PERRIGO Co plc
For the period ended Mar 29, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed May 7, 2025
PRGO$15.85+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-11-06.
0001585364-24-000141
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-05-07.
0001585364-25-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 207 previous paragraphs and 160 current paragraphs.
61 unchanged; 44 reworded; 55 added; 97 removed; 5 previous and 0 current paragraphs rearranged.
Tables are not compared: 17 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (55)
Current report
Perrigo works to fulfill its vision and purpose as a top-tier consumer self-care company with a focused portfolio based on consumer-led innovation, which meets societal needs for:
Current report
•Access: Perrigo's self-care products and solutions enhance the daily lives of millions of families, empowering them to take control of their health and wellness.
Current report
•Value: Perrigo delivers value by helping consumers proactively manage their well-being through affordable and effective self-care solutions.
Current report
•Reliability: Perrigo ensures the safety and effectiveness of its self-care solutions, best serving its consumers.
Current report
Perrigo’s unique complementary businesses enable each individually to play a specific reinforcing role, where 1) store brands and infant formula generate cash for investments into the Company’s key higher margin, higher growth or‘High-Grow’ brands, 2) branding and innovation capabilities deliver brand and store brand demand generation designed to lead to stronger customer partnerships, 3) consumer-led innovation is scaled across brands, store brands and geographies, and 4) the Company leverages its global supply chain scale and reach with 100-plus molecules, at 100% consumer price point coverage, to serve the most consumers.
Current report
The Company’s plan to drive cash flow and total shareholder return is anchored behind its ‘Three-S’ plan – ‘Stabilizing’ Consumer Self-Care Americas store brand and infant formula businesses; ‘Streamlining’ the global portfolio, enterprise operating model and Consumer Self-Care International business; and ‘Strengthening’ what is working by prioritizing and increasing investments behind key‘High-Grow’brands.
Current report
•In February 2025, Perrigo initiated the Nutrition Network Optimization project to optimize our manufacturing footprint, upgrade packaging capabilities, harmonize quality processes, and enhance our research and development capabilities. We plan to invest approximately $240 million into our infant formula production network over the next three years as a strategic move expected to provide substantial cash returns and secure this business over the long-term. However, as discussed below within Macroeconomic Uncertainty, we have deferred capital expenditures while seeking to minimize the overall impact on the project.
Current report
•On March 10, 2025, the Company signed a definitive agreement to sell Richard Bittner Business AG, an Austrian contract manufacturing business (the "Richard Bittner Business") to HBI Health & Beauty Innovations Limited; as a result, such assets were classified as held for sale. The assets associated with this business were reported within our CSCI segment. The sale of the Richard Bittner Business was completed on April 11, 2025.
Current report
•On May 5, 2025, one of our customers filed for bankruptcy. We have begun the process of evaluating the potential impact on our financial position, however we do not anticipate a loss, if any, to be material.
Current report
Restructuring
Current report
Nutrition Network Optimization
Current report
In 2025, Perrigo initiated the Nutrition Network Optimization project to optimize our infant formula manufacturing footprint, upgrade packaging capabilities, harmonize quality processes, and enhance our research and development capabilities. We plan to invest approximately $240 million into our infant formula production network over the next three years as a strategic move expected to provide substantial cash returns and secure this business over the long-term. By enhancing our production capabilities, we can achieve significant cost reductions through economies of scale and improved operational efficiencies, leading to higher margins. Additionally, this investment will position us well in the current evolving regulatory landscape, promoting compliance and reducing the risk of costly disruptions, while facilitating greater access of our essential products to more consumers.
Current report
As we expect cash generation from 2025 to 2027 to offset a piece of the investment, we anticipate recouping our investment within two years post project completion. Refer to Item 1. Note 14 for further details on restructuring charges.
Current report
Macroeconomic Uncertainty
Current report
Current uncertainties arising from increased tariffs on imported products could have an adverse effect on our Company. In 2025, the U.S. government announced new or additional tariffs on products imported from all countries and individualized reciprocal tariffs on countries with which the U.S. has the largest trade deficits. While most of the individualized reciprocal tariffs have been suspended, as of May 7, 2025, there remains a global 10% baseline tariff on goods imported into the United States and a 125% individualized reciprocal tariff on products imported from China (both subject to sectoral exclusions, including for pharmaceutical materials). Accordingly, while the effective tariffs on our products vary, many of our non-pharmaceutical products imported from China, including in our Oral Care product category, are subject to a 145% tariff.
Current report
Based on current assessments, excluding any potential impact from pharmaceutical tariffs that may cover ingredients used in the manufacturing of OTC products, the Company estimates a gross increase to global cost of goods sold in 2025 beginning in the fourth quarter of more than 1%, or approximately $30 million to $40 million, and approximately 5.5%, or approximately $145 million to $155 million, on a full-year basis (high-single digit percentage to CSCA), 80% of which stems from CSCA's Oral Care product category, as approximately 50% of procured goods in the category are currently sourced from China. The Company plans to offset these impacts through a combination of strategic pricing actions, insourcing to its U.S.-based manufacturing facilities and other supply chain actions.
Current report
For additional information, refer to Item 1A - Risk Factors.
Current report
Net sales decreased $38.2 million, or 3.5%, due primarily to:
Current report
•$21.3 million decrease due to the prior year divestitures of the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") and the Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") and the sale of branded products within our CSCI segment;
Current report
•$4.3 million decrease, or 0.4%, due primarily to lower net sales in the Digestive Health category, a prior year benefit in the Women's Health category of $15.2 million from initial retailer stocking of Opill® which launched at the end of the prior year quarter, and $8.7 million from previously disclosed net lost distribution of lower margin products within U.S. Store Brand. These were partially offset by higher net sales in the Upper Respiratory category due primarily to higher incidence levels of cough cold compared to the prior year period and improved supply of key products, the Nutrition category stemming from recovery in the infant formula business, and the Healthy Lifestyle category led by strong momentum in smoking cessation brand NiQuitin®.
Current report
Operating income increased $102.1 million, or 185.0%, due primarily to:
Current report
•$34.6 million increase in gross profit driven by continuing recovery of the infant formula business generating $59.3 million more than the prior year period. This increase was partially offset by an $11.8 million impact from the divested Rare Diseases and Hospital and Specialty Businesses. Gross profit as a percentage of net sales increased 450 basis points compared to the prior year due to the same factors that drove gross profit.
Current report
•$67.5 million decrease in operating expenses due primarily to decreased securities litigation costs, decreased selling and administrative costs of $22.3 million due primarily to Project Energize and a decrease in restructuring costs associated primarily with Project Energize.
Current report
Net sales decreased $23.4 million, or 3.6%, due primarily to:
Current report
•$23.0 million decrease, or 3.6%, due primarily to lower net sales in the Digestive Health category, a prior year benefit in the Women's Health category of $15.0 million from initial retailer stocking of Opill® which launched at the end of the prior year quarter, and $8.7 million from previously disclosed net lost distribution of lower margin products within U.S. Store Brand. These were partially offset by higher net sales in the Nutrition category of $14.5 million, stemming from recovery in the infant formula business, as well as higher net sales in the Upper Respiratory category due primarily to higher incidence levels of cough cold compared to the prior year period and improved supply of key products.
Current report
Sales in each category were driven primarily by:
Current report
•Upper Respiratory: Net sales of $137.9 million increased 5.8% due primarily to higher incidence levels of cough cold compared to the prior year quarter and higher net sales of the allergy products Nasonex®, Triamcinolone Acetonideand Fluticasone. This growth was partially offset by previously disclosed net lost distribution of lower margin products.
Current report
•Nutrition: Net sales of $104.8 million increased 15.7% due primarily to a 19% increase in net sales of infant formula products driven by continuing store brand infant formula business recovery partially offset by lower net sales in contract manufacturing and lower Good Start®brand sales to Canadian customers.
Current report
•Healthy Lifestyle: Net sales of $70.4 million decreased 1.3% due primarily to lower category consumption of nicotine replacement therapy products, despite new distribution and market share gains.
Current report
•Skin Care: Net sales of $48.6 million decreased 2.0% as growth in the Minoxidil franchise was more than offset by lower net sales of Mederma® due to service issues that are anticipated to alleviate in the second quarter of 2025.
Current report
•Women's Health: Net sales of $15.0 million decreased 44.9% due primarily to initial retailer stocking of Opill®, which launched at the end of the prior year quarter, of $15 million, or an impact to the category of 55.2%.
Current report
Operating income increased $48.3 million, or 307.6%, due primarily to:
Current report
•$46.6 million increase in gross profit driven by the recovery of the infant formula business generating $59.3 million more than the prior year period. This was partially offset by the impact of lower OTC net sales volumes resulting from a previous focus on production of higher margin products and unfavorable net pricing. Gross profit as a percentage of net sales increased 840 basis points compared to the prior year due to benefits from Project Energize and Supply Chain Reinvention programs, in addition to the same factors that benefited gross profit.
Current report
•$1.7 million decrease in operating expenses due primarily to lower administrative costs of $8.5 million due primarily to Project Energize. This decrease was partially offset by higher advertising and promotion investments and higher restructuring costs compared to the prior year.
Current report
Net sales decreased $14.8 million, or 3.4%, due primarily to:
Current report
•$21.3 million decrease due to the prior year divestitures of the Rare Diseases and Hospital and Specialty Businesses and the sale of branded products;
Current report
•$12.2 million decrease from unfavorable foreign currency translation; partially offset by
Current report
•$18.7 million increase, or 4.5%, due primarily to higher net sales of $11.4 million in the Upper Respiratoryand Pain and Sleep-Aids categories, due primarily to higher incidence levels of cough cold compared to the prior year period and improved supply of key products, as well as higher net sales of $4.9 million in the Healthy Lifestyle category led by strong momentum in smoking cessation brand NiQuitin®, and $2.7 million from the Skin Care category led by brands Compeed® and Sebamed®, and earlier customer purchases ahead of the spring/summer season compared to the prior year period.
Current report
Sales in each category were driven primarily by:
Current report
•Skin Care: Net sales of $111.5 million decreased 2.8%, inclusive of a 3.4% unfavorable effect of currency translation, including the impact of -1.8% from divested businesses and exited product lines. Growth was led by brands Compeed® and Sebamed®, and earlier customer purchases ahead of the spring/summer season compared to the prior year.
Showing the first 40 of 55 passages. Open the source sections for the rest.
Removed paragraphs (97)
Previous report
•The sale of the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") to Esteve Healthcare, S.L. ("ESTEVE") was completed on July 10, 2024. See Item 1. Note 3 for more information.
Previous report
•Several leadership changes were announced during the three months ended September 28, 2024:
Previous report
•On September 4, 2024, Charles Atkinson was appointed as Executive Vice President, General Counsel and Secretary.
Previous report
•A definitive agreement to sell Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") to General Pharma BidCo Pty Ltd, being an Australian incorporated entity which is ultimately owned by funds managed by Genesis Capital ("Genesis Capital") was signed on September 14, 2024. The sale of the Hospital & Specialty Business was completed on November 1, 2024. See Item 1. Note 4 for more information.
Previous report
•On September 17, 2024, Perrigo Finance Unlimited Company ("Perrigo Finance"), a public unlimited company incorporated under the laws of Ireland and an indirect wholly-owned finance subsidiary of Perrigo whose primary purpose is to finance the business and operations of Perrigo and its affiliates, issued $715 million in aggregate principal amount of 6.125% Senior Notes due 2032 (the "USD Notes due 2032") and €350 million in aggregate principal amount of 5.375% Senior Notes due 2032 (the "Euro Notes due 2032" and together with the USD Notes due 2032, the "2032 Notes"). Net proceeds from the 2032 Notes were used to prepay a portion of the Term Loan B Facility (as defined below) on September 19, 2024 and the remaining proceeds were used to fund the redemption of $700.0 million of the 4.375% Notes due 2026 on October 2, 2024.
Previous report
•A brand partnership between Good Start®and Dr. Browns®infant formula solutions was announced September 26, 2024. The new Good Start® and Dr. Brown's™ portfolio will offer the same trusted infant formula products as the existing Soothe Pro™ and Gentle Pro™, now with refreshed packaging to celebrate the launch of the new partnership. Good Start® and Dr. Brown's™ infant formulas offer complete nutrition specially formulated for tolerance concerns.
Previous report
U.S. Department of Justice Antitrust Division Investigation
Previous report
On July 29, 2024, the Antitrust Division of the U.S. Department of Justice advised us that it no longer considers Perrigo a subject or target of the division’s grand jury investigation of antitrust violations in the generic drug industry. That investigation had stemmed from the Company’s Rx Pharmaceuticals business, which was divested in 2021.
Previous report
Economic Uncertainty
Previous report
Currently, all sites are up and running and have returned to reliable, quality-assured production with recent output across the network near 2023 levels. Our focus now lies in rebuilding customer service levels and getting these critical products back on the shelves for consumers who need high-quality, affordable infant formula.
Previous report
Net sales decreased $36.3 million, or 3.2%, due primarily to:
Previous report
•$26.8 million decrease, or 2.4%, due primarily to lost distribution of lower margin products in U.S. Store Brands and lower net sales in Oral Care and Pain & Sleep Aids categories. These factors were partially offset by strategic pricing actions, new products and growth in branded OTC product offerings;
Previous report
•$14.9 million decrease from the divestiture of the Rare Diseases Business and the sale of branded products; and
Previous report
•$1.4 million decrease from exited product lines; partially offset by
Previous report
•$5.1 million increase from favorable foreign currency translation.
Previous report
Operating income increased $18.3 million, or 29.5%, due primarily to:
Previous report
•$6.8 million decrease in gross profit driven by the impact from lower global OTC net sales volumes of $61.5 million, including lost distribution in U.S. Store Brands, and the exited Rare Diseases Business. These factors were partially offset by savings achieved through Supply Chain Reinvention and Project Energize activities, higher gross profit flow-through of $20.6 million from strategic pricing actions, and net favorable productivity stemming from infant formula efficiencies. Gross profit as a percentage of net sales increased 60 basis points compared to the prior year due to favorable mix within global store brand and across the portfolio in addition to the same factors that drove gross profit.
Previous report
•$25.1 million decrease in operating expenses due primarily to decreased selling and administration expenses of $29.9 million. Additionally, savings from Project Energize and the sale of branded products further reduced operating expenses. These were partially offset by impairment charges of $16.2 million recognized as part of the assets held for sale of the Hospital & Specialty Business, and an additional provision for litigation contingencies.
Previous report
Net sales decreased $263.6 million, or 7.5%, due primarily to:
Previous report
•$216.7 million decrease, or 6.3%, due primarily to lower net sales in U.S. Nutrition driven by actions to augment and strengthen the infant formula network, lower net sales in Upper Respiratory and Pain & Sleep Aids categories and purposeful SKU prioritization actions to enhance margins as part of the Company's Supply Chain Reinvention Program across most product categories. These factors were partially offset by strategic pricing actions and new products;
Previous report
•$36.5 million decrease from the divestiture of the Rare Diseases Business and the sale of branded products;
Previous report
•$14.4 million decrease from exited product lines; and
Previous report
Operating income decreased $168.8 million, or 100.8%, due primarily to:
Previous report
•$96.3 million decrease in gross profit driven by the impact of lower global OTC net sales volumes of $150.9 million, including lost distribution in U.S. Store Brands, lower manufacturing productivity within U.S. Nutrition driven by actions to augment and strengthen the infant formula network, exited products and the exited Rare Diseases Business, partially offset by higher gross profit flow-through of $84.6 million from strategic pricing actions, savings achieved through Supply Chain Reinvention and Project Energize, and new products. Gross profit as a percentage of net sales remained flat compared to the prior year due to the same factors that impacted gross profit; and
Previous report
•$72.5 million increase in operating expense due primarily to an additional provision for litigation contingencies, increased restructuring expenses associated with Supply Chain Reinvention and Project Energize of $72.4 million, and impairment charges recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Diseases Business. These increases were partially offset by gains recognized on the sale of branded products, decreased selling expenses of $59.4 million, and savings from Project Energize.
Previous report
Net sales decreased $32.2 million, or 4.6%, due primarily to:
Previous report
•$30.7 million decrease, or 4.4%, due primarily to lost distribution of lower margin products in U.S. Store Brands and lower net sales in the Oral Care and Upper Respiratory categories due to lower seasonal demand. These factors were partially offset by growth in the rest of the segment; and
Previous report
•$1.4 million decrease from exited product lines.
Previous report
(1) We updated our global reporting product categories as a result of legacy sales being moved out of Other CSCA and into respective categories. These product categories have been adjusted retroactively to reflect the changes and have no impact on historical financial position, results of operations, or cash flows.
Previous report
•Nutrition: Net sales of $127.1 million decreased 2.0% due primarily to lower net sales of oral electrolyte solutions (OES), which were partially offset by a 3% increase in net sales of infant formula products as the Company continues to refill store brand and contract customer inventories and regain market share.
Previous report
•Upper Respiratory: Net sales of $120.9 million decreased 7.9% due primarily to previously disclosed lost distribution of lower margin products in U.S. Store Brand and lower volume consumption in the cough cold category versus the prior year period. These impacts more than offset strong growth of Nasonex®and Triamcinolone Acetonidein the allergy category.
Previous report
•Healthy Lifestyle: Net sales of $80.9 million increased 1.9% due primarily to higher net sales of nicotine gums which benefited from new distribution at specific retail customers and market share gains.
Previous report
•Skin Care: Net sales of $51.9 million decreased 10.8% due primarily to lower contract manufacturing sales from one customer that is insourcing production, as expected. This dynamic more than offset growth within the Minoxidil franchise.
Previous report
•Women's Health: Net sales of $18.0 million increased 71.4% due primarily to Opill®and higher net sales of feminine hygiene products; and,
Previous report
Operating income increased $12.5 million, or 13.7%, due primarily to:
Previous report
•$3.2 million decrease in gross profit driven by the impact from lower OTC net sales volumes of $36.0 million, partially due to lost distribution of lower margin products in U.S. Store Brands; partially offset by greater manufacturing efficiencies in infant formula of $17.0 million, benefits from the Company's Supply Chain Reinvention program, and higher profit new products. Gross profit as a percentage of net sales increased 110 basis points compared to the prior year due to favorable mix within store brand and across the segment, in addition to the same factors that impacted gross profit.
Previous report
•$15.7 million decrease in operating expenses due primarily to benefits from Project Energize, partially offset by higher brand advertising and promotional investments.
Previous report
Net sales decreased $268.4 million, or 12.1%, due primarily to:
Previous report
•$253.6 million decrease, or 11.5%, due primarily to lower net sales in U.S. Nutrition driven by actions to augment and strengthen the infant formula network, SKU prioritization actions to enhance margins and lower net sales in the Upper Respiratory and Pain & Sleep Aids categories due to lower seasonal demand. These factors were partially offset by growth in the Women's Health and Healthy Lifestyle categories; and
Previous report
•$14.4 million decrease from exited product lines.
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Reworded paragraphs (44)
Previous wording
Perrigo is a leading pure-play self-care company with more than a century of innovation and experience serving the health and wellness needs of consumers. As one of the originators of the over-the-counter ("OTC") self-care market, Perrigo has a powerful legacy and vast scale in producing high-quality self-care products through a proven ability to proactively shape its portfolio to meet the evolving needs of consumers and customers.
Current wording
Perrigo is a leading pure-play self-care company with more than a century of providing high-quality health and wellness solutions to meet the evolving needs of consumers. As one of the originators of the over-the-counter ("OTC") self-care market, Perrigo is led by its vision"To Provide The Best Self-Care For Everyone" and its purpose to"Make Lives Better Through Trusted Health and Wellness Solutions, Accessible To All".
Previous wording
Perrigo provides access to trusted self-care products that can be procured without the need to visit a doctor for a prescription. Guided by our vision and purpose, our strategic goal is to create sustainable and value accretive growth by 1) delivering consumer preferred brands and innovation, 2) driving category growth with our customers, 3) powering our business with our world-class quality and supply chain, including a focus on sustainability with meaningful goals to reduce greenhouse gas emissions, water, and waste, in addition to improving the recyclability of our packaging, and 4) evolving our global organization to a single operating model. Our unique competency is to deliver a blended-branded business model of branded, value and store brand product offerings that provide consumers access to self-care products across the value spectrum.
Current wording
Perrigo provides access to trusted self-care solutions that can be used without the need to visit a health practitioner for a prescription. Guided by our vision and purpose, our strategic goal is to create sustainable and value accretive growth by 1) delivering consumer preferred brands and innovation, 2) driving category growth with our customers, 3) powering our business with our world-class, quality assured supply chain, including a focus on sustainability with meaningful goals to reduce greenhouse gas emissions, water, and waste, in addition to increasing the recyclability of our packaging, and 4) evolving our global organization to one cohesive operating model. Our unique competency is to deliver health and wellness solutions across multiple price and value tiers that improve access and choice for consumers.
Previous wording
Perrigo's broad offerings are well diversified across several major product categories as well as across geographies, primarily in North America and Europe with no one product representing more than 3% of total revenue. In North America, Perrigo is the leading store brand private label provider of self-care products in many categories, including upper respiratory, nutrition and women's health, along with brands including Opill® and Mederma®. In Europe, our portfolio consists primarily of brands, including Compeed®, EllaOne®, Solpadeine®, and ACO®.
Current wording
Perrigo's broad offerings are well diversified across several major product categories as well as across geographies, primarily in North America and Europe with no one product representing more than 5% of total revenue. In North America, Perrigo is the leading store brand private label provider of self-care products in many categories, including upper respiratory, nutrition and women's health, along with brands including Opill® and Mederma®. In Europe, our portfolio consists primarily of brands, including Compeed®, EllaOne®, Solpadeine®, Jungle Formula®, and ACO®.
Previous wording
Two key initiatives are fundamental to advancing our self-care strategy — the implementation of our Supply Chain Reinvention Program and Project Energize, a global investment and efficiency program. In addition, we continue to invest in other initiatives, including innovation, information systems and tools, and our people to drive consistent and sustainable results.
Current wording
Two key initiatives are fundamental to advancing our self-care strategy — our Supply Chain Reinvention Program, a global supply chain efficiency program, and Project Energize, a global investment and efficiency program. In addition, we continue to invest in other initiatives, including innovation, information systems and tools, and our people to drive consistent and sustainable results.
Previous wording
Our reporting and operating segments reflect the way our chief operating decision maker, who is our CEO, makes operating decisions, allocates resources and manages the growth and profitability of the Company. Our reporting and operating segments are:
Current wording
Our reporting and operating segments reflect the way our chief operating decision maker, who is our Chief Executive Officer ("CEO"), makes operating decisions, allocates resources and manages the growth and profitability of the Company. Our reporting and operating segments are:
Previous wording
•On August 19, 2024, Dr. David Ball was appointed as Executive Vice President and Chief Brand and Digital officer.
Current wording
•On January 6, 2025, Abbie Lennox was appointed as Executive Vice President and Chief Scientific Officer.
Previous wording
In 2022, we initiated our Supply Chain Reinvention Program to reduce structural costs, improve profitability and our service levels to our retail partners, and strengthen our resiliency by streamlining and simplifying our global supply chain. Through this initiative, we are reducing portfolio complexity, investing in advanced planning capabilities, diversifying sourcing, and optimizing our manufacturing assets and distribution models. From 2022 through 2025, we expect to achieve $100 million to $120 million in gross pre-tax annualized savings, not including any benefits or impacts from the acquired Perrigo Wisconsin (Gateway) facility. To achieve these run rate savings per year by 2025 (not taking into account depreciation expense on capital investments related to the program), we previously anticipated incurring an estimated $160 million in costs by the end of 2025, which included investments to adjust our global manufacturing footprint. As we continue to assess the best alignment of operations to our new ways of working, we have decided to not proceed with manufacturing footprint actions related to this Program at this time. Therefore, we expect to incur costs of $100 million, or $60 million lower than originally projected by the end of 2025, to achieve the same savings opportunity of $100 million to $120 million in gross pre-tax annualized savings by the end of 2025, not including any benefits or impacts from the acquired Perrigo Wisconsin (Gateway) facility. Refer to Item 1. Note 15 for further details on restructuring charges.
Current wording
In 2022, we initiated a Supply Chain Reinvention Program to reduce structural costs, improve profitability and our service levels to our retail partners, and strengthen our resiliency by streamlining and simplifying our global supply chain. Through this initiative, we are reducing portfolio complexity, investing in advanced planning capabilities, diversifying sourcing, and optimizing our manufacturing assets and distribution models. We estimate a total annual run-rate potential savings opportunity by the end of fiscal year 2028 of between $200 million to $300 million (not including related depreciation expense on capital investments). To obtain these potential benefits, we anticipate incurring costs between $300 million to $350 million by the end of fiscal year 2028 to complete the program implementation, with the substantial portion of the costs incurred by the end of 2025, including capital investments, restructuring expenses and implementation costs. A significant portion of the annual run-rate potential savings of the Program, between $150 million to $200 million (not including related depreciation expense on capital investments), are anticipated by the end of fiscal year 2025. Refer to Item 1. Note 14 for further details on restructuring charges.
Previous wording
Perrigo has successfully transformed into a pure-play consumer self-care company and is now embarking on the next stage of its self-care journey - evolving to One Perrigo. This evolution will create sustainable, value accretive growth through a blended-branded business model that better positions the Company to win in self-care.
Current wording
Perrigo has successfully transformed into a pure-play consumer self-care company and is now embarking on the next stage of its self-care journey - evolving to One Perrigo. This evolution will create sustainable, value accretive growth through a business model that better positions the Company to win in self-care.
Previous wording
Project Energize was initiated in the first quarter of 2024, subject to local law and consultation requirements, and is expected to deliver an annualized pre-tax savings in the range of $140 million to $170 million by 2026. The Company expects to reinvest approximately $40 million to $60 million of these savings to drive its blended-branded business model. Restructuring and related charges associated with these actions are estimated to be in the range of $140 million to $160 million, including $20 million to $40 million in investments to enhance capabilities, and are expected to be substantially incurred by the end of 2026. Restructuring activities as part of Project Energize are expected to result in the net reduction of approximately 6% of total Perrigo roles. Refer to Item 1. Note 15 for further details on restructuring charges.
Current wording
Project Energize was initiated in the first quarter of 2024, subject to local law and consultation requirements, and is expected to deliver annualized pre-tax savings in the range of $140 million to $170 million by the end of 2026. The Company expects an annual reinvestment of approximately $40 million to $60 million of these savings to drive its business model. Restructuring and related charges associated with these actions are estimated to be in the range of $140 million to $160 million, including $20 million to $40 million in investments to enhance capabilities, and are expected to be substantially incurred by the end of 2026. Restructuring activities as part of Project Energize are expected to result in the net reduction of approximately 6% of total Perrigo roles. Refer to Item 1. Note 14 for further details on restructuring charges.
Previous wording
Current macroeconomic conditions remain very dynamic, including impacts from inflation and interest rates, volatile changes in foreign currency exchange rates, political unrest and uncertainty magnified by the 2024 U.S. presidential election and legislative and regulatory changes. Any causes of market size contraction could reduce our sales or erode our operating margin and consequently reduce our net earnings and cash flows.
Current wording
Current macroeconomic conditions remain dynamic, including impacts from inflation and interest rates, volatile changes in foreign currency exchange rates, tariffs, political unrest and uncertainty and legislative and regulatory changes. Any causes of market size contraction could reduce our sales or erode our operating margin and consequently reduce our net earnings and cash flows. As a result of these dynamic conditions and uncertainties, we have modified, and may further modify, our operations and strategic initiatives, including by adjusting our investment priorities, reallocating resources, or delaying specific initiatives, such as deferring capital expenditures on the Nutrition Network Optimization project and seeking further working capital improvements.
Previous wording
Our interest expense is impacted by the overall global economic and interest rate environment. We manage interest rate risk through our capital structure and the use of interest rate swaps to fix the interest rate on greater than 90% of our outstanding debt.
Current wording
In addition, our interest expense is impacted by the overall global economic and interest rate environment. We manage interest rate risk through our capital structure and the use of interest rate swaps to fix the interest rate on greater than 90% of our outstanding debt.
Previous wording
As the war in Ukraine continues, supply chain disruptions in specific categories such as oil, agricultural and paper based commodities continue to lead to inflationary pressures in those areas. Additionally, we experienced employment vacancies and attrition as the labor market negatively impacted productivity and drove the need for wage rate increases and other retention benefits. We implemented a series of actions to substantially mitigate these and other inflationary cost pressures such as strategic pricing and our Supply Chain Reinvention Program. Benefits from our actions have begun to substantially offset the impacts of inflation, and the global freight constraints in availability of freight containers and truck drivers has normalized. However, future supply chain disruptions and inflationary pressures from the continuation of the conflicts between Russia and Ukraine, and escalating conflicts in the Middle East and neighboring regions are uncertain.
Current wording
Supply chain disruptions continue in specific categories such as agricultural commodities due to climate impacts, and with supply chain shortages due to the Middle East Conflict. Inflationary pressures are still a factor on cost in major economies globally across food, energy and labor. We continue to experience employment vacancies and attrition in the labor market which negatively impacts productivity and has driven the need for wage rate increases and other retention benefits. We implemented a series of actions to substantially mitigate these and other inflationary cost pressures, such as strategic pricing and our Supply Chain Reinvention Program. Benefits from our actions have substantially offset the impacts of inflation to date. However, future supply chain disruptions and inflationary pressures from the continuation of the conflicts between Russia and Ukraine, any escalating conflicts in the Middle East and neighboring regions and the impact of tariff and trade policy are uncertain.
Previous wording
As part of its efforts to prevent supply interruptions and risk of Cronobacter spp. illnesses associated with powdered infant formula, in March 2023, the FDA released an “Immediate National Strategy to Increase the Resiliency of the U.S. Infant Formula Market” and issued a letter to the powdered infant formula industry to share information to assist the industry in improving the microbiologic safety of powdered infant formula. In response to those changes, we made considerable investments in all our infant formula manufacturing sites, including enhanced cleaning and sanitation protocols, enhancements to our environmental monitoring programs, enhanced quality oversight and increasing the number of quality and operations personnel. These changes resulted in higher costs and lower manufacturing output and production yields across our infant formula network.
Current wording
As part of its efforts to prevent supply interruptions and risk of Cronobacter spp. illnesses associated with powdered infant formula, in March 2023, the FDA released an “Immediate National Strategy to Increase the Resiliency of the U.S. Infant Formula Market” and issued a letter to the powdered infant formula industry to share information to assist the industry in improving the microbiologic safety of powdered infant formula. In response to those changes, we made considerable investments in all our infant formula manufacturing sites, including enhanced cleaning and sanitation protocols, enhancements to our environmental monitoring programs, enhanced quality oversight and increased the number of quality and operations personnel. These changes resulted in higher costs and lower manufacturing output and production yields across our infant formula network.
Previous wording
As previously disclosed, the Company received a warning letter from the FDA on August 30, 2023 relating to the Perrigo Wisconsin infant formula facility, which was acquired from a third party in November 2022. While the Company worked to resolve the issues raised in the August 30 letter, on November 29, 2023, the Company received notice from the FDA of additional inspection observations relating to Perrigo Wisconsin. Consistent with the Company’s commitment to quality, the Company temporarily paused all production at that facility and conducted an extended site-wide assessment and cleaning.
Current wording
As previously disclosed, we received a warning letter from the FDA on August 30, 2023 relating to the Perrigo Wisconsin infant formula facility, which was acquired in November 2022. While we worked to resolve the issues raised in the August 30 letter, on November 29, 2023, we received notice from the FDA of additional inspection observations relating to Perrigo Wisconsin. Consistent with our commitment to quality, we temporarily paused all production at that facility and conducted an extended site-wide assessment and cleaning.
Previous wording
The Company also bolstered its internal resources and brought in additional outside expertise to help revise, enhance and strengthen comprehensive standards and processes across our infant formula network, including in some instances, pausing production for comprehensive cleaning and infrastructure improvements. All planned large-scale manufacturing plant resets have now been completed, and the Company is implementing the next phase of our quality enhancements, including further protocol, process and procedural improvements at the site level, and additional investments to upgrade infrastructure. We do not expect these continuing improvements to result in extended shutdowns beyond typical planned maintenance activities.
Current wording
We also bolstered our internal resources and brought in additional outside expertise to help revise, enhance and strengthen comprehensive standards and processes across our infant formula network, including in some instances, pausing production for comprehensive cleaning and infrastructure improvements. All planned large-scale manufacturing plant resets have been completed, we have implemented quality enhancements, including further protocol, process and procedural improvements at the site level, and all sites are producing reliable, quality-assured product. Our focus is now on recovering store brand share and returning critical SKUs back to the shelves for consumers who need high-quality, affordable infant formula.
Previous wording
We have incurred and expect to incur certain extraordinary non-recurring costs associated with the remediation and enhancement actions described above and the evolving U.S. infant formula regulatory landscape, including consulting and legal fees relating to the Company’s responses to the FDA and the development and institution of new protocols across our infant formula manufacturing sites, as well as other costs relating to the extended cleaning and sanitization and the pausing and restarting of production. Cash costs in 2024 to achieve this remediation plan are estimated at $15 to $20 million, of which approximately $17.9 million were incurred during the first three quarters. We also expect higher ongoing operating costs at our infant formula manufacturing sites moving forward as we continue to implement our enhanced program with additional internal capabilities. Due to these costs and the unabsorbed overhead and depressed sales volumes resulting from these actions, infant formula results in 2024 are expected to be below 2023 levels.
Current wording
We have incurred and expect to incur certain extraordinary non-recurring costs associated with the remediation and enhancement actions described above and the evolving U.S. infant formula regulatory landscape, including consulting and legal fees relating to our responses to the FDA and the development and institution of new protocols across our infant formula manufacturing sites, as well as other costs relating to the extended cleaning and sanitization and the pausing and restarting of production. Cash costs to date to achieve this remediation plan are approximately $22.6 million.
Previous wording
The invasion of Ukraine by Russia and resulting economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries on Russia, Belarus, and occupied regions in Ukraine have negatively impacted our results from operations in the region. We currently have 64 employees working in our Ukraine subsidiary. We do not have a subsidiary or employees in Russia. We have no manufacturing facilities in either Russia or Ukraine and we previously sold products into Russia entirely through distributors. In March 2022, we halted all sales to distributors in Russia and sales in Ukraine were severely depressed. Future impacts are difficult to predict due to the high level of uncertainty related to the war's duration, evolution and resolution. If the conflict spreads or materially escalates, or economic conditions deteriorate, the impact on our business and results of operations could be material.
Current wording
The invasion of Ukraine by Russia and resulting economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries on Russia, Belarus, and occupied regions in Ukraine have negatively impacted our results from operations in the region. Future impacts are difficult to predict due to the high level of uncertainty related to the war's duration, evolution and resolution. If the conflict spreads or materially escalates, or economic conditions deteriorate, the impact on our business and results of operations could be material.
Previous wording
We continue to closely monitor the ongoing Israel/Hamas conflict and the social, political and economic environment in Israel and in the surrounding region to evaluate the impacts on our operations and supply chain. Israel is a global technology research and development center that plays a critical role to the global API market, as a number of key suppliers are located within Israel. The Company sources some raw materials and finished goods from suppliers in Israel for certain self-care products, including Omeprazole. To date, Perrigo has confirmed that our suppliers in the region have active operations and continue to manufacture materials for us, and we have not received any reports of restrictions on imports or exports in Israel. However, there is potential for some disruption as it relates to in-country logistics, including freight. As a precaution, Perrigo has engaged alternate suppliers to help minimize a potential supply disruption. If the conflict spreads or materially escalates, or if the conflict leads to further volatility and uncertainty in financial markets or economic conditions, the impact on our business and results of operations could be material. This includes the related events developing in the Red Sea and their potential to disrupt supply chains and lead to further inflationary pressures which we are also continuing to monitor closely.
Current wording
We continue to closely monitor the ongoing conflict and the social, political and economic environment in Israel and in the surrounding region to evaluate the impacts on our operations and supply chain. Israel is a global technology research and development center that plays a critical role in the global Active Pharmaceutical Ingredients ("API") market, as a number of our key suppliers are located within Israel. The Company sources some raw materials and finished goods from suppliers in Israel for certain self-care products, including omeprazole. To date, Perrigo has confirmed that our suppliers in the region have active operations and continue to manufacture materials for us, and we have not received any reports of restrictions on imports or exports in Israel. However, there is potential for some disruption as it relates to in-country logistics, including freight. As a precaution, Perrigo has engaged alternate suppliers to help minimize a potential supply disruption. If the conflict spreads or materially escalates, or if the conflict leads to further volatility and uncertainty in financial markets or economic conditions, the impact on our business and results of operations could be material. For example, the recent escalation in military activity in the Red Sea region has the potential to disrupt supply chains and lead to further inflationary pressures which we are also continuing to monitor.
Previous wording
Any currency translation effects described below represent estimates of the net differences between translation of foreign currency transactions into U.S. dollars for the three and nine months ended September 28, 2024 at the average exchange rates for the reporting period and average exchange rates for the three and nine months ended September 30, 2023.
Current wording
Any currency translation effects described below represent estimates of the net differences between translation of foreign currency transactions into U.S. dollars for the three months ended March 29, 2025 at the average exchange rates for the reporting period and average exchange rates for the three months ended March 30, 2024.
Previous wording
•$8.9 million decrease from unfavorable foreign currency translation.
Current wording
•$12.6 million decrease from unfavorable foreign currency translation; and
Previous wording
•Digestive Health: Net sales of $113.5 million decreased 3.9% due primarily to previously disclosed lost distribution of lower margin products in U.S. Store Brand and lower net sales of products in the Omeprazole family. These impacts more than offset higher net sales of Polyethylene Glycol, products within the Esomeprazole family, and Prevacid®, in addition to new business awards.
Current wording
•Digestive Health: Net sales of $103.0 million decreased 15.7% due primarily to previously disclosed net lost distribution of lower margin products in U.S. Store Brand and lower consumption of proton pump inhibitors, including Omeprazole, Esomeprazoleand Lansoprazole, despite Perrigo share gains. These impacts more than offset higher net sales of Polyethylene Glycol.
Previous wording
•Pain and Sleep-aids: Net sales of $87.7 million decreased 7.2% due primarily to previously disclosed lost distribution of lower margin products in U.S. Store Brand, partially offset by new business awards.
Current wording
•Pain and Sleep-aids: Net sales of $76.6 million decreased 7.3% due primarily to previously disclosed net lost distribution of lower margin products partially offset by new business awards.
Previous wording
•Oral Care: Net sales of $66.9 million decreased 12.8% due to lower total category consumption versus the prior year period, lower distribution at specific retail customers, and lower net sales of Plackers®dental flossers.
Current wording
•Oral Care: Net sales of $62.0 million decreased 4.2% due to lower distribution at specific retail customers and lower net sales of Plackers®dental flossers, partially offset by higher net sales of store brands, particularly toothbrushes and flossers.
Previous wording
•VMS and Other: Net sales of $4.4 million decreased 15.4% due primarily to volume decline in the VMS category.
Current wording
•VMS and Other: Net sales of $2.4 million decreased 57.1% due primarily to volume decline in the VMS category.
Previous wording
•Healthy Lifestyle: Net sales of $53.2 million increased 1.5%, inclusive of a 1.5% favorable effect of currency translation, as higher consumption for anti-parasite products including Paranix®, were more than offset by lower category consumption in weight loss, impacting XLS Medical®.
Current wording
•Healthy Lifestyle: Net sales of $66.6 million increased 3.1%, inclusive of a 4.5% unfavorable effect of currency translation, as strong momentum behind smoking cessation brand NiQuitin® were more than offset by lower category consumption in weight loss, impacting XLS Medical®, and parasites.
Previous wording
•Women's Health: Net sales of $32.2 million increased 13.0%, inclusive of a 1.3% favorable effect of currency translation, due primarily to higher net sales of contraceptive products including EllaOne®, driven by market share gains and the absence of prior year distribution transitions.
Current wording
•Women's Health: Net sales of $32.4 million increased 1.3%, inclusive of a 2.9% unfavorable effect of currency translation, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains.
Previous wording
•Digestive Health and Other: Net sales of $30.6 million decreased 28.0%, inclusive of a 1.1% unfavorable effect of currency translation, primarily due to the divestiture of the HRA Pharma Rare Diseases Business, which was partially offset by higher net sales of store brand products.
Current wording
•Digestive Health and Other: Net sales of $25.5 million decreased 22.3%, inclusive of a 1.5% unfavorable effect of currency translation, primarily due to the divestiture of the HRA Pharma Rare Diseases Business, which was partially offset by higher net sales of store brand digestive health products.
Previous wording
•$2.2 million decrease in gross profit due primarily to the impact of lower net sales volumes of $25.5 million and the exited Rare Diseases Business, partially offset by higher gross profit flow-through from strategic pricing actions of $24.0 million and new products. Gross profit as a percentage of net sales decreased 10 basis points compared to the prior year due to the same factors impacting gross profit; more than offset by
Current wording
•$12.0 million decrease in gross profit due primarily to the impact of the divested Rare Diseases and Hospital and Specialty Businesses of $11.8 million, as well as unfavorable impacts of $8.2 million from materials inflation and $5.8 million from unfavorable foreign currency translation. These factors were partially offset by strategic pricing actions and improved supply of key products. Gross profit as a percentage of net sales decreased 120 basis points compared to the prior year due to the same factors impacting gross profit, partially offset by favorable volume/mix towards higher margin products; and
Previous wording
Unallocated expenses are comprised of certain corporate services not allocated to our reporting segments and are recorded in Operating income on the Consolidated Statements of Operations. Unallocated expenses were as follows (in millions):
Current wording
Unallocated expenses are comprised of certain corporate services not allocated to our reporting segments and are recorded in Operating income on the Condensed Consolidated Statements of Operations. Unallocated expenses were as follows (in millions):
Previous wording
The increase of $28.2 million in unallocated expenses during the three months ended September 28, 2024, and the increase of $105.5 million in unallocated expenses during the nine months ended September 28, 2024, compared to the prior year periods was due primarily to an increase in expenses for litigation as well as restructuring associated primarily with Project Energize.
Current wording
The decrease of $40.8 million in unallocated expenses during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in expenses for litigation as well as restructuring associated primarily with Project Energize.
Previous wording
Interest expense, net, Other (income) expense, net and Loss (gain) on extinguishment of debt
Current wording
Interest expense, net, and Other (income) expense, net
Previous wording
The effective tax rate on the pre-tax income for the for the three months ended September 28, 2024 and on the pre-tax loss for the nine months ended September 28, 2024 was largely impacted by losses recognized in various tax jurisdictions, in both periods, as well as the impacts of accounting for income taxes in interim reporting periods. As a result, a significant variation in the customary relationship between income tax expense and pre-tax book income may occur. Due to the net impact of an inter-company intellectual property sale, estimated worldwide non-deductible expenses, as well as establishing a partial valuation allowance in the United States, we are projecting an income tax expense for the full year ended December 31, 2024, which results in an unusually high annual effective tax rate when applied to the forecasted pre-tax income for the year. Although a significant tax benefit has been recorded on the losses for the nine months ended September 28, 2024, a tax expense has been recorded for the three months ended September 28, 2024, and as noted above, we are projecting an income tax expense for the full year ended December 31, 2024.
Current wording
The effective tax rate on the pre-tax income for the three months ended March 29, 2025 decreased when compared to the effective tax rate on the pre-tax loss for the three months ended March 30, 2024, primarily due to changes in the jurisdictional mix of earnings, and impacts related to accounting for income taxes in interim reporting periods for 2024, offset by changes in our reserves for uncertain tax positions in 2025. For 2024, the accounting for income taxes in interim reporting periods resulted in a significant variation in the customary relationship between income tax expense and pre-tax book income, which does not significantly impact 2025.
Previous wording
We finance our operations with internally generated funds, supplemented by credit arrangements with third parties and capital market financing. We routinely monitor current and expected operational requirements and financial market conditions to evaluate other available financing sources including term and revolving bank credit and securities offerings. In determining our future capital requirements, we regularly consider, among other factors, known trends and uncertainties, such as the war in Ukraine and conflict between Israel and Hamas and related developments in the Red Sea, inflation and interest rates, the status of material contingent liabilities, recent financial market volatility and other uncertainties. Subject to relevant restrictions under our debt agreements, our cash requirements for other purposes and other factors management deems relevant, we may from time to time use available funds to redeem, repurchase or refinance our debt in privately negotiated or open market transactions, by tender offer or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms we deem appropriate (which may be below par).
Current wording
We finance our operations with internally generated funds, supplemented by credit arrangements with third parties and capital market financing. We routinely monitor current and expected operational requirements and financial market conditions to evaluate other available financing sources including term and revolving bank credit and securities offerings. In determining our future capital requirements, we regularly consider, among other factors, known trends and uncertainties, such as the war in Ukraine and conflicts in the Middle East, inflation and interest rates, the status of material contingent liabilities, recent financial market volatility, tariffs and potential tariff and trade policies and other uncertainties. Additionally, we have considered investments in capital expenditures related to the progression of infant formula plant investments, our Supply Chain Reinvention Program, and Project Energize. Subject to relevant restrictions under our debt agreements, our cash requirements for other purposes and other factors management deems relevant, we may from time to time use available funds to redeem, repurchase or refinance our debt in privately negotiated or open market transactions, by tender offer or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms we deem appropriate (which may be below par).
Previous wording
Based on the foregoing, management believes that our operations and borrowing resources are sufficient to provide for our short-term and long-term capital requirements, as described below. However, an adverse result with respect to our appeal of any material outstanding tax assessments or litigation, including securities or drug pricing matters and product liability cases, damages resulting from third-party claims, and related interest and/or penalties, could ultimately require the use of corporate assets to pay such assessments and any such use of corporate assets would limit the assets available for other corporate purposes. As such, we continue to evaluate the impact of the above factors on liquidity and may determine that modifications to our capital structure are appropriate if market conditions deteriorate, favorable capital market opportunities become available, or any change in conditions relating to the war in Ukraine and Israel, inflation and interest rates, the status of material contingent liabilities, financial market volatility or other uncertainties have a material impact on our capital requirements.
Current wording
Based on the foregoing, management believes that our operations and borrowing resources are sufficient to provide for our short-term and long-term capital requirements, as described below. However, an adverse result with respect to our appeal of any material outstanding tax assessments or litigation, including securities or drug pricing matters and product liability cases, damages resulting from third-party claims, and related interest and/or penalties, could ultimately require the use of corporate assets to pay such assessments and any such use of corporate assets would limit the assets available for other corporate purposes. As such, we continue to evaluate the impact of the above factors on liquidity and may determine that modifications to our capital structure are appropriate if market conditions deteriorate, favorable capital market opportunities become available, or any change in conditions relating to the war in Ukraine and conflicts in the Middle East, inflation and interest rates, the status of material contingent liabilities, financial market volatility, tariffs, potential tariff and trade policies or other uncertainties have a material impact on our capital requirements.
Previous wording
(2) Working capital represents current assets less current liabilities, excluding cash, cash equivalents and restricted cash and excluding current indebtedness.
Current wording
(1) Working capital represents current assets less current liabilities, excluding cash and cash equivalents, assets and liabilities held for sale and current indebtedness.
Previous wording
Cash, cash equivalents, restricted cash, cash flows from operations, and borrowings available under our credit facilities are expected to be sufficient to finance our liquidity and capital expenditures in both the short and long term. Although our lenders have made commitments to make funds available to us in a timely fashion under our revolving credit agreements and overdraft facilities, if economic conditions worsen or new information becomes publicly available impacting the institutions’ credit rating or capital ratios, these lenders may be unable or unwilling to lend money pursuant to our existing credit facilities. Should our outlook on liquidity requirements change substantially from current projections, we may seek additional sources of liquidity in the future.
Current wording
Cash, cash equivalents, cash flows from operations, and borrowings available under our credit facilities are expected to be sufficient to finance our liquidity and capital expenditures in both the short and long term. Although our lenders have made commitments to make funds available to us in a timely fashion under our revolving credit agreements and overdraft facilities, if economic conditions worsen or new information becomes publicly available impacting the institutions’ credit rating or capital ratios, these lenders may be unable or unwilling to lend money pursuant to our existing credit facilities. Should our outlook on liquidity requirements change substantially from current projections, we may seek additional sources of liquidity in the future.
Previous wording
The $146.5 million decrease in operating cash flow was primarily driven by a decrease in cash flow from the change in net earnings after adjustments for items including deferred income taxes, gain on sale of branded products, impairment charges, settlement of interest rate derivatives, and restructuring, partially offset by significantly higher working capital during the period, primarily related to timing of sales and payments received and made.
Current wording
The $63.1 million decrease in operating cash flow was primarily driven by a decrease in cash flow from the change in net earnings after adjustments for items including depreciation and amortization, restructuring and share-based compensation partially offset by higher working capital, primarily related to litigation and restructuring payments.
Previous wording
On April 20, 2022, we and our indirect wholly owned subsidiary, Perrigo Investments, LLC, (the "Borrower") entered into the senior secured credit facilities, which consisted of (i) a $1.0 billion five-year revolving credit facility (the “Revolver”), (ii) a $500.0 million five-year Term Loan A facility (the “Term Loan A Facility” and the Term A Loans thereunder, the "Term A Loans"), and (iii) a $1.1 billion seven-year Term Loan B facility (the “Term Loan B Facility” and the Term B Loans thereunder borrowed on April 20, 2022, the "2022 Term B Loans” and, together with the
Current wording
On April 20, 2022, we and our indirect wholly owned subsidiary, Perrigo Investments, LLC, (the "Borrower") entered into the senior secured credit facilities, which consisted of (i) a $1.0 billion five-year revolving credit facility (the “Revolver”), (ii) a $500.0 million five-year Term Loan A facility (the “Term Loan A Facility” and the Term A Loans thereunder, the "Term A Loans"), and (iii) a $1.1 billion seven-year Term Loan B facility (the “Term Loan B Facility” and the Term B Loans thereunder borrowed on April 20, 2022, the "2022 Term B Loans” and, together with the Revolver and Term Loan A Facility, the "Senior Secured Credit Facilities"), pursuant to a Term Loan and Revolving Credit Agreement (the "Credit Agreement").
Previous wording
As of September 28, 2024 and December 31, 2023, we had $1,437.8 million and $1,858.1 million, respectively, outstanding under our Term Loan A Facility and Term Loan B Facility. Our short-term debt as of September 28, 2024 of $440.7 million is comprised of (i)the remaining portion of the 3.900% Senior Notes due 2024, (ii) amortization payments for the Term A Loans and the Term B Loans and (iii) lease payments.
Current wording
As of March 29, 2025 and December 31, 2024, we had $1,420.4 million and $1,429.1 million, respectively, outstanding under our Term Loan A Facility and Term Loan B Facility. Our short-term debt as of March 29, 2025 of $36.2 million is comprised of (i)amortization payments for the Term A Loans and the Term B Loans and (ii) lease payments.
Previous wording
We are in compliance with all the covenants under our debt agreements as of September 28, 2024.
Current wording
We were in compliance with all the covenants under our debt agreements as of March 29, 2025.
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Previous report — wording carried elsewhere
CSCA net sales by product category were as follows:
Previous report — wording carried elsewhere
•VMS and Other: Net sales of $15.4 million decreased 6.1% due primarily to volume decline in the VMS category.
Previous report — wording carried elsewhere
•$8.5 million decrease from unfavorable foreign currency translation.
Previous report — wording carried elsewhere
CSCI net sales by product category were as follows:
Previous report — wording carried elsewhere
Revolver and Term Loan A Facility, the "Senior Secured Credit Facilities"), pursuant to a Term Loan and Revolving Credit Agreement (the "Credit Agreement").