DUBLIN, Aug. 9, 2022
/PRNewswire/ --
Second Quarter 2022
Highlights:
- Perrigo achieved second quarter net sales of $1.1 billion, an increase of 14.3%, or 20.2%
excluding the impact of currency translation, versus the prior year
quarter. Organic(1) net sales increased 17.2%, driven by
continued strong global demand for the Company's consumer self-care
products.
- Perrigo second quarter reported gross margin was 33.2%.
Second quarter adjusted gross margin was 36.5%, an increase of 310
basis points sequentially compared to the first quarter 2022, while
down 190 basis points compared to the prior year quarter.
- Consumer Self-Care Americas (CSCA) second quarter reported
gross margin was 26.4%. Second quarter adjusted gross margin was
27.9%, an increase of 290 basis points sequentially compared to the
first quarter 2022, including an 80 basis points benefit from the
acquisition of Héra SAS ("HRA Pharma" or "HRA"). CSCA adjusted
gross margin was down 380 basis points compared to the prior year
quarter.
- Reported net earnings (loss) per diluted share ("EPS") for
the second quarter of 2022 was a loss of ($0.48), as compared to a loss of ($0.84) in the prior year quarter.
- Adjusted diluted EPS for the second quarter of 2022 was
$0.43 per diluted share, as compared
to $0.50 per diluted share in the
prior year quarter. Constant currency adjusted EPS for the quarter
was $0.49 per diluted share.
- Submitted Opill® application to the United
States Food and Drug Administration (FDA) for the first-ever
over-the-counter (OTC) birth control pill in the U.S.; initiated
U.S. nationwide launch of Nasonex™ 24HR, the Company's first
branded Rx-to-OTC switch.
- Increases fiscal 2022 organic net sales growth range outlook
to 9.0%-10.0% from 8.0%-9.0% versus the prior year, due to
continued strong global consumer demand; reaffirms fiscal 2022
total net sales growth range outlook of 8.5%-9.5% as the organic
net sales growth range outlook increase is expected to be offset by
the worsening impact of currency translation.
- Expects to achieve constant currency adjusted EPS range
outlook of $2.40-$2.50 per diluted share, in line with guidance
provided on March 1, 2022; updates
adjusted EPS range outlook to $2.25-$2.35 from
$2.30-$2.40, due entirely to the worsening impact of
currency translation.
First Half 2022
Highlights:
- Perrigo net sales for the first half of 2022 were
$2.2 billion, an increase of 10.3%,
or 14.9% excluding the impact of currency translation, versus the
prior year period. Organic net sales increased 13.3%.
- CSCA first half net sales of $1.4
billion grew 13.9% compared to the prior year period, with
organic growth of 15.8%; Consumer Self-Care International (CSCI)
first half net sales of $758 million
grew 4.1%, or 16.7% excluding the impact of currency translation,
versus the prior year period, with organic growth of 9.1%.
- Reported EPS for the first half of 2022 was a loss of
($0.49), as compared to a loss of
($0.82) in the prior year period.
- Adjusted diluted EPS for the first half of 2022 was
$0.76, as compared to $1.00 in the prior year period. Constant currency
EPS was $0.89.
|
|
(1)
|
See attached
Appendix for details. Organic net sales growth excludes the effects
of acquisitions and divestitures and the impact of
currency.
|
(2)
|
In addition to other
non-GAAP adjustments as described in the attached appendix,
adjusted profit measures, including adjusted EPS and adjusted
operating income, exclude from Q1 and Q2 2021 certain costs, which
are reported in GAAP continuing operations but were previously
allocated to the RX business. On a go-forward basis, such costs are
either covered by the transition services agreement or have been
eliminated following closing. We do not believe such operational
costs are representative of the future expenses of our continuing
operations. See attached appendix for additional
details.
|
Perrigo Company plc (NYSE: PRGO) ("Perrigo" or the "Company"), a
leading provider of Consumer Self-Care Products, today
announced financial results for the second quarter ended
July 2, 2022. All comparisons are against the prior year
fiscal second quarter, unless otherwise noted.
President and CEO, Murray S.
Kessler commented, "This was a truly remarkable quarter for
the Perrigo team. During the quarter: we closed the HRA
transaction, closed on $2.6 billion
senior secured credit facilities, received FDA approval for and
launched the Company's first led Rx-to-OTC switch of Nasonex™
24HR, filed with the FDA for the first ever Rx-to-OTC switch
for a daily birth control pill, and worked around the clock at our
infant formula facilities to help mitigate the shortage in
the United States - all the while
delivering a constant currency 20% increase in net sales and a 310
basis points sequential improvement in our consolidated adjusted
gross margin. All of this was achieved despite a dynamic external
environment, including severe inflationary headwinds. I couldn't be
prouder of the performance of my Perrigo colleagues as our
self-care strategy is being executed with excellence."
Kessler continued, "While we remain certain that the self-care
strategy is the correct approach and we are executing well against
it, we recognize that the macro-economic environment has and will
continue to present significant headwinds in the near-term. Based
on the strong performance of the business, as evident in continued
strong demand, increased organic net sales outlook and sequentially
improving margins, we expect to cover incremental headwind costs
with the exception of the massive negative impact from foreign
currency exchange. We continue to be excited about our future and
look forward to delivering double-digit top and bottom line growth
over the next few years as we 'Optimize and Accelerate' the
newly transformed Perrigo Consumer Self-Care Company."
Refer to Tables I - VI at the end of this press release for a
reconciliation of non-GAAP adjustments to the current year and
prior year periods and additional non-GAAP information. The
Company's reported results are included in the attached
Consolidated Statements of Operations, Balance Sheets and
Statements of Cash Flows.
Global Reporting Category
Updates
As a result of the completed acquisition of HRA, the Company has
updated its global reporting categories beginning in the second
quarter of 2022 as follows:
- The creation of a new "Women's Health" reporting
category, comprised of the women's health portfolio of HRA,
including ellaOne® and
Hana®, in addition to legacy Perrigo
women's health products, including feminine hygiene and pregnancy
products.
- The creation of a new "Skin Care" reporting category,
comprised of Compeed®, Mederma®, and
all of the products in the legacy Perrigo "Skincare and Personal
Hygiene" category except for legacy Perrigo women's health
products.
- The "Other" category now includes the HRA Rare Diseases
business.
These product category updates have been adjusted
retrospectively to reflect this change. These updates have no
impact on the Company's historical consolidated financial position,
results of operations, or cash flows.
Second Quarter 2022 Perrigo
Results from Continuing Operations
Perrigo net sales for the second quarter were $1.1 billion, an increase of $141 million or 14.3%, including a positive
impact of 6.8 percentage points from acquisitions, and negative
impacts of 5.9 percentage points and 3.8 percentage points from
adverse currency translation and divested businesses, respectively.
Organic net sales increased 17.2%.
Net sales were driven by 1) $65 million in constant
currency net sales from the April 29,
2022 closing of the acquisition of HRA, 2) higher global
incidences of cough/cold and flu-like illnesses, including
COVID-19, leading to an increase of $72
million in cough/cold-related sales that benefited the
Upper Respiratory and Pain and Sleep Aids categories,
3) contract manufacturing sales to the divested RX business of
$38 million, and 4) strong growth of
$29 million in the Nutrition
category stemming from store brand infant formula share gains amid
a national brand recall. These drivers also benefited from
increased pricing across both Consumer Self-Care segments, strong
e-commerce growth and new product sales. These increases were
partially offset by 1) the impact of adverse currency translation
of $58 million, and 2) $30 million from divested
businesses.
Second quarter reported operating loss was $7 million, compared to an operating loss of
$126 million in the prior year
period, due primarily to the absence of $159 million of prior
year impairment charges related to the divested Latin American
businesses. Adjusted operating income decreased $1 million, or 0.9%, to $116 million. Constant currency adjusted
operating income increased 7.9% driven by 1) higher gross profit
flow-through resulting from higher volumes and increased pricing,
2) the addition of HRA, and 3) cost savings from Project Momentum.
These factors were partially offset by 1) $39 million in cost headwinds, including cost of
goods sold inflation, increased freight expenses and lower plant
productivity stemming from a tight labor market, and 2) higher
operating expenses, driven primarily by the inclusion of HRA, in
addition to higher employee and distribution costs compared to the
prior year.
Reported net loss was $65 million, or $0.48 per diluted share, compared to reported net
loss of $112 million, or $0.84
per diluted share, in the prior year period. Excluding certain
charges as outlined in Table I, second quarter 2022 adjusted net
income was $59 million, or
$0.43 per diluted share, compared to
$68 million, or $0.50 per diluted share, in the prior year.
Constant currency EPS for the quarter was $0.49.
(3)
|
Cough/cold-related
net sales includes the cough/cold sub-category within Upper
Respiratory and the adult and children's analgesics sub-categories
within the Pain and Sleep Aids category.
|
Second Quarter 2022 Business
Segment Results from Continuing Operations
Consumer Self-Care Americas Segment
CSCA second quarter net sales of $728
million increased $106
million, or 17.0%, including a positive impact of 1.6
percentage points from acquisitions, and a negative impact of 5.8
percentage points from divested businesses. Organic net sales
growth was 21.2%. Primary category drivers are provided below.
Upper Respiratory
Net sales of $146 million
increased 38.6% due primarily to higher incidences of cough/cold
and flu-like illnesses, including COVID-19, that led to strong
demand, online and in-store, for cough/cold-related products. Sales
of allergy products were higher, despite lower levels of incidence
compared to the year ago period, due primarily to increased
promotions at a particular customer.
Digestive Health
Net sales of $125 million
increased 8.8% due primarily to growth in store brand proton pump
inhibitor products, including the store brand versions of
Esomeprazole and Omeprazole, driven by share gains,
in addition to growth in store brand versions of
Famotidine.
Nutrition
Net sales of $125 million increased
30.6% due primarily to strong growth in infant formula stemming
from store brand share gains, due in part to new product launches
and a national brand recall, as well as third-party contract sales.
Continued growth in the oral electrolytes business also contributed
to the quarter.
Pain & Sleep-Aids
Net sales of $103 million
increased 14.8% due primarily to strong demand, online and
in-store, for analgesics products stemming from higher incidences
of cough/cold and flu-like illnesses, including COVID-19.
Oral Care
Net sales of $77 million increased 1.2%
due primarily to sales of store brand products, particularly
non-power toothbrushes, mostly offset by a decline in branded
offerings stemming from delayed receipt of products manufactured
outside the U.S., leading to unfulfilled customer orders.
Healthy Lifestyle
Net sales of $67 million
increased 4.0% due primarily to increased distribution of store
brand smoking cessation products, partially offset by the
discontinuation of diabetes products.
Skin Care
Net sales of $49 million increased 3.2%
due primarily to the addition of HRA brands, including
Mederma® and Compeed®,
partially offset by the divested ScarAway® brand
asset and discontinued product in non-strategic category
segments.
Women's Health
Net sales of $12
million increased 48.1% due primarily to the addition of HRA
brands, including ella®.
Vitamins, Minerals, and Supplements ("VMS") and
Other
Net sales of $25 million
increased 17.0% due primarily to contract manufacturing sales to
the divested RX business in the Other category.
Reported operating income was $86 million in the quarter
compared to an operating loss of $72 million in the prior year
period, due primarily to the absence of $159 million of prior
year impairment charges related to the divested Latin American
businesses. Adjusted operating income decreased $2 million to $105
million due primarily to 1) cost headwinds, including cost
of goods sold inflation and increased freight expenses, 2) lower
plant productivity, including reduced volumes due to a tight labor
market, 3) the impact of divestitures, and 4) higher operating
expenses to support net sales growth. These factors were mostly
offset by higher gross profit flow-through resulting from higher
net sales growth and the addition of HRA.
Consumer Self-Care International Segment
CSCI net sales of $394 million
increased $35 million, or 9.7%, including a positive impact of
15.2 percentage points from acquisitions, partially offset by
negative impacts of 16.1 percentage points and 0.9 percentage
points from currency translation and lower sales in Ukraine and Russia, respectively. Organic net sales growth
was 10.6%. Primary category drivers are provided below.
Skin Care
Net sales of $120 million increased
21.9%, or an increase of 43.0% excluding the impact from currency
translation, driven primarily by the addition of HRA brands,
including Compeed®, strong performance in the
Sebamed and ACO skincare lines, and increased net
sales of anti-parasite offerings, due to the easing of
COVID-19-related restrictions. These benefits were partially offset
by lower sales in Ukraine and
Russia.
Upper Respiratory
Net sales of $60 million
increased 41.0%, or 59.0% excluding the impact of currency, as the
higher incidences of cough/cold and flu-like illnesses, including
COVID-19, led to strong demand for cough/cold products, including
Bronchonolo, Bronchostop and Coldrex and U.K. store
brands. In addition, a relatively stronger hayfever season drove
net sales performance of allergy products, particularly the
Beconase brand in the U.K.
VMS
Net sales of $48 million decreased 11.9%, or
0.4% excluding the impact of currency, due primarily to lower
overall category consumption and lower sales of the probiotic brand
Probify in certain geographies, partially offset by the
restocking of the Abtei brand in Germany following the third quarter 2021
recall of certain batches.
Pain & Sleep-Aids
Net sales of $49 million
increased 0.4%, or 12.8% excluding the impact of currency, due
primarily to higher demand for Solpadeine, a
paracetamol-based analgesics product, as well as an increase in
U.K. store brand consumption within the category. These increases
were driven primarily by strong demand for analgesics products
stemming from higher incidences of cough/cold and flu-like
illnesses, including COVID-19.
Healthy Lifestyle
Net sales of $39 million
decreased 17.6%, or 7.7% excluding the impact of currency, due
primarily to lower net sales in the XLS Medical weight
management franchise stemming from lower category consumption,
partially offset by stronger performance of NiQuitin smoking
cessation products, due to customer restocking following supply
constraints earlier in the year.
Women's Health
Net sales of $24 million increased
69.4%, or an increase of 93.3% excluding the impact of currency,
due primarily to the addition of HRA brands, including
ellaOne® and NorLevo®.
Digestive Health, Oral Care and Other
Net sales of
$54 million increased 0.6%, or an increase of 17.1% excluding
the impact of currency, due primarily to the addition of the HRA
Rare Diseases portfolio in the Other category.
Reported operating income was $2
million in the quarter compared to $1
million in the prior year quarter. Adjusted operating income
increased $7 million, or 15.1%, to
$54 million. Constant currency
adjusted operating income grew 36.3%, driven by higher gross profit
flow-through resulting from higher volumes, increased pricing and
the addition of HRA. These factors were partially offset by 1) cost
headwinds, including cost of goods sold inflation and increased
freight expenses, and 2) higher operating expenses, driven
primarily by the inclusion of HRA, in addition to higher employee
and distribution costs compared to the prior year.
Fiscal 2022 Outlook
The Company is increasing its fiscal 2022 organic net sales
growth range outlook to 9.0%-10.0%, from 8.0%-9.0%, versus the
prior year, due to continued strong global consumer demand. The
Company is reaffirming its fiscal 2022 total net sales growth range
outlook of 8.5%-9.5%, as the organic net sales growth outlook
increase is expected to be offset by the worsening impact of
currency translation.
The Company expects to achieve a fiscal 2022 constant currency
adjusted EPS range outlook of $2.40-$2.50 per
diluted share and is updating its fiscal 2022 adjusted EPS range
outlook to $2.25-$2.35 from $2.30-$2.40, due
entirely to the worsening impact of currency translation.
The Company continues to expect an adjusted effective tax rate
of approximately 23% and cash flow from operations as a percentage
of adjusted net income above its long-term range outlook of
95%-105%.
The Company cannot reconcile its organic net sales growth to
reported net sales or its expected adjusted diluted EPS or constant
currency adjusted EPS to diluted EPS under "Fiscal 2022 Outlook"
without unreasonable effort because certain items that impact net
income and other reconciling metrics are out of the Company's
control and/or cannot be reasonably predicted at this time. These
items include taxes, interest costs that would occur if the Company
issued debt, and costs to acquire and or sell a business if the
Company executed such transactions, which could significantly
affect our financial results. These items depend on highly variable
factors and any such reconciliations would imply a degree of
precision that would be confusing or misleading to investors.
About Perrigo
Perrigo Company plc (NYSE: PRGO) is a leading provider of
Consumer Self-Care Products and over-the-counter (OTC)
health and wellness solutions that enhance individual well-being by
empowering consumers to proactively prevent or treat conditions
that can be self-managed. Visit Perrigo online at
www.perrigo.com.
Webcast and Conference Call
Information
The conference call will be available live on Tuesday August, 9,
2022 at 8:30 A.M. (EDT) via webcast
to interested parties in the investor relations section of the
Perrigo website at http://perrigo.investorroom.com/events-webcasts
or by phone at 888-317-6003, International 412-317-6061, and
reference ID # 4031017 . A taped replay of the call will be
available beginning at approximately 12:00
P.M. (EDT) Tuesday, August 9, until midnight Wednesday, August 16, 2022. To listen to the
replay, dial 877-344-7529, International 412-317-0088, and use
access code 3460338.
Forward-Looking
Statements
Certain statements in this press release are "forward-looking
statements." These statements relate to future events or the
Company's future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the Company or its industry to be materially different from those
expressed or implied by any forward-looking statements. In some
cases, forward-looking statements can be identified by terminology
such as "may," "will," "could," "would," "should," "expect,"
"forecast," "plan," "anticipate," "intend," "believe," "estimate,"
"predict," "potential" or the negative of those terms or other
comparable terminology. The Company has based these forward-looking
statements on its current expectations, assumptions, estimates and
projections. While the Company believes these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond the
Company's control, including: the effect of the coronavirus
(COVID-19) pandemic and its variants and associated supply chain
impacts on the Company's business; general economic, credit, and
market conditions; the impact of the war in Ukraine and any escalation thereof, including
the effects of economic and political sanctions imposed by
the United States, United Kingdom, European Union, and other
countries related thereto; the outbreak or escalation of conflict
in other regions where we do business; future impairment charges;
customer acceptance of new products; competition from other
industry participants, some of whom have greater marketing
resources or larger market shares in certain product categories
than the Company does; pricing pressures from customers and
consumers; resolution of uncertain tax positions, including the
Company's appeal of the draft and final Notices of Proposed
Assessment ("NOPAs") issued by the U.S. Internal Revenue Service
and the impact that an adverse result in any such proceedings would
have on operating results, cash flows, and liquidity; pending and
potential third-party claims and litigation, including litigation
relating to the Company's restatement of previously-filed financial
information and litigation relating to uncertain tax positions,
including the NOPAs; potential impacts of ongoing or future
government investigations and regulatory initiatives; uncertainty
regarding the timing of, and the Company's ability to obtain and
maintain, certain regulatory approvals, including the sale of daily
over-the-counter oral contraceptives; potential costs and
reputational impact of product recalls or sales halts; the impact
of tax reform legislation and/or changes in healthcare policy; the
timing, amount and cost of any share repurchases; fluctuations in
currency exchange rates and interest rates; the Company's ability
to achieve the benefits expected from the sale of its Rx business
and the risk that potential costs or liabilities incurred or
retained in connection with the transaction may exceed the
Company's estimates or adversely affect the Company's business or
operations; the Company's ability to achieve the benefits expected
from the acquisition of HRA Pharma and the risks that the Company's
synergy estimates are inaccurate or that the Company faces higher
than anticipated integration or other costs in connection with the
acquisition; risks associated with the integration of HRA Pharma,
including the risk that growth rates are adversely affected by any
delay in the integration of sales and distribution networks; the
consummation and success of other announced and unannounced
acquisitions or dispositions, and the Company's ability to realize
the desired benefits thereof; and the Company's ability to execute
and achieve the desired benefits of announced cost-reduction
efforts and strategic and other initiatives, including the
Company's ability to achieve the expected benefits from its supply
chain reinvention program. An adverse result with respect to the
Company's appeal of any material outstanding tax assessments or
pending litigation, including securities or drug pricing matters,
could ultimately require the use of corporate assets to pay such
assessments, damages from third-party claims, and related interest
and/or penalties, and any such use of corporate assets would limit
the assets available for other corporate purposes. There can be no
assurance that the FDA will approve the sale of daily oral
contraceptives without a prescription in the United States. These and other important
factors, including those discussed under "Risk Factors" in the
Company's Form 10-K for the year ended December 31, 2021, as well as the Company's
subsequent filings with the United States Securities and Exchange
Commission, may cause actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. The forward-looking statements in this
press release are made only as of the date hereof, and unless
otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Non-GAAP Measures
This press release contains certain non-GAAP measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
different from the most directly comparable measure calculated and
presented in accordance with U.S. Generally Accepted Accounting
Principles (GAAP) in the statements of operations, balance sheets
or statements of cash flows of the Company. Pursuant to the
requirements of the U.S. Securities and Exchange Commission, the
Company has provided reconciliations to the most directly
comparable U.S. GAAP measures for the following non-GAAP financial
measures referred to in this press release:
- net sales growth on an organic basis, which excludes
acquisitions, divested businesses, and the impact of currency,
- adjusted gross profit,
- adjusted net income,
- adjusted diluted earnings per share,
- constant currency adjusted diluted earnings per share,
- adjusted gross margin, and
- adjusted operating margin.
These non-GAAP financial measures should be considered as
supplements to the GAAP reported measures, should not be considered
replacements for, or superior to the GAAP measures and may not be
comparable to similarly named measures used by other companies.
The Company provides non-GAAP financial measures as additional
information that it believes is useful to investors and analysts in
evaluating the performance of the Company's ongoing operating
trends, facilitating comparability between periods and, where
applicable, with companies in similar industries and assessing the
Company's prospects for future performance. These non-GAAP
financial measures exclude items, such as impairment charges,
restructuring charges, and acquisition and integration-related
charges, that by their nature affect comparability of operational
performance or that we believe obscure underlying business
operational trends. The intangible asset amortization excluded from
these non-GAAP financial measure represents the entire amount
recorded within the Company's GAAP financial statements and is
excluded because the amortization, unlike the related revenue, is
not affected by operations of any particular period unless an
intangible asset becomes impaired or the estimated useful life of
an intangible asset is revised. The revenue generated by the
associated intangible assets has not been excluded from the related
non-GAAP financial measure. The non-GAAP measures the Company
provides are consistent with how management analyzes and assesses
the operating performance of the Company, and disclosing them
provides investor insight into management's view of the business.
Management uses these adjusted financial measures for planning and
forecasting in future periods, and evaluating segment and overall
operating performance. In addition, management uses certain of the
profit measures as factors in determining compensation.
Non-GAAP measures related to profit measurements, which include
adjusted gross profit, adjusted net income, adjusted diluted EPS,
constant currency adjusted diluted EPS, adjusted gross margin and
adjusted operating margin are useful to investors as they provide
them with supplemental information to enhance their understanding
of the Company's underlying business performance and trends, and
enhance the ability of investors and analysts to compare the
Company's period-to-period financial results. Management believes
that adjusted gross margin and adjusted operating margin are useful
to investors, in addition to the reasons discussed above, by
allowing them to more easily compare and analyze trends in the
Company's peer business group and assisting them in comparing the
Company's overall performance to that of its competitors. As noted,
for the first quarter of 2021, these adjusted profit measures
exclude certain stranded costs, such as those related to corporate
and shared service functions related to the RX business. Under
GAAP, these stranded costs are reported within continuing
operations, but were previously allocated to the RX business. We
exclude these costs from all adjusted profit measures, as we do not
believe they are representative of the future run-rate of expenses
of our continuing operations. The Company also discloses net sales
growth excluding the impact of currency on an organic basis. The
Company believes these supplemental financial measures provide
investors with consistency in financial reporting, enabling
meaningful comparisons of past and present underlying operating
results, and also facilitate analysis of the Company's operating
performance and acquisition and divestiture trends.
A copy of this press release, including the reconciliations, is
available on the Company's website at www.perrigo.com.
PERRIGO COMPANY PLC CONSOLIDATED STATEMENTS
OF OPERATIONS (in millions, except per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
|
July 2,
2022
|
|
July 3,
2021
|
Net sales
|
$
1,121.7
|
|
$
981.1
|
|
$
2,196.2
|
|
$
1,991.1
|
Cost of
sales
|
749.6
|
|
632.1
|
|
1,486.3
|
|
1,273.7
|
Gross
profit
|
372.1
|
|
349.0
|
|
709.9
|
|
717.4
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Distribution
|
29.5
|
|
24.1
|
|
53.9
|
|
45.8
|
Research and
development
|
31.5
|
|
33.0
|
|
60.8
|
|
64.1
|
Selling
|
150.8
|
|
139.8
|
|
286.4
|
|
275.2
|
Administration
|
157.8
|
|
110.4
|
|
280.1
|
|
237.6
|
Impairment
charges
|
—
|
|
158.6
|
|
—
|
|
158.6
|
Restructuring
|
9.5
|
|
9.0
|
|
13.1
|
|
10.7
|
Other operating
expense (income), net
|
(0.1)
|
|
—
|
|
0.8
|
|
—
|
Total operating
expenses
|
379.0
|
|
474.9
|
|
695.1
|
|
792.0
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(6.9)
|
|
(125.9)
|
|
14.8
|
|
(74.6)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
38.3
|
|
31.6
|
|
74.1
|
|
63.6
|
Other (income) expense,
net
|
53.8
|
|
(0.4)
|
|
52.7
|
|
1.9
|
Loss on extinguishment
of debt
|
9.3
|
|
—
|
|
9.3
|
|
—
|
Income (loss) from
continuing operations before income taxes
|
(108.3)
|
|
(157.1)
|
|
(121.3)
|
|
(140.1)
|
Income tax expense
(benefit)
|
(43.4)
|
|
(45.2)
|
|
(55.1)
|
|
(31.0)
|
Income (loss) from
continuing operations
|
(64.9)
|
|
(111.9)
|
|
(66.2)
|
|
(109.1)
|
Income (loss) from
discontinued operations, net of tax
|
(0.2)
|
|
54.2
|
|
(1.4)
|
|
89.5
|
Net income
(loss)
|
$
(65.1)
|
|
$
(57.7)
|
|
$
(67.6)
|
|
$
(19.6)
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.48)
|
|
$
(0.84)
|
|
$
(0.49)
|
|
$
(0.82)
|
Discontinued
operations
|
—
|
|
0.41
|
|
(0.01)
|
|
0.67
|
Basic earnings (loss)
per share
|
$
(0.48)
|
|
$
(0.43)
|
|
$
(0.50)
|
|
$
(0.15)
|
Diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.48)
|
|
$
(0.84)
|
|
$
(0.49)
|
|
$
(0.82)
|
Discontinued
operations
|
—
|
|
0.41
|
|
(0.01)
|
|
0.67
|
Diluted earnings
(loss) per share
|
$
(0.48)
|
|
$
(0.43)
|
|
$
(0.50)
|
|
$
(0.15)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
134.6
|
|
133.6
|
|
134.3
|
|
133.4
|
Diluted
|
134.6
|
|
133.6
|
|
134.3
|
|
133.4
|
PERRIGO COMPANY PLC CONSOLIDATED BALANCE
SHEETS (in millions, except per share amounts)
(unaudited)
|
|
|
July 2,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
485.3
|
|
$
1,864.9
|
Accounts receivable,
net of allowance for credit losses of $7.3 and $7.2,
respectively
|
750.3
|
|
652.9
|
Inventories
|
1,079.6
|
|
1,020.2
|
Prepaid expenses and
other current assets
|
336.3
|
|
305.8
|
Current assets held
for sale
|
—
|
|
16.1
|
Total current
assets
|
2,651.5
|
|
3,859.9
|
Property, plant and
equipment, net
|
840.3
|
|
864.1
|
Operating lease
assets
|
207.1
|
|
166.9
|
Goodwill and
indefinite-lived intangible assets
|
3,582.5
|
|
3,004.7
|
Definite-lived
intangible assets, net
|
3,222.7
|
|
2,146.1
|
Deferred income
taxes
|
6.9
|
|
6.5
|
Other non-current
assets
|
408.6
|
|
377.5
|
Total non-current
assets
|
8,268.1
|
|
6,565.8
|
Total
assets
|
$
10,919.6
|
|
$
10,425.7
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$
490.4
|
|
$
411.2
|
Payroll and related
taxes
|
104.1
|
|
118.5
|
Accrued customer
programs
|
143.6
|
|
125.6
|
Other accrued
liabilities
|
240.7
|
|
279.4
|
Accrued income
taxes
|
5.0
|
|
16.5
|
Current
indebtedness
|
30.8
|
|
603.8
|
Current liabilities
held for sale
|
—
|
|
32.9
|
Total current
liabilities
|
1,014.6
|
|
1,587.9
|
Long-term debt, less
current portion
|
4,086.1
|
|
2,916.7
|
Deferred income
taxes
|
392.1
|
|
239.3
|
Other non-current
liabilities
|
577.0
|
|
530.1
|
Total non-current
liabilities
|
5,055.2
|
|
3,686.1
|
Total
liabilities
|
6,069.8
|
|
5,274.0
|
Contingencies -
Refer to Note 15
|
|
|
|
Shareholders'
equity
|
|
|
|
Controlling
interests:
|
|
|
|
Preferred shares,
$0.0001 par value per share, 10 shares authorized
|
—
|
|
—
|
Ordinary shares,
€0.001 par value per share, 10,000 shares authorized
|
6,991.1
|
|
7,043.2
|
Accumulated other
comprehensive income
|
(146.8)
|
|
35.5
|
Retained earnings
(accumulated deficit)
|
(1,994.5)
|
|
(1,927.0)
|
Total shareholders'
equity
|
4,849.8
|
|
5,151.7
|
Total liabilities and
shareholders' equity
|
$
10,919.6
|
|
$
10,425.7
|
|
|
|
|
Supplemental
Disclosures of Balance Sheet Information
|
|
|
|
Preferred shares,
issued and outstanding
|
—
|
|
—
|
Ordinary shares,
issued and outstanding
|
134.6
|
|
133.8
|
PERRIGO COMPANY PLC CONSOLIDATED STATEMENTS
OF CASH FLOWS (in millions)
(unaudited)
|
|
|
Six Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
Cash Flows From (For)
Operating Activities
|
|
|
|
Net income
(loss)
|
$
(67.6)
|
|
$
(19.6)
|
Adjustments to derive
cash flows:
|
|
|
|
Depreciation and
amortization
|
153.0
|
|
165.3
|
Foreign currency
remeasurement loss
|
39.4
|
|
—
|
Share-based
compensation
|
37.3
|
|
39.1
|
Restructuring
charges
|
13.1
|
|
10.7
|
Deferred income
taxes
|
12.6
|
|
(25.4)
|
Loss on sale of
business
|
1.4
|
|
—
|
Impairment
charges
|
—
|
|
158.6
|
(Gain) on sale of
assets
|
(5.8)
|
|
—
|
Amortization of debt
premium
|
(4.3)
|
|
(1.4)
|
Other non-cash
adjustments, net
|
(4.8)
|
|
18.8
|
Subtotal
|
174.3
|
|
346.1
|
Increase (decrease) in
cash due to:
|
|
|
|
Accounts
receivable
|
(56.4)
|
|
(108.2)
|
Inventories
|
(50.5)
|
|
(106.0)
|
Prepaid
expenses
|
16.8
|
|
1.8
|
Accounts
payable
|
64.2
|
|
(22.5)
|
Payroll and related
taxes
|
(38.8)
|
|
(61.1)
|
Accrued customer
programs
|
16.9
|
|
4.3
|
Accrued
liabilities
|
14.2
|
|
(32.1)
|
Accrued income
taxes
|
(99.9)
|
|
(135.6)
|
Other, net
|
21.4
|
|
31.2
|
Subtotal
|
(112.1)
|
|
(428.2)
|
Net cash from (for)
operating activities
|
62.2
|
|
(82.1)
|
Cash Flows From (For)
Investing Activities
|
|
|
|
Proceeds from royalty
rights
|
2.0
|
|
1.9
|
Settlement of
acquisition-related foreign currency derivatives
|
(37.1)
|
|
—
|
Acquisitions of
businesses, net of cash acquired
|
(1,901.4)
|
|
—
|
Asset
acquisitions
|
(10.0)
|
|
(70.6)
|
Additions to property,
plant and equipment
|
(48.7)
|
|
(68.4)
|
Net proceeds from sale
of businesses
|
58.7
|
|
—
|
Proceeds from sale of
assets
|
24.8
|
|
—
|
Other investing,
net
|
—
|
|
1.3
|
Net cash from (for)
investing activities
|
(1,911.7)
|
|
(135.8)
|
Cash Flows From (For)
Financing Activities
|
|
|
|
Issuances of long-term
debt
|
1,587.7
|
|
—
|
Payments on long-term
debt
|
(958.9)
|
|
—
|
Borrowings
(repayments) of revolving credit agreements and other financing,
net
|
—
|
|
(5.8)
|
Payments for debt
issuance costs
|
(19.5)
|
|
—
|
Premiums on early debt
retirement
|
(12.2)
|
|
—
|
Cash
dividends
|
(69.6)
|
|
(65.1)
|
Other financing,
net
|
(20.4)
|
|
(13.5)
|
Net cash from (for)
financing activities
|
507.1
|
|
(84.4)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(51.6)
|
|
(3.2)
|
Net increase
(decrease) in cash and cash equivalents
|
(1,394.0)
|
|
(305.5)
|
Cash and cash
equivalents of continuing operations, beginning of
period
|
1,864.9
|
|
631.5
|
Cash and cash
equivalents held for sale, beginning of period
|
14.4
|
|
10.0
|
Less cash and cash
equivalents held for sale, end of period
|
—
|
|
(18.5)
|
Cash and cash
equivalents of continuing operations, end of period
|
$
485.3
|
|
$
317.5
|
TABLE I PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED CONSOLIDATED
INFORMATION (in millions, except per share amounts)
(unaudited)
|
|
|
Three Months Ended
July 2, 2022
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other Operating
Income
|
Operating Income
(loss)
|
Interest and
Other
|
Income
Tax Expense (Benefit)
|
Income
(loss) from continuing operations*
|
Diluted Earnings
per Share*
|
Reported
|
$
1,121.7
|
$
372.1
|
$
31.5
|
$
338.1
|
$
9.4
|
$
(6.9)
|
$
101.4
|
$
(43.4)
|
$
(64.9)
|
$
(0.48)
|
As a % of reported net
sales
|
|
33.2 %
|
2.8 %
|
30.1 %
|
0.8 %
|
(0.6) %
|
9.0 %
|
(3.9) %
|
(5.8) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
40.1 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
$ 6.5
|
$ —
|
$
(42.3)
|
$
—
|
$ 48.8
|
$ (52.5)
|
$ —
|
$ 101.3
|
$ 0.75
|
Amortization expense
related primarily to acquired intangible assets
|
|
30.8
|
(0.3)
|
(31.5)
|
—
|
62.6
|
(0.6)
|
—
|
63.2
|
0.46
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
(9.4)
|
9.4
|
—
|
—
|
9.4
|
0.07
|
Loss on early debt
extinguishment
|
|
—
|
—
|
—
|
—
|
—
|
(9.3)
|
—
|
9.3
|
0.07
|
Unusual
litigation
|
|
—
|
—
|
(2.5)
|
—
|
2.5
|
—
|
—
|
2.5
|
0.02
|
Non-GAAP
tax adjustments**
|
|
—
|
—
|
—
|
—
|
—
|
—
|
61.9
|
(61.9)
|
(0.46)
|
Adjusted
|
|
$
409.4
|
$
31.2
|
$
261.8
|
$
—
|
$
116.4
|
$ 39.0
|
$
18.5
|
$
58.9
|
$ 0.43
|
As a % of reported net
sales
|
|
36.5 %
|
2.8 %
|
23.3 %
|
|
10.4 %
|
3.5 %
|
1.6 %
|
5.3 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
23.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
Reported
|
|
|
|
|
|
|
134.6
|
|
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income***
|
1.3
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.9
|
|
|
|
|
|
|
|
|
|
|
|
*Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
**The non-GAAP tax
adjustments are primarily related to pre-tax non-GAAP
adjustments.
|
***In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
|
|
|
|
TABLE I
(CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED CONSOLIDATED
INFORMATION (in millions, except per share amounts)
(unaudited)
|
|
|
Three Months Ended
July 3, 2021
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other Operating Income
|
Operating Income
(loss)
|
Interest,
Other, and Change in Financial Assets
|
Income
Tax Expense (Benefit)
|
Income
(Loss) from continuing operations*
|
Diluted Earnings
(Loss) per Share*
|
Reported
|
$
981.1
|
$
349.0
|
$
33.0
|
$
274.3
|
$
167.6
|
$
(125.9)
|
$
31.2
|
$
(45.2)
|
$ (111.9)
|
$
(0.84)
|
As a % of reported net
sales
|
|
35.6 %
|
3.4 %
|
28.0 %
|
17.1 %
|
(12.8) %
|
3.2 %
|
(4.6) %
|
(11.4) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
28.8 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$ —
|
$ —
|
$ —
|
$
(158.6)
|
$
158.6
|
$
—
|
$ —
|
$ 158.6
|
$
1.17
|
Amortization expense
primarily related to acquired intangible assets
|
|
23.7
|
(0.5)
|
(29.6)
|
—
|
53.8
|
(0.5)
|
—
|
54.3
|
0.41
|
Unusual
litigation
|
|
—
|
—
|
(12.8)
|
—
|
12.8
|
—
|
—
|
12.8
|
0.09
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
(9.0)
|
9.0
|
—
|
—
|
9.0
|
0.07
|
Indirect RX business
support costs**
|
|
2.3
|
0.3
|
(4.6)
|
—
|
6.6
|
—
|
—
|
6.6
|
0.05
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
|
1.5
|
(0.4)
|
(0.4)
|
—
|
2.3
|
—
|
—
|
2.3
|
0.02
|
(Gain) loss on
investment securities
|
|
—
|
—
|
—
|
—
|
—
|
(0.9)
|
—
|
0.9
|
0.01
|
Separation and
reorganization expense
|
|
—
|
—
|
(0.3)
|
—
|
0.3
|
—
|
—
|
0.3
|
—
|
Non-GAAP tax
adjustments***
|
|
—
|
—
|
—
|
—
|
—
|
—
|
65.4
|
(65.4)
|
(0.48)
|
Adjusted
|
|
$ 376.5
|
$
32.4
|
$
226.6
|
$
—
|
$
117.5
|
$ 29.8
|
$
20.2
|
$
67.5
|
$
0.50
|
As a % of reported net
sales
|
|
38.4 %
|
3.3 %
|
23.1 %
|
|
12.0 %
|
3.0 %
|
2.1 %
|
6.9 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
23.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
Reported
|
|
|
|
|
|
|
133.6
|
|
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income****
|
1.5
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.1
|
|
|
|
|
|
|
|
|
|
|
|
*Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
|
**Includes certain
costs, which are reported in GAAP continuing operations but were
previously allocated to the RX business. On a go-forward basis,
such costs will either be covered by the transition services
agreement or eliminated following closing. Accordingly, we do not
believe such operational costs are representative of the future
expenses of our continuing operations.
|
***The non-GAAP tax
adjustments are primarily due to: (1) $10.7 million of tax expense
related to pre-tax non-GAAP adjustments calculated based upon their
jurisdictional income tax rates, (2) removal of $61.9 million tax
expense related to non-recurring intra-entity transfers of
intellectual property, (3) removal of $3.3 million tax expense
impact on deferred taxes of the UK rate change and (4) removal of
$4.2 million tax expense related to Base Erosion and Anti-Abuse Tax
(BEAT) expense.
|
TABLE I
(CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED CONSOLIDATED
INFORMATION (in millions, except per share amounts)
(unaudited)
|
|
|
Six Months Ended
July 2, 2022
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other Operating
Income
|
Operating
Income
|
Interest and
Other
|
Income
Tax Expense (Benefit)
|
Income
(loss) from continuing operations*
|
Diluted Earnings
(Loss) per Share*
|
Reported
|
$
2,196.2
|
$
709.9
|
$
60.8
|
$
620.4
|
$
13.9
|
$
14.8
|
$
136.1
|
$
(55.1)
|
$
(66.2)
|
$
(0.49)
|
As a % of reported net
sales
|
|
32.3 %
|
2.8 %
|
28.2 %
|
0.6 %
|
0.7 %
|
6.2 %
|
(2.5) %
|
(3.0) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
45.4 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
$ 6.5
|
$ —
|
$ (53.7)
|
$
—
|
$ 60.2
|
$
(55.9)
|
$ —
|
$
116.1
|
$
0.86
|
Amortization expense
related primarily to acquired intangible assets
|
|
52.3
|
(0.8)
|
(58.4)
|
—
|
111.5
|
(1.0)
|
—
|
112.5
|
0.83
|
Restructuring charges,
other termination benefits and other
|
|
—
|
—
|
—
|
(13.0)
|
13.0
|
—
|
—
|
13.0
|
0.10
|
Loss on early debt
extinguishment
|
|
—
|
—
|
—
|
—
|
—
|
(9.3)
|
—
|
9.3
|
0.07
|
Impairment
charges
|
|
—
|
—
|
—
|
(4.6)
|
4.6
|
—
|
—
|
4.6
|
0.03
|
Unusual
litigation
|
|
—
|
—
|
(2.8)
|
—
|
2.8
|
—
|
—
|
2.8
|
0.02
|
(Gain) loss on
divestitures and investment securities
|
|
—
|
—
|
—
|
3.7
|
(3.7)
|
(1.9)
|
—
|
(1.8)
|
(0.02)
|
Non-GAAP
tax adjustments**
|
|
—
|
—
|
—
|
—
|
—
|
—
|
86.6
|
(86.6)
|
(0.64)
|
Adjusted
|
|
$
768.7
|
$
60.0
|
$ 505.5
|
$
—
|
$
203.2
|
$ 68.0
|
$
31.5
|
$
103.7
|
$
0.76
|
As a % of reported net
sales
|
|
35.0 %
|
2.7 %
|
23.0 %
|
|
9.3 %
|
3.1 %
|
1.4 %
|
4.7 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
23.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
Reported
|
|
|
|
|
|
|
134.3
|
|
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income***
|
1.3
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.6
|
|
|
|
|
|
|
|
|
*Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
**The non-GAAP tax
adjustments are primarily due to $75.0 million tax expense related
to pre-tax non-GAAP adjustments and the removal of the following
reported items: (1) $17.2 million tax benefit on dispositions of
entities, offset by (2) $6.0 million tax expense for non-recurring
legal entity restructuring.
|
***In the period of a
net loss, diluted shares outstanding equal basic shares
outstanding.
|
TABLE I
(CONTINUED) PERRIGO COMPANY PLC RECONCILIATION
OF NON-GAAP MEASURES SELECTED CONSOLIDATED
INFORMATION (in millions, except per share amounts)
(unaudited)
|
|
|
Six Months Ended
July 3, 2021
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring and
Other Operating Income
|
Operating
Income
|
Interest, Other, and
Change in Financial Assets
|
Income Tax Expense
(Benefit)
|
Income from
continuing operations*
|
Diluted Earnings per
Share*
|
Reported
|
$
1,991.1
|
$
717.4
|
$
64.1
|
$
558.6
|
$
169.3
|
$
(74.6)
|
$
65.5
|
$
(31.0)
|
$ (109.1)
|
$
(0.82)
|
As a % of reported net
sales
|
|
36.0 %
|
3.2 %
|
28.1 %
|
8.5 %
|
(3.7) %
|
3.3 %
|
(1.6) %
|
(5.5) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
22.1 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
—
|
$
—
|
$
—
|
$
(158.6)
|
$
158.6
|
$
—
|
$
—
|
$ 158.6
|
$
1.18
|
Amortization expense
primarily related to acquired intangible assets
|
|
46.7
|
(1.1)
|
(61.5)
|
—
|
109.3
|
(1.7)
|
—
|
111.0
|
0.84
|
Unusual
litigation
|
|
—
|
—
|
(16.2)
|
—
|
16.2
|
—
|
—
|
16.2
|
0.12
|
Indirect RX business
support costs**
|
|
2.9
|
0.3
|
(9.6)
|
—
|
12.2
|
—
|
—
|
12.2
|
0.09
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
(10.7)
|
10.7
|
—
|
—
|
10.7
|
0.08
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
|
1.5
|
(0.4)
|
(1.2)
|
—
|
3.1
|
—
|
—
|
3.1
|
0.02
|
(Gain) loss on
investment securities
|
|
—
|
—
|
—
|
—
|
—
|
(0.9)
|
—
|
0.9
|
0.01
|
Separation and
reorganization expense
|
|
—
|
—
|
(0.4)
|
—
|
0.4
|
—
|
—
|
0.4
|
—
|
(Gain) loss on
divestitures
|
|
—
|
—
|
—
|
—
|
—
|
(0.4)
|
—
|
0.4
|
—
|
Non-GAAP tax
adjustments***
|
|
—
|
—
|
—
|
—
|
—
|
—
|
70.1
|
(70.1)
|
(0.52)
|
Adjusted
|
|
$
768.5
|
$
62.9
|
$
469.7
|
$
—
|
$
235.9
|
$
62.5
|
$
39.1
|
$ 134.3
|
$
1.00
|
As a % of reported net
sales
|
|
38.6 %
|
3.2 %
|
23.6 %
|
|
11.8 %
|
3.1 %
|
2.0 %
|
6.7 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
22.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
Reported
|
|
|
|
|
|
|
133.4
|
|
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income**
|
1.4
|
|
|
|
Adjusted
|
|
|
|
|
|
|
134.8
|
|
*Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
**Includes certain
costs, which are reported in GAAP continuing operations but were
previously allocated to the RX business. On a go-forward basis,
such costs will either be covered by the transition services
agreement or eliminated following closing. Accordingly, we do not
believe such operational costs are representative of the future
expenses of our continuing operations.
|
***The non-GAAP tax
adjustments are primarily due to: (1) $27.0 million of tax expense
related to pre-tax non-GAAP adjustments calculated based upon their
jurisdictional income tax rates, (2) removal of $54.7 million tax
expense related to non-recurring intra-entity transfers of
intellectual property, (3) removal of $3.3 million tax expense
impact on deferred taxes of the UK rate change and (4) removal of
$5.3 million tax expense related to Base Erosion and Anti-Abuse Tax
(BEAT) expense.
|
TABLE II PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED SEGMENT
INFORMATION (in millions)
(unaudited)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
Consumer Self-Care
Americas
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
728.0
|
$
192.3
|
$ 17.6
|
$ 88.5
|
$ 86.3
|
|
$
622.3
|
$
187.3
|
$ 19.8
|
$ 77.6
|
$
(72.0)
|
As a % of reported net
sales
|
|
26.4 %
|
2.4 %
|
12.2 %
|
11.9 %
|
|
|
30.1 %
|
3.2 %
|
12.5 %
|
(11.6) %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
—
|
$
—
|
$
—
|
$
—
|
|
$
—
|
$
—
|
$
—
|
$
—
|
$
158.6
|
Amortization expense
related primarily to acquired intangible assets
|
|
6.3
|
—
|
(7.3)
|
13.6
|
|
—
|
6.3
|
(0.1)
|
(6.4)
|
12.8
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
3.3
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
4.8
|
—
|
—
|
4.8
|
|
—
|
1.5
|
(0.4)
|
(0.4)
|
2.3
|
Indirect RX business
support costs*
|
|
—
|
—
|
—
|
—
|
|
—
|
2.3
|
0.3
|
0.1
|
1.9
|
Adjusted
|
|
$
203.4
|
$ 17.6
|
$ 81.2
|
$
104.7
|
|
$ 622.3
|
$
197.4
|
$ 19.6
|
$ 70.9
|
$
106.9
|
As a % of reported net
sales
|
|
27.9 %
|
2.4 %
|
11.2 %
|
14.4 %
|
|
|
31.7 %
|
3.1 %
|
11.4 %
|
17.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
*Includes certain
costs, which are reported in GAAP continuing operations but were
previously allocated to the RX business. On a go-forward basis,
such costs will either be covered by the transition services
agreement or eliminated following closing. Accordingly, we do not
believe such operational costs are representative of the future
expenses of our continuing operations.
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
Consumer Self-Care
International
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating Income
(Loss)
|
Reported
|
$
393.7
|
$
179.8
|
$ 13.9
|
$
162.9
|
$
1.5
|
|
$ 358.8
|
$
161.7
|
$
13.2
|
$
142.5
|
$
1.3
|
As a % of reported net
sales
|
|
45.7 %
|
3.5 %
|
41.4 %
|
0.4 %
|
|
|
45.1 %
|
3.7 %
|
39.7 %
|
0.4 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
$ 24.5
|
$ (0.3)
|
$
(24.2)
|
$ 49.0
|
|
$
—
|
$
17.4
|
$ (0.4)
|
$
(23.1)
|
$ 41.0
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
1.5
|
|
—
|
—
|
—
|
—
|
4.6
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
1.7
|
—
|
(0.3)
|
2.0
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted
|
|
$
206.0
|
$ 13.6
|
$
138.4
|
$ 54.0
|
|
$ 358.8
|
$
179.1
|
$
12.8
|
$
119.4
|
$ 46.9
|
As a % of reported net
sales
|
|
52.3 %
|
3.5 %
|
35.2 %
|
13.7 %
|
|
|
49.9 %
|
3.6 %
|
33.3 %
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE II
(CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED SEGMENT
INFORMATION (in millions)
(unaudited)
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
Consumer Self-Care
Americas
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$ 1,438.0
|
$
364.8
|
$
35.2
|
$
168.4
|
$
164.8
|
|
$ 1,262.8
|
$
381.8
|
$
39.5
|
$
156.4
|
$
23.6
|
As a % of reported net
sales
|
|
25.4 %
|
2.4 %
|
11.7 %
|
11.5 %
|
|
|
30.2 %
|
3.1 %
|
12.4 %
|
1.9 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
—
|
$
—
|
$
—
|
$
—
|
|
$
—
|
$
—
|
$
—
|
$
—
|
$
158.6
|
Amortization expense
primarily related to acquired intangible assets
|
|
11.4
|
—
|
(14.7)
|
26.1
|
|
—
|
12.4
|
(0.3)
|
(13.1)
|
25.6
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
3.7
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
4.8
|
—
|
—
|
4.8
|
|
—
|
1.5
|
(0.4)
|
(1.2)
|
3.1
|
Indirect RX business
support costs*
|
|
—
|
—
|
—
|
—
|
|
—
|
2.9
|
0.3
|
—
|
2.8
|
(Gain) loss on
divestitures
|
|
—
|
—
|
—
|
(3.7)
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted
|
|
$
381.0
|
$ 35.2
|
$
153.7
|
$
192.0
|
|
$ 1,262.8
|
$
398.6
|
$ 39.1
|
$
142.1
|
$
217.4
|
As a % of reported net
sales
|
|
26.5 %
|
2.4 %
|
10.7 %
|
13.4 %
|
|
|
31.6 %
|
3.1 %
|
11.3 %
|
17.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
*Includes certain
costs, which are reported in GAAP continuing operations but were
previously allocated to the RX business. On a go-forward basis,
such costs will either be covered by the transition services
agreement or eliminated following closing. Accordingly, we do not
believe such operational costs are representative of the future
expenses of our continuing operations.
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
July 2,
2022
|
|
July 3,
2021
|
Consumer Self-Care
International
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
758.2
|
$
345.1
|
$
25.5
|
$
300.2
|
$
17.7
|
|
$
728.3
|
$
335.6
|
$
24.7
|
$
287.5
|
$
18.8
|
As a % of reported net
sales
|
|
45.5 %
|
3.4 %
|
39.6 %
|
2.3 %
|
|
|
45.9 %
|
3.4 %
|
40.1 %
|
2.6 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired intangible assets
|
|
$ 40.9
|
$
(0.7)
|
$ (43.9)
|
$ 85.5
|
|
$
—
|
$ 34.3
|
$
(0.9)
|
$ (48.4)
|
$ 83.5
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
1.6
|
|
—
|
—
|
—
|
—
|
4.6
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
1.7
|
—
|
(0.2)
|
2.0
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted
|
|
$
387.7
|
$ 24.8
|
$
256.1
|
$
106.8
|
|
$
728.3
|
$
369.9
|
$ 23.8
|
$
239.1
|
$
106.9
|
As a % of reported net
sales
|
|
51.1 %
|
3.3 %
|
33.8 %
|
14.1 %
|
|
|
50.8 %
|
3.3 %
|
32.8 %
|
14.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE III
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CONSOLIDATED AND SELECTED SEGMENT INFORMATION
(in millions, except per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Continuing
Operations
|
$
1,121.7
|
|
$
981.1
|
|
14.3 %
|
|
$
2,196.2
|
|
$
1,991.1
|
|
10.3 %
|
Less: Currency
impact(1)
|
(57.8)
|
|
—
|
|
5.9 %
|
|
(91.5)
|
|
—
|
|
4.6 %
|
Constant currency
Consolidated Continuing Operations net sales
|
$
1,179.5
|
|
$
981.1
|
|
20.2 %
|
|
$
2,287.7
|
|
$
1,991.1
|
|
14.9 %
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
HRA Pharma Impact on
Sales
|
|
July 2,
2022
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
HRA Pharma
sales
|
$
57.8
|
|
|
|
|
|
$
57.8
|
|
|
|
|
Less: Currency
impact(1)
|
6.7
|
|
|
|
|
|
6.7
|
|
|
|
|
Constant currency HRA
Pharma net sales
|
$
64.5
|
|
|
|
|
|
$
64.5
|
|
|
|
|
Consolidated Continuing
Operations net sales
|
|
|
$
981.1
|
|
660 bps
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Continuing
Operations
|
$
1,121.7
|
|
$
981.1
|
|
14.3 %
|
|
$
2,196.2
|
|
$
1,991.1
|
|
10.3 %
|
Less: Currency
impact(4)
|
(57.8)
|
|
—
|
|
5.9 %
|
|
(91.5)
|
|
—
|
|
4.6 %
|
Less:
Divestitures(2)
|
—
|
|
29.6
|
|
3.8 %
|
|
—
|
|
29.6
|
|
1.7 %
|
Less:
Acquisitions(3)
|
64.5
|
|
—
|
|
(6.8) %
|
|
64.5
|
|
—
|
|
(3.3) %
|
Organic Consolidated
Continuing Operations net sales
|
$
1,115.0
|
|
$
951.5
|
|
17.2 %
|
|
$
2,223.2
|
|
$
1,961.5
|
|
13.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Currency impact is
calculated using the exchange rates used to translate our financial
statements in the comparable prior year period to show what current
period US dollar results would have been if such currency exchange
rates had not changed. The amounts for the three and six months
ended July 2, 2022 include $6.7 million of such impacts
attributable to HRA Pharma.
|
(2)
|
represents divestiture
of Latin America businesses and ScarAway®.
|
(3)
|
represents acquisition
of HRA Pharma.
|
(4)
|
Currency impact for
purposes of Organic Net Sales is calculated using the exchange
rates used to translate our financial statements in the comparable
prior year period to show what current period US dollar results
would have been if such currency exchange rates had not changed,
based on our consolidated continuing operations excluding
divestitures and acquisitions since January 1, 2021. Currency
impact also includes $6.7 million of such impacts attributable to
HRA Pharma.
|
TABLE III
(CONTINUED) PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES CONSOLIDATED AND SELECTED
SEGMENT INFORMATION (in millions, except per share
amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
728.0
|
|
$
622.3
|
|
17.0 %
|
|
$
1,438.0
|
|
$
1,262.8
|
|
13.9 %
|
Less:
Divestitures(2)
|
—
|
|
29.6
|
|
5.8 %
|
|
—
|
|
29.6
|
|
2.7 %
|
Less:
Acquisitions(3)
|
9.7
|
|
—
|
|
(1.6) %
|
|
9.7
|
|
—
|
|
(0.8) %
|
Organic Consolidated
Continuing Operations net sales
|
$
718.3
|
|
$
592.7
|
|
21.2 %
|
|
$
1,428.3
|
|
$
1,233.2
|
|
15.8 %
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
$
393.7
|
|
$
358.8
|
|
9.7 %
|
|
$
758.2
|
|
$
728.3
|
|
4.1 %
|
Less: Currency
impact(1)
|
(57.8)
|
|
—
|
|
16.1 %
|
|
(91.5)
|
|
—
|
|
12.6 %
|
Constant currency
Consolidated Continuing Operations net sales
|
451.5
|
|
358.8
|
|
25.8 %
|
|
849.7
|
|
728.3
|
|
16.7 %
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
$
393.7
|
|
$
358.8
|
|
9.7 %
|
|
$
758.2
|
|
$
728.3
|
|
4.1 %
|
Less: Currency
impact(4)
|
(57.8)
|
|
—
|
|
16.1 %
|
|
(91.5)
|
|
—
|
|
12.6 %
|
Less:
Acquisitions(3)
|
54.8
|
|
—
|
|
(15.2) %
|
|
54.8
|
|
—
|
|
(7.6) %
|
Organic Consolidated
Continuing Operations net sales
|
$
396.7
|
|
$
358.8
|
|
10.6 %
|
|
$
794.9
|
|
$
728.3
|
|
9.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Currency impact is
calculated using the exchange rates used to translate our financial
statements in the comparable prior year period to show what current
period US dollar results would have been if such currency exchange
rates had not changed. The amounts for the three and six months
ended July 2, 2022 include $6.7 million of such impacts
attributable to HRA Pharma.
|
(2)
|
represents divestitures
of Latin America businesses and ScarAway®.
|
(3)
|
represents acquisition
of HRA Pharma.
|
(4)
|
Currency impact for
purposes of Organic Net Sales is calculated using the exchange
rates used to translate our financial statements in the comparable
prior year period to show what current period US dollar results
would have been if such currency exchange rates had not changed,
based on our consolidated continuing operations excluding
divestitures and acquisitions since January 1, 2021. Currency
impact also includes $6.7 million of such impacts attributable to
HRA Pharma.
|
TABLE IV PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES SELECTED SEGMENT
INFORMATION (in millions, except per share amounts)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
|
|
|
Constant Currency
Change (1)
|
|
Six Months
Ended
|
|
|
|
|
|
Constant Currency
Change (1)
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
Currency Impact
(1)
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
Currency Impact
(1)
|
|
CSCI Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Skin Care
|
$
120.3
|
|
$
98.7
|
|
21.9 %
|
|
21.1 %
|
|
43.0 %
|
|
$
209.7
|
|
$
190.1
|
|
10.3 %
|
|
17.6 %
|
|
27.9 %
|
Upper
Respiratory
|
59.8
|
|
42.4
|
|
41.0 %
|
|
18.0 %
|
|
59.0 %
|
|
121.4
|
|
85.1
|
|
42.7 %
|
|
13.7 %
|
|
56.4 %
|
Pain and
Sleep-Aids
|
48.8
|
|
48.6
|
|
0.4 %
|
|
12.4 %
|
|
12.8 %
|
|
101.8
|
|
97.7
|
|
4.2 %
|
|
8.7 %
|
|
12.9 %
|
VMS
|
47.5
|
|
53.9
|
|
(11.9) %
|
|
11.5 %
|
|
(0.4) %
|
|
100.2
|
|
116.6
|
|
(14.1) %
|
|
8.4 %
|
|
(5.7) %
|
Healthy
Lifestyle
|
38.5
|
|
46.7
|
|
(17.6) %
|
|
9.9 %
|
|
(7.7) %
|
|
80.4
|
|
97.4
|
|
(17.5) %
|
|
7.4 %
|
|
(10.1) %
|
Women's
Health
|
24.4
|
|
14.4
|
|
69.4 %
|
|
23.9 %
|
|
93.3 %
|
|
37.4
|
|
28.7
|
|
30.3 %
|
|
16.5 %
|
|
46.8 %
|
Digestive health, Oral
Care and other
|
54.4
|
|
54.1
|
|
0.6 %
|
|
16.5 %
|
|
17.1 %
|
|
107.3
|
|
112.7
|
|
(4.8) %
|
|
14.3 %
|
|
9.5 %
|
Total CSCI Net
Sales
|
$
393.7
|
|
$
358.8
|
|
9.7 %
|
|
16.1 %
|
|
25.8 %
|
|
$
758.2
|
|
$
728.3
|
|
4.1 %
|
|
12.6 %
|
|
16.7 %
|
|
|
|
Global product category
reporting was updated in the second quarter of 2022 and results
were adjusted retrospectively to reflect the changes.
|
|
|
(1)
|
Currency impact is
calculated using the exchange rates used to translate our financial
statements in the comparable prior year period to show what current
period US dollar results would have been if such currency exchange
rates had not changed. The Constant currency amounts for the three
and six months ended July 2, 2022 reported here include $6.7
million of such impacts attributable to HRA Pharma.
|
TABLE V PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES CONSOLIDATED AND SELECTED
SEGMENT INFORMATION (in millions, except per share
amounts)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Constant
Currency
Change
|
|
Six Months
Ended
|
|
|
|
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 409.4
|
|
$ 376.5
|
|
$ 32.9
|
|
8.7 %
|
|
17.0 %
|
|
$ 768.7
|
|
$ 768.5
|
|
$
0.2
|
|
— %
|
Adjusted gross
margin
|
|
36.5 %
|
|
38.4 %
|
|
|
|
(190) bps
|
|
|
|
35.0 %
|
|
38.6 %
|
|
|
|
(360) bps
|
Adjusted operating
income
|
|
$ 116.4
|
|
$ 117.5
|
|
$
(1.1)
|
|
(0.9) %
|
|
7.9 %
|
|
$ 203.2
|
|
$ 235.9
|
|
$
(32.7)
|
|
(13.9) %
|
Adjusted operating
margin
|
|
10.4 %
|
|
12.0 %
|
|
|
|
(160) bps
|
|
|
|
9.3 %
|
|
11.8 %
|
|
|
|
(250) bps
|
Adjusted net
income
|
|
$ 58.9
|
|
$ 67.5
|
|
$
(8.6)
|
|
(12.7) %
|
|
|
|
$ 103.7
|
|
$ 134.3
|
|
$
(30.6)
|
|
(22.8) %
|
Adjusted EPS
|
|
$ 0.43
|
|
$ 0.50
|
|
$
(0.07)
|
|
(14.0) %
|
|
|
|
$ 0.76
|
|
$ 1.00
|
|
$
(0.24)
|
|
(24.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HRA Impact to Adjusted
gross margin
|
|
|
|
|
|
|
|
220 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSCA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 203.4
|
|
$ 197.4
|
|
$
6.0
|
|
3.0 %
|
|
|
|
$ 381.0
|
|
$ 398.6
|
|
$
(17.6)
|
|
(4.4) %
|
Adjusted gross
margin
|
|
27.9 %
|
|
31.7 %
|
|
|
|
(380) bps
|
|
|
|
26.5 %
|
|
31.6 %
|
|
|
|
(510) bps
|
Adjusted operating
income
|
|
$ 104.7
|
|
$ 106.9
|
|
$
(2.2)
|
|
(2.1) %
|
|
|
|
$ 192.0
|
|
$ 217.4
|
|
$
(25.4)
|
|
(11.7) %
|
Adjusted operating
margin
|
|
14.4 %
|
|
17.2 %
|
|
|
|
(280) bps
|
|
|
|
13.4 %
|
|
17.2 %
|
|
|
|
(380) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 206.0
|
|
$ 179.1
|
|
$ 26.9
|
|
15.0 %
|
|
31.9 %
|
|
$ 387.7
|
|
$ 369.9
|
|
$ 17.8
|
|
4.8 %
|
Adjusted gross
margin
|
|
52.3 %
|
|
49.9 %
|
|
|
|
240 bps
|
|
|
|
51.1 %
|
|
50.8 %
|
|
|
|
30 bps
|
Adjusted operating
income
|
|
$ 54.0
|
|
$ 46.9
|
|
$
7.1
|
|
15.1 %
|
|
36.3 %
|
|
$ 106.8
|
|
$ 106.9
|
|
$
(0.1)
|
|
(0.1) %
|
Adjusted operating
margin
|
|
13.7 %
|
|
13.1 %
|
|
|
|
60 bps
|
|
|
|
14.1 %
|
|
14.7 %
|
|
|
|
(60) bps
|
|
|
Three Months
Ended
|
|
|
|
|
July 2,
2022
|
|
April 2,
2022
|
|
Total
Change
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
36.5 %
|
|
33.4 %
|
|
310 bps
|
Adjusted operating
income
|
|
10.4 %
|
|
8.1 %
|
|
230 bps
|
|
|
|
|
|
|
|
CSCA
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
27.9 %
|
|
25.0 %
|
|
290 bps
|
HRA Impact
|
|
|
|
|
|
80 bps
|
Adjusted gross margin
without HRA
|
|
|
|
|
|
210 bps
|
Adjusted operating
income
|
|
14.4 %
|
|
12.3 %
|
|
210 bps
|
TABLE VI PERRIGO COMPANY PLC RECONCILIATION OF
NON-GAAP MEASURES CONSOLIDATED AND SELECTED
SEGMENT INFORMATION (in millions, except per share
amounts)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
|
Total
Change
|
|
July 2,
2022
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
116.4
|
|
$
117.5
|
|
|
|
|
Currency
impact
|
|
$
10.4
|
|
$
—
|
|
|
|
|
Constant currency
adjusted operating income
|
|
$
126.8
|
|
$
117.5
|
|
7.9 %
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
54.0
|
|
$
46.9
|
|
|
|
|
Currency
impact
|
|
$
9.9
|
|
$
—
|
|
|
|
|
Constant currency
adjusted operating income
|
|
$
63.9
|
|
$
46.9
|
|
36.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
$
0.43
|
|
$
0.50
|
|
|
|
$
0.76
|
Currency
impact
|
|
$
0.06
|
|
$
—
|
|
|
|
$
0.13
|
Constant currency
EPS
|
|
$
0.49
|
|
$
0.50
|
|
(2.0) %
|
|
$
0.89
|
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SOURCE Perrigo Company plc