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Jun 28, 2025
Perrigo Q2 2025 Earnings Report
Perrigo reported Q2 2025 results that showed flat organic operating income despite slight declines in sales and margins, reflecting resilience amid divestitures and soft market conditions.
Key Takeaways
Perrigo delivered stable Q2 2025 results with $1.06 billion in revenue and flat organic operating income. Adjusted EPS rose modestly, reflecting lower interest expenses and FX tailwinds. Organic net sales were nearly unchanged due to product divestitures and varied category performance.
Revenue was $1.06 billion, down 0.9%, driven by exited products and divestitures.
Adjusted EPS rose to $0.57, benefiting from lower interest expenses and FX gains.
Organic net sales growth was flat at -0.1%, with category gains offset by declines.
Adjusted operating margin decreased slightly to 12.8% amid infant formula variability and lower OTC volumes.
Revenue by Segment
Forward Guidance
Perrigo reaffirmed its FY2025 guidance, though expects net sales growth at the lower end of the prior range due to slow infant formula recovery and soft consumer demand.
Positive Outlook
- Reaffirmed FY25 adjusted EPS guidance of $2.90–$3.10
- Expected adjusted gross margin of ~40%
- Projected adjusted operating margin of ~15%
- Forecasted operating cash flow conversion to adjusted net income ~100%
- Free cash flow expected at ~6% of net sales
Challenges Ahead
- Topline growth expected at lower end of guidance range
- Infant formula recovery slower than anticipated
- Soft consumption trends in allergy, sun care, and blister care
- Continued impact from divestitures and exited products
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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