Perrigo Company (PRGO) investor relations material

Executive summary

• Three-S execution supported sequential operating improvement and share gains, while softer consumer demand and cautious retailer inventory positioning weighed on Q3 results.

• Core net sales were $908.1M, down 1.7% YoY; Core adjusted operating margin was 14.3%.

• Infant Formula divestiture advances portfolio simplification, is expected to lower future capital needs and support deleveraging; the Oral Care strategic review continues.

Financial highlights

• Q3 All In net sales were $988.6M, down 5.2% reported and 1.9% organic; Core organic sales declined 1.1%.

• Q3 reported net loss was $27.5M and diluted EPS was $(0.20); continuing-operations loss was $14.3M and diluted loss per share was $0.10.

• Core adjusted EPS was $0.61, down 9.0%; All In adjusted EPS was $0.60, down 25.0%.

• Q3 operating cash flow was $96M, CapEx was $18M and dividends paid were $40M.

• Q3 tariff-refund receivable adjustments benefited gross profit by $4.5M; the Q3 tariff recovery was non-recurring.

Outlook and guidance

• FY26 outlook reflects the Infant Formula divestiture, cautious retailer inventory positioning before cough-and-cold season, and continued softness in Europe.

• Core FY26 reported net sales are expected to decline 2.5%–3.6%, organic sales 2.7%–3.8%; adjusted gross margin is 37.5%–38.5%, operating margin 14.0%–15.0%, and diluted EPS $2.15–$2.35.

• All In FY26 reported net sales are expected to decline 4.6%–5.7%; adjusted gross margin is 37.8%–38.8%, operating margin 14.3%–15.3%, and diluted EPS $2.25–$2.45.

• FY26 assumptions include ~$162M net interest expense, ~14% adjusted tax rate, ~140M diluted shares, ~4.0x net leverage and operating cash flow at a low-to-mid-60% share of adjusted net income; 2026 OEP savings target is ~$60M–$80M.