Perrigo Company plc · NYSE:PRGO
Perrigo — Q1 FY2010 Earnings Presentation
20 slides from Perrigo's earnings presentation, Nov 2, 2009
Slide 1: Perrigo 2010 First Quarter Conference Call
Perrigo 2010 First Quarter Conference Call November 2, 2009 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: All Category Update
All Category Update 52 Weeks Category National Brand Store Brand 13.4% Total OTC & Nutrition -0.8% 2.6% 13.0% OTC -2.8% 0.9% 6.5% Analgesics -1.7% 0.3% Cough, Cold, Allergy, 13.2% -2.6% Sinus 0.7% 24.3% Gastrointestinal -4.1% 2.1% 0.1% Smoking Cessation -3.4% -1.8% 14.8% Nutrition 6.7% 8.8% -15% -10
Slide 4: GAAP Financials - From Continuing Operations
GAAP Financials - From Continuing Operations Perrigo Consolidated % Change Q1 2010 Q1 2009 ($ in millions, except per share amounts) Y/Y Net Sales $ 528 $ 456 16% Cost of Sales 364 320 14% Gross Profit 164 136 21% Distribution 7 6 4% SG&A 52 52 0% R&D 18 18 1% Operating Income 87 59 47% Income from
Slide 5: Non-GAAP Financials - From Continuing Operations
Non-GAAP Financials* – From Continuing Operations % Change Q1 2010 Q1 2009 ($ in millions, except per share data) Y/Y Net Sales $ 528.0 $ 455.5 16% Reported Gross Profit 164.0 136.0 21% Inventory step-up 0.2 - Adjusted Gross Profit $ 164.2 $ 136.0 21% Reported Operating Income $ 86.6 $ 59.1 47% Inve
Slide 6: Adjusted Financials - Perrigo Consolidated
Adjusted Financials* - From Continuing Operations Perrigo Consolidated Q1 2010 Q1 2009 % Change Change as ($ in millions, except per share amounts) Y/Y a % to sales Net Sales $ 528 $ 456 16% Adjusted Cost of Sales 364 320 14% Adjusted Gross Profit 164 136 21% +120 bps Distribution 7 6 4% Adjusted SG
Slide 7: Adjusted Segment Financials - Consumer Healthcare
Adjusted Segment Financials* - From Continuing Operations Consumer Healthcare % Change Change as Q1 2010 Q1 2009 ($ in millions) Y/Y a % to sales Net Sales $ 437 $ 366 19% Cost of Sales 311 257 21% Gross Profit 126 109 16% -90 bps Adjusted Operating Expenses 55 50 11% Adjusted Operating Income $ 71
Slide 8: Segment Financials - Rx Pharmaceuticals
Segment Financials - From Continuing Operations Rx Pharmaceuticals % Change Change as Q1 2010 Q1 2009 ($ in millions) Y/Y a % to sales Net Sales $ 47 $ 33 42% Cost of Sales 25 22 11% Gross Profit 22 11 104% +1440 bps Operating Expenses 8 9 -12% Operating Income $ 14 $ 2 699% +2490 bps Margin Analysi
Slide 9: Segment Financials - API
Segment Financials - From Continuing Operations API % Change Change as Q1 2010 Q1 2009 ($ in millions) Y/Y a % to sales Net Sales $ 30 $ 34 -12% Cost of Sales 19 25 -22% Gross Profit 11 9 16% +850 bps Operating Expenses 7 9 -22% Operating Income $ 4 $ 0 762% +1120 bps Margin Analysis Positive Impact
Slide 10: Adjusted Segment Financials - Other
Adjusted Segment Financials* - From Continuing Operations Other % Change Change as Q1 2010 Q1 2009 ($ in millions) Y/Y a % to sales Net Sales $ 14 $ 22 -38% Adjusted Cost of Sales 9 15 -44% Adjusted Gross Profit 5 7 -26% +600 bps Operating Expenses 3 5 -27% Adjusted Operating Income $ 1 $ 2 -23% +21
Slide 11: Cash Flow & Working Capital
Cash Flow & Working Capital Days Sales Outstanding Operating Cash Flow 75 11% improvement FY’08-FY’10 $’s in millions $40 60 64 $35 62 $38 57 45 $30 $25 30 $27 $20 15 $15 0 $10 Q1 2008 Q1 2009 Q1 2010 $5 Working Capital Turns $1 $0 5.0 17% improvement FY’08-FY’10 Q1 2008 Q1 2009 Q1 2010 4.0 4.3 • Re
Slide 12: Perrigo FY10 Aug. Guidance Tracking Year-to-Date
Perrigo FY10 Aug. Guidance Tracking Year-to-Date - From Continuing Operations August YTD Guidance Performance +4% +6% Consolidated Revenue +16% Growth +6% +8% Consumer Healthcare Revenue Growth +19% 13% 14% Adjusted Consolidated Operating Margin 16.4% Adjusted EPS from +7% +13% Continuing Operations
Slide 13: Perrigo FY10 Revised Guidance
Perrigo FY10 Revised Guidance - From Continuing Operations Consolidated Revenue Growth 7% to 10% from Fiscal 2009 Adj. Consolidated Operating Margin 14% to 16% of Net Sales Consumer Healthcare Revenue Growth 8% to 10% from Fiscal 2009 Cash Flow from Operations $240M to $280M Estimated Effective Worl
Slide 14: Perrigo Tailwinds
Perrigo Tailwinds Strong cough, cold, flu season No competition in Omeprazole Raising Full Year Strong nicotine lozenge sales Adjusted EPS guidance from $2.00-$2.12 Improved operational efficiencies to $2.35-$2.45 Strong Rx performance Retailer promotion 14 Quality, Affordable Healthcare Products
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) First Quarter* 2010 2009 Segment Net Sales Consumer Healthcare $ 437,321 $ 366,202 Rx Pharmaceuticals 47,077 33,175 API 30,056 34,243 Other 13,547 21,928 Total $ 528,001 $ 455,548 Segment Operating Income (Loss) Consumer
Slide 17: Table II - Reconciliation of Non-GAAP Measures
Table II Table II PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands, except per share amounts) (unaudited) First Quarter* 2010 2009 % Change Net sales $ 528,001 $ 455,548 16% Reported gross profit $ 163,994 $ 135,987 21% Inventory step-up 212 - Adjusted gross profit $ 164,206 $ 135,9
Slide 18: Table II Continued
Table II Continued Table II (Continued) REPORTABLE SEGMENTS RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) First Quarter* 2010 2009 % Change Consumer Healthcare Net sales $ 437,321 $ 366,202 19% Reported operating expenses $ 55,029 $ 50,192 10% Loss on asset exchange - (639) Adjusted
Slide 19: Table III
Table III Table III PERRIGO COMPANY RECONCILIATION OF NON-GAAP MEASURES (in thousands) (unaudited) First Quarter* Adjustment - First Quarter* Reported Cost of Sales Inventory Step-Up Adjusted Cost of Sales 2010 2009 2010 2009 2010 2009 % Change Segments Consumer Healthcare $ 310,933 $ 256,895 $ - $
Slide 20: Table IV - FY 2010 Guidance Reconciliation
Table IV Table IV FY 2010 GUIDANCE RECONCILIATION OF NON-GAAP MEASURES (unaudited) Full Year Fiscal 2010 Guidance Reported earnings per share from continuing operations range $2.22 - $2.32 Charge associated with inventory step-up $0.005 Charge associated with acquired research and development $0.123