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Jun 29, 2024
Perrigo Q2 2024 Earnings Report
Perrigo's Q2 2024 financial results from continuing operations were reported, with adjusted diluted earnings per share meeting expectations. The company reaffirmed its fiscal 2024 adjusted diluted EPS outlook and is progressing with its One Perrigo Blueprint, remaining on target to deliver Project Energize goals. Additionally, the divestment of the HRA Pharma Rare Diseases business was completed.
Key Takeaways
Perrigo's Q2 2024 net sales declined by 10.7% to $1.1 billion, with organic net sales decreasing by 9.1% due to lower infant formula sales and reduced demand in upper respiratory and pain & sleep aids categories. Adjusted operating income increased by 1.5% to $139 million, and adjusted diluted EPS was $0.53. The company reaffirms its fiscal 2024 adjusted diluted EPS outlook of $2.50-$2.65.
Net sales decreased by 10.7% year-over-year to $1.1 billion; organic net sales decreased by 9.1% due to lower infant formula sales and reduced demand in upper respiratory and pain & sleep aids categories.
Consumer Self-Care International (CSCI) net sales declined 2.5%, while Consumer Self-Care Americas (CSCA) net sales decreased 15.5%.
Adjusted operating income increased 1.5% year-over-year to $139 million, driven by Project Energize benefits.
Adjusted diluted EPS was $0.53, compared to $0.63 in the prior year quarter, impacted by discrete tax benefits in the prior year and infant formula challenges.
Revenue by Segment
Forward Guidance
The Company is updating its fiscal 2024 organic net sales growth outlook versus the prior year to approximately -3% to -1%, from +1% to +3%, and total net sales growth outlook to -5% to -3% from flat, due primarily to lower seasonal demand experienced in the first half of 2024 and expected lower distribution in U.S. store brand in the second half of 2024. The Company is reaffirming its fiscal 2024 adjusted diluted EPS outlook of $2.50-$2.65.
Positive Outlook
- Increased profitability from faster than anticipated recovery in the infant formula business.
- Improved product mix.
- Lower selling expenses.
- Reaffirming interest expense of approximately $180 million.
- Reaffirming full year adjusted tax rate of approximately 20.5%.
Challenges Ahead
- Lower seasonal demand experienced in the first half of 2024.
- Expected lower distribution in U.S. store brand in the second half of 2024.
- Flow-through from the updated net sales outlook.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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