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Jul 02, 2022
Perrigo Q2 2022 Earnings Report
Perrigo's financial performance in Q2 2022 showed net sales increase, driven by strong demand for consumer self-care products and strategic acquisitions, despite facing inflationary headwinds and adverse currency translation.
Key Takeaways
Perrigo reported a strong second quarter with a 14.3% increase in net sales to $1.1 billion, driven by consumer self-care products and the acquisition of HRA Pharma. Despite inflationary pressures and currency translation impacts, the company saw improvements in adjusted gross margin and maintained its full-year outlook.
Net sales increased by 14.3% to $1.1 billion, with organic net sales up 17.2%.
Reported EPS was a loss of ($0.48), while adjusted EPS was $0.43 per diluted share.
The company submitted Opill® application to the FDA and launched NasonexTM 24HR in the U.S.
Fiscal year 2022 organic net sales growth outlook increased to 9.0%-10.0%, with adjusted EPS range updated to $2.25-$2.35.
Perrigo
Perrigo
Perrigo Revenue by Segment
Revenue by Segment
Consumer Self-Care Americas Revenue
CapyFin.comConsumer Self-Care International Revenue
CapyFin.com Forward Guidance
Perrigo is increasing its fiscal 2022 organic net sales growth range outlook to 9.0%-10.0%, from 8.0%-9.0%, versus the prior year, due to continued strong global consumer demand. The Company is reaffirming its fiscal 2022 total net sales growth range outlook of 8.5%-9.5%, as the organic net sales growth outlook increase is expected to be offset by the worsening impact of currency translation. The Company expects to achieve a fiscal 2022 constant currency adjusted EPS range outlook of $2.40-$2.50 per diluted share and is updating its fiscal 2022 adjusted EPS range outlook to $2.25-$2.35 from $2.30-$2.40, due entirely to the worsening impact of currency translation.
Positive Outlook
- Increased fiscal 2022 organic net sales growth range outlook to 9.0%-10.0% from 8.0%-9.0% versus the prior year.
- Reaffirms fiscal 2022 total net sales growth range outlook of 8.5%-9.5%.
- Expects to achieve constant currency adjusted EPS range outlook of $2.40-$2.50 per diluted share.
- Updates adjusted EPS range outlook to $2.25-$2.35 from $2.30-$2.40.
- Continues to expect an adjusted effective tax rate of approximately 23%.
Challenges Ahead
- Worsening impact of currency translation is expected to offset the organic net sales growth.
- Adjusted EPS range outlook updated to $2.25-$2.35 from $2.30-$2.40 due to currency translation.
- Cannot reconcile its organic net sales growth to reported net sales.
- Cannot reconcile its expected adjusted diluted EPS or constant currency adjusted EPS to diluted EPS under 'Fiscal 2022 Outlook'.
- Uncertainty regarding the timing of, and the Company’s ability to obtain and maintain, certain regulatory approvals, including the sale of daily over-the-counter oral contraceptives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income