Perrigo (PRGO) reported $1.16 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 0.2%. EPS of $0.86 for the same period compares to $0.75 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.19 billion, representing a surprise of -2.51%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

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Net Sales from Continuing Operations Were a Fourth Quarter and Fiscal Year Record Delivered Fiscal Year 2023 Double-Digit Improvement in Gross Profit, Operating Income and EPS, Year-Over-Year  Achieved Sixth Consecutive Quarter of Year-Over-Year Gross Margin Expansion Launching 'Project Energize' Investment and Efficiency Program to Drive the Company's One Perrigo Sustainable, Value Accretive Growth Strategy  DUBLIN, Feb. 27, 2024 /PRNewswire/ -- Fourth Quarter 2023 Highlights: Fourth quarter net sales of ...

DUBLIN, Feb. 26, 2024 /PRNewswire/ -- Perrigo Company plc (NYSE: PRGO), a leading global provider of Consumer Self-Care Products, announces that its Board of Directors has approved a 1% increase in the Company's quarterly dividend to $0.276 per share, or $1.10 per share on an annual basis, up from $0.273 per share. This marks the 21st consecutive year Perrigo has increased its dividend. The cash dividend is payable on March 26, 2024, to shareholders of record on March 8, 2024. About Perrigo  Perrigo Company ...

EXHIBIT 99.1 Perrigo Reports Fourth Quarter & Fiscal Year 2023 Financial Results From Continuing Operations; Launches Investment & Efficiency Program Net Sales from Continuing Operations Were a Fourth Quarter and Fiscal Year Record Delivered Fiscal Year 2023 Double-Digit Improvement in Gross Profit, Operating Income and EPS, Year-Over-Year Achieved Sixth Consecutive Quarter of Year-Over-Year Gross Margin Expansion Launching 'Project Energize' Investment and Efficiency Program to Drive the Company's One Perr ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Perrigo is a global self-care company with CSCA and CSCI segments, focusing on OTC products, innovation, and efficiency under strict regulatory oversight - Perrigo operates as a leading **pure-play self-care company** with a **blended business model** of branded, value, and store brand product offerings across North America and Europe[14](index=14&type=chunk)[15](index=15&type=chunk) - The company's business is divided into two primary segments: **Consumer Self-Care Americas (CSCA)** and **Consumer Self-Care International (CSCI)**[19](index=19&type=chunk)[23](index=23&type=chunk) Key Product Categories | Product Category | Description | | :--- | :--- | | **Upper Respiratory** | Cough, sinus, and allergy relief products | | **Nutrition** | Infant formulas and nutritional beverages (beverages exited in 2023) | | **Digestive Health** | Antacids, anti-diarrheal, and anti-heartburn products | | **Pain and Sleep-Aids** | Pain relievers, fever reducers, and sleep-aids | | **Oral Care** | Toothbrushes, floss, whitening products, etc | | **Healthy Lifestyle** | Smoking cessation and well-being products | | **Skin Care** | Dermatological care, scar management, lice treatment | | **Women's Health** | Feminine hygiene and contraceptives | | **Vitamins, Minerals, and Supplements (VMS)** | Vitamins, minerals, and supplements | - In 2023, sales to Walmart Inc. represented **11.8% of consolidated net sales**, making it the only individual customer accounting for more than 10% of net sales[30](index=30&type=chunk) - The FDA approved **Opill®**, the **first-ever over-the-counter birth control pill** in the United States, which is expected to launch in the first quarter of 2024[22](index=22&type=chunk)[29](index=29&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) Perrigo faces diverse operational, strategic, global, litigation, tax, and capital risks, including intense competition, regulatory challenges, supply chain disruptions, and acquisition integration issues - **Operational Risks**: The company faces significant competition, pricing pressure, and the need for continuous product innovation. It is also subject to extensive regulation, which could lead to product recalls, manufacturing shutdowns, or delays. Supply chain disruptions, raw material costs, and cybersecurity breaches are also major concerns[80](index=80&type=chunk)[86](index=86&type=chunk)[108](index=108&type=chunk)[115](index=115&type=chunk) - **Strategic Risks**: There is a risk that the company may not realize the expected benefits and synergies from its acquisitions of HRA Pharma and Gateway. Furthermore, strategic initiatives like the Supply Chain Reinvention Program and Project Energize may not achieve their intended cost savings or efficiency improvements[121](index=121&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) - **Global Risks**: The international scope of operations exposes Perrigo to foreign exchange rate volatility, geopolitical instability such as the wars in Ukraine and the Israel/Hamas conflict, and complex international trade and tax laws[133](index=133&type=chunk)[137](index=137&type=chunk)[142](index=142&type=chunk) - **Litigation & Tax Risks**: Perrigo is involved in significant litigation, including antitrust lawsuits related to alleged price-fixing in its former Rx business and various securities class actions. The company also faces material risks from ongoing disputes with U.S. and foreign tax authorities over uncertain tax positions[144](index=144&type=chunk)[146](index=146&type=chunk)[157](index=157&type=chunk) - **Capital & Liquidity Risks**: The company's substantial indebtedness of **$4.1 billion** as of December 31, 2023, could affect its ability to implement strategic initiatives. Debt agreements contain restrictive covenants that limit operational and financial flexibility[162](index=162&type=chunk)[163](index=163&type=chunk) [Unresolved Staff Comments](index=37&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - Not applicable[172](index=172&type=chunk) [Cybersecurity](index=37&type=section&id=Item%201C.%20Cybersecurity) Perrigo manages cybersecurity with a NIST-aligned, multi-layered risk strategy overseen by the Board, aiming to protect against threats and ensure business continuity - The Board's **Nominating & Governance Committee (NGC)** oversees cybersecurity risks, policies, and objectives, receiving regular reports from management[173](index=173&type=chunk)[176](index=176&type=chunk) - The company employs a **multi-layered risk management strategy** based on NIST frameworks, including technology deployment, employee education, incident response plans, and intelligence sharing[174](index=174&type=chunk) - To date, no cybersecurity incidents have materially affected the company's business strategy, results of operations, or financial condition[174](index=174&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) Perrigo operates 17 manufacturing facilities globally, primarily owned, with headquarters in Dublin and North American base in Michigan, deemed adequate for current needs - The company operates **17 manufacturing locations worldwide** and owns approximately **80% of its facilities**[179](index=179&type=chunk) - The primary facilities are located in the **United States (41 facilities** including manufacturing, logistics, and offices), **France (8)**, **Belgium (5)**, **China (5)**, and the **United Kingdom (5)**[179](index=179&type=chunk) [Legal Proceedings](index=39&type=section&id=Item%203.%20Legal%20Proceedings) Details on the company's legal proceedings are provided in Note 19 of the financial statements - Details on legal proceedings are cross-referenced to Item 8, Note 19 of the financial statements[181](index=181&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is reported as not applicable to the company's operations - Not applicable[182](index=182&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=40&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Perrigo's common equity trades on the NYSE under PRGO, with **$835.8 million** remaining on its share repurchase authorization as of December 31, 2023 - The company's common equity trades on the NYSE under the symbol **PRGO**[185](index=185&type=chunk) - As of December 31, 2023, **$835.8 million** remained available for purchase under the 2018 share repurchase authorization. No shares were repurchased during 2023 or 2022[188](index=188&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Perrigo's 2023 net sales grew **4.6%** to **$4.66 billion**, with operating income up **92.5%**, driven by acquisitions and strategic initiatives despite macroeconomic and regulatory challenges - The company is implementing two major restructuring programs: the **Supply Chain Reinvention Program** (initiated in 2022) and **Project Energize** (launching in 2024) to reduce costs and improve efficiency[209](index=209&type=chunk)[212](index=212&type=chunk) Restructuring Program Financial Targets | Program | Expected Annualized Savings | Expected Costs/Investment | | :--- | :--- | :--- | | **Supply Chain Reinvention** | $200 million - $300 million by 2028 | $350 million - $570 million by 2028 | | **Project Energize** | $140 million - $170 million by 2026 | $140 million - $160 million by 2026 | - The infant formula business faces challenges from evolving FDA regulatory expectations, leading to lower manufacturing output, increased costs, and a temporary production pause at its Wisconsin facility. Remediation costs in 2024 are estimated at **$35 million to $45 million**[201](index=201&type=chunk)[202](index=202&type=chunk)[205](index=205&type=chunk) - A goodwill impairment charge of **$90.0 million** was recorded in Q4 2023 related to the Rare Diseases reporting unit within the CSCI segment due to market factors and increased discount rates[214](index=214&type=chunk) [Results of Operations](index=44&type=section&id=Results%20of%20Operations) In 2023, consolidated net sales increased **4.6%** to **$4.66 billion**, and operating income rose **92.5%**, driven by acquisitions and pricing, despite a CSCI goodwill impairment Consolidated Financial Results (2023 vs. 2022) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $4,655.6 million | $4,451.6 million | 4.6% | | **Gross Profit** | $1,680.4 million | $1,455.4 million | 15.5% | | **Operating Income** | $151.9 million | $78.9 million | 92.5% | Segment Financial Results (2023 vs. 2022) | Segment | Net Sales | % Change | Operating Income (Loss) | % Change | | :--- | :--- | :--- | :--- | :--- | | **CSCA** | $2,962.3 million | 1.2% | $389.6 million | 6.4% | | **CSCI** | $1,693.3 million | 11.0% | $(35.2) million | (17.3)% | - CSCA net sales growth was driven by acquisitions and strategic pricing, but partially offset by lower sales in infant formula due to evolving FDA regulations and purposeful SKU prioritization[223](index=223&type=chunk)[225](index=225&type=chunk) - CSCI operating income decreased primarily due to a **$90.0 million goodwill impairment charge** related to the Rare Diseases reporting unit[233](index=233&type=chunk) [Financial Condition, Liquidity, and Capital Resources](index=51&type=section&id=Financial%20Condition%2C%20Liquidity%2C%20and%20Capital%20Resources) As of December 31, 2023, Perrigo's financial position is stable with **$751.3 million** cash, increased operating cash flow, and total debt of **$4.1 billion**, with sufficient liquidity for future needs Summarized Cash Flow Activities (2023 vs. 2022) | Activity (in millions) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $405.5 | $307.3 | | **Net cash (for) from investing activities** | $(77.5) | $(1,958.6) | | **Net cash (for) from financing activities** | $(187.2) | $421.6 | - The significant decrease in cash used for investing activities was primarily due to the absence of large acquisitions in 2023, compared to the **$1.9 billion** paid for HRA Pharma in 2022[248](index=248&type=chunk) - Total outstanding indebtedness was **$4.1 billion** at year-end 2023. In December 2023, the company refinanced a portion of its 2024 notes by adding **$300 million** to its Term B Loan[162](index=162&type=chunk)[250](index=250&type=chunk) - The company paid dividends of **$149.7 million**, or **$1.09 per share**, in 2023, an increase from the prior year[252](index=252&type=chunk) [Critical Accounting Estimates](index=56&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include income taxes, legal contingencies, acquisition accounting, and goodwill impairment testing, all requiring significant judgment and assumptions that could impact financial results - **Goodwill Impairment**: The annual impairment test requires significant assumptions for discount rates (**10.75% to 12.00%** in 2023) and perpetual growth rates (**2.50%**). The fair value of the CSCI reporting unit exceeded its carrying amount by less than **10%**, indicating sensitivity to changes in these assumptions[287](index=287&type=chunk)[289](index=289&type=chunk) - **Income Taxes**: Significant judgment is required in determining the worldwide effective tax rate, assessing the recoverability of deferred tax assets, and establishing reserves for uncertain tax positions in multiple complex jurisdictions[277](index=277&type=chunk) - **Legal Contingencies**: The company records liabilities for legal proceedings when a loss is probable and reasonably estimable. As of December 31, 2023, the accrual for litigation contingencies was **$66.9 million**[281](index=281&type=chunk) - **Acquisition Accounting**: Valuing assets acquired and liabilities assumed in business combinations, particularly intangible assets like trademarks and customer relationships, requires significant estimates based on discounted future cash flow models[282](index=282&type=chunk)[283](index=283&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Perrigo is exposed to market risks including foreign exchange, interest rate, and inflation, which it manages through hedging, debt structure, and strategic pricing - **Foreign Exchange Risk**: The company's largest currency exposure is the movement of the U.S. dollar relative to the euro. It uses foreign exchange derivatives to hedge exposures that cannot be naturally offset[294](index=294&type=chunk)[298](index=298&type=chunk) - **Interest Rate Risk**: The company is exposed to interest rate changes on its borrowings. A hypothetical **1% increase** in interest rates would result in approximately **$3.6 million** of additional annual interest expense in 2024[299](index=299&type=chunk) - **Inflation Risk**: Rising costs for products and overhead may adversely affect operating results. The company manages this through strategic pricing and supply chain cost reduction initiatives[300](index=300&type=chunk) [Financial Statements and Supplementary Data](index=61&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements for 2021-2023, accompanied by an unqualified audit opinion from Ernst & Young LLP and detailed notes on accounting policies and disclosures Key Consolidated Financial Data (2023) | Metric (in millions) | Amount | | :--- | :--- | | **Balance Sheet:** | | | Total Assets | $10,809.1 | | Total Liabilities | $6,041.2 | | Total Shareholders' Equity | $4,767.9 | | **Income Statement:** | | | Net Sales | $4,655.6 | | Operating Income | $151.9 | | Net Loss | $(12.7) | - The independent auditor, Ernst & Young LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of the company's internal control over financial reporting as of December 31, 2023[303](index=303&type=chunk)[322](index=322&type=chunk) - Critical Audit Matters identified by the auditor were the **valuation of goodwill** for the CSCI reporting unit and the **measurement of uncertain tax positions**, both of which involve significant management judgment and complex assumptions[307](index=307&type=chunk)[308](index=308&type=chunk)[312](index=312&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is reported as not applicable to the company - Not applicable[609](index=609&type=chunk) [Controls and Procedures](index=119&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2023, with no material changes in internal control during the fourth quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2023[611](index=611&type=chunk) - No changes occurred during the fourth quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[611](index=611&type=chunk) [Other Information](index=119&type=section&id=Item%209B.%20Other%20Information) The company amended CEO Patrick Lockwood-Taylor's employment agreement on February 21, 2024, modifying his 2024 Annual Incentive Plan target - CEO Patrick Lockwood-Taylor's 2024 cash bonus target was reduced from **120% to 40% of base salary**, with the difference to be compensated via a future RSU grant[612](index=612&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=119&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the upcoming Proxy Statement - This section incorporates information by reference from the forthcoming 2023 Proxy Statement[615](index=615&type=chunk) [Executive Compensation](index=119&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the company's forthcoming Proxy Statement - This section incorporates information by reference from the forthcoming 2023 Proxy Statement[616](index=616&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=120&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan details are incorporated by reference from the upcoming Proxy Statement - This section incorporates information by reference from the forthcoming 2023 Proxy Statement[618](index=618&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=120&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the forthcoming Proxy Statement - This section incorporates information by reference from the forthcoming 2023 Proxy Statement[619](index=619&type=chunk) [Principal Accounting Fees and Services](index=120&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Principal accounting fees and services information is incorporated by reference from the company's upcoming Proxy Statement - This section incorporates information by reference from the forthcoming 2023 Proxy Statement[620](index=620&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=121&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and various exhibits filed with the Form 10-K, including required CEO and CFO certifications - This section contains a comprehensive list of all financial statements, schedules, and exhibits filed with the Form 10-K[623](index=623&type=chunk)[624](index=624&type=chunk)

DUBLIN, Feb. 13, 2024 /PRNewswire/ -- Perrigo Company plc (NYSE: PRGO), a leading provider of Consumer Self-Care Products, today announced that it plans to issue its fourth quarter and fiscal year 2023 financial results on Tuesday, February 27th, 2024 and will host a conference call beginning at 8:30 A.M. (EST). The earnings conference call will be available live via webcast to interested parties in the investor relations section of the Perrigo website at http://perrigo.investorroom.com/events-webcasts or b ...

Financial Data and Key Metrics Changes - The company reported net sales growth of 2.2% year-over-year, while organic net sales declined by 1.2% due to the impact of discontinued lower margin SKUs [6][20] - Gross margin expanded by 300 basis points to 39.5%, and operating margin increased by 130 basis points to 13.4% [6][22] - Adjusted diluted earnings per share (EPS) was $0.64, up from $0.56 in the prior quarter, reflecting a year-over-year growth of 14.3% [20][22] Business Line Data and Key Metrics Changes - In the global cough, cold, and pain products segment, net sales increased by 7% year-over-year, driven by strong seasonal selling, particularly in Europe [7] - CSCI (Consumer Self-Care International) saw organic net sales grow by 6.2%, while CSCA (Consumer Self-Care Americas) experienced a decline of 5.1% due to various factors including the discontinuation of low margin SKUs [7][8] - The infant formula segment faced challenges due to updated FDA guidelines, impacting production and safety stock levels [9][25] Market Data and Key Metrics Changes - Store-brand OTC dollar, volume, and value share grew over the last 13 weeks, indicating a consumer shift towards high-quality, value products [8] - The company anticipates continued market share gains in the Americas while focusing on rebuilding safety stock in the infant formula category [17] Company Strategy and Development Direction - The company aims to build a sustainable and value-accretive growth engine through four key pillars: consumerization and digitization, category growth partnerships, leveraging global supply chain, and optimizing a global operating model [12][14] - The anticipated launch of Opill is expected to create a new OTC category in the U.S., with a focus on innovative marketing strategies to drive consumer engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and highlighted the unique market position with a $400 billion addressable market in the global self-care segment [12][13] - The company expects to normalize operations in the infant formula segment by mid-2024 and recapture most of the EPS impact from lower sales [30][25] Other Important Information - The company is working to address the impact of recent FDA guidelines on production and inventory management, which has led to lower customer in-stocks and lost sales [9][25] - The company reaffirmed its commitment to reducing net leverage, targeting around three times net debt to adjusted EBITDA by the end of 2025 [24] Q&A Session Summary Question: Impact of lower infant formula sales on 2023 guidance - Management indicated a $0.35 EPS impact from lower infant formula sales, with expectations to recapture this by mid-2024 as production normalizes [30] Question: Expected gross margin progression - Management expects to exceed the previously mentioned 200 basis points improvement in gross margin due to strategic pricing and portfolio optimization [32] Question: Store brand versus national brand share gains - Management confirmed a 0.7% volume share gain for store brands across categories, with positive trends continuing into October [36] Question: Price increases and consumer response - The company implemented nearly a 5% price increase, primarily in the infant formula segment, without significant pushback from retailers [41] Question: Production changes for phenylephrine products - Management noted that phenylephrine products account for only 2% of total net sales, with minimal impact expected from recent FDA discussions [45] Question: Response to SKU rationalization efforts - Management reported positive feedback from retailers regarding SKU rationalization, which has simplified operations and improved value creation [49][50] Question: Launch of Opill and its financial impact - The launch of Opill is expected to be dilutive in 2024, but management remains optimistic about maintaining EPS growth in the range of $2.90 to $3 [55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________ FORM 10-Q _______________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36353 Perrigo Company plc (Exact name ...

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