PERRIGO Co plc
For the period ended Jun 28, 2025. Filed Aug 6, 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.
Jun 28, 2025 · Filed Aug 6, 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 2025-03-29; filed 2025-05-07.
0001585364-25-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-06.
0001585364-25-000122
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 160 previous paragraphs and 206 current paragraphs.
100 unchanged; 35 reworded; 65 added; 24 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 12 previous and 17 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 (65)
Current report
•On June 4, 2025, Ron Janish, Executive Vice President ("EVP"), Global Operations and Supply Chain announced his plan to retire on September 30, 2025, following a distinguished career at Perrigo spanning more than two decades.
Current report
•Effective June 23, 2025, Matt Winterman, with more than 20 years of global supply chain and strategy leadership, was appointed to the role of Executive Vice President, Product Supply, Operations Strategy and Transformation Officer. Mr. Winterman will work closely with Mr. Janish to ensure a smooth transition.
Current report
•On July 1, 2025, the Company announced it is scaling and optimizing its proven One Perrigo growth model—anchored in global Category Leadership and Market Activation—across the organization to enhance agility, accelerate innovation, and drive long-term sustainable growth. This organizational alignment advances Perrigo’s multi-year Stabilize, Streamline and Strengthen (‘Three-S’) plan and reflects operational readiness across the Company. As part of this initiative, effective July 1, 2025, Roberto Khoury was appointed EVP, Chief Commercial Officer, and will assume responsibility for operating results in both CSCI and CSCA segments. Mr. Khoury previously held the role of EVP and President, Consumer Self-Care International, which has been eliminated as part of this initiative. Effective June 30, 2025, Catherine “Triona” Schmelter no longer serves as EVP and President, Consumer Self-Care Americas of the Company and all relevant subsidiaries and affiliates due to the elimination of the position as part of this initiative.
Current report
•On July 13, 2025, the Company entered into a Master Sale and Purchase Agreement with Kairos Bidco AB (“Kairos”), an investment vehicle managed by an affiliate of KKR & Co., Inc. (“KKR”), pursuant to which, and subject to the terms and conditions set forth therein, the Company agreed to sell and Kairos agreed to acquire (1) all of the shares in ACO® Hud Nordic AB, a Swedish private corporation (aktiebolag) (the “Target”) and (2) various assets relating to the manufacture, packaging, sale and distribution of certain cosmetic products, medicinal products and medical devices related to the Company’s Dermacosmetics branded business in Northern Europe, the Netherlands and Poland (together with the Target, the “Dermacosmetics Business”). See Item1. Note 18 for more information.
Current report
In October and November 2024, the FDA conducted its first inspection of the Perrigo Wisconsin infant formula facility since the November 2023 inspection. Following this 2024 inspection, the FDA did not issue written observations via a Form FDA 483.
Current report
Net sales decreased $9.2 million, or 0.9%, due primarily to:
Current report
•$1.1 million decrease, or 0.1%, due primarily to lower net sales in the Digestive Health category of $14.9 million due to lower consumption of specific molecules, and in the Oral Care category of $12.1 million due to lost distribution of lower margin products. These were partially offset by higher net sales in the Pain and Sleep-Aids category of $10.3 million led by improved supply of the Solpadeine brand, in the Nutrition category of $9.4 million driven by continued recovery in the infant formula business, and in the Upper Respiratory category of $7.1 million primarily from share gains and new distribution in U.S. store brand allergy product offerings and restored supply of the Physiomer® brand. This was all partially offset by
Current report
•$18.1 million increase from favorable foreign currency translation.
Current report
Operating income increased $71.9 million, or 271.3%, due primarily to:
Current report
•$31.8 million decrease in gross profit driven primarily by divested businesses and exited product lines of $17.7 million, isolated production variability in infant formula, which caused an increase in product scrap in the quarter, lower net sales volumes primarily in U.S. OTC and lower manufacturing efficiencies. These factors were partially offset by favorable foreign currency translation of $11.0 million and Project Energize savings. Gross profit as a percentage of net sales decreased 260 basis points compared to the prior year due primarily to the same factors that drove gross profit, partially offset by favorable net sales mix of brand to store brand. Divested businesses and exited products unfavorably impacted gross margin by 70 basis points.
Current report
•$103.7 million decrease in operating expenses due primarily to the absence of prior year impairment charges of $34.1 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Disease Business, decreased restructuring costs associated primarily with Project Energize and decreased selling and administrative costs of $26.6 million due primarily to Project Energize.
Current report
Consolidated
Current report
Net sales decreased $47.3 million, or 2.2%, due primarily to:
Current report
•$5.4 million decrease, or 0.3%, due primarily to lower net sales in the Digestive Health and Oral Care categories of $53.5 million, partially offset by the higher net sales in the Nutrition category of $23.9 million, stemming from recovery in the infant formula business, as well as higher net sales in the Upper Respiratory category of $21.7 million. These were partially offset by
Current report
•$5.5 million increase from favorable foreign currency translation.
Current report
Operating income increased $174.0 million, or 213.0%, due primarily to:
Current report
•$2.8 million decrease in gross profit driven primarily by the impact of divested businesses and exited products of $32.1 million, lower manufacturing efficiencies and lower net sales volumes primarily in U.S. OTC, partially offset by Supply Chain Reinvention benefits, Project Energize savings and a reduction of infant formula remediation costs of $7.9 million compared to the prior year. Gross profit as a percentage of net sales increased 100 basis points compared to the prior year due to the same factors that impacted gross profit; and
Current report
•$171.2 million decrease in operating expense due primarily to lower selling and administrative costs of $48.9 million due primarily to Project Energize, decreased restructuring costs associated primarily with Supply Chain Reinvention and Project Energize of $43.2 million, a decrease in expenses for litigation, and the absence of prior year impairment charges recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Diseases Business.
Current report
Net sales decreased $12.1 million, or 1.9%, due primarily to:
Current report
•$12.0 million decrease, or 1.9%, due primarily to lower net sales in the Digestive Health category of $16.3 million due to lower consumption of specific molecules, principally proton pump inhibitors for heartburn, and lower net sales in the Oral Care category of $13.3 million due to lost distribution of lower margin products. These were partially offset by higher net sales in the Nutrition category of $9.4 million, stemming from recovery in the infant formula business, as well as higher net sales in the Healthy Lifestyles category stemming from share gains in store brand smoking cessation products.
Current report
•Upper Respiratory: Net sales of $123.3 million increased 3.8% due primarily to new business wins and store brand share gains amid lower consumption in allergy, leading to higher net sales of allergy products including store brand versions of Fluticasone and Fexofenadine.
Current report
•Digestive Health: Net sales of $109.7 million decreased 12.9% due primarily to lower consumption and pricing of proton pump inhibitors, including Omeprazole, Esomeprazoleand Lansoprazole, partially offset by Perrigo store brand share gains. These dynamics more than offset higher net sales of Polyethylene Glycol, where Perrigo also gained store brand market share.
Current report
•Pain and Sleep-aids: Net sales of $80.2 million decreased 1.7% due primarily to lower category consumption of children's analgesics medicines and lower dollar share compared to the prior year.
Current report
•Oral Care: Net sales of $60.0 million decreased 18.0% due primarily to lost distribution of lower margin products at specific retail customers and the absence of Plackers®dental flossers promotions compared to the prior year.
Current report
•Skin Care: Net sales of $57.8 million increased 1.2% driven by growth in the Mederma® brand and higher net sales in the Minoxidil franchise.
Current report
•Women's Health: Net sales of $18.7 million increased 11.3% due primarily to growth of Opill®, as the prior year quarter reflected a relatively light sales period following the strong retail sell-in that occurred immediately after the product’s launch in March 2024..
Current report
Operating income decreased $24.2 million, or 34.9%, due primarily to:
Current report
•$26.9 million decrease in gross profit primarily driven by isolated production variability in infant formula, which caused an increase in product scrap in the second quarter, and lower net sales volumes primarily in U.S. OTC. These factors were partially offset by favorable impacts from lower materials inflation and savings from Project Energize. Gross profit as a percentage of net sales decreased 370 basis points compared to the prior year due primarily to the same factors that drove gross profit.
Current report
Net sales decreased $35.5 million, or 2.8%, due primarily to:
Current report
Sales drivers in each category are provided below:
Current report
•Upper Respiratory: Net sales of $261.2 million increased 4.9% due primarily to higher incidence levels of cough cold compared to the prior year first quarter, higher net sales of allergy products, including Nasonex®, Fluticasoneand Fexofenadine, and new business wins. This growth was partially offset by previously disclosed net lost distribution of lower margin products;
Current report
CSCA
Current report
•Healthy Lifestyle: Net sales of $144.1 million increased 2.6% due primarily to new distribution and stronger base velocities, leading to market share gains in nicotine gums and lozenges, partially offset by lower category consumption of nicotine replacement therapy products compared to the prior year period;
Current report
Operating income increased $24.1 million, or 28.4%, due primarily to:
Current report
•$19.5 million increase in gross profit driven primarily by infant formula business recovery, lower materials inflation, and Project Energize savings; partially offset by lower net sales volumes primarily in U.S. OTC and unfavorable net pricing impacts. Gross profit as a percentage of net sales increased 230 basis points compared to the prior year due to the same factors that impacted gross profit.
Current report
•$4.5 million decrease in operating expenses due primarily to lower selling and administrative costs of $7.9 million due primarily to Project Energize, as well as decreased research and development expenses, partially offset by higher restructuring costs associated with Project Energize and Nutrition Network Optimization.
Current report
Net sales increased $3.0 million, or 0.7%, due primarily to:
Current report
•$18.2 million increase from favorable foreign currency translation;
Current report
•$10.9 million increase, or 2.7%, due primarily to higher net sales of $11.7 million in the Pain and Sleep-Aids categories, led by improved supply of the Solpadeine brand, as well as higher net sales of $2.6 million in the Upper Respiratory category led by restored supply of the Physiomer® brand, and $2.2 million from the Women's Health category led by strong share gains inellaOne®, partially offset by lower net sales in the Skin Care category. These factors were partially offset by
Current report
•$26.2 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products;
Showing the first 40 of 65 passages. Open the source sections for the rest.
Removed paragraphs (24)
Previous report
•On January 6, 2025, Abbie Lennox was appointed as Executive Vice President and Chief Scientific Officer.
Previous report
Net sales decreased $38.2 million, or 3.5%, due primarily to:
Previous report
•$12.6 million decrease from unfavorable foreign currency translation; and
Previous 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®.
Previous report
Operating income increased $102.1 million, or 185.0%, due primarily to:
Previous 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.
Previous 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.
Previous report
Net sales decreased $23.4 million, or 3.6%, due primarily to:
Previous report
Sales in each category were driven primarily by:
Previous 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.
Previous report
Operating income increased $48.3 million, or 307.6%, due primarily to:
Previous 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.
Previous report
Net sales decreased $14.8 million, or 3.4%, due primarily to:
Previous 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;
Previous report
•$12.2 million decrease from unfavorable foreign currency translation; partially offset by
Previous 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.
Previous report
Sales in each category were driven primarily by:
Previous 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.
Previous report
•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 report
•Oral Care: Net sales of $22.5 million decreased 21.6%, inclusive of a 1.5% unfavorable effect of currency translation, due primarily to lower net sales of store brand products.
Previous report
Operating income increased $13.1 million, or 49.4%, due primarily to:
Previous report
Net cash for Operating Activities
Previous report
Net cash for investing activities was comparable to the prior year period.
Previous report
Net cash for financing activities was comparable to the prior year period.
Reworded paragraphs (35)
Previous wording
•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 wording
•The sale of the Richard Bittner Business AG, an Austrian contract manufacturing entity (the "Richard Bittner Business") to HBI Health & Beauty Innovations Limited was completed on April 11, 2025. See Item 1. Note 3 for more information.
Previous wording
•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 wording
•On May 5, 2025, one of our customers filed for bankruptcy. We have completed the evaluation of the impact to our financial position, which we determined was not material.
Previous 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.
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 (excluding 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
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 wording
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 many countries and individualized "reciprocal" tariffs on countries with which the U.S. has the largest trade deficits. While some tariffs have become effective, others have been temporarily suspended or permanently repealed and the U.S. government has announced trade agreements with various governments. As a result, there continues to be significant volatility and uncertainty regarding the scope, timing, implementation and effective rates of tariffs.
Previous wording
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 wording
Based on current assessments, excluding any potential impact from pharmaceutical tariffs that may cover ingredients used in the manufacturing of OTC products, we estimate a gross increase to global cost of goods sold in 2025 beginning in the fourth quarter of approximately $10 million to $20 million, and approximately $50 million to $60 million, on a full-year basis. We plan to offset these impacts through a combination of strategic pricing actions, insourcing to our U.S.-based manufacturing facilities and other supply chain actions.
Previous 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.
Current wording
In addition, our interest expense can be 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
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.
Current wording
Supply chain disruptions continue in specific categories such as agricultural commodities due to climate impacts, and supply chain shortages continue due to the Middle East Conflict. Inflationary pressures are still a factor on cost in major economies globally across food, energy and labor. We previously experienced employment vacancies and attrition in the labor market which 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 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 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.
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 Federal Drug Administration ("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 have resulted in higher costs and lower manufacturing output and production yields across our infant formula network.
Previous 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.
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, while managing the additional cost and production processes to comply with new regulatory requirements.
Previous 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.
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 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 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.
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 and six months ended June 28, 2025 at the average exchange rates for the reporting period and average exchange rates for the three and six months ended June 29, 2024.
Previous wording
•$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 wording
•$26.2 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;
Previous wording
•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 wording
•Nutrition: Net sales of $95.6 million increased 11.0% due primarily to a 25% increase in net sales of store brand infant formula and contract manufacturing of infant formula driven by continuing business recovery, partially offset by lower net sales in the Good Start®infant formula brand due to lost distribution.
Previous wording
•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 wording
•Healthy Lifestyle: Net sales of $73.7 million increased 6.7% due primarily to new distribution and market share gains, offsetting lower category consumption of nicotine replacement therapy products.
Previous wording
•VMS and Other: Net sales of $2.4 million decreased 57.1% due primarily to volume decline in the VMS category.
Current wording
•VMS and Other: Net sales of $3.1 million decreased 42.9% due primarily to volume decline in the VMS category.
Previous wording
•$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 wording
•$2.7 million decrease in operating expenses due primarily to lower selling costs of $7.4 million due primarily to Project Energize, partially offset by bad debt expense recognized primarily related to a customer bankruptcy and higher restructuring costs compared to the prior year period.
Previous wording
•$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 wording
•$35.0 million decrease, or 2.7%, due primarily to lower net sales in the Digestive Health category of $35.5 million, a prior year benefit in the Women's Health category of $18.0 million from initial retailer stocking of Opill® which launched at the end of the first quarter in the prior year, and lower net sales in the Oral Care category of $16.0 million. These were partially offset by higher net sales in the Nutrition category of $23.9 million, stemming from recovery in the infant formula business, as well as higher net sales in the Upper Respiratory category of $12.1 million due to higher incidence levels of cough cold compared to the prior year.
Previous 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.
Current wording
•Digestive Health: Net sales of $212.7 million decreased 14.3% 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 $76.6 million decreased 7.3% due primarily to previously disclosed net lost distribution of lower margin products partially offset by new business awards.
Current wording
•Pain and Sleep-aids: Net sales of $156.8 million decreased 4.5% due primarily to previously disclosed net lost distribution of lower margin products and lower category consumption of children's analgesics medicines and lower dollar share compared to prior year, partially offset by new business awards;
Previous 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.
Current wording
•Oral Care: Net sales of $122.0 million decreased 11.5% due primarily to previously disclosed net lost distribution of lower margin products at specific retail customers and lower net sales of Plackers®dental flossers;
Previous wording
•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 wording
•Skin Care: Net sales of $106.3 million decreased 0.4% due primarily to higher net sales in the Minoxidil franchise, more than offset by lower net sales of Mederma® due to service issues in the first quarter of 2025;
Previous wording
•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 wording
•Women's Health: Net sales of $33.7 million decreased 23.4% due primarily to the prior year reflecting the strong initial retailer stocking of Opill®, which launched in March 2024, of $18 million, or an impact to the category of 40.9%; and
Previous 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.
Current wording
•Women's Health: Net sales of $41.1 million increased 11.4%, inclusive of a 5.7% favorable effect of currency translation, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains.
Previous wording
•VMS: Net sales of $37.7 million decreased 15.5%, inclusive of a 2.6% unfavorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio.
Current wording
•VMS: Net sales of $38.6 million decreased 3.3%, inclusive of a 4.8% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio in addition to 2.0% from exited products.
Previous 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
Current wording
•$4.8 million decrease in gross profit due primarily to $17.7 million from the impact of divested businesses and exited product lines, lower manufacturing productivity, and lower costs of good sold inflation. These factors were partially offset by $10.2 million from favorable currency translation, prior strategic pricing actions, and improved supply of key products. Gross profit as a percentage of net sales decreased 140 basis points compared to the prior year due to the same factors impacting gross profit, partially offset by favorable brand mix due in part to improved supply of key products. Divested businesses and exited products had an unfavorable impact of 90 basis points.
Previous wording
•$24.9 million decrease in operating expenses due primarily to lower selling and administrative costs of $13.5 million due primarily to Project Energize, and lower restructuring costs of $11.7 million compared to the prior year period.
Current wording
•$74.3 million decrease in operating expenses due primarily to the absence of the prior year impairment charges of $34.1 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Disease Business, lower restructuring costs of $23.1 million compared to the prior year period, and lower selling and administrative costs due primarily to Project Energize.
Previous wording
•Upper Respiratory: Net sales of $73.5 million increased 6.4%, inclusive of a 2.7% unfavorable effect of currency translation, due primarily to higher cough cold seasonal sell-in activities, improved supply of a key product and slightly higher incidence levels of cough cold compared to the prior year quarter. In addition, growth in allergy products, including Beconase® and store brand allergy offerings, also added to growth.
Current wording
•Upper Respiratory: Net sales of $128.9 million increased 7.6%, inclusive of a 0.9% favorable effect of currency translation, due primarily to higher cough cold seasonal sell-in activities, improved supply of key products, including Physiomer® and growth in allergy products, including Beconase® and store brand allergy offerings. These factors were partially offset by the -1.6% impact of from divested businesses and exited product lines;
Previous wording
•Pain & Sleep-Aids: Net sales of $53.6 million increased 4.3%, inclusive of a 0.9% unfavorable effect of currency translation, as higher net sales of Solpadeine®, due primarily to improved supply, were partially offset by 3.7% from divested businesses and exited product lines.
Current wording
•Pain & Sleep-Aids: Net sales of $117.1 million increased 15.2%, inclusive of a 2.9% favorable effect of currency translation, as higher net sales of Solpadeine®, due primarily to improved supply, were partially offset by 4.2% from divested businesses and exited product lines;
Previous 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.
Current wording
•Digestive Health and Other: Net sales of $52.3 million decreased 33.1%, inclusive of a 1.1% favorable 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
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.
Current wording
The decrease of $26.6 million in unallocated expenses during the three months ended June 28, 2025, and the decrease of $67.4 million in unallocated expenses during the six months ended June 28, 2025, compared to the prior year periods were due primarily to a decrease in expenses for litigation, as well as administration due primarily to Project Energize.
Previous wording
The $4.0 million decrease in Interest Expense, net during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in interest expense associated with a decrease in outstanding borrowings under our Senior Secured Credit Facilities.
Current wording
The $4.5 million and $8.5 million decrease in Interest expense, net during the three and six months ended June 28, 2025, respectively, compared to the prior year periods was due primarily to a decrease in interest expense associated with a decrease in outstanding borrowings under our Senior Secured Credit Facilities.
Previous 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.
Current wording
The effective tax rate on the pre-tax income for the three and six months ended June 28, 2025 increased when compared to the effective tax rate on the pre-tax loss for the three and six months ended June 29, 2024, primarily due to changes in our reserves for uncertain tax positions, and the impacts related to accounting for income taxes in interim reporting periods for 2024, offset by changes in the jurisdictional mix of earnings. 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
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.
Current wording
The $3.3 million increase in operating cash flow was primarily driven by lower working capital, primarily related to changes in accrued liabilities and inventory, partially offset 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.
Previous 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.
Current wording
As of June 28, 2025 and December 31, 2024, we had $1,411.7 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 June 28, 2025 of $36.4 million is comprised of (i)amortization payments for the Term A Loans and the Term B Loans and (ii) lease payments.
Previous wording
We had $190.4 million and $195.1 million of lease liabilities and $181.3 million and $186.9 million of lease assets as of March 29, 2025 and December 31, 2024, respectively. For information on our operating and finance lease obligations and the amount and timing of future payments refer to Item 1. Note 7.
Current wording
We had $194.1 million and $195.1 million of lease liabilities and $183.8 million and $186.9 million of lease assets as of June 28, 2025 and December 31, 2024, respectively. For information on our operating and finance lease obligations and the amount and timing of future payments refer to Item 1. Note 7.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
•$47.5 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products within our CSCI segment;
Current report — wording carried from elsewhere
CSCA net sales by product category were as follows:
Current report — wording carried from elsewhere
•Nutrition: Net sales of $200.3 million increased 13.4% due primarily to a 14% increase in net sales of infant formula products driven by continuing store brand infant formula business recovery partially offset by lower net sales in the Good Start®infant formula brand due to lost distribution;
Current report — wording carried from elsewhere
•VMS and Other: Net sales of $5.6 million decreased 49.5% due primarily to volume decline in the VMS category.
Current report — wording carried from elsewhere
CSCI net sales by product category were as follows:
Current report — wording carried from elsewhere
•Women's Health: Net sales of $73.5 million increased 6.6%, inclusive of a 1.7% favorable effect of currency translation, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains;
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•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.