Perrigo Company Plc · NYSE:PRGO
Perrigo — Q3 2024 Earnings Presentation
33 slides from Perrigo's earnings presentation, Nov 6, 2024
Slide 1: Q3/2024 Earnings Presentation – 11/6/24
Q3/2024 Earnings Presentation – 11/6/24
Slide 2: Bradley Joseph, VP Investor Relations & Corporate Communications
VP Investor Relations & Bradley Joseph 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: Performance Against Expectations
Performance Against Expectations What We Said What We Delivered Shape Winning Culture & • Strengthened with appointments of new Chief Brand & Bolster Consumer Capabilities Digital Officer and permanent General Counsel • Project Energize delivered YTD gross savings of $95M, Execute and Achieve partia
Slide 6: Delivered Solid Q3'24 Results, Including Meaningful Adj. Operating Income Growth
Delivered Solid Q3’24 Results, Including Meaningful Adj. Operating Income Growth and Adj. Margin Expansion Q3 YoY 2024 Change Highlights Net Sales $1,088 -3.2% • Organic net sales change of -2.4% included: o -2.8ppts from previously disclosed lost distribution of Organic Net Sales - -2.4% lower marg
Slide 7: Q3'24 Net Sales – Known U.S. Store Brand Losses Offset by Growth
Q3’24 Net Sales – Known U.S. Store Brand Losses Offset by Growth in Rest of the Business, Led by Global OTC Brands Net Sales % Change YoY by Category Global OTC Brands Pain & Sleep-Aids -7.0% Organic Net Sales Growth YoY Digestive Health -5.0% Includes known lost distribution of lower +2.1% margin p
Slide 8: Perrigo Infant Formula Business Recovery Taking Shape
Perrigo Infant Formula Business Recovery Taking Shape; Product Availability Driving Volume Share Gains Perrigo Volume Share of Non-WIC Powder2 45.5% 35.0% ✓ Highest volume SKUs back at shelf 19.4% 19.8% Product ✓ Store brand achieving ~85% in-stocks across 27.9% 29.0% largest customers Availability
Slide 9: Areas of Growth – GLP-1 Side Effect Relief
Focusing on Consumer Preferred Innovation Enables New Areas of Growth – GLP-1 Side Effect Relief Rapidly Growing • ~6M GLP-1 users currently in the U.S.1 GLP-1 Consumption • ~30M GLP-1 users expected in the U.S. by 20302 GLP-1 Patients Seek • Just over 50% of GLP-1 users experience side effects3 • A
Slide 10: Phased Approach to Consumerize, Simplify and Scale One Perrigo
Phased Approach to Three-S Approach: Consumerize, Simplify Stabilize, Streamline and Strengthen and Scale One Perrigo • Infant formula • U.S. OTC Stabilize • Share growth in international markets • Operating model • Systems & manufacturing Streamline operations • Scaled global portfolio • Operationa
Slide 11: Eduardo Bezerra
Eduardo Bezerra_ «ve ecro
Slide 12: Q3'24 Non-GAAP Adjustments
Q3’24 Non-GAAP Adjustments 12
Slide 13: Delivered Solid Q3'24 Results, Including Meaningful Adj. Operating Income Growth
Delivered Solid Q3’24 Results, Including Meaningful Adj. Operating Income Growth and Adj. Margin Expansion Third Quarter Results YTD Results Constant Constant Q3’24 YTD Organic nets sales -6.3% Perrigo Q3 2024 $ Change % Change YoY YoY Currency % % Change YoY Currency % included -3.7ppts from Nutrit
Slide 14: Adj. Gross and Operating Margin Expansion Continued
Adj. Gross and Operating Margin Expansion Continued Perrigo Quarterly Adj. Gross & Operating Margin Q3’24 adj. 42.0% 25.0% 41.0% gross margin +160bps YoY 23.0% 40.0% 39.5% 21.0% 38.0% 19.0%Q3’24 adj. 36.5% 16.8% operating 17.0% margin 36.0% +340bps YoY 15.0% 13.4% 34.0% 12.1% 13.0% 11.0% 32.0% 9.0%
Slide 15: Net Sales YoY – Segment Highlights
Net Sales YoY – Segment Highlights Organic Growth +1.0% +3.5ppts $420M $416M -2.6ppts CSCI -1.9ppts Q3 2024 Net Sales YoY Q3 23 S I pper Respirator , Rest of urrenc Q3 24 S I Net Sales S in are, usiness Translation Net Sales omen s Health and Exited usinesses Product ines Organic Growth -4.4% $704M
Slide 16: Adj. Operating Income YoY – Segment Highlights
Adj. Operating Income YoY – Segment Highlights +15.3% YoY $92M $80M CSCI Q3 2024 Adj. Operating Income YoY Q3 23 S I usiness urrenc Translation Q3 24 S I Operating Income Performance and Exited usinesses Operating Income Product ines +22.0% YoY $132M CSCA $108M Q3 2024 Adj. Operating Income YoY Q3 2
Slide 17: Adj. EPS YoY – Infant Formula Recovery and Project Energize
Adj. EPS YoY – Infant Formula Recovery and Project Energize Driving Performance $0.81 $0.64 Q3 2024 Adj. EPS YoY Q3 23 usiness urrenc Translation Q3 24 Adj. EPS Performance and Exited usinesses Adj. EPS Product ines 17 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (G
Slide 18: Expect to Achieve Same Benefits from Major Initiatives, But With Lower Cash Outflow
Expect to Achieve Same Benefits from Major Initiatives, But With Lower Cash Outflow Supply Chain Infant Formula Reinvention Program Project Energize Self-Remediation (Excluding Infant Formula) November 2022 February 2024 Inception January 2024 (3-year program) (3-year program) Focused on augmenting
Slide 19: Actions to Enhance the Balance Sheet
Actions to Enhance the Balance Sheet ✓ Issued new 8-year $715M notes and €350M notes due 2032 Refinancing ✓ Redeemed $700M notes due March 2026 early in Q4’24 Actions ✓ Prepaid ~$390M of existing Term Loan B ✓ Lowered weighted average interest rate after executing Benefits currency derivatives ✓ No
Slide 20: On Track to Pay Down $400M in Debt by Year End
On Track to Pay Down $400M in Debt by Year End and Reduce Net Leverage Projected Q4 Sources & Uses of Cash Includes proceeds from €350M Senior Note & prepayment of Term Loan B of $390M Redeemed $700 Senior Notes due $1,464M 2026 on Oct. 2, 2024 Expect to Redeem Assumes insurance $400 Senior Notes re
Slide 21: Reaffirm Adj. EPS Outlook Range
Reaffirm Adj. EPS Outlook Range Previous Outlook Current Outlook Metric Comments vs. Prior Year Comments vs. Prior Outlook 8/2/24 11/6/24 + New products + Margin recovery pricing actions Organic Net + Absence of HRA distributor transitions Sales Growth (3.0%) – (1.0%) (3.0%) – (1.0%) - Impact from i
Slide 22: Make Lives Better Through Trusted Health and Wellness Solutions – Q&A
Make Lives Better Through Trusted Health and Wellness Solutions, Accessible to All 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 II (Continued) Reconciliation of Non-GAAP Measures
TABLE II (Continued) PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 26
Slide 27: Table III Reconciliation of Non-GAAP Measures
TABLE III PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 27
Slide 28: 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) 28
Slide 29: Table IV Reconciliation of Non-GAAP Measures
TABLE IV 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 (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 (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 (in millions, except per share amounts) (unaudited) 32
Slide 33: Table VIII Reconciliation of Non-GAAP Measures
TABLE VIII PERRIGO COMPANY PLC RECONCILIATION OF NON-GAAP MEASURES (in millions, except per share amounts) (unaudited) 33