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Perrigo
🇮🇪 NYSE:PRGO
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•
Dec 31, 2020

Perrigo Q4 2020 Earnings Report

Perrigo's Q4 2020 financial results reflected a decrease in consolidated net sales due to lower cough/cold product sales, but the company advanced its transformation initiatives.

Key Takeaways

Perrigo reported a decrease in fourth-quarter consolidated net sales by 2.5% to $1.3 billion, primarily due to lower sales of cough/cold products. The company's reported net loss was $175 million, or $1.29 per diluted share, compared to a net loss of $19 million, or $0.14 per diluted share, in the prior year period. Adjusted diluted EPS was $0.93, a decrease of 12.3% compared to the previous year.

Consolidated net sales decreased by 2.5% to $1.3 billion due to lower cough/cold product sales.

Reported net loss was $175 million, or $1.29 per diluted share, compared to a net loss of $19 million, or $0.14 per diluted share, in the prior year period.

Adjusted diluted EPS decreased by 12.3% to $0.93 due to the impact from cough/cold products and divested businesses.

Worldwide Consumer Self-Care net sales decreased by 1.3% to $1.1 billion.

Total Revenue
$1.29B
Previous year: $1.32B
-2.5%
EPS
$0.93
Previous year: $1.06
-12.3%
Reported Operating Margin
-4.1%
Previous year: -0.01%
+81900.0%
Adjusted Gross Margin
38.7%
Previous year: 40.1%
-3.5%
Gross Profit
$469M
Previous year: $481M
-2.4%
Cash and Equivalents
$632M
Previous year: $354M
+78.2%
Free Cash Flow
$44.3M
Previous year: $42.1M
+5.2%
Total Assets
$11.5B
Previous year: $11.3B
+1.7%

Perrigo

Perrigo

Perrigo Revenue by Segment

Forward Guidance

Perrigo Worldwide Consumer is committed to delivering 3% organic net sales growth, 5% adjusted operating income growth and 7% adjusted diluted EPS growth. Based on a preliminary estimate of the accounting treatment to classify Rx as discontinued operations, this translates to an adjusted diluted EPS range of $2.50 to $2.70.

Positive Outlook

  • Committed to delivering 3% organic net sales growth.
  • Committed to delivering 5% adjusted operating income growth.
  • Committed to delivering 7% adjusted diluted EPS growth.
  • Adjusted diluted EPS range of $2.50 to $2.70.
  • In line with CPG peers that trade at much higher multiples.

Challenges Ahead

  • Cannot reconcile its expected adjusted diluted earnings per share to diluted earnings per share under Fiscal 2021 Outlook.
  • Certain items that impact net income and other reconciling metrics are out of the Company’s control.
  • Cannot be reasonably predicted at this time.
  • Preliminary estimate of the accounting treatment to classify Rx as discontinued operations.
  • Based on classification of Rx as discontinued operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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