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Apr 01, 2023

Perrigo Q1 2023 Earnings Report

Perrigo's first quarter results were tremendous, delivering double-digit top line growth and adjusted EPS growth. Materially reduced company uncertainty by resolving the IRS Notice of Proposed Adjustment.

Key Takeaways

Perrigo Company plc reported a 10.0% increase in net sales to $1.2 billion for the first quarter of fiscal year 2023. Adjusted diluted EPS increased by 35.6% to $0.45. The company reaffirms its fiscal 2023 organic net sales and total net sales growth outlook range of 3.0%-6.0% and 7.0%-11.0%, respectively, versus the prior year, and adjusted diluted EPS range outlook of $2.50-$2.70.

Net sales grew 10.0% versus the prior year quarter to $1.2 billion.

Consumer Self-Care Americas and International segments delivered strong net sales growth of 7.6% and 14.7%, respectively.

Reported gross margin was 35.0%, a 360 basis points improvement compared to the prior year quarter. Adjusted gross margin was 37.5%, a 400 basis points improvement compared to the prior year quarter.

Adjusted diluted EPS was $0.45, an increase of 35.6%, compared to $0.33 in the prior year quarter.

Total Revenue
$1.18B
Previous year: $1.08B
+10.0%
EPS
$0.45
Previous year: $0.33
+36.4%
Adjusted Operating Income
$120M
Previous year: $87M
+37.5%
Reported Operating Margin
4.1%
Previous year: 2%
+105.0%
Adjusted Gross Margin
37.5%
Gross Profit
$414M
Previous year: $338M
+22.5%
Cash and Equivalents
$553M
Previous year: $1.97B
-71.9%
Free Cash Flow
-$3.8M
Previous year: $58.8M
-106.5%
Total Assets
$11B
Previous year: $10.4B
+5.4%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

The Company reaffirms its fiscal year 2023 guidance: •Reported net sales growth of 7.0% to 11.0% compared to the prior year, •Organic net sales growth of 3.0% to 6.0% compared to the previous year, •Non-GAAP (“adjusted”) diluted EPS range of between $2.50 to $2.70, •Adjusted tax expense rate of approximately 21.5%, •Interest expense of approximately $180 million, and •Cash conversion (operating cash flow as a percentage of adjusted net income) of approximately 100%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income