DUBLIN, Feb. 28, 2025 /PRNewswire/ -- Perrigo Company plc
(NYSE: PRGO), a leading provider of Consumer Self-Care
Products, today announced that at its Virtual Investor Day,
scheduled to begin today at 8:00 AM
EST, the management team will lay out its plan
to consumerize, simplify and scale its global self-care
platform, with a clear path to return to stable and reliable
performance.
Perrigo's unique complementary businesses enables each
individually to play a specific reinforcing role, where 1) store
brands and infant formula generate cash for investments into the
Company's key higher margin, higher growth or 'High-Grow'
brands, 2) branding and innovation capabilities that deliver brand
and store brand demand generation leading to stronger customer
partnerships, 3) consumer-led innovation that is scaled across
brands, store brands and geographies, and 4) the Company's global
supply chain scale and reach with 100-plus molecules, at 100%
consumer price point coverage, serves the most consumers.
The Company's plan to drive cash flow and total shareholder
return is anchored behind its 'Three-S' plan – 'Stabilizing'
Consumer Self-Care Americas (CSCA) store brand and infant formula
businesses; 'Streamlining' the global portfolio, enterprise
operating model and Consumer Self-Care International (CSCI)
business; and 'Strengthening' what is working by prioritizing and
increasing investments behind key 'High-Grow' brands.
President and CEO Patrick
Lockwood-Taylor commented, "The team and I are
incredibly excited about the significant opportunities ahead and
our clear path forward. Over the past 21 months, we have faced
challenges head-on, pivoted effectively and anchored our strategy
to stabilize our business, streamline complexity and strengthen
areas that are leading performance. These imperatives are expected
to yield significant earnings growth and cash flow, and coupled
with a high-quality and growing dividend, have the potential to
translate into notable total shareholder returns. We look forward
to presenting our plan at today's Virtual Investor Day."
In conjunction with its Investor Day, the Company is providing
select financial targets for fiscal year 2025 and for fiscal years
2025 to 2027.
Fiscal Year 2025 Financial
Targets1 (fiscal year 2024 actuals as the
baseline):
- All-in net sales growth of 1% to 3%.
- Organic net sales growth of 2.5% to 4.5%.
- Adjusted gross margin of approximately 40%.
- Adjusted operating margin of approximately 15%.
- Adjusted diluted earnings per share ("EPS") range of
$2.90 to $3.10, equating to growth of 13% to 21%.
- Operating cash flow conversion to adjusted net income of
approximately 100%.
- Free cash flow as a percentage of net sales of approximately
6%.
- Net leverage of approximately 3.5x adjusted EBITDA.
Fiscal Years 2025 to 2027 Financial
Targets1, (fiscal year 2024 actuals as the
baseline):
- Organic net sales CAGR of 2.5% to 4.5%.
- Adjusted gross margin expansion of +200 to +400 basis points by
2027.
- Adjusted operating margin expansion of +150 to +250 basis
points by 2027.
- Adjusted diluted EPS CAGR of high-single to low-double digit
percentage.
- Operating cash flow conversion to adjusted net income of
approximately 100% or more.
- Free cash flow as a percentage of net sales of approximately
+200 basis points by 2027.
- Net leverage of less than 3x adjusted EBITDA in 2027.
1. Assumes exchange rates
constant to fiscal year 2024 actual exchange rates (USD/EURO of
approximately $1.08).
Virtual Investor Day Details
Perrigo's 2025 Virtual Investor Day will start today,
Friday, February 28, 2025, at
8:00 A.M. EST and will be available
at https://investor.perrigo.com/events-webcasts. A replay will also
be available.
About Perrigo
Perrigo Company plc (NYSE: PRGO) is a leading provider of
Consumer Self-Care Products and over-the-counter (OTC)
health and wellness solutions that enhance individual well-being by
empowering consumers to proactively prevent or treat conditions
that can be self-managed. Visit Perrigo online at
www.perrigo.com.
Forward-Looking Statements
Certain statements in this press release 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 of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In some
cases, forward-looking statements can be identified by terminology
such as "may," "will," "could," "would," "should," "expect,"
"forecast," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential" or the negative of those terms or other
comparable terminology. The Company has based these forward-looking
statements on its current expectations, assumptions, estimates and
projections. While the Company believes these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond the
Company's control, including: supply chain impacts on the Company's
business, including those caused or exacerbated by armed conflict,
trade and other economic sanctions and/or disease; general
economic, credit, and market conditions; the impact of the war in
Ukraine and any escalation
thereof, including the effects of economic and political sanctions
imposed by the United States,
United Kingdom, European Union,
and other countries related thereto; the outbreak or escalation of
conflict in other regions where we do business, including the
Middle East; current and future
impairment charges, including those related to the sale of the Héra
SAS ("HRA Pharma") Rare Diseases Business, if we determine that the
carrying amount of specific assets may not be recoverable from the
expected future cash flows of such assets; customer acceptance of
new products; competition from other industry participants, some of
whom have greater marketing resources or larger market shares in
certain product categories than the Company does; pricing pressures
from customers and consumers; resolution of uncertain tax positions
and any litigation relating thereto, ongoing or future government
investigations and regulatory initiatives; uncertainty regarding
the Company's ability to obtain and maintain its regulatory
approvals; potential costs and reputational impact of product
recalls or sales halts; potential adverse changes to U.S. and
foreign tax, healthcare and other government policy; the effect of
epidemic or pandemic disease; the timing, amount and cost of any
share repurchases (or the absence thereof) and/or any refinancing
of outstanding debt at or prior to maturity; fluctuations in
currency exchange rates and interest rates; the Company's ability
to achieve benefits expected from its sale of the HRA Rare Diseases
Business, including potential earnout payments, and the sale of
Orion Laboratories Hospital & Specialty Business (the "Hospital
& Specialty Business") and the risk that potential costs
or liabilities incurred or retained in connection with those
transactions may exceed the Company's estimates or adversely affect
the Company's business or operations; the risk that potential costs
or liabilities incurred or retained in connection with the sale of
the Company's Rx business may exceed the Company's estimates or
adversely affect the Company's business or operations; the
Company's ability to achieve the benefits expected from the
acquisitions of HRA Pharma and Nestlé's Gateway infant formula
plant along with the U.S. and Canadian rights to the GoodStart®
infant formula brand and other related formula brands ("Gateway")
and/or the risks that the Company's synergy estimates are
inaccurate or that the Company faces higher than anticipated
integration or other costs in connection with the acquisitions;
risks associated with the integration of HRA Pharma and Gateway,
including the risk that growth rates are adversely affected by any
delay in the integration of sales and distribution networks; the
consummation and success of other announced and unannounced
acquisitions or dispositions, and the Company's ability to realize
the desired benefits thereof; and the Company's ability to execute
and achieve the desired benefits of announced cost-reduction
efforts and other strategic initiatives and investments, including
the Company's ability to achieve the expected benefits from its
ongoing restructuring programs described in the Form 10-K (as
defined below). Adverse results with respect to pending litigation
could have a material adverse impact on the Company's operating
results, cash flows and liquidity, and could ultimately require the
use of corporate assets to pay damages, reducing assets that would
otherwise be available for other corporate purposes. These and
other important factors, including those discussed under "Risk
Factors" in the Company's Form 10-K for the year ended December 31, 2024 ("Form 10-K"), as well as the
Company's subsequent filings with the United States Securities and
Exchange Commission, may cause actual results, performance or
achievements to differ materially from those expressed or implied
by these forward-looking statements. The forward-looking statements
in this press release are made only as of the date hereof, and
unless otherwise required by applicable securities laws, the
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Non-GAAP Measures
This press release contains certain non-GAAP measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
different from the most directly comparable measure calculated and
presented in accordance with U.S. Generally Accepted Accounting
Principles (GAAP) in the statements of operations, balance sheets
or statements of cash flows of the Company.
These non-GAAP financial measures should be considered as
supplements to the GAAP reported measures, should not be considered
replacements for, or superior to the GAAP measures and may not be
comparable to similarly named measures used by other companies. The
Company presents these non-GAAP financial measures in order to
provide transparency to our investors because they are measures
that management uses to assess both management performance and the
financial performance of our operations and to allocate resources.
In addition, management believes that these measures may assist
investors with understanding and evaluating our initiatives to
drive improved financial performance and enables investors to
supplementally compare our operating performance with the operating
performance of our competitors including with those of our
competitors having different capital structures. While we have
excluded certain of these items from historical non-GAAP financial
measures, there is no guarantee that the items excluded from
non-GAAP financial measures will not continue into future
periods. For instance, we expect to continue to experience and
report restructuring-related charges associated with continued
execution of our strategic initiatives.
The Company provides non-GAAP financial measures as additional
information that it believes is useful to investors and analysts in
evaluating the performance of the Company's ongoing operating
trends, facilitating comparability between periods and, where
applicable, with companies in similar industries and assessing the
Company's prospects for future performance. These non-GAAP
financial measures exclude items, such as amortization expense,
impairment charges, restructuring charges, and acquisition and
integration-related charges, that by their nature affect
comparability of operational performance or that we believe obscure
underlying business operational trends. The intangible asset
amortization excluded from these non-GAAP financial measures
represents the entire amount recorded within the Company's GAAP
financial statements and is excluded because the amortization,
unlike the related revenue, is not affected by operations of any
particular period unless an intangible asset becomes impaired or
the estimated useful life of an intangible asset is revised. The
revenue generated by the associated intangible assets has not been
excluded from the related non-GAAP financial measure. The non-GAAP
measures the Company provides are consistent with how management
analyzes and assesses the operating performance of the Company, and
disclosing them provides investor insight into management's view of
the business. Management uses these adjusted financial measures for
planning and forecasting in future periods, and evaluating segment
and overall operating performance. In addition, management uses
certain of the profit measures as factors in determining
compensation.
Non-GAAP measures related to profit measurements, which may
include adjusted gross margin, adjusted operating margin, adjusted
EPS, operating cash flow conversion, free cash flow, and net
leverage are useful to investors as they provide them with
supplemental information to enhance their understanding of the
Company's underlying business performance and trends, and enhance
the ability of investors and analysts to compare the Company's
period-to-period financial results. Management believes that
adjusted gross margin and adjusted operating margin are useful to
investors, in addition to the reasons discussed above, by allowing
them to more easily compare and analyze trends in the Company's
peer business group and assisting them in comparing the Company's
overall performance to that of its competitors. The Company also
discloses net sales growth excluding the impact of currency on an
organic basis. The Company believes these supplemental financial
measures provide investors with consistency in financial reporting,
enabling meaningful comparisons of past and present underlying
operating results, and also facilitate analysis of the Company's
operating performance and acquisition and divestiture trends.
The Company cannot reconcile its expected fiscal year 2025
financial targets or fiscal years 2025-2027 financial targets
without unreasonable effort because certain items that impact net
income and other reconciling metrics are out of the Company's
control and/or cannot be reasonably predicted at this time. These
items include, but are not limited to, timing of restructuring
charges, acquisition/divestiture costs, gains or losses on sales of
assets, and the income tax effects of these items.
Perrigo Contact
Bradley Joseph, Vice President,
Global Investor Relations & Corporate Communications, (269)
686-3373, E-mail: bradley.joseph@perrigo.com
Nicholas Gallagher, Senior
Manager, Global Investor Relations & Corporate Communications,
(269) 686-3238, E-mail: nicholas.gallagher@perrigo.com
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