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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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