Perrigo Company (PRGO) UBS Global Consumer and Retail Conference summary

Company Overview and Market Position

• Operates as a leading consumer health provider, with top U.S. OTC volume and top 10 EU sales, diversified across nine categories and present in 30+ countries.

• Delivers significant consumer savings, with 60% of business in store brands and high household penetration in the U.S. and U.K.

• Combines cash-generating store brands with high-margin brands, supported by a scalable, low-cost supply chain and broad innovation.

• Store brand segment generates cash to reinvest in branded innovation and demand generation.

• Expanding categories and partnerships with retailers to drive household penetration.

Strategic Initiatives and Operational Changes

• Implemented the Three-S plan: stabilize, streamline, and strengthen, focusing on core business consistency, portfolio simplification, and cost structure.

• Exited non-core businesses and brands, including rare diseases, Australian hospital segments, and Dermacosmetics, with strategic reviews for infant formula and oral care.

• Achieved $320 million in cost savings through Project Energize and supply chain reinvention, supporting operational agility.

• Announced a global workforce reduction of 7% and targeted supply chain efficiencies, aiming for $80–$100 million in annualized savings, mostly realized in 2026.

• Leadership and organizational structure transformed, with 17% reduction in headcount and 80% of executive team new to position.

Financial Performance and Outlook

• FY2026 organic net sales expected to range from -3.5% to +0.5% YoY, with adjusted EPS between $2.25 and $2.55.

• 2025 core baseline EPS was $2.52, with 2026 EPS expected to be weighted 30% in H1 and 70% in H2 due to seasonality and timing of cost savings.

• Adjusted gross margin projected at 39.0%–40.0% for CORE business, with operating margin at 15.0%–16.0%.

• Ongoing headwinds include interest, taxes, FX, and consumer confidence, but cost actions and share gains are expected to offset these.

• Dividend policy maintained, with capital allocation priorities focused on business investment, leverage reduction, and dividend stability.