Perrigo Company Plc · NYSE:PRGO
Perrigo — Q2 2023 Earnings Presentation
28 slides from Perrigo's earnings presentation, Aug 9, 2023
Slide 1: Second Quarter 2023 Earnings Results
Adding HR photos Second Quarter 2023 Earnings Results August 8, 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: Patrick Lockwood-Taylor, President & CEO
Patrick Lockwood-Taylor, President & CEO
Slide 5: Introduction and Early Observations
Introduction and Early Observations PERRIGO STRENGTHS FRAMEWORK FOR SUSTAINABLE GROWTH ✓ Manufacturing scale in the U.S. Where to Play • Ability to produce over 50 billion doses per ✓ Attractive segments with favorable tailwinds year across a wide variety of dosage formats ✓ Strong Customer Relation
Slide 6: Progressing on Accretive Initiatives While Delivering On Second Quarter Earnings Results
Progressing on Accretive Initiatives While Delivering On Second Quarter Earnings Results Progressing Supply Chain ✓ Continuing to implement Perrigo Work System globally Reinvention ✓ SKU prioritization actions delivering gross margin benefit Program ✓ Slightly ahead of total planned synergies throug
Slide 7: Q2 Highlights Included Higher Brand Consumption in CSCI and U.S. Store Brand Volume Share Gains
Q2 Highlights Included Higher Brand Consumption in CSCI and U.S. Store Brand Volume Share Gains vs. National Brand CSCI Brand Performance 1 U.S. Store Brand vs. National Brand Volume Share 2 Higher consumption in several Latest 13- categories including: Weeks: • Cough Cold +0.7 • Anti-Parasites shar
Slide 8: Opill OTC is Now FDA Approved!
Opill® OTC is Now FDA Approved! The First-Ever OTC Daily Birth ✓ Total addressable market of 64 million, ages 15-44 Control Available in the U.S. ✓ 40-50% of total addressable market are currently using pill, barrier or natural methods ✓ Expect strong uptake and consumer consumption: ✓ Opill® is the
Slide 9: Navigating Current Infant Formula Industry Volatility
Navigating Current Infant Formula Industry Volatility ✓ Infant formula is a solid business ✓ Industry is highly regulated ✓ Evolving regulatory environment has caused lower industry volumes and higher manufacturing costs ✓ Market is normalizing from 2022 national brand supply issue ✓ Demand for stor
Slide 10: We Must Focus to Win
We Must Focus to Win ✓ Perrigo is a leading global self-care company ✓ We have unique positioning within the self-care industry ✓ Organization is well motivated ✓ Team is focused on cash and reducing leverage ✓ We have work to do to position ourselves for sustainable growth over the longer term We W
Slide 11: Eduardo Bezerra, EVP & CFO
Eduardo Bezerra, EVP & CFO
Slide 12: Non-GAAP Adjustments
Non-GAAP Adjustments Three Months Ended July 1, 2023 Income from Net Gross R&D DSG&A Restructuring Operating Interest and Income Tax Sonning Diluted Earnings ti per Share") Consolidated Continuing Operations Sales __Profit| Expense Expense and Other Income _Other Expense Reported $ 11931 $ 4280 $ 32
Slide 13: Delivered Second Quarter Earnings Results
Delivered Second Quarter Earnings Results Constant Perrigo Q2 2023 Q2 2022 $ Change % Change YoY YoY Currency % ($ in millions, except margin) Change Net Sales $1,193 $1,122 $71 6.4% 6.6% Organic growth of +0.8%, including -2.7 percentage points from CSCA Adjusted Gross Profit $462 $409 $52 12.8% 12
Slide 14: Achieved Meaningful Adj. Gross and Adj. Operating Margin Expansion Year-Over-Year
Achieved Meaningful Adj. Gross and Adj. Operating Margin Expansion Year-Over-Year Adj. Gross Margin Growth YoY Adj. Operating Margin Growth YoY +220bps +110bps Total Perrigo 36.5% 38.7% 10.4% 11.5% Q2'22 Q2'23 Q2'22 Q2'23 +210bps +30bps CSCI 52.3% 52.6% 13.7% 15.8% Q2'22 Q2'23 Q2'22 Q2'23 +260bps +8
Slide 15: Cash Flow Generation is Funding Investments & Returns to Shareholders
Cash Flow Generation is Funding Investments & Returns to Shareholders Cash Generation & Uses of Cash Q2’23 Operating Cash Flow Conversion FY’23 $555M in Cash & Cash Equivalents Continue to Operating Cash Flow of expect $53M conversion of 61% Operating Cash Flow Conversion 2 ~100% $20M in Capital Exp
Slide 16: Reaffirming 2023 Outlook
Reaffirming 2023 Outlook 2023 Outlook1,2 Assumptions3 Reported Net Sales Growth 7.0% - 11.0% • Pre-launch investments for Opill® now included; anticipate channel fill in Q4, on shelves early Q1’24 Organic Net Sales Growth 3.0% - 6.0% • Pricing actions in infant formula expected to offset Adj. EPS Ra
Slide 17: Q&A
To make lives better by bringing quality, affordable Self-Care Products that consumers trust everywhere they are sold Q&A
Slide 18: Table I Reconciliation of Non-GAAP
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 18
Slide 19: 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) 19
Slide 20: 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) 20
Slide 21: 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) 21
Slide 22: Table II Reconciliation of Non-GAAP
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 22
Slide 23: Table II Reconciliation of Non-GAAP
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 23
Slide 24: Table III Reconciliation of Non-GAAP
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 24
Slide 25: Table IV Reconciliation of Non-GAAP
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 25
Slide 26: Table V Reconciliation of Non-GAAP - Selected Consolidated Information
TABLE V PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 26
Slide 27: Table VI Reconciliation of Non-GAAP - Selected Consolidated Information
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 27
Slide 28: Table VII Reconciliation of Non-GAAP - Selected Consolidated Information
TABLE VII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES SELECTED CONSOLIDATED INFORMATION (in millions, except per share amounts) (unaudited) 28