Sep 26, 2020

Perrigo Q3 2020 Earnings Report

Perrigo's Q3 2020 performance was driven by Consumer Self-Care Americas, with consolidated net sales up 1.3% and adjusted EPS down 10.6% due to RX Albuterol recall.

Key Takeaways

Perrigo reported a 1.3% increase in consolidated net sales for Q3 2020, driven by growth in Consumer Self-Care Americas. However, adjusted EPS decreased by 10.6% due to a charge from the RX albuterol recall. The company reaffirmed its full-year adjusted EPS guidance.

Consolidated third quarter net sales increased by 1.3% to $1.2 billion.

Consumer Self-Care Americas achieved record third quarter net sales, up 7.3%.

Reported diluted net loss per share was $1.13, compared to EPS of $0.67 in the prior year.

Adjusted diluted EPS decreased 10.6% to $0.93, including a $0.14 charge from the RX albuterol recall.

Total Revenue
$1.21B
Previous year: $1.19B
+1.9%
EPS
$0.93
Previous year: $1.04
-10.6%
Adjusted Operating Income
$184M
Reported Operating Margin
-7.9%
Gross Profit
$428M
Previous year: $413M
+3.7%
Cash and Equivalents
$849M
Previous year: $399M
+113.1%
Free Cash Flow
$18.9M
Previous year: $104M
-81.9%
Total Assets
$11.6B
Previous year: $11.3B
+2.3%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

The Company reaffirms its fiscal 2020 outlook with expected net sales growth of 6% to 7% with organic net sales growth of at least 3%. Adjusted diluted EPS is expected to be in the range of $3.95 to $4.15.

Positive Outlook

  • Strong business fundamentals
  • Lower expected tax rate for the year

Challenges Ahead

  • Incremental COVID-19 related costs ($0.12 - $0.15 per adjusted diluted share)
  • Impact from the RX albuterol sulfate recall ($0.14 per share)
  • Impact from the divested Rosemont Rx business ($0.06 per share)

Revenue & Expenses

Visualization of income flow from segment revenue to net income