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

Business overview and strategic positioning

• Operates in the global self-care market, covering branded and store-brand products in the U.S. and Europe, with a unique breadth across molecules and price points.

• Holds leading positions in U.S. store brands and top 10 branded status in Europe, leveraging cash from store brands to fuel branded growth.

• Strategic focus on innovation, regulatory expertise, and large-scale manufacturing, producing 2,500 formulations—10x competitors.

• Emphasizes a 'stabilize, streamline, strengthen' framework, with significant progress in business stabilization and streamlining.

• Leverages a scalable, low-cost supply chain and complementary business model to drive both brand and store brand growth, supporting innovation and cash generation.

Financial targets and operational plans

• Projects 2.5%-4.5% organic revenue growth and high single to low double-digit adjusted EPS CAGR through 2027.

• Expects 40%-50% improvement in free cash flow over sales and net leverage below 3x by 2027.

• 2025 guidance includes 13%-21% adjusted EPS growth, gross margin expansion to 40%, and operating margin up to 15%.

• Project Energize and Supply Chain Reinvention to deliver $170M in benefits by 2025, with further incremental gains.

• Plans to fully repay Term Loan A by 2027, with strong cash on hand projected.

Portfolio optimization and brand strategy

• Ongoing divestitures of non-core brands, with 60 already sold and 30-45 more planned, optimizing for synergy and profitability.

• Branded business, now 40% of revenue, is expected to accelerate due to higher growth and margin profiles.

• U.S. brands like Opill, Mederma, Prevacid, and Nasonex are growing rapidly; international brands like Compeed and Bronchostop show strong performance.

• Innovation in branded products is leveraged across store brands, supporting volume and margin growth.

• Significant A&P and R&D investments planned to fuel branded portfolio expansion and strengthen high-margin brands.