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.

Perrigo Company plc (NYSE:PRGO) Q2 2021 Results Conference Call August 11, 2021 8:00 AM ET Company Participants Murray Kessler – President and Chief Executive Officer Bradley Joseph – Vice President-Global Investor Relations Ray Silcock – Chief Financial Officer Conference Call Participants Elliot Wilbur – Raymond James Chris Schott – JPMorgan David Steinberg – Jefferies Operator Good morning, ladies and gentlemen, and welcome to the Perrigo Second Quarter 2021 financial results Conference Call. All partic ...

Perrigo Company plc (NYSE:PRGO) Q1 2021 Earnings Conference Call May 11, 2021 8:00 AM ET Company Participants Bradley Joseph – Vice President-Global Investor Relations Murray Kessler – President and Chief Executive Officer Ray Silcock – Chief Financial Officer Conference Call Participants Chris Schott – JPMorgan Greg Fraser – Truist Securities David Steinberg – Jefferies Elliot Wilbur – Raymond James David Risinger – Morgan Stanley Operator Hello and welcome to the Perrigo First Quarter 2021 Financial Resul ...

Perrigo Company plc (NYSE:PRGO) Q4 2020 Earnings Conference Call March 1, 2021 8:00 AM ET Company Participants Bradley Joseph – Vice President-Global Investor Relations Murray Kessler – President and Chief Executive Officer Ray Silcock – Chief Financial Officer Conference Call Participants Chris Schott – JPMorgan Gregg Gilbert – Truist David Risinger – Morgan Stanley Lucas Lee – Raymond James David Steinberg – Jefferies Operator Good day, and welcome to the Perrigo Fourth Quarter and Fiscal Year 2020 Financ ...

Perrigo Company plc (NYSE:PRGO) Q3 2020 Earnings Conference Call November 4, 2020 4:30 PM ET Company Participants Brad Joseph - Vice President, Global Investor Relations & Corporate Communications Murray Kessler - President & Chief Executive Officer Ray Silcock - Chief Financial Officer Conference Call Participants Gregg Gilbert - Truist Chris Schott - JP Morgan Ami Fadia - SVB Leerink Randall Stanicky - RBC Capital Markets David Risinger - Morgan Stanley Elliot Wilbur - Raymond James David Steinberg - Jeff ...

Perrigo Company plc (NYSE:PRGO) Q1 2020 Earnings Conference Call April 30, 2020 8:30 AM ET Company Participants Brad Joseph - Investor Relations Murray Kessler - President and Chief Executive Officer Ray Silcock - Chief Financial Officer Conference Call Participants Louise Chen - Cantor Chris Schott - JPMorgan Randall Stanicky - RBC Capital Markets Ami Fadia - SVB Leerink David Risinger - Morgan Stanley David Steinberg - Jefferies Gregg Gilbert - SunTrust Elliot Wilbur - Raymond James Operator Good morning ...

Financial Data and Key Metrics Changes - Total Perrigo consolidated net sales grew 13.4% in Q4 2019 compared to the previous year, with all segments contributing to this growth [8][14] - Adjusted EPS for Q4 increased by 9.3% year-over-year, finishing at $1.06, while the full-year adjusted EPS for 2019 was $4.03, exceeding original guidance [14][22] - Consolidated reported GAAP net income for Q4 was a loss of $19 million, with a reported diluted loss per share of $0.14 [16] Business Line Data and Key Metrics Changes - Consumer Self-Care Americas (CSCA) saw a 19.4% increase in Q4 net sales, driven by $52 million in incremental domestic Ranir sales and $42 million in OTC sales growth [9][12] - Consumer Self-Care International (CSCI) net sales increased by 11%, benefiting from $22 million in incremental sales from Ranir and solid organic growth of 4.3% [12][13] - The generic Rx segment posted 2.2% net sales growth, with adjusted operating income down 26.3% due to pricing pressure and discontinued products [14][20] Market Data and Key Metrics Changes - The EU OTC market remains solid, growing at an attractive 3% to 4% rate, with Perrigo's regional brands maintaining their collective market share [13] - The U.K. store brand business experienced strong growth, contributing to the overall performance of CSCI [13] Company Strategy and Development Direction - Perrigo is focused on its Consumer Self-Care strategy and transformation initiatives, aiming for long-term growth goals of 3%, 5%, and 7% [6][7] - The company plans to invest $50 million in 2020 for transformation, with a focus on e-commerce, innovation, and technology [25][27] - The acquisition of Dr. Fresh is expected to accelerate future organic growth, alongside the launch of generic ProAir [24][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum entering 2020, with expectations of 6% to 7% reported revenue growth and organic growth around 3% [24][25] - The potential impact of the coronavirus is currently expected to be modest, with most manufacturing facilities operating normally [23] Other Important Information - The company realigned its consumer product categories for standardized reporting, which has no impact on net sales [5] - The transition of leadership in the Consumer Americas business is underway, with Rich Sortoa set to take over from Jeff Needham [28] Q&A Session All Questions and Answers Question: Follow-up on cash flow from operations - Management acknowledged that cash flow from operations was below guidance due to increased trade receivables and one-time Israeli withholding tax payments [30][32] Question: Details on the latest acquisition - The acquisition of Dr. Fresh is seen as a strong addition, with expectations of significant cost synergies and growth potential in the kid segment [34] Question: Voltaren Gel opportunity - Management noted that the transition of Voltaren from Rx to OTC could provide significant growth opportunities, depending on FDA rulings [35] Question: E-commerce business status - E-commerce is becoming a significant growth driver, representing 40% of OTC growth in the U.S. last year, with expectations for continued emphasis on this channel [37][39] Question: Notable product launches for 2020 - Key product launches include new infant formulas, with a robust innovation program planned for 2020 [41][42] Question: Structural cost increases and margin outlook - Management clarified that structural cost increases are separate from transformational investments, with expectations for margin stabilization and improvement over the next few years [51][56]