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Core Insights - Perrigo Company plc (NYSE:PRGO) is recognized as one of the 13 Extreme Dividend Stocks with significant upside potential [1] - Canaccord analyst Susan Anderson has reduced the price target for Perrigo from $20 to $17 while maintaining a Buy rating, highlighting share gains in both private label and core branded businesses despite challenges in the infant nutrition segment [2] - The company reported improved operating income and earnings per share (EPS) compared to the previous year, with a focus on simplifying operations through its Three-S Plan [3] Financial Performance - In Q4 2025, Perrigo achieved earnings per share in line with revised guidance, indicating a recovery in performance [3] - Market share gains accelerated throughout the year, reversing a trend of declines, with over $100 million captured in new distribution wins [4] - The infant nutrition segment showed signs of stabilization, and supply conditions in the infant formula category improved [4] Strategic Developments - Perrigo plans to divest its Dermacosmetics business, with the transaction expected to close in Q2 2026 [4] - The company operates through two segments: Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI), focusing on over-the-counter health and wellness solutions [5]

Company Overview - Perrigo is a leading provider of over-the-counter health and wellness solutions as well as self-care products for consumers [2] - The company was founded in 1887 and is headquartered in Dublin, Ireland [2] Industry Insights - The global health and wellness industry remains very dynamic, indicating ongoing changes and opportunities within the sector [2] - The conference aims to explore Perrigo's perspective on its future and the broader industry landscape [2]

Perrigo Company Conference Summary Company Overview - **Company**: Perrigo Company (NYSE: PRGO) - **Industry**: Over-the-counter health and wellness solutions - **Headquarters**: Dublin, Ireland - **Founded**: 1887 - **Market Position**: Ranked number 1 in volume in the U.S. and a top 10 player by dollar sales in the E.U. [4][5] Core Business Insights - **Diversification**: Perrigo's portfolio is diversified across 9 categories, with no single product contributing more than 5% of total net sales [4] - **Consumer Savings**: The company delivers approximately $30 billion annually in savings to the U.S. and E.U. healthcare systems through its OTC solutions [5] - **Household Penetration**: Two out of three U.S. households purchase a Perrigo product, with 80% penetration in the U.K. [5] Market Performance - **Challenging Market**: The company is operating in a challenging market but has made progress in building a foundation for long-term value [6] - **Share Gains**: Perrigo gained share in most U.S. categories in 2025, with a 100 basis point increase in store brand growth and 300 basis points growth in the latest read [9][11] - **Retail Partnerships**: Strengthened retailer partnerships led to $100 million in new distribution and competitive takeaways in 2025 [11] Strategic Initiatives - **Three-S Plan**: Focuses on stabilizing, streamlining, and strengthening the business, with a goal of restoring consistency and building capabilities for long-term growth [10] - **Cost Savings**: Achieved $320 million in cost savings from Project Energize and supply chain reinvention [13] - **Workforce Reduction**: Announced a global workforce reduction of about 7%, targeting annualized savings of $80 to $100 million [13] Financial Outlook - **2026 Guidance**: Core EPS expected to be down 30% in the first half and up 70% in the second half, driven by seasonal categories and cost savings [18] - **Core Performance**: The 2025 core baseline EPS was $2.52, with expectations of offsetting headwinds through cost actions and share gains [17] Innovation and Growth Drivers - **Innovation Pipeline**: The value of the innovation pipeline has tripled compared to the previous year, with a focus on consumer meaningful innovation [13][30] - **Geographic Expansion**: Currently operating in 30 countries with a goal to increase household penetration beyond the current 5% globally [47] - **Store Brand Strategy**: Approximately 90-95% of consumers who switch to store brands remain loyal, presenting a significant market expansion opportunity [55] Market Challenges - **Economic Environment**: The company anticipates continued market softness in early 2026, influenced by economic conditions and geopolitical factors [14][34] - **Consumer Behavior**: Consumers are trading down to store brands due to economic pressures, which is expected to continue [55] M&A Strategy - **Cautious Approach**: The company is wary of large-scale M&A, focusing instead on organic growth and partnerships that align with its strategic goals [67] Conclusion - **Long-term Value**: Perrigo is positioned for long-term growth through strategic initiatives, innovation, and a focus on core business areas, despite current market challenges [19][45]

2026 UBS Global Consumer & Retail Conference March 11, 2026 Forward-Looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry's actual results, levels of ac ...

Group 1: Market Overview - Oil prices are experiencing a surge, with WTI futures at $86.00, up 6.16%, and Brent futures at $89.31, up 4.57% [3] - Dutch TTF gas prices are projected to rise by 40-50% to maintain energy supply in the EU [3] - The S&P SmallCap 600 has a forward P/E of 15.6, while the S&P 500 stands at 21.2, indicating small caps are still undervalued compared to larger companies [1] Group 2: Small-Cap Stocks - Washington Trust Bancorp (WASH) offers a dividend yield of 6.6% and is expected to see earnings jump by 27% in 2026, trading at 10 times earnings [1] - Diversified Energy Company (DEC) has a dividend yield of 8.0% and trades at less than 8 times earnings, focusing on acquiring long-life assets [1] - Granite Ridge Resources (GRNT) has a dividend yield of 8.5% and is projected to achieve 28% production growth in 2025, despite breakeven returns so far [2] Group 3: Health and Wellness Sector - Perrigo (PRGO) has a dividend yield of 10.2% but is facing declining sales and earnings, with a projected drop in adjusted diluted EPS by 16% to 27% in 2026 [2] - Insperity (NSP) offers a high dividend yield of 11.0% but has seen a significant decline in net income, reporting a net loss of $7 million in 2025 [2]

Core Insights - Perrigo Company plc, a leading global provider of consumer products, will present at the UBS Global Consumer and Retail Conference on March 11, 2026 [1] - The company specializes in over-the-counter (OTC) self-care products, providing accessible health and wellness solutions primarily in North America and Europe [1] - Perrigo's business model focuses on leveraging cash-generative store brand private label offerings to invest in leading brands such as Opill®, Mederma®, Compeed®, EllaOne®, and Jungle Formula® [1] Company Overview - Perrigo is recognized as a pure-play consumer health company with over a century of experience in delivering high-quality health solutions [1] - The company emphasizes the importance of accessibility and choice for consumers through its diverse product offerings across various molecules, dosage forms, and value tiers [1] Event Details - The presentation by President and CEO Patrick Lockwood-Taylor will be accessible via webcast on the Perrigo website [1]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends to shareholders [1] Group 1: High-Yielding Stocks in Health Care Sector - The article highlights three high-yielding stocks in the health care sector: Perrigo Company PLC, Pfizer Inc, and DENTSPLY SIRONA Inc [2][3]

Core Insights - The company reported a 2% decline in CORE organic net sales and a $4 million decrease in CORE operating income for the fourth quarter, with CORE EPS at $0.76, down $0.02 year over year [1] - For the full year 2025, all-in operating income grew by 2% and EPS increased by 7% to $2.75, while on a CORE basis, operating income rose by 7% and CORE EPS increased by 14% [1][4] Financial Performance - Management presented results through two lenses: "all-in" (historical operations) and "CORE Perrigo," which excludes infant formula and announced divestitures [2] - The company reported a non-cash $1.3 billion goodwill impairment in 2025, which does not affect cash flow, but is expected to create a $0.60 EPS headwind in 2026 [6][8] - The company ended 2025 with $532 million in cash and generated fourth-quarter operating cash flow of $175 million, totaling $239 million for the full year [20] Strategic Initiatives - The CEO highlighted the "Three-S plan" aimed at simplifying, streamlining, and strengthening the business, with evidence of market share gains and over $100 million in new U.S. store-brand distribution [3][7] - A two-year program targeting annualized pre-tax savings of $80–$100 million was launched, involving a workforce reduction of approximately 7% [5][15] - The company is pursuing a sale of its dermacosmetics business and conducting a strategic review of its infant formula segment to reduce debt and improve margins [5][21] Market Trends and Outlook - The company gained market share across most U.S. OTC categories, reversing years of decline, and noted positive momentum in Europe despite a soft market environment [9] - Looking ahead, management anticipates a difficult start to 2026 for category consumption, with U.S. OTC dollar sales down 5.1% over the last 13 weeks compared to the previous year [10] - Management expects low- to mid-single-digit revenue growth in infant formula in 2026, which is anticipated to help deplete higher inventory levels [22] Future Guidance - For 2026, management guided CORE EPS to be in the range of $2.25 to $2.55, with all-in EPS expected to be between $2.00 and $2.30 [19] - The company described 2026 as a "transition year," with an unfavorable EPS impact of approximately $0.60 due to manufacturing under-absorption [14] - Management reiterated capital allocation priorities of investing in the business, reducing debt, and returning value through dividends, with expectations of achieving net leverage below 3x in the next two to three years [21]

Core Insights - Perrigo (PRGO) reported adjusted earnings per share (EPS) of 77 cents for Q4 2025, missing the Zacks Consensus Estimate of 80 cents, representing a 17.2% year-over-year decline primarily due to challenges in the Infant Formula business [1][10] Financial Performance - Net sales decreased by 2.5% year over year to $1.11 billion, slightly exceeding the Zacks Consensus Estimate of $1.10 billion, attributed to weak sales in the Infant Formula segment and losses from exited businesses, partially offset by favorable currency movements [2] - Sales dropped 0.4% year over year, impacted by exited businesses, but benefited from a 2.3% increase due to favorable currency movements; at constant currency, sales fell 4.9%, and organic net sales declined 4.5% [3] Segment Performance - Consumer Self Care Americas (CSCA) segment reported net sales of $697 million, down 6.3% year over year, with organic net sales also declining by 6.3; sales exceeded the Zacks Consensus Estimate of $696 million but fell short of the model estimate of $711.7 million [5] - Consumer Self Care International (CSCI) segment reported net sales of $412.6 million, up 4.7% year over year; however, at constant currency, sales fell 2.1%, and organically, sales declined 1%; CSCI sales surpassed both the Zacks Consensus Estimate and the model estimate [6] Annual Results and Guidance - For the full year 2025, Perrigo reported net sales of $4.25 billion, a decrease of 2.75% year over year, with adjusted net EPS rising to $2.75 from $2.57 in the previous year [7] - Perrigo provided guidance for 2026, expecting All In net sales to decline by 1.5% to 5.5% year over year, with adjusted EPS projected between $2.00 and $2.30; for the CORE business, sales are forecasted to decline by 3% to increase by 1%, with adjusted EPS expected between $2.25 and $2.55 [9] Restructuring and Strategic Developments - Perrigo will restructure its reporting segments into Self Care, Specialty Care, and Infant Formula starting Q1 2026, with the Self Care segment covering various health categories and the Specialty Care segment including Women's Health and Skin Health [13] - In July 2025, Perrigo signed a deal to sell its Dermacosmetics-branded business for up to €327 million, expected to close in Q2 2026 [14] Market Reaction - The lower-than-expected sales and earnings forecasts likely affected investor sentiment, leading to a 1.5% decline in stock price; over the past year, Perrigo shares have decreased by 52.7%, compared to a 14.3% decline in the industry [11]