Perrigo Company (PRGO) Oppenheimer’s 24th Annual Consumer Growth & E-Commerce Conference summary

Industry and market overview

• Self-care industry exceeds $400 billion, growing at about 4% annually, with over two-thirds of households prioritizing wellness.

• Self-care products deliver significant healthcare savings: $170 billion in the U.S. and €33 billion in Europe.

• Over 65 billion units produced annually, with 2,000 doses consumed every second globally.

• Over two-thirds of households purchase products, with 50 million consumers in Europe receiving cough-cold relief in 2023.

• Diversified portfolio with 40% of sales from national brands, especially internationally.

Strategic initiatives and operational focus

• Focused on stabilizing the infant formula business, targeting $140 million annual adjusted operating income recapture in 2025.

• Project Energize and Supply Chain Reinvention expected to deliver $110 million and $160 million in cost savings, respectively, by 2026.

• Streamlining operations under the One Perrigo model to optimize scale and efficiency.

• Significant improvement in free cash flow and deleveraging, with leverage ratio targeted to drop to 3-3.2 by end of 2025.

• HRA acquisition synergies of $55 million to be fully realized by year-end.

Business performance and growth drivers

• Infant formula plant remediation completed, with quality and production levels significantly improved.

• Revenue from infant formula expected to ramp up in the second half of the year, normalizing by Q4.

• U.S. store brand business optimized by prioritizing SKUs and focusing on higher-margin products.

• $3 billion near-term and $6 billion total white space opportunity identified in U.S. store brands.

• Actively developing new dosage forms for higher margins and value.