conference Call April 29, 2010 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: Store Brands Gain 10 Share Points After Tylenol Recall
Store Brands Gain 10 Share Points After Tylenol Recall 3 Source: IRI FDMx, through Week Ending April 11, 2010 Quality, Affordable Healthcare Products
Slide 4: Polyethylene Glycol 3350 (MiraLax)
Polyethylene Glycol 3350 (MiraLax®) • Leveraging our best-in-class marketing capabilities, Perrigo has been able to secure >90% of the store brand market With 5 OTC approvals, Perrigo has >90% Store Brand Market Share <10% 35% Store Brand Volume Share - FDMx 29.3% 30% 27.0% 24.7% 24.5% 25% 21.6% 20%
Slide 5: All Category Update
All Category Update 52 Weeks Store Brand National Brand Category 11.2% Total OTC & Nutrition 1.3% 4.1% 11.9% Total OTC -2.8% 1.0% 11.0% Analgesics -2.7% 0.8% 6.8% Cough, Cold, Allergy, Sinus -7.3% -4.1% 17.9% Gastrointestinal 0.2% 4.6% 5.9% Smoking Cessation -5.8% -0.5% 12.3% Nutrition 11.3% 11.6% -
Slide 6: GAAP Financials - From Continuing Operations
GAAP Financials - From Continuing Operations Perrigo Consolidated Q3 2010 Q3 2009 % Change ($ in millions, except per share amounts) Y/Y Net Sales $ 538 $ 506 6% Cost of Sales 352 356 -1% Gross Profit 186 150 24% Distribution 8 6 29% SG&A 66 54 22% R&D 17 18 -2% Restructuring 7 - - Operating Income
Slide 7: Adjusted Financials - From Continuing Operations
Adjusted Financials* – From Continuing Operations % Change Q3 2010 Q3 2009 ($ in millions, except per share data) Y/Y Net Sales $ 538.3 $ 505.9 6% Reported Gross Profit $ 185.9 $ 149.6 24% Inventory step-ups 0.3 0.7 Adjusted Gross Profit $ 186.2 $ 150.3 24% Reported Operating Expenses $ 98.6 $ 77.7
Slide 8: Adjusted Financials - Perrigo Consolidated
Adjusted Financials* - From Continuing Operations Perrigo Consolidated % Change Change as Q3 2010 Q3 2009 ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 538 $ 506 6% Adjusted Cost of Sales 352 356 -1% Adjusted Gross Profit 186 150 24% +490 bps Distribution 8 6 29% Adjusted SG
Slide 9: Adjusted Segment Financials - Consumer Healthcare
Adjusted Segment Financials* - From Continuing Operations Consumer Healthcare % Change Change as Q3 2010 Q3 2009 ($ in millions) Y/Y a % to sales Net Sales $ 436 $ 419 4% Adjusted Cost of Sales 298 302 -1% Adjusted Gross Profit 138 117 18% +380 bps Adjusted Operating Expenses 59 54 10% Adjusted Oper
Slide 10: Segment Financials - Rx Pharmaceuticals
Segment Financials - From Continuing Operations Rx Pharmaceuticals % Change Change as Q3 2010 Q3 2009 ($ in millions) Y/Y a % to sales Net Sales $ 51 $ 42 22% Cost of Sales 24 26 -7% Gross Profit 27 16 68% +1460 bps Operating Expenses 10 8 26% Operating Income $ 17 $ 8 111% +1400 bps Margin Analysis
Slide 11: Adjusted Segment Financials - API
Adjusted Segment Financials* - From Continuing Operations API % Change Change as Q3 2010 Q3 2009 ($ in millions) Y/Y a % to sales Net Sales $ 34 $ 31 11% Cost of Sales 20 20 5% Gross Profit 14 11 21% +340 bps Adjusted Operating Expenses 8 7 19% Adjusted Operating Income $ 5 $ 4 25% +180 bps Margin A
Slide 12: Cash Flow & Working Capital
Cash Flow & Working Capital Days Sales Outstanding Operating Cash Flow 75 $ in millions $240 60 60 56 $200 45 51 $216 30 $160 15 $120 $132 0 $80 $102 Q3 2008 Q3 2009 Q3 2010 Working Capital Turns $40 5.0 4.0 4.4 $0 4.3 4.0 YTD 2008 YTD 2009 YTD 2010 3.0 2.0 • Record year-to-date operating 1.0 cash f
Slide 13: Perrigo FY10 Feb. Guidance Tracking Year-to-Date
Perrigo FY10 Feb. Guidance Tracking Year-to-Date - From Continuing Operations February Guidance YTD Performance +8% +11% Consolidated Revenue +10.1% Growth +8% +10% Consumer Healthcare +9.8% Revenue Growth 15% 17% Adjusted Consolidated 17.2% Operating Margin Adjusted EPS from +36% +42% Continuing Op
Slide 14: Perrigo FY10 Revised Guidance
Perrigo FY10 Revised Guidance* - From Continuing Operations Consolidated Revenue Growth 12% to 13% from Fiscal 2009 Consumer Healthcare Revenue Growth 8% to 10% from Fiscal 2009 Adj. Consolidated Operating Margin 16% to 17% of Net Sales Adj. EPS from Continuing Operations $2.75 to $2.80 (47% to 50%
Slide 15: Appendix
Appendix Quality, Affordable Healthcare Products
Slide 16: Table I: Segment Information
Table I Table I PERRIGO COMPANY SEGMENT INFORMATION (in thousands) (unaudited) Third Quarter* 2010 2009 Segment Net Sales Consumer Healthcare $ 436,259 $ 419,148 Rx Pharmaceuticals 50,838 41,747 API 34,251 30,953 Other 16,958 14,054 Total $ 538,306 $ 505,902 Segment Operating Income (Loss) Consumer
Slide 17: Table II: Reconciliation of Non-GAAP Measures
PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) Table II (unaudited) Third Quarter* 2010 2009 % Change Net sales $ 538,306 $ 505,902 6% Reported gross profit $ 185,866 $ 149,592 24% Inventory step-ups 322 736 Adjusted gross profit $ 186,188 $ 150,328 24%
Slide 18: Table II Continued: Reportable Segments
Table II (Continued) REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II Continued (in thousands) (unaudited) Third Quarter* 2010 2009 % Change Consumer Healthcare Net sales $ 436,259 $ 419,148 4% Reported gross profit $ 138,196 $ 116,068 19% Inventory step-ups - 736 Adjusted gross prof
Slide 19: Table II Continued: API and Other
Table II (Continued) REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES Table II Continued (in thousands) (unaudited) Third Quarter* 2010 2009 % Change API Net sales $ 34,251 $ 30,953 11% Reported operating expenses $ 15,125 $ 7,043 115% Restructuring charges - Germany (6,775) - Adjusted operat
Slide 20: Table III: Reconciliation of Non-GAAP Measures
Table III Table III PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) Third Quarter* Adjustment - Third Quarter* Reported Cost of Sales Inventory Step-Up Adjusted Cost of Sales 2010 2009 2010 2009 2010 2009 % Change Segments Consumer Healthcare $ 298,062 $ 303,081 $ - $
Slide 21: Table IV: FY 2010 Guidance and FY 2009 EPS
Table IV FY 2010 GUIDANCE AND FY 2009 EPS Table IV RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year* Fiscal 2010 Guidance Consolidated Reported consolidated gross margin range 32.2% - 33.2% Charges associated with inventory step-ups 0.30% Adjusted consolidated gross margin range 32.5% - 33.