Sep 30, 2023

Perrigo Q3 2023 Earnings Report

Perrigo reported third quarter double-digit gross profit, operating income and EPS growth year-over-year.

Key Takeaways

Perrigo Company plc announced financial results for the third quarter ended September 30, 2023. Net sales increased by 2.2% compared to the prior year quarter, driven by the acquisition of Gateway infant formula facility and favorable foreign currency translation. Adjusted diluted EPS was $0.64, an increase of 14.3% compared to the prior year quarter.

Third quarter net sales of $1.1 billion grew 2.2% versus the prior year quarter.

Third quarter reported gross margin was 36.6%, a 360 basis points improvement compared to the prior year quarter.

Adjusted diluted EPS was $0.64, compared to $0.56 in the prior year quarter, an increase of 14.3%.

Company updates its fiscal 2023 adjusted diluted EPS range outlook to $2.50-$2.60.

Total Revenue
$1.12B
Previous year: $1.1B
+2.2%
EPS
$0.64
Previous year: $0.56
+14.3%
Adjusted Operating Income
$150M
Previous year: $133M
+13.0%
Reported Operating Margin
5.5%
Adjusted Gross Margin
39.5%
Previous year: 36.5%
+8.2%
Gross Profit
$411M
Previous year: $363M
+13.2%
Cash and Equivalents
$598M
Previous year: $469M
+27.7%
Free Cash Flow
$92.7M
Previous year: $37.9M
+144.6%
Total Assets
$10.8B
Previous year: $10.7B
+0.8%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

The Company's fiscal year 2023 updated outlook is provided below:

Positive Outlook

  • Reported net sales growth of 4.0% to 6.0% compared to the prior year.
  • Organic net sales growth of 1.0% to 3.0% compared to the prior year.
  • Interest expense of approximately $180 million.
  • Full year adjusted tax rate of approximately ~14.0%.
  • Adjusted diluted EPS range of between $2.50 to $2.60.

Revenue & Expenses

Visualization of income flow from segment revenue to net income