Perrigo Q2 2023 Earnings Report
Key Takeaways
Perrigo's Q2 2023 net sales grew by 6.4% to $1.2 billion, with organic net sales up by 0.8%. The company's reported gross margin improved by 270 basis points to 35.9%, and adjusted gross margin expanded by 220 basis points to 38.7%. Reported EPS was $0.06, while adjusted diluted EPS increased by 46.5% to $0.63. Perrigo reaffirms its fiscal 2023 outlook.
Second quarter net sales of $1.2 billion grew 6.4%, or 6.6% on a constant currency basis, versus the prior year quarter.
Second quarter reported earnings per share (EPS) was $0.06, compared to a loss of $(0.48) in the prior year quarter.
Adjusted diluted EPS was $0.63, compared to $0.43 in the prior year quarter, an increase of 46.5%.
Perrigo 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.
Perrigo
Perrigo
Perrigo Revenue by Segment
Forward Guidance
Perrigo 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.
Positive Outlook
- 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 prior year.
- Adjusted diluted EPS range of between $2.50 to $2.70, including pre-launch investments for Opill® following FDA approval.
- Operating cash flow conversion (operating cash flow as a percentage of adjusted net income) of approximately 100%.
- Adjusted tax rate for the second half of 2023 is expected to be approximately 19.5%, leading to a full year adjusted tax rate for 2023 of 17.0%, which includes the second quarter adjusted EPS discrete tax benefit of $0.08.
Revenue & Expenses
Visualization of income flow from segment revenue to net income