Bradley Joseph Q3 2025 Earnings Presentation Nov 5, 2025 VP Global Investor Relations 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 ac ...

Core Insights - The company reported a net sales of $1.04 billion for Q3 2025, a decrease of 4.1% year-over-year, primarily due to organic net sales decline and the impact of divestitures and exited products [7][13][20] - Despite challenges in the marketplace, the company achieved year-to-date EPS growth and margin expansion, indicating resilience in its operations [1][9] - A strategic review of the infant formula business has been initiated, alongside ongoing reviews of the oral care business, while the sale of the dermacosmetics business is on track for Q1 2026 [1][9] Year-to-Date Performance - Year-to-date net sales reached $3.14 billion, down 2.8% year-over-year, with organic net sales declining by 1.7% [7][29] - Adjusted EPS for the year is projected to be between $2.70 and $2.80, reflecting a growth of 5% to 9% year-over-year [38] Segment Highlights Consumer Self-Care Americas (CSCA) - CSCA net sales were $646 million, down 3.8%, with organic net sales also declining by 3.1% [21][22] - The segment experienced growth in the U.S. OTC business, driven by share gains in five of seven categories, despite overall soft market consumption [22][23] Consumer Self-Care International (CSCI) - CSCI net sales decreased by 4.5% to $398 million, with organic net sales down 5.3% [27][29] - The decline was attributed to soft total OTC category consumption and challenges in specific product categories, despite some share gains in key brands [29][30] Financial Metrics - Reported operating income for Q3 was $73 million, compared to $80 million in the prior year, with adjusted operating income at $173 million, down 4.9% [7][18] - The company reported a diluted EPS of $0.09, an improvement from a loss of $(0.13) in the prior year [20][24] Strategic Initiatives - The company is implementing Project Energize, aimed at enhancing operational efficiency and is expected to yield annualized pre-tax savings of $140 million to $170 million by the end of 2026 [11] - The strategic reviews and divestitures are part of a broader effort to streamline operations and focus on core business areas [1][9]

Core Viewpoint - Perrigo Company plc is initiating a strategic review of its infant formula business to assess various alternatives and align with its 'Three-S' plan, focusing on disciplined capital allocation and improving returns [1][2][4] Business Overview - The infant formula business is projected to generate net sales of approximately $360 million in 2025, representing about 90% of Perrigo's global Nutrition category and less than 10% of the company's total annual net sales [3] - The operations have stabilized, producing quality assured formula, and Perrigo remains the only large-scale U.S. store brand and contract manufacturer with a significant near-term innovation pipeline [3] Strategic Intent - The review aims to accelerate cash flows and reassess a previously announced investment of $240 million in the infant formula business while optimizing portfolio impact [2] - The CEO emphasized the need for discipline in positioning the company's portfolio for sustainable growth and free cash flow generation, noting that the external environment has changed, affecting the strategic fit with consumer health OTC businesses [4]

Core Insights - Perrigo Company plc is scheduled to participate in one-on-one investor meetings at the Jefferies Miami Consumer Conference on November 18, 2025, with President and CEO Patrick Lockwood-Taylor and CFO Eduardo Bezerra attending [1] Company Overview - Perrigo is a leading pure-play consumer health company with over a century of experience in providing high-quality health and wellness solutions primarily in North America and Europe [2] - The company is a pioneer in the over-the-counter (OTC) self-care market, offering trusted self-care solutions that do not require a prescription, ensuring accessibility and choice for consumers [2] Business Model - Perrigo's unique business model leverages complementary businesses, where cash-generative store brand private label offerings fuel investments for leading brands such as Opill, Mederma, Compeed, EllaOne, and Jungle Formula [3]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Perrigo despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Perrigo is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decrease of 7.4%, while revenues are projected to be $1.1 billion, an increase of 0.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.92% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Perrigo is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.33%, suggesting bearish sentiment among analysts [12]. Historical Performance - In the last reported quarter, Perrigo was expected to earn $0.59 per share but only achieved $0.57, resulting in a surprise of -3.39%. Over the last four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - Despite the negative Earnings ESP and Zacks Rank of 4, which complicates predictions for an earnings beat, investors are advised to consider other factors before making investment decisions [12][17].

Core Viewpoint - Perrigo has a complex history as a publicly traded company, with significant past events such as Mylan's $205 offer in 2015, which was rejected by Perrigo's board. The company is now positioned differently in the market, and its stock is currently perceived as undervalued relative to its fundamentals and peers [1]. Group 1: Investment Strategy - The focus is on identifying companies that offer healthy dividends and have clear potential for capital appreciation, emphasizing the importance of rewarding shareholders [1]. - The investment strategy involves looking for companies that are temporarily undervalued compared to their fundamentals, peers, or historical levels, with a preference for those with foreseeable catalysts for capital appreciation [1]. - The analysis often includes HVAC-related stocks, reflecting the analyst's previous professional involvement in that industry before transitioning to private investing [1].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Pfizer Inc (NYSE:PFE) has a dividend yield of 7.01%. Analyst Tim Anderson from B of A Securities maintained a Neutral rating and raised the price target from $28 to $30, with an accuracy rate of 75% [7] - Bristol-Myers Squibb Co (NYSE:BMY) has a dividend yield of 5.66%. Analyst Andrew Baum from Citigroup maintained a Neutral rating and decreased the price target from $51 to $47, with an accuracy rate of 70% [7] - Perrigo Company PLC (NYSE:PRGO) has a dividend yield of 5.36%. Analyst Susan Anderson from Canaccord Genuity maintained a Buy rating and cut the price target from $42 to $40, with an accuracy rate of 64% [7] Group 2: Recent News - Pfizer announced initial results from a clinical trial called HER2CLIMB-05 [7] - Bristol Myers Squibb and insitro announced the next phase of their collaboration for new treatments for amyotrophic lateral sclerosis [7] - Perrigo reported worse-than-expected second-quarter financial results [7]

Core Insights - Perrigo Company plc has partnered with Chillhouse to promote Opill®, the first over-the-counter birth control pill in the U.S., emphasizing self-care and wellness for women [1][2][3] Company Overview - Perrigo is a leading provider of Consumer Self-Care Products and over-the-counter health solutions, focusing on enhancing individual well-being [6] - Chillhouse is a Latina-founded self-care brand known for its innovative nail products and wellness experiences, promoting self-expression and empowerment [7] Product Launch - The partnership has introduced three limited edition sets of press-on nails named Same Time Tomorrow, OTC Chill, and In Control, which align with the use of Opill® [2][4] - These products will be available for purchase on Chillhouse.com and Amazon starting October 9, while supplies last [4] Social Impact Initiative - For every Opill®-themed Chill Tips set sold, Perrigo will donate one pack of Opill® to the NY Birth Control Access Project, supporting reproductive health access [3][8] - The NY Birth Control Access Project focuses on improving contraceptive access and training advocates for reproductive justice [8] Event Promotion - An "Opill and Chill" event will take place on October 9 at Chillhouse Soho in NYC, featuring free Chill Tip applications and educational discussions on reproductive health [3]

Core Insights - Perrigo Company plc is identified as one of the most oversold healthcare stocks in 2025, focusing on high-growth, high-margin categories in North America and Europe [2] Financial Performance - In Q2 2025, Perrigo reported net sales of $1.06 billion, reflecting a 0.9% decline year-over-year due to divestitures and exited products, particularly in infant formula and digestive health [3] - The company is experiencing soft seasonal demand in allergy, sun care, and blister care categories, along with a slower-than-expected recovery in infant formula [3] Strategic Initiatives - Perrigo is implementing a "Three-S" strategy—Stabilize, Streamline, and Strengthen—by divesting non-core assets, including the Dermacosmetics business, which is expected to close in Q1 2026 [4] - This strategy aims to streamline operations, reinforce the balance sheet, accelerate debt reduction, and enable a greater focus on its core self-care portfolio [4] Operational Enhancements - The company is enhancing operations through a global operating model upgrade and strengthened brand-building capabilities, contributing to market share gains in key segments [5] - Perrigo is emphasizing innovation and expansion in pain and sleep aids, nutrition, and upper respiratory products, aligning resources with higher-growth categories [5]

Core Insights - Perrigo Company plc is identified as one of the 12 cheap healthcare stocks to buy now [1] - The company specializes in over-the-counter and self-care products, generic prescription pharmaceuticals, and active pharmaceutical ingredients, with a strong presence in private-label consumer health products [2] Strategic Developments - Perrigo is advancing its strategic plan to "Stabilize, Streamline, and Strengthen" by divesting non-core businesses, including the sale of its Dermacosmetics branded business to KKR-managed Kairos Bidco AB for up to €327 million, expected to close in Q1 2026 [3] - This divestiture reflects the company's focus on its core self-care and private-label consumer health offerings [3] Leadership and Investor Engagement - Insider purchases by executives, including EVP Charles Atkinson and Chief Scientific Officer Lennox Abigail, totaling $23,200, indicate management's confidence in the company's growth prospects [4] - Senior management, including President and CEO Patrick Lockwood-Taylor, participated in the Barclays Global Consumer Staples Conference, emphasizing ongoing investor engagement and transparency regarding strategic direction and product pipeline [5]