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Perrigo
🇮🇪 NYSE:PRGO
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•
Apr 02, 2022

Perrigo Q1 2022 Earnings Report

Perrigo reported strong organic net sales growth driven by consumer demand and rebounded cough/cold product sales. First quarter earnings were in line with expectations, despite increased cost headwinds and a strengthening U.S. dollar.

Key Takeaways

Perrigo's Q1 2022 net sales reached $1.1 billion, a 6.4% increase year-over-year, with organic net sales growing by 9.7%. Adjusted diluted EPS was $0.33, compared to $0.50 in the prior year. The company raised its fiscal year 2022 net sales growth guidance to 8.5%-9.5% and adjusted EPS guidance to $2.30-$2.40.

Net sales increased by 6.4% to $1.1 billion, with organic net sales up 9.7% driven by strong consumer demand.

Reported loss per diluted share was $0.01, while adjusted diluted EPS was $0.33, impacted by cost headwinds and unfavorable foreign exchange.

Cash flow from operations was a strong 176% of adjusted net income.

Fiscal 2022 net sales growth guidance raised to 8.5%-9.5% and adjusted EPS guidance raised to $2.30-$2.40.

Total Revenue
$1.08B
Previous year: $1.01B
+6.4%
EPS
$0.33
Previous year: $0.5
-34.0%
Adjusted Operating Income
$87M
Previous year: $119M
-26.6%
Reported Operating Margin
2%
Gross Profit
$338M
Previous year: $368M
-8.3%
Cash and Equivalents
$1.97B
Previous year: $471M
+317.4%
Free Cash Flow
$58.8M
Previous year: -$45.2M
-230.1%
Total Assets
$10.4B
Previous year: $11.3B
-8.3%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

Perrigo is raising its fiscal 2022 net sales growth outlook from 3.5%-4.5% to 8.5%-9.5% and its adjusted diluted EPS range from $2.10-$2.30 to $2.30-$2.40.

Positive Outlook

  • Fiscal 2022 net sales growth range outlook raised to 8.5%-9.5%.
  • Fiscal 2022 organic growth range outlook raised to 8%-9%.
  • Adjusted diluted EPS range increased to $2.30-$2.40.
  • Includes approximately $0.35 from the HRA acquisition.
  • Cash flow from operations as a percentage of adjusted net income is now expected to be above the Company's original range of 95%-105%.

Challenges Ahead

  • Approximately $0.10 impact from additional unfavorable exchange rate movements.
  • $0.05 from stopping distribution of product to Russia.
  • Approximately $0.05 in higher interest expense from refinancing.
  • First half margin compression is expected.
  • The Company cannot reconcile its expected adjusted diluted earnings per share to diluted earnings per share under Fiscal 2022 Outlook without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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