Financial Data and Key Metrics Changes - The company reported GAAP income of $9 million for Q2 2023, translating to GAAP earnings of $0.06 per diluted share, while adjusted net income was $87 million, resulting in adjusted diluted earnings per share of $0.63, up from $0.43 in the prior year quarter [24] - Total Perrigo reported net sales grew by 6.4%, with organic growth at 80 basis points, impacted by SKU prioritization actions [25] - Gross profit increased by $52 million or 13%, driven by strategic pricing, acquisitions, and favorable mix, while operating income rose by $21 million or 80% [26] - The company ended the quarter with a solid cash position of $555 million, reflecting an increase of $70 million from the previous year [27] Business Line Data and Key Metrics Changes - In the Consumer Self-Care Americas (CSCA) segment, organic sales declined by 2.7%, impacted by SKU prioritization and a light allergy season [25] - The Consumer Self-Care International (CSCI) segment saw robust organic growth of 7.1%, indicating strong brand resonance with consumers [25] - The nutrition category contributed $44 million in net sales from the recent acquisition, partially offset by lower sales from discontinued product lines [18] Market Data and Key Metrics Changes - In the US, store brand volume share grew by 70 basis points over the last 13 weeks, indicating a shift towards store brands [15] - The international business experienced strong organic net sales growth of 7%, with broad-based growth across various categories including cough cold and skincare [15] Company Strategy and Development Direction - The company aims to refine its focus on branded self-care, leveraging its manufacturing scale and strong customer relationships to drive growth [11] - Key initiatives include supply chain reinvention, optimizing production of higher-margin SKUs, and enhancing operational efficiency [14][13] - The approval of Opill, the first OTC daily oral contraceptive, is seen as a significant opportunity for long-term growth in the women's health space [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 growth algorithm and emphasized the importance of operational discipline, particularly in the US business [36] - The company is focused on sustainable growth, identifying attractive categories and brands for future investment [34] - Management acknowledged the challenges in the infant formula market due to regulatory changes but remains committed to meeting consumer demand [20] Other Important Information - The company is confirming its 2023 reported and organic net sales growth guidance, with expectations for a normal cough and cold season in the second half of the year [28] - The company plans to invest in pre-launch activities for Opill, with expectations for the product to be on shelves in early 2024 [17] Q&A Session Summary Question: What are the top priorities for sustained growth? - Management highlighted the importance of supply chain reinvention and operational discipline as key focus areas for growth [32] Question: Are the 2025 targets still comfortable? - Management confirmed comfort with the 2025 targets, emphasizing the need for effective governance to ensure delivery [36] Question: What is the expected impact of Opill on earnings? - Management indicated that Opill is not expected to be accretive in the first 12 to 24 months, focusing instead on building the brand [39] Question: What are the current inventory levels at retail? - Management noted that inventory levels are normalizing, with expectations for a pickup in sales during the third and fourth quarters [41] Question: How is pricing expected to evolve? - Management stated that pricing actions are on track to offset inflation and maintain value propositions for brands [44] Question: What is the outlook for the European market? - Management reported strong performance in Europe, with expectations for continued growth in various categories [46]

Financial Data and Key Metrics Changes - In Q1 2023, Perrigo achieved constant currency net sales growth of 13% and organic net sales growth of 6.4% despite challenges from voluntary recalls and portfolio optimization initiatives [14][22] - Adjusted diluted EPS grew by 36% year-over-year, or 47% on a constant currency basis, reaching $0.45 per share [22][24] - Gross margin improved by 400 basis points, driven by both the legacy business and higher margin acquisitions [14][25] Business Line Data and Key Metrics Changes - The CSCA Nutrition business saw net sales grow by 10%, driven by strong growth in the Contract Infant Formula business and an additional $36 million from the GoodStart acquisition [18][19] - The OTC business grew by 9% in total, with U.S. OTC organic growth at 7.3% [16][18] - The CSCI business grew 24% in constant currency, with 11% organic growth, benefiting from strong EU consumption and strategic price increases [16][18] Market Data and Key Metrics Changes - European consumption is at a four-year high, driven by a strong cold season, with the Compeed brand seeing a 19% increase in consumer takeaway [14][15] - U.S. oral care consumption grew by 20%, with Perrigo regaining the number two share position in the categories it competes in [15][16] - The company reported strong demand in anti-parasite and insect repellent categories, contributing positively to CSCI growth [15] Company Strategy and Development Direction - The management is focused on operational execution and consistent delivery of results, with a strategy termed "optimize and accelerate" [6][7] - The integration of recent acquisitions, such as HRA and GoodStart, is on track, with expected significant benefits [7][10] - The company is investing in supply chain reinvention to optimize operations and standardize nearly 1,000 SKUs by early 2024 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges, including inflation and supply chain issues, while maintaining strong financial performance [30][31] - The elimination of a significant tax overhang has reduced uncertainty in the investment thesis [9][30] - The FDA's potential approval of the Opill oral contraceptive is seen as a significant opportunity for growth in the women's health space [13][51] Other Important Information - The company has successfully resolved a major tax assessment of $843 million without any payment required [9] - Operating cash flow for the quarter was $19 million, with cash on hand at $553 million [27][28] - The company is reaffirming its 2023 guidance, anticipating higher costs in the CSCA infant formula business but planning pricing actions to offset these costs [28][29] Q&A Session Summary Question: Can you provide more details on the gross margin improvement? - Management noted that the gross margin increased by 400 basis points, with contributions from various business segments, despite impacts from recalls and distribution transitions [37][39] Question: What is the expected impact of FDA changes on the infant formula business? - Management indicated that while there will be some negative impact on sales and margins due to new regulatory requirements, pricing actions will help offset these costs [42][44] Question: How is the company managing inventory levels? - Management stated that they are making progress in inventory management, but some categories still face challenges in returning to normal stock levels [46][48] Question: What are the expectations for the Opill product launch? - The potential launch of Opill is not included in current financial models, but management estimates it could generate approximately $100 million in revenue once approved [50][51] Question: How does the company view the competitive landscape between private label and national brands? - Management observed that private label volumes are growing while national brand volumes are declining, indicating a shift in consumer preferences [61][62]

Financial Performance - Perrigo Company reported net sales of $4,451.6 million for the year ended December 31, 2022, an increase of 7.5% compared to $4,138.7 million in 2021[333]. - The cost of sales for 2022 was $2,996.2 million, resulting in a gross profit of $1,455.4 million, which is a slight increase from $1,416.2 million in 2021[333]. - Operating income decreased significantly to $78.9 million in 2022 from $410.4 million in 2021, reflecting a decline of 80.8%[333]. - The company incurred a net loss of $140.6 million in 2022, compared to a net loss of $68.9 million in 2021[333]. - Comprehensive loss for the year was $203.1 million, compared to a loss of $428.4 million in 2021, showing an improvement in overall financial performance[337]. - Net cash from operating activities was $307.3 million for 2022, compared to $156.3 million in 2021, indicating a significant increase of about 96.5%[340]. - The net loss for the year ended December 31, 2022, was $140.6 million, compared to a net loss of $68.9 million in 2021, indicating a deterioration in profitability[337]. Assets and Liabilities - Total assets increased to $11,017.3 million as of December 31, 2022, up from $10,425.7 million in 2021, reflecting a growth of approximately 5.7%[335]. - Long-term debt rose to $4,070.4 million, up from $2,916.7 million in 2021, marking an increase of approximately 39.5%[335]. - Total current liabilities decreased to $1,113.6 million from $1,587.9 million in 2021, a decline of approximately 30%[335]. - As of December 31, 2022, the total equity was $4,842.1 million, with accumulated earnings showing a deficit of $2,067.6 million[346]. - Cash and cash equivalents decreased significantly to $600.7 million from $1,864.9 million in the previous year, representing a decline of about 67.8%[340]. Acquisitions and Divestitures - The acquisition of HRA Pharma was completed for €1.8 billion (approximately $1.9 billion), generating net sales of $193.6 million and a net operating loss of $59.4 million from April 29, 2022, to December 31, 2022[410][411]. - The acquisition of Nestlé's Gateway infant formula plant and GoodStart brand for $110.0 million generated net sales of $42.7 million and operating income of $11.5 million from November 1, 2022, to December 31, 2022[419][420]. - The company has divested its Rx segment, which was reported as discontinued operations in 2021[352]. - The sale of the Latin American businesses to Advent International was completed for $23.9 million, resulting in a pre-tax loss of $1.4 million[433]. - The sale of the U.K.-based Rosemont Pharmaceuticals business generated cash consideration of approximately $195.0 million, resulting in a pre-tax loss of $21.1 million[437]. Goodwill and Intangible Assets - As of December 31, 2022, the goodwill related to the Company's Consumer Self-Care International segment was $1,446.0 million[304]. - Goodwill balance as of December 31, 2022, was $3,490.4 million, an increase from $2,999.4 million in 2021, primarily due to business acquisitions of $559.5 million[450]. - Total intangible assets as of December 31, 2022, amounted to $5,007.6 million, up from $3,683.8 million in 2021, with definite-lived intangibles increasing to $4,949.0 million[454]. - The total assets acquired from HRA Pharma were valued at $2,220.4 million, with goodwill of $559.5 million attributed to anticipated growth and synergies[415][418]. Research and Development - Research and development expenses were $123.1 million in 2022, slightly up from $122.0 million in 2021[333]. - The company incurs all research and development costs as expenses, including payments related to products under development and clinical trials[392]. Foreign Exchange and Interest Rate Risks - The Company is exposed to foreign exchange risk primarily due to operations in North America, Europe, China, and Australia[290]. - A 1% increase in interest rates would result in approximately $3.9 million of additional annual interest expense in 2023[295]. - The company entered into two non-designated currency option contracts with a total notional amount of $1.1 billion in September 2021, which was later increased to $2.0 billion in April 2022 due to market conditions[471]. - The company recorded a loss of $16.2 million and $20.9 million for the years ended December 31, 2022 and 2021, respectively, related to foreign currency options[471]. Internal Controls and Compliance - The company’s internal control over financial reporting was assessed as effective as of December 31, 2022, based on the COSO criteria[323]. - The company has not provided assurance that the FDA will approve the sale of daily oral contraceptives without a prescription in the United States[8]. Other Financial Metrics - The company reported interest expense of $156.0 million for 2022, an increase from $125.0 million in 2021[333]. - Cash dividends paid increased to $142.4 million in 2022 from $129.6 million in 2021, reflecting a rise of about 9.6%[343]. - The company reported a provision for credit losses of $3.2 million for the year ended December 31, 2022[357].

Financial Data and Key Metrics Changes - Perrigo reported a constant currency net sales increase of 12% in Q3 2022 and 14% year-to-date, with organic net sales growth of 8% in the quarter and 11% year-to-date, exceeding the long-term target of 3% [8][9] - Constant currency diluted EPS for the quarter was $0.65, up 44% year-over-year, despite higher interest expenses and a slightly increased share count [9][24] - Gross margin increased by 210 basis points year-over-year, contributing to a constant currency adjusted operating income growth of 32% [9][25] Business Line Data and Key Metrics Changes - Women's health sales grew 100% due to the addition of HRA brands, driven by increased demand for emergency contraception [10] - Skincare sales increased by 28%, while upper respiratory sales grew by 19% due to higher instances of cough and cold in Europe [11] - Nutrition business saw an 18% increase, driven by heightened infant formula demand amid a national brand shortage [12] Market Data and Key Metrics Changes - Perrigo gained market share across all US business units and major categories, with significant gains in e-commerce and store brands [8][14] - The total US OTC market growth slowed to 2.3% in the latest 13 weeks, while Perrigo's retail growth was up 5.8% [15] - The company expects unfavorable currency translation to impact full-year 2022 net sales by approximately $230 million [16] Company Strategy and Development Direction - The integration of HRA remains a cornerstone of Perrigo's growth strategy, with total synergy estimates raised to €50 million by the end of 2024 [17][31] - The company is focused on reducing leverage, aiming for around 3x net leverage by the end of 2024, while continuing to invest in supply chain initiatives [67][69] - Strategic pricing actions and cost-saving measures are being implemented to offset inflationary pressures [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation and macroeconomic factors but expressed confidence in achieving 2023 financial goals [7][22] - The company remains optimistic about its fundamentals, with expectations for gross margin expansion and market share growth [22][73] - Management indicated that the supply chain reinvention program is expected to deliver significant incremental operating income in 2023 [19] Other Important Information - Perrigo's cash on the balance sheet was $469 million at the end of Q3, down from $485 million at the end of Q2 [29] - The company invested $70 million in capital expenditures and returned $107 million to shareholders through dividends in the first nine months of the year [30] Q&A Session Summary Question: Can you provide details on the Gateway acquisition's revenue run rate and its impact on capacity? - Management indicated that the Gateway acquisition will significantly enhance capacity and is expected to contribute to operating income [35][39] Question: How did the HRA business perform relative to expectations? - The HRA business is performing as planned, with a gross margin impact of over 200 basis points in the quarter [41][42] Question: What is the outlook for gross margins in 2023? - Management expects gross margins to improve, with recovery from previous freight cost increases and ongoing supply chain initiatives [50][52] Question: How will operating expenses trend going forward? - A slight increase in operating expenses is anticipated in Q4 due to seasonal factors and increased promotional activities [46] Question: What are the capital allocation priorities moving forward? - The primary focus is on reducing leverage while continuing to invest in strategic initiatives that yield significant operating income returns [67][69]

Financial Data and Key Metrics Changes - The company reported a consolidated GAAP loss from continuing operations of $65 million for Q2 2022, translating to a loss of $0.48 per diluted share. Adjusted net income from continuing operations was $59 million, with adjusted diluted EPS at $0.43, or $0.49 on a constant currency basis, compared to $0.50 in the prior year quarter [28][29] - Net sales increased by 14.3%, with organic net sales growing by 17.2%, driven by strong consumer demand [30] - Gross profits grew by 8.7%, or 17% on a constant currency basis, despite inflationary pressures [30] Business Line Data and Key Metrics Changes - Consumer Self Care Americas (CSCA) net sales increased by 17%, driven by strong demand for cough and cold products and nutrition [32] - The Consumer Self Care International (CSCI) segment saw net sales increase by 25.8% on a constant currency basis, with organic net sales growing by 10.6% [33] - The women's health business grew by 77%, primarily due to the addition of HRA businesses and increased demand related to recent judicial decisions in the U.S. [14] Market Data and Key Metrics Changes - The upper respiratory revenues grew by 44% globally, attributed to a rebound in cough-cold sales compared to the previous year [13] - The nutrition business saw a 31% increase, primarily driven by infant formula demand due to a competitor's recall [14] - E-commerce sales grew more than 25% in the first half of the year, now accounting for over 12% of global sales [17] Company Strategy and Development Direction - The company is focused on optimizing and accelerating its self-care strategy, with plans to integrate the HRA portfolio and achieve related cost synergies [24] - A global supply chain initiative is underway, aiming for $100 million to $300 million in net cost savings over five years [20][22] - The company is expanding its product categories to include women's health and skin care, with skin care now being the second largest global category [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges from inflation and labor shortages but expressed confidence in achieving gross margin recovery [19][43] - The company anticipates continued strong demand for its products, particularly in the context of the upcoming cough-cold season [48] - Management remains optimistic about the future, highlighting a strong pipeline of innovation and the successful execution of their self-care strategy [64] Other Important Information - The company closed on a $2.6 billion senior secured credit facility, locking in favorable rates [8] - The FDA approved the first-ever branded Rx to OTC switch for Nasonex, marking a significant regulatory achievement [18] - The company is committed to maintaining its dividend growth, with a strong track record of 18 consecutive years of increases [35] Q&A Session Summary Question: Update on trade inventory levels and growth outlook - Management confirmed that inventory levels are appropriate, with no significant influence on business going forward [39][40] Question: Comments on gross margin expectations - Management indicated that costs have continued to rise, but they remain on track to achieve their gross margin recovery goals [45] Question: Impact of recession on business - Management noted a more balanced portfolio now, with a shift towards store brands benefiting from potential downtrading during a recession [60] Question: Update on HRA deal accretion - Management confirmed that the $150 million operating profit impact from the HRA acquisition remains on track, though currency adjustments may affect it [62]

Perrigo Company plc (NYSE:PRGO) Q1 2022 Earnings Conference Call May 11, 2022 8:30 AM ET Company Participants Bradley Joseph - Vice President of Investor Relations Murray Kessler - President and Chief Executive Officer Raymond Silcock - Chief Financial Officer Conference Call Participants Chris Schott - JPMorgan Elliot Wilbur - Raymond James Operator Good day and welcome to the Perrigo First Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instruction ...

Financial Data and Key Metrics Changes - For the full year 2021, adjusted EPS was $2.06, down 12% from the previous year due to a weak cough/cold season and supply chain disruptions [10][21] - Fourth quarter net sales grew 5%, adjusted operating income increased 12%, and adjusted diluted EPS rose 28% compared to the previous year [11][20] - Full year net sales increased 1.2%, while organic net sales declined 0.7% primarily due to lower cough/cold product sales [25][26] Business Line Data and Key Metrics Changes - Consumer Self-Care Americas (CSCA) net sales grew 5% in Q4, driven by a rebound in cough/cold products [27] - Consumer Self-Care International (CSCI) net sales increased 4.6% in Q4, with a strong performance in cough/cold products and skincare [29] - Full year net sales for CSCI increased 3.6%, while organic sales were flat due to a weak cough and flu season [30] Market Data and Key Metrics Changes - In the U.S., cough/cold product sales grew 28% in Q4, reflecting a return to strong demand [11][12] - The U.S. OTC market grew 17.5%, Nutrition grew 24.7%, and Oral Care grew 9.1% in Q4 [12] - European demand for essential products increased by 33%, while self-care products grew by 2% [12] Company Strategy and Development Direction - The company aims to focus solely on consumer self-care following the divestiture of its Rx business for $1.6 billion [7] - Plans to acquire HRA Pharma for €1.8 billion, expected to add €400 million in revenue and €150 million in operating income by 2023 [7] - The company is focused on executing its self-care strategy, integrating HRA, and stabilizing gross margins through supply chain redesign [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2022 with strong top-line momentum and consumer demand [12][14] - Gross margin pressure is expected to continue in the first half of 2022, with improvements anticipated in the second half [15] - The company is committed to achieving its original financial objectives and expects adjusted EPS in the range of $2.10 to $2.30 for 2022 [15][32] Other Important Information - The company settled a significant Irish tax issue for €266 million, reducing financial overhangs [7][8] - Cash on the balance sheet at year-end was $1.9 billion, down from $2.1 billion at the end of Q3 [31] Q&A Session Summary Question: Gross margin dynamics and second half margin improvement - Management discussed factors affecting margin improvement, including the impact of Rx divestiture and pricing actions [34][36] Question: 2023 EPS range and recovery from 2021 impacts - Management maintained a mid-$3 EPS target for 2023, driven by cough/cold recovery and HRA contributions [39][40] Question: G&A management and R&D sustainability - Management indicated ongoing opportunities for G&A management and confirmed R&D levels remain stable [44][47] Question: New product flow and Rx-OTC switches - Management highlighted ongoing opportunities in Rx-OTC switches and a robust pipeline of new products [50][52] Question: Growth outlook for CSCA vs. CSCI - Management noted that both segments are expected to have similar growth rates, with a focus on cough/cold recovery [55][58] Question: Cough/cold inventory and forecast conservatism - Management acknowledged potential conservatism in forecasts regarding inventory replenishment [61][62] Question: Addressing manufacturing inefficiencies - Management outlined plans for improving manufacturing efficiencies without significant facility rationalization [64][66]

Financial Data and Key Metrics Changes - The company reported a GAAP loss from continuing operations of $54 million for Q3 2021, translating to a loss of $0.40 per diluted share, while adjusted net income was $61 million, with adjusted diluted EPS at $0.45, reflecting a 25% decline year-over-year [26][24][25] - Consolidated net sales increased by 4% year-over-year, despite a $43 million impact from supply chain disruptions, with organic net sales growing by 2.6% [10][29] - Gross margin for the quarter was 34.4%, down 480 basis points from the previous year, primarily due to lower operating efficiencies and higher material and freight costs [30][29] Business Line Data and Key Metrics Changes - In the Consumer Self-Care Americas segment, net sales increased by 4.6%, driven by e-commerce and improved cough/cold sales, with organic net sales growing by 4.2% [32] - The Consumer Self-Care International segment saw net sales grow by 2.8%, aided by favorable currency and acquisitions, although organic net sales decreased by 0.6% [33] - The cough/cold sales in the U.S. experienced a 21% year-over-year growth, while global e-commerce sales grew by 36% [9][10] Market Data and Key Metrics Changes - The total OTC category in the U.S. grew by 18.1% year-over-year, with total nutrition (infant formula and electrolytes) up 29.9% and oral care up 9.7% [11] - The company lost approximately 1.5 share points in the store brand OTC market, attributed to increased consumption of national brands rather than a switch from store brands [11] - Consumer takeaway in the CSCI division was up nearly 10% year-over-year, indicating strong market demand [12] Company Strategy and Development Direction - The company completed its transformation to a consumer self-care focus by divesting its generic Rx business for $1.6 billion and announcing the acquisition of HRA Pharma for €1.8 billion, expected to add $400 million in revenue and $150 million in operating income by 2023 [6][7] - The management emphasized a commitment to long-term profitable growth and plans to recover from temporary adverse impacts caused by supply chain disruptions and higher input costs [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant challenges due to global supply chain disruptions, which impacted the ability to meet consumer demand and led to higher costs [6][9] - The company expects strong consumer demand to continue in Q4, but also anticipates ongoing challenges from higher input costs and supply chain issues [14][20] - Management remains confident in achieving long-term growth targets, despite short-term setbacks, and believes that the negative impacts from the current environment will be recaptured over the next two years [22][23] Other Important Information - The company settled a significant Irish tax liability for €297 million, which was a major overhang for the business, and this settlement was funded by a €355 million arbitration award received during the quarter [8][7] - Operating cash flow for the quarter was $350 million, bolstered by the Belgian arbitration award [35] Q&A Session Summary Question: Concerns about gross margins and their volatility - Management acknowledged the complexity of gross margin performance, attributing significant impacts to supply chain disruptions and inflation, with expectations for recovery as conditions normalize [37][39] Question: Clarification on absorption issues and inventory management - Management explained that unabsorbed overhead costs were due to lower production levels during a weak cough/cold season, which would gradually reverse as demand increases [44][45] Question: Market share dynamics in the OTC space - Management indicated that while there were short-term share losses in certain categories, recent management changes have led to significant customer wins, and they are optimistic about regaining market share [48][49] Question: Bridging current EPS guidance to 2023 targets - Management outlined that recovering cough/cold sales and the impact of the HRA acquisition would be key drivers in achieving the 2023 EPS targets, with expectations for gradual improvement in gross margins [52][53] Question: Update on tax issues and potential new products - Management provided insights into ongoing tax matters, including the IRS case linked to previous acquisitions, and discussed the potential for new RX to OTC switches that could enhance future growth [64][71]

Summary of Perrigo Company plc Conference Call on HRA Pharma Acquisition Company Overview - **Company**: Perrigo Company plc (NYSE: PRGO) - **Event**: Conference Call regarding the acquisition of HRA Pharma - **Date**: September 8, 2021 Key Points on the Acquisition - **Acquisition Announcement**: Perrigo announced a binding offer to acquire HRA Pharma, a leading global consumer self-care company [4][10] - **Strategic Importance**: The acquisition is seen as a significant step in Perrigo's transformation from a healthcare company to a consumer self-care company, aiming for sustainable growth [6][10] - **Financial Impact**: The acquisition is projected to add approximately €400 million in net sales by 2023, with expected mid-teen percentage growth [20][21] - **Purchase Price**: The acquisition is valued at $1.8 billion, approximately $2.1 billion in today's conversion rate, with an enterprise value to expected 2022 adjusted EBITDA of 18 times [21][22] HRA Pharma Overview - **Brand Portfolio**: HRA's brands are category leaders globally, including Compeed (70% market share in EU), ellaOne (50% market share in EU), and Mederma [12][15][16] - **Growth Potential**: HRA is expected to drive Perrigo's growth beyond CPG averages, with significant potential for expansion into adjacent categories and geographies [12][14] - **Operating Margins**: HRA's operating margins are projected to approach 30%, contributing positively to Perrigo's overall financial profile [21] Financial Projections and Synergies - **Cost Synergies**: Expected operating synergies of over $30 million by 2023, primarily through leveraging Perrigo's existing sales force and distribution capabilities [19][43] - **EPS Impact**: The acquisition is expected to be immediately accretive, adding around $1 to adjusted EPS in the first full year [21][28] - **Leverage**: Post-acquisition leverage is expected to be around four times EBITDA in 2022, decreasing to below three by 2024 [39] Strategic Vision and Future Outlook - **Transformation Journey**: Perrigo has undergone significant transformation since May 2019, focusing on divesting non-core businesses and enhancing its consumer self-care portfolio [6][24] - **Market Positioning**: The acquisition positions Perrigo as a major player in Europe, enhancing credibility and revenue synergies [18][29] - **Long-term Growth**: The company aims for double-digit revenue growth and improved margins, with a focus on continuous improvement and reducing uncertainty [29][28] Additional Insights - **Management Team**: The existing HRA management team will remain post-acquisition, ensuring continuity and expertise [17] - **Regulatory Approvals**: The acquisition is subject to regulatory approvals, expected to be completed in the first half of 2022 [22] - **Market Dynamics**: The acquisition is seen as a strategic move to capitalize on self-care trends and enhance Perrigo's growth trajectory [10][11] This summary encapsulates the key points discussed during the conference call regarding Perrigo's acquisition of HRA Pharma, highlighting the strategic importance, financial implications, and future growth potential of the deal.