PERRIGO Co plc
For the period ended Sep 27, 2025. Filed Nov 5, 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.
Sep 27, 2025 · Filed Nov 5, 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 2025-06-28; filed 2025-08-06.
0001585364-25-000122
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-27; filed 2025-11-05.
0001585364-25-000156
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 206 previous paragraphs and 211 current paragraphs.
102 unchanged; 54 reworded; 54 added; 48 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 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 (54)
Current report
•On November 5, 2025, we announced a strategic review of our infant formula business. The review will assess a full range of alternatives. Refer to the Nutrition Network Optimization; Strategic Review section below for additional details. In addition, as previously disclosed, our strategic review of our Oral Care business is continuing as we assess a full range of alternatives for that business.
Current report
Nutrition Network Optimization; Strategic Review
Current report
The review will assess a full range of alternatives and is aligned with Perrigo’s ‘Three‑S’ (Stabilize, Streamline, Strengthen) plan and reflects our commitment to disciplined capital allocation and supporting improved return on invested capital and total shareholder return. It will focus on a combination of accelerating cash flows and reassessing the previously announced investment in this business of $240 million, while optimizing portfolio impact and management focus.
Current report
For further details on our restructuring charges related to the strategic review, refer to Item 1. Note 15.
Current report
We have been focusing on rebuilding market share, while managing the additional cost and production processes. Although we have gained market share in non-WIC infant formula powder, heightened competition from existing and new entrants, particularly as a result of continued regulatory forbearance allowing imported infant formulas has led to increased supply of infant formula in the United States, and the previously disclosed lost distribution of the Good
Current report
Start® brand have hindered our efforts to recover our previous market share. On November 5, 2025, we announced a strategic review of our infant formula business focused on a combination of accelerating cash flows and reassessing the previously announced investment in this business, while optimizing portfolio impact and management focus. See Nutrition Network Optimization; Strategic Review above.
Current report
Net sales decreased $44.2 million, or 4.1%, due primarily to:
Current report
•$47.1 million decrease, or 4.4%, due primarily to lower net sales in the Nutrition category of $27.3 million driven by a strong product pipeline refill to contract manufacturing customers and consumer pantry loading ahead of a port strike threat in the prior year quarter and lost distribution of the Good Start® brand, and unfavorable impacts across our global OTC businesses due to soft category consumption. These were partially offset by higher net sales in the Skin Care category of $5.7 million driven by new distribution and increased consumption in the Minoxidil store brand franchise, along with higher net sales of Mederma®;
Current report
•$17.6 million increase from favorable foreign currency translation.
Current report
Operating income decreased $7.8 million, or 9.7%, due primarily to:
Current report
•$19.5 million decrease in operating expenses driven by decreased administrative costs of $22.7 million due primarily to lower variable employee expenses, and the absence of prior year impairment charges of $16.2 million recognized as part of the assets held for sale of the Hospital & Specialty Business, partially offset by the absence of the prior year gain on sale of branded products of $26.0 million.
Current report
•$23.1 million increase from favorable foreign currency translation.
Current report
Operating income increased $166.2 million, due primarily to:
Current report
•$190.7 million decrease in operating expense driven by lower selling and administrative costs of $73.8 million due primarily to benefits from Project Energize and lower variable employee expenses, the absence of prior year impairment charges of $50.3 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Diseases Business, decreased restructuring costs of $39.2 million driven by Project Energize and a decrease in Other operating (income) expense, net due to lower litigation expenses partially offset by the absence of the prior year gain on sale of branded products of $26.0 million.
Current report
Net sales decreased $25.7 million, or 3.8%, due primarily to:
Current report
•$25.6 million decrease, or 3.8%, due primarily to lower net sales in the Nutrition category of $27.3 million, driven by a strong product pipeline refill to contract manufacturing customers and consumer pantry loading ahead of a port strike threat in the prior year quarter and lost distribution of the Good Start® brand, and unfavorable impacts across multiple U.S. OTC businesses due to soft category consumption. These were partially offset by higher net sales in the Upper Respiratory category of $8.3 million, due primarily to new distribution and store brand share gains amid lower consumption, as well as higher net sales in the Skin Care category of $6.9 million due primarily to higher consumption within the Minoxidil franchise and new distribution in addition to higher net sales of Mederma®.
Current report
•Upper Respiratory: Net sales of $129.2 million increased 6.8% due primarily to new distribution and store brand share gains amid lower consumption, leading to higher net sales of both cough and cold and allergy products, including store brand Fluticasone.
Current report
•Nutrition: Net sales of $99.8 million decreased 21.5% due primarily to a strong prior-year quarter from refilling contract customer inventories, consumer pantry loading ahead of a port strike threat and previously disclosed lost distribution of the Good Start® brand, partially offset by growth in store brand infant formula consumption along with the reintroduction of SKU assortments.
Current report
•Pain and Sleep-aids: Net sales of $88.6 million increased 1.0% due primarily to new distribution which more than offset soft category consumption.
Current report
•Healthy Lifestyle: Net sales of $77.5 million decreased 4.3% due primarily to lower category consumption and timing of shipments of smoking cessation products, partially offset by new distribution and market share gains.
Current report
•Skin Care: Net sales of $58.9 million increased 13.3% due primarily to higher consumption within the Minoxidil franchise and new distribution, in addition to higher net sales of Mederma®.
Current report
•Women's Health: Net sales of $19.0 million increased 5.6% due primarily to higher net sales of Opill®.
Current report
Operating income decreased $7.5 million, or 7.3%, due primarily to:
Current report
•$6.3 million decrease in operating expenses driven by reduced administrative costs of $6.6 million due primarily to lower variable employee expenses, partially offset by higher restructuring costs associated with Project Energize and Nutrition Network Optimization.
Current report
Net sales decreased $61.2 million, or 3.1%, due primarily to:
Current report
•$60.6 million decrease, or 3.1%, due primarily to unfavorable impacts across multiple U.S. OTC businesses due to soft category consumption and 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 first quarter in the prior year. These were partially offset by higher net sales in the Upper Respiratory category of $20.3 million due primarily to higher first quarter incidence levels of cough cold compared to the prior year, new business wins and store brand share gains amid lower consumption.
Current report
•Nutrition: Net sales of $300.1 million decreased 1.2% due primarily to previously disclosed lost distribution of the Good Start® infant formula brand and a strong prior-year quarter from refilling contract customer inventories and consumer pantry loading ahead of a port strike threat, partially offset by growth in store brand infant formula consumption;
Current report
Operating income increased $16.6 million, or 8.9%, due primarily to:
Current report
Net sales decreased $18.6 million, or 4.5%, due primarily to:
Current report
•$21.5 million decrease, or 5.3%, due primarily to unfavorable impacts across multiple OTC businesses due to soft category consumption including lower net sales of $8.4 million in the Upper Respiratory category, as a result of lower incidence and consumption of cough cold products and timing of cough cold sell-in to customers compared to the prior year, as well as lower net sales of $4.8 million in the VMS category due primarily to deprioritization of nutraceuticals portfolio and lower net sales of $3.8 million from the Women's Health category due to supply constraints that have since been resolved, partially offset by new product sales of $6.8 million;
Current report
•$17.6 million increase from favorable foreign currency translation.
Current report
•Skin Care: Net sales of $91.7 million increased 0.8%, inclusive of a 4.4% favorable effect of currency translation, due primarily to a 2.3% unfavorable impact from exited products and lower consumption, which were partially offset by higher net sales within the Compeed®franchise.
Current report
•Upper Respiratory: Net sales of $80.6 million decreased 6.4%, inclusive of a 4.9% favorable effect of currency translation, due primarily to lower incidence and consumption of cough cold products and timing of cough cold sell-in to customers compared to the prior year, partially offset by higher net sales of Physiomer® due to restored supply. The category was also impacted by a 1.4% unfavorable impact from exited products.
Current report
•Pain & Sleep-Aids: Net sales of $56.3 million decreased 1.1%, inclusive of a 4.1% favorable effect of currency translation, due primarily to a 3.2% unfavorable impact from exited products and timing of shipments, partially offset by restored supply of Solpadeine®.
Current report
•Women's Health: Net sales of $29.9 million decreased 7.1%, inclusive of a 4.6% favorable effect of currency translation, due primarily to supply constraints that have since been resolved.
Current report
•Oral Care: Net sales of $23.9 million increased 2.6%, inclusive of a 5.1% favorable effect of currency translation, due primarily to lower net sales of store brand products and a 1.6% unfavorable impact from exited products.
Current report
Operating income decreased $11.5 million, or 23.5%, due primarily to:
Current report
•$2.0 million decrease in operating expenses driven by the absence of the prior year impairment charges of $16.2 million recognized as part of the assets held for sale of the Hospital & Specialty Business, and decreased administrative costs due primarily to lower variable employee expenses, partially offset by the absence of the prior year gain on the sale of branded products.
Current report
Net sales decreased $30.4 million, or 2.4%, due primarily to:
Current report
•$23.7 million increase from favorable foreign currency translation;
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (48)
Previous report
•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 report
•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 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.
Previous 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.
Previous 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.
Previous report
Nutrition Network Optimization
Previous 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.
Previous report
Net sales decreased $9.2 million, or 0.9%, due primarily to:
Previous 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
Previous report
•$18.1 million increase from favorable foreign currency translation.
Previous report
Operating income increased $71.9 million, or 271.3%, due primarily to:
Previous 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.
Previous report
Net sales decreased $47.3 million, or 2.2%, due primarily to:
Previous 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
Previous report
•$5.5 million increase from favorable foreign currency translation.
Previous report
Operating income increased $174.0 million, or 213.0%, due primarily to:
Previous 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.
Previous report
Net sales decreased $12.1 million, or 1.9%, due primarily to:
Previous 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.
Previous 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.
Previous report
•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 report
•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 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..
Previous report
Operating income decreased $24.2 million, or 34.9%, due primarily to:
Previous report
•$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 report
•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;
Previous report
•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 report
Operating income increased $24.1 million, or 28.4%, due primarily to:
Previous report
Net sales increased $3.0 million, or 0.7%, due primarily to:
Previous report
•$18.2 million increase from favorable foreign currency translation;
Previous 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
Previous 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;
Previous report
•Skin Care: Net sales of $122.9 million decreased 3.8%, inclusive of a 3.0% favorable effect of currency translation, due to the impact of 6.0% from the reclassification of certain brands into other categories in addition to the impact of 1.9% from exited products. The remainder of the Skin Care category increased 1.2% due to share growth in Compeed® and Sebamed®, despite the soft seasonal trends.
Previous report
•Pain & Sleep-Aids: Net sales of $63.5 million increased 26.2%, inclusive of a 6.8% favorable effect of currency translation, due primarily to restored supply of Solpadeine®, partially offset by 4.7% from divested businesses and exited products.
Previous report
•Upper Respiratory: Net sales of $55.4 million increased 9.3%, inclusive of a 6.0% favorable effect of currency translation, due primarily to restored supply of the Physiomer® brand and new distribution, partially offset by lower net sales of cough cold products due to lower year-over-year incidence and 2.0% from exited products.
Previous report
•Oral Care: Net sales of $25.2 million increased 9.6%, inclusive of a 6.0% favorable effect of currency translation, due primarily to higher net sales of store brand product.
Previous report
Operating income increased $69.5 million, or 674.8%, due primarily to:
Previous report
•$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 report
Net sales decreased $11.9 million, or 1.4%, due primarily to:
Previous report
•$6.0 million increase from favorable foreign currency translation.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Reworded paragraphs (54)
Previous wording
•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 wording
•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”). Following the closing of KKR’s acquisition of Karo Healthcare AB on August 27, 2025, Kairos has transferred the binding agreement to acquire the Dermacosmetics Business to Karo Healthcare AB. See Item1. Note 4 for more information.
Previous wording
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 wording
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. On November 5, 2025, we announced a strategic review of our infant formula business.
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 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.
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 and additional tariffs on other products. 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, 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.
Current wording
Based on current assessments, excluding any potential impact from pharmaceutical tariffs that may cover ingredients used in the manufacturing of OTC products and recently announced potential changes to tariffs on items sourced from China, 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 $40 million to $50 million, on a full-year basis, updated from the previously estimated range of $50 million to $60 million. We seek to mitigate these impacts through a combination of strategic pricing actions, insourcing to our U.S.-based manufacturing facilities and other supply chain actions.
Previous 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.
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. While global inflation is expected to fall, U.S. inflation is now predicted to stay above previous predictions. 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, persistent geopolitical tensions and the impact of tariff and trade policy are uncertain.
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, while managing the additional cost and production processes to comply with new regulatory requirements.
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.
Previous wording
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 wording
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 Form FDA 483.
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 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.
Current wording
We had incurred 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 achieve this remediation plan are approximately $22.6 million with approximately 95% of such costs incurred during the year ended December 31, 2024.
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 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, an 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 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.
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 nine months ended September 27, 2025 at the average exchange rates for the reporting period and average exchange rates for the three and nine months ended September 28, 2024.
Previous 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;
Current wording
•$14.7 million decrease due to the prior year divestitures of the Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") and the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") and the sale of branded products within our CSCI segment; partially offset by
Previous wording
•$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 wording
•$27.3 million decrease in gross profit driven by lower net sales volumes flow through primarily in CSCI and the Nutrition category, and divested businesses and exited product lines of $7.4 million, partially offset by favorable foreign currency translation of $9.3 million and new products. Gross profit as a percentage of net sales decreased 110 basis points compared to the prior year due primarily to the same factors that drove gross profit, partially offset by Supply Chain Reinvention savings.
Previous wording
Net sales decreased $35.5 million, or 2.8%, due primarily to:
Current wording
Net sales decreased $91.6 million, or 2.8%, due primarily to:
Previous wording
•$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 wording
•$62.3 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;
Previous 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.
Current wording
•$52.4 million decrease, or 1.7%, due primarily to lower net sales in the Digestive Health category of $39.9 million and Oral Care category of $24.6 million driven by soft OTC category consumption, as well as 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 first quarter in the prior year, partially offset by higher net sales in the Upper Respiratory category of $21.6 million. These were partially offset by
Previous wording
•$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 wording
•$24.5 million decrease in gross profit driven by lower net sales volumes flow through primarily in U.S. OTC, the impact of divested businesses and exited products of $39.5 million, and lower manufacturing efficiencies, partially offset by the infant formula business recovery, Supply Chain Reinvention benefits, Project Energize savings, favorable currency translation of $14.0 million and new products. Gross profit as a percentage of net sales increased 20 basis points compared to the prior year due to the same factors that impacted gross profit; and
Previous wording
•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 wording
•Digestive Health: Net sales of $105.5 million decreased 7.0% due primarily to new lower shelf pricing at a specific retailer and lower consumption of proton pump inhibitors, partially offset by Perrigo store brand share gains. These dynamics more than offset higher net sales and market share gains of Polyethylene Glycol 3350.
Previous wording
•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 wording
•Oral Care: Net sales of $62.8 million decreased 6.2% due primarily to lost distribution of lower margin products and the absence of Plackers® dental flossers promotions compared to the prior year.
Previous wording
•VMS and Other: Net sales of $3.1 million decreased 42.9% due primarily to volume decline in the VMS category.
Current wording
•VMS and Other: Net sales of $4.3 million increased 2.4% due primarily to volume decline in the VMS category.
Previous wording
•$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 wording
•$13.8 million decrease in gross profit due primarily to lower net sales volumes flow through driven by the Nutrition category, partially offset by favorable impacts from lower materials inflation and benefits from Supply Chain Reinvention. Gross profit as a percentage of net sales decreased 90 basis points compared to the prior year due primarily to the same factors that drove gross profit, in addition to less favorable store brand product mix compared to the prior year quarter.
Previous wording
•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 wording
•Upper Respiratory: Net sales of $390.4 million increased 5.5% due primarily to higher first quarter incidence levels of cough cold compared to the prior year, new business wins and store brand share gains amid lower consumption, leading to higher net sales of both cough and cold and allergy products, including store brand Fluticasoneand Fexofenadine. This growth was partially offset by previously disclosed net lost distribution of lower margin products;
Previous 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;
Current wording
•Digestive Health: Net sales of $318.3 million decreased 12.0% due primarily to first half net lost distribution of lower margin products in U.S. Store Brand and lower consumption and customer mix of proton pump inhibitors, including Omeprazole, Esomeprazoleand Lansoprazole, despite Perrigo store brand share gains. These impacts more than offset higher net sales of Polyethylene Glycol, where Perrigo also gained store brand market share;
Previous 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;
Current wording
•Pain and Sleep-aids: Net sales of $245.4 million decreased 2.6% due primarily to first half 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
•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 wording
•Healthy Lifestyle: Net sales of $221.5 million increased 0.1% 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;
Previous 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;
Current wording
•Oral Care: Net sales of $184.8 million decreased 9.8% due primarily to 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 $57.8 million increased 1.2% driven by growth in the Mederma® brand and higher net sales in the Minoxidil franchise.
Current wording
•Skin Care: Net sales of $165.2 million increased 4.2% due primarily to growth in the Mederma®brand and higher net sales in the Minoxidil franchise;
Previous 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
Current wording
•Women's Health: Net sales of $52.7 million decreased 14.9% due primarily to the prior year reflecting the strong initial retailer stocking of Opill®, which launched in March 2024, of $15.0 million, or an impact to the category of 24.2%; and
Previous wording
•VMS and Other: Net sales of $5.6 million decreased 49.5% due primarily to volume decline in the VMS category.
Current wording
•VMS and Other: Net sales of $9.9 million decreased 35.7% due primarily to volume declines in the VMS category.
Previous wording
•$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 wording
•$5.8 million increase in gross profit driven primarily by infant formula business recovery, benefits from our Supply Chain Reinvention Program and Project Energize, as well as lower materials inflation, partially offset by lower net sales volumes flow through primarily in U.S. OTC and unfavorable net pricing impacts. Gross profit as a percentage of net sales increased 120 basis points compared to the prior year due to the same factors that impacted gross profit.
Previous wording
•$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 wording
•$10.8 million decrease in operating expenses driven by lower selling and administrative costs of $16.1 million due primarily to benefits from Project Energize and lower variable employee expenses, as well as decreased research and development expenses, partially offset by higher restructuring costs due primarily to Nutrition Network Optimization and Project Energize.
Previous wording
•$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; partially offset by
Current wording
•$14.7 million decrease due to the prior year divestitures of the Hospital & Specialty Business and the Rare Diseases Business and the sale of branded products; partially offset by
Previous wording
•Healthy Lifestyle: Net sales of $60.7 million increased 5.6%, inclusive of a 2.0% favorable effect of currency translation, driven by growth in mosquito repellent products including Jungle Formula®, higher demand for the Lyclear® antiparasites brand and store brand smoking cessation offerings. This growth was partially offset by timing of sales for NiQuitin® and the strategic deprioritization of products within the weight loss sub-category.
Current wording
•Healthy Lifestyle: Net sales of $52.8 million decreased 0.8%, inclusive of a 1.6% favorable effect of currency translation, driven by the strategic deprioritization of products within weight loss and lower consumption of the Paranix® and Lyclear® antiparasite brands due to lower seasonal incidence. These impacts were partially offset by growth of Nicotinell® smoking cessation offerings.
Previous 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.
Current wording
•VMS: Net sales of $40.0 million decreased 7.0%, inclusive of a 5.3% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio in addition to a 0.9% unfavorable impact from exited products.
Previous wording
•Digestive Health and Other: Net sales of $26.8 million decreased 40.9%, inclusive of a 3.0% favorable effect of currency translation, primarily due to divested businesses, including HRA Pharma Rare Diseases, and exited products.
Current wording
•Digestive Health and Other: Net sales of $22.5 million decreased 26.1%, inclusive of a 4.0% favorable effect of currency translation, primarily due to divested businesses, including HRA Pharma Rare Diseases, and exited products.
Previous 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.
Current wording
•$13.5 million decrease in gross profit due primarily to lower net sales volumes flow through, as well as $7.4 million from the impact of divested businesses and exited product lines. These factors were partially offset by $9.5 million increase from favorable currency translation. Gross profit as a percentage of net sales decreased 130 basis points compared to the prior year due to the same factors impacting gross profit.
Previous wording
•$29.6 million increase, or 3.6%, due primarily to growth of $16.1 million in the Pain & Sleep Aids category led by restored supply of the Solpadeine brand, as well as higher net sales of $9.7 million in the Upper Respiratory category driven by higher cough/cold incidence and improved supply, partially offset by lower net sales of $7.7 million in the VMScategory;
Current wording
•$8.2 million increase, or 0.7%, due primarily to growth of $15.1 million in the Pain & Sleep Aids category led by restored supply of the Solpadeine® brand, partially offset by unfavorable impacts across multiple OTC businesses due to soft category consumption, including lower net sales of $12.5 million in the VMScategory.
Previous wording
and the unfavorable impact of 1.9% from divested businesses and exited product lines. These factors were partially offset by share growth in Compeed® and Sebamed®, despite the soft seasonal trends;
Current wording
•Skin Care: Net sales of $326.1 million decreased 2.2%, inclusive of a 1.2% favorable effect of currency translation, due primarily to soft seasonal consumption trends compared to the prior year and the unfavorable impact of 2.0% from divested businesses and exited product lines. These factors were partially offset by share growth in Compeed® and Sebamed®, despite the soft seasonal trends;
Previous wording
•Healthy Lifestyle: Net sales of $127.3 million increased 4.2%, inclusive of a 1.5% unfavorable effect of currency translation, driven by growth in mosquito repellent products including the Jungle Formula® brand, in addition to growth of the Lyclear® antiparasites brand and store brand nicotine replacement offerings. This growth was partially offset by the strategic exit of products within the weight loss sub-category;
Current wording
•Healthy Lifestyle: Net sales of $180.2 million increased 2.8%, inclusive of a 0.5% unfavorable effect of currency translation, driven by growth in mosquito repellent products, in addition to growth of nicotine replacement offerings. This growth was partially offset by the strategic exit of products within the weight loss sub-category;
Previous 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;
Current wording
•Pain & Sleep-Aids: Net sales of $173.4 million increased 9.4%, inclusive of a 3.3% favorable effect of currency translation, as higher net sales of Solpadeine®, due primarily to improved supply, were partially offset by 3.8% from divested businesses and exited product lines;
Previous wording
•VMS: Net sales of $76.2 million decreased 9.8%, inclusive of a 0.9% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio, in addition to 1.3% from divested businesses and exited products;
Current wording
•VMS: Net sales of $116.2 million decreased 8.8%, inclusive of a 2.4% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio, in addition to the unfavorable impact of 1.2% from divested businesses and exited products;
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•$62.3 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products; partially offset by
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
•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.
Previous report — wording carried 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;