Perrigo Company (PRGO) investor relations material

Executive summary

• Q3 2025 net sales were $1.043 billion, down 4.1% year-over-year, with organic net sales down 4.4% due to soft OTC and Infant Formula performance, partially offset by share gains in key categories.

• Adjusted EPS was $0.80 for Q3, down $0.01 year-over-year, but year-to-date adjusted EPS rose 20.9% to $1.97.

• Strategic reviews of Infant Formula and Oral Care businesses were announced; Dermocosmetics divestiture is on track for Q1 2026 close.

• Project Energize generated $163 million in gross annual savings, above the midpoint of the target range.

• Revised 2025 outlook downward due to softer OTC consumption and slower-than-expected Infant Formula share recovery.

Financial highlights

• Q3 2025 net sales were $1,043 million, down 4.1% year-over-year; year-to-date net sales were $3,144 million, down 2.8%.

• Q3 adjusted gross profit was $417 million (39.9% margin); adjusted operating income was $173 million (16.6% margin).

• Year-to-date adjusted operating income was $455 million (14.5% margin), up 13% organically.

• Q3 operating cash flow was $52 million; year-to-date $63 million; cash and equivalents at $432 million.

• $119 million returned to shareholders via dividends year-to-date.

Outlook and guidance

• FY2025 net sales growth revised to -2.5% to -3.0%; organic net sales growth at -2.0% to -2.5%.

• Adjusted EPS guidance set at $2.70–$2.80, representing 5%–9% growth over 2024.

• Adjusted gross margin expected at ~39%; operating margin at ~15%; net leverage projected at ~3.8x adjusted EBITDA.

• Q4 organic OTC growth expected to be flat to 1%; Nutrition category sales to decline year-over-year.

• Dermocosmetics sale proceeds to be used for deleveraging.