Mar 30, 2024

Perrigo Q1 2024 Earnings Report

Perrigo's Q1 2024 financial results were reported, with adjusted diluted earnings per share exceeding projections due to the timing of infant formula shipments.

Key Takeaways

Perrigo's first quarter net sales were $1.1 billion, an 8.4% decrease compared to the prior year. The company's adjusted diluted EPS was $0.29, a 35.6% decrease compared to the prior year, primarily due to the impact of infant formula. The company reaffirms its fiscal 2024 adjusted diluted EPS range outlook of $2.50-$2.65.

First quarter net sales of $1.1 billion declined 8.4% versus the prior year quarter.

Consumer Self-Care International net sales increased 4.7% compared to the prior year quarter as organic net sales grew 7.0%.

Adjusted diluted EPS was $0.29, compared to $0.45 in the prior year quarter, a decline of 35.6%, due primarily to a -$0.30 impact from infant formula.

Cash and cash equivalents on the balance sheet as of March 30, 2024 were $659 million.

Total Revenue
$1.08B
Previous year: $1.18B
-8.5%
EPS
$0.29
Previous year: $0.45
-35.6%
Adjusted Operating Income
$93M
Previous year: $120M
-22.2%
Reported Operating Margin
-5.1%
Previous year: 4.1%
-224.4%
Adjusted Gross Margin
36.5%
Previous year: 37.5%
-2.7%
Gross Profit
$358M
Previous year: $414M
-13.6%
Cash and Equivalents
$659M
Previous year: $553M
+19.2%
Free Cash Flow
-$26.5M
Previous year: -$3.8M
+597.4%
Total Assets
$10.6B
Previous year: $11B
-2.9%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

The Company reaffirms its fiscal year 2024 outlook: Organic net sales growth of 1.0% to 3.0% compared to the prior year, Reported net sales flat compared to the prior year, Adjusted diluted EPS range of between $2.50 to $2.65 including mid-teens adjusted EPS growth, excluding infant formula from both years, and Operating cash flow conversion (operating cash flow as a percentage of adjusted net income) of approximately 90% - 100%.

Positive Outlook

  • Reaffirms fiscal year 2024 organic net sales growth of 1.0% to 3.0%.
  • Reaffirms reported net sales flat compared to the prior year.
  • Expects interest expense of approximately $180 million.
  • Anticipates full year adjusted tax rate of approximately ~20.5%.
  • Projects adjusted diluted EPS range of between $2.50 to $2.65 including mid-teens adjusted EPS growth, excluding infant formula from both years.

Revenue & Expenses

Visualization of income flow from segment revenue to net income