DUBLIN, Nov. 8, 2022
/PRNewswire/ --
Highlights:
- Perrigo achieved third quarter net sales of $1.1 billion, an increase of 5.5%, or 12.3%
excluding the impact of currency translation, versus the prior year
quarter. Year-to-date net sales increased 8.7%, or 14.0% excluding
the impact of currency translation, versus the prior year
period.
- Organic(1) net sales increased 7.7% in the third
quarter and 11.4% year-to-date compared to the prior year
periods.
- Third quarter reported gross margin was 33.0%. Third quarter
adjusted gross margin was 36.5%, an increase of 210 basis points
compared to the prior year quarter, or flat compared to the second
quarter of 2022.
- Perrigo gained market share in both business segments during
the quarter versus the prior year period.
- Reported operating income was $33
million in the quarter compared to $438 million in the prior year and $48 million year-to-date compared to $364 million in the prior year. The reported
decrease was due primarily to $418
million related to the Omega arbitration award received in
the prior year. Adjusted operating income was $133 million, an increase of 19.2%, or 32.2%
excluding the impact of currency translation. Year-to-date adjusted
operating income was $336 million,
down 3.3%, or up 5.9% excluding the impact of currency
translation.
- Third quarter reported net earnings (loss) per diluted share
("EPS") was a loss of ($0.39), as
compared to a loss of ($0.40) in the
prior year quarter. Year-to-date reported EPS was a loss of
($0.88), as compared to a loss of
($1.22) in the prior year period.
- Third quarter adjusted diluted EPS was $0.56, an increase of 24.4% compared to the prior
year quarter. Third quarter constant currency adjusted diluted EPS
was $0.65, an increase of 44.4%
compared to the prior year quarter. Year-to-date adjusted diluted
EPS was $1.32, as compared to
$1.45 in the prior year period.
Year-to-date constant currency adjusted diluted EPS was
$1.50.
- Company reiterates fiscal 2022 organic net sales growth
range outlook of 9.0%-10.0% and fiscal 2022 total net sales growth
range outlook of 8.5%-9.5% versus the prior year.
- Company updates fiscal 2022 adjusted EPS range outlook to
$2.00-$2.10 from $2.25-$2.35, as
lower sales volumes in CSCA and $0.10
from the worsening impact of currency translation are expected to
more than offset solid year-to-date performance in the
international business and accretion from the purchase of the
Gateway plant in the U.S. The Company now expects to achieve a
constant currency adjusted diluted EPS range outlook of
$2.25-$2.35.
(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 third quarter ended
October 1, 2022. All comparisons are against the prior year
fiscal third quarter, unless otherwise noted.
President and CEO, Murray S.
Kessler commented, "Perrigo third quarter results were
strong. Net sales, adjusted gross margin, adjusted operating income
and adjusted diluted EPS grew substantially compared to prior year
in the face of continued macro-economic headwinds. We gained market
share globally, including increases across every segment as store
brands continued to gain share from national brands. Although
revenue growth in the quarter was robust, it was below our
estimates due to unfavorable currency translation, labor shortages
effecting supply and slower category growth rates."
Kessler continued, "Importantly, business fundamentals are
strong, the labor issue has improved and we just announced the
first major step in our Supply Chain Reinvention Program through
the infant formula investment. These, along with other margin
enhancement programs being implemented, including further strategic
pricing initiatives, will enable Perrigo to deliver outsized growth
in 2023."
Kessler concluded, "Going forward, our focus is on execution.
Successful integration of HRA, achievement of HRA synergies,
integration of the Gateway plant, implementation of supply chain
initiatives and reducing leverage as planned will position Perrigo
to achieve strong top and bottom line growth for years to
come."
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.
Third Quarter 2022 Perrigo Results from Continuing
Operations
Third Quarter 2022
Net Sales Change Compared to Prior Year
|
|
Reported
Net
Sales
|
Net Acquisitions
& Divestitures
Adjustment
|
Foreign
Exchange
Adjustment
|
Organic
Net
Sales
|
CSCA
|
4.0 %
|
3.3 %
|
— %
|
7.3 %
|
CSCI
|
8.4 %
|
(20.3) %
|
20.2 %
|
8.3 %
|
Total
Perrigo
|
5.5 %
|
(4.5) %
|
6.7 %
|
7.7 %
|
Reported net sales increased 5.5%, constant currency net sales
increased 12.3% and organic net sales increased 7.7%. Reported net
sales were driven by 1) $81 million in constant currency net
sales from the acquisition of HRA, 2) $55 million in strategic
pricing actions across both Consumer Self-Care segments, 3) U.S.
store brand share gains versus national brands and store brand
competitors, and growing share in the E.U. marketplace, and 4)
an increase of $25 million in
cough/cold-related product sales3 that primarily
benefited the Upper Respiratory category. These drivers also
benefited from e-commerce growth and new product sales. This growth
was partially offset by 1) the impact of unfavorable currency
translation of $70 million, 2) $31 million from the
divested Latin American businesses and ScarAway®
brand, and 3) lower net sales in certain categories, particularly
in the CSCI Healthy Lifestyles category.
Third quarter reported operating income was $33 million, compared to operating income of
$438 million in the prior year
period. This decrease was due primarily to $418 million
related to the Omega arbitration award received in the prior year.
Adjusted operating income grew $21
million, or 19.2%, to $133
million. Constant currency adjusted operating income
increased 32.2% driven by 1) higher gross profit flow-through
resulting from strategic price increases, higher sales volumes and
the addition of HRA, and 2) the absence of two product recalls that
occurred in the prior year. These increases were partially offset
by 1) a $36 million impact from
inflation, including higher freight & distribution expenses, 2)
higher operating expenses, driven primarily by the addition of HRA,
and 3) divested businesses.
Reported net loss was $52 million, or ($0.39) per diluted share, compared to reported
net loss of $54 million, or ($0.40) per diluted share, in the prior year
period. Excluding certain charges as outlined in Table I, third
quarter 2022 adjusted net income was $76
million, or $0.56 per diluted
share, compared to $61 million, or
$0.45 per diluted share, in the prior
year. Constant currency EPS for the quarter was $0.65.
(3)
|
Cough/cold-related net
sales includes the cough/cold sub-category within Upper Respiratory
and the Pain and Sleep Aids category.
|
Third Quarter 2022 Business Segment Results from Continuing
Operations
Consumer Self-Care Americas Segment
Third Quarter 2022
Net Sales Change Compared to Prior Year
|
|
Reported
Net
Sales
|
Net Acquisitions
& Divestitures
Adjustment
|
Foreign
Exchange
Adjustment
|
Organic
Net
Sales
|
CSCA
|
4.0 %
|
3.3 %
|
— %
|
7.3 %
|
CSCA reported net sales of $722
million increased 4.0%, and organic net sales increased
7.3%. Net sales growth was driven by strategic price increases,
U.S. store brand share gains versus national brands and store brand
competitors, and new product launches. Primary category drivers are
provided below.
Upper Respiratory
Net sales of
$132 million increased 8.4% due primarily to share gains from
national brands and store brand competitors in cough/cold and
allergy, and the new launch of Nasonex®24HR. This
growth was partially offset by an unfavorable 4.8 percentage points
from the divested Latin American businesses.
Nutrition
Net sales of $124 million
increased 18.1% due primarily to store brand share gains in infant
formula, due in part to a national brand recall, as well as
third-party contract sales. Oral electrolytes also contributed
positively to sales in the quarter.
Digestive Health
Net sales of
$120 million increased 8.1% due primarily to increased
manufacturing capacity and demand for Polyethylene Glycol
3350, and new products, including Omeprazole Cool Mint.
Growth in the category was partially offset by an unfavorable 2.2
percentage points from the divested Latin American businesses.
Pain & Sleep-Aids
Net sales of
$104 million decreased 4.1% due primarily to the unfavorable
impact of 7.7 percentage points from the divested Latin American
businesses, partially offset by higher demand for children's
analgesics products.
Oral Care
Net sales of $84 million
increased 9.0% due primarily to Plackers® and
REACH®, in addition to growth in store brand
offerings, primarily manual toothbrushes.
Healthy Lifestyle
Net sales of
$74 million increased 2.4% 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 5.4% due primarily to the addition of HRA brands,
including Mederma® and
Compeed®, partially offset by the unfavorable
impact of 3.0 percentage points from the divested Latin American
businesses and ScarAway® brand, and discontinued
products.
Women's Health
Net sales of $12 million increased 19.2% due primarily to the
addition of HRA brands, including ella®.
Vitamins, Minerals, and Supplements ("VMS") and
Other
Net sales of $23
million decreased 44.8% due primarily to the unfavorable
impact of 17.0 percentage points from the divested Latin
American businesses.
Reported operating income was $75 million compared to
operating income of $90 million in the prior year quarter.
Adjusted operating income decreased $1
million to $104 million due
primarily to 1) a $31 million impact
from inflation, including higher freight & distribution
expenses, 2) higher operating expenses primarily related to the
inclusion of HRA, 3) lower profitability of contract sales to the
divested Rx business, and 4) the impact of divested businesses.
These factors were offset by higher gross profit flow-through
resulting from net sales growth and the addition of HRA.
Consumer Self-Care International Segment
Third Quarter 2022
Net Sales Change Compared to Prior Year
|
|
Reported
Net
Sales
|
Net Acquisitions
& Divestitures
Adjustment
|
Foreign
Exchange
Adjustment
|
Organic
Net
Sales
|
CSCI
|
8.4 %
|
(20.3) %
|
20.2 %
|
8.3 %
|
CSCI reported net sales increased 8.4%, constant currency net
sales increased 28.6% and organic net sales increased 8.3%. Organic
net sales growth was driven by strategic price increases and higher
sales volumes led by new product launches. Primary category drivers
are provided below.
Skin Care
Net sales of $132 million
increased 15.9%, or 37.2% excluding the impact of currency, driven
primarily by the addition of HRA brands, including
Compeed®, strategically priced new products in
the Sebamed and ACO skincare lines, and higher net
sales of anti-parasite offerings that are outpacing strong category
growth.
Upper Respiratory
Net sales of
$63 million increased 20.8%, or 43.8% excluding the impact of
currency, led by strong demand for cough/cold products, including
Bronchostop, Bronchonolo, Coldrex and U.K. store
brands.
VMS
Net sales of $46 million
decreased 15.9%, or 0.2% excluding the impact of currency, due
primarily to lower overall category consumption and lower sales of
the nutraceutical products including Granufink and
Zaffranax were mostly offset by the restocking of the Abtei
brand in Germany following the
third quarter 2021 recall of certain batches.
Women's Health
Net sales of
$30 million increased 123.1%, or 163.4% excluding the impact
of currency, due primarily to the addition of HRA brands, including
ellaOne® and NorLevo®.
Pain & Sleep-Aids
Net sales of
$29 million decreased 13.9%, or an increase of 2.4% excluding
the impact of currency, due primarily to higher demand for
Solpadeine, a paracetamol-based analgesics product.
Healthy Lifestyle
Net sales of
$25 million decreased 32.6%, or 19.9% excluding the impact of
currency, due primarily to lower category consumption in weight
management and smoking cessation, impacting XLS Medical and
NiQuitin, respectively.
Digestive Health, Oral Care and Other
Net
sales of $53 million increased 21.5%, or 44.2% excluding the
impact of currency, due primarily to the addition of the HRA Rare
Diseases portfolio in the Other category.
Reported operating income was $1
million for the quarter compared to $4 million in the prior year. Adjusted operating
income increased $17 million, or
36.5%, to $62 million. Constant
currency adjusted operating income grew 66.8%, driven by 1) higher
gross profit flow-through resulting from higher net sales growth
and the addition of HRA, and 2) improved manufacturing
productivity. This growth was partially offset by inflation and
higher operating expenses, primarily driven by the inclusion of
HRA.
Fiscal 2022 Outlook
The Company reiterates its fiscal 2022 organic net sales growth
range outlook of 9.0%-10.0% versus the prior year. The Company also
reiterates its fiscal 2022 total net sales growth range outlook of
8.5%-9.5%, as expected accretion from the Gateway plant, along with
the U.S. and Canadian rights to the Good Start® infant
formula brand, are expected to offset the worsening impact of
currency translation. If foreign currency exchange rates hold near
current levels, we now expect net sales in the full year to be
unfavorably impacted by 5%-6%.
The Company is updating its fiscal 2022 adjusted EPS range
outlook to $2.00-$2.10 from $2.25-$2.35, as
solid year-to-date performance in CSCI and accretion from the
purchase of the Gateway plant, along with the U.S. and Canadian
rights to the Good Start® infant formula brand, are
expected to be more than offset by lower sales volumes in CSCA, and
$0.10 from the worsening impact of
currency translation. If foreign currency exchange rates hold near
current levels, we now expect adjusted diluted EPS in the full year
to be unfavorably impacted by approximately $0.25. The Company now expects to achieve a
constant currency adjusted diluted EPS range outlook of
$2.25-$2.35.
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 November,
8, 2022 at 8:30 A.M. (EST) 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 #
8518983 . A taped replay of the call will be available beginning at
approximately 12:00 P.M. (EST)
Tuesday, November 8, until midnight Tuesday, November 15, 2022. To listen to the
replay, dial 877-344-7529, International 412-317-0088, and use
access code 7261267.
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; 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 other strategic initiatives and investments, 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
|
|
Nine Months
Ended
|
|
October 1,
2022
|
|
October 2,
2021
|
|
October 1,
2022
|
|
October 2,
2021
|
Net sales
|
$
1,100.2
|
|
$
1,042.7
|
|
$
3,296.3
|
|
$
3,033.8
|
Cost of
sales
|
737.3
|
|
706.3
|
|
2,223.5
|
|
1,980.0
|
Gross
profit
|
362.9
|
|
336.4
|
|
1,072.8
|
|
1,053.8
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Distribution
|
30.6
|
|
23.3
|
|
84.5
|
|
69.0
|
Research and
development
|
29.8
|
|
27.6
|
|
90.5
|
|
91.7
|
Selling
|
144.5
|
|
129.7
|
|
431.0
|
|
405.0
|
Administration
|
105.9
|
|
130.6
|
|
386.0
|
|
368.1
|
Impairment
charges
|
—
|
|
3.5
|
|
—
|
|
162.1
|
Restructuring
|
19.1
|
|
1.0
|
|
32.2
|
|
11.8
|
Other operating
expense (income), net
|
(0.1)
|
|
(417.6)
|
|
0.7
|
|
(417.6)
|
Total operating
expenses
|
329.8
|
|
(101.9)
|
|
1,024.9
|
|
690.1
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
33.1
|
|
438.3
|
|
47.9
|
|
363.7
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
41.0
|
|
30.9
|
|
115.1
|
|
94.5
|
Other (income) expense,
net
|
(4.0)
|
|
18.5
|
|
48.7
|
|
20.4
|
Loss on extinguishment
of debt
|
(0.4)
|
|
—
|
|
8.9
|
|
—
|
Income (loss) from
continuing operations before
income taxes
|
(3.5)
|
|
388.9
|
|
(124.8)
|
|
248.8
|
Income tax expense
(benefit)
|
48.6
|
|
442.8
|
|
(6.6)
|
|
411.8
|
Income (loss) from
continuing operations
|
(52.1)
|
|
(53.9)
|
|
(118.2)
|
|
(163.0)
|
Income (loss) from
discontinued operations, net of tax
|
2.7
|
|
(5.0)
|
|
1.3
|
|
84.5
|
Net income
(loss)
|
$
(49.4)
|
|
$
(58.9)
|
|
$
(116.9)
|
|
$
(78.5)
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.39)
|
|
$
(0.40)
|
|
$
(0.88)
|
|
$
(1.22)
|
Discontinued
operations
|
0.02
|
|
(0.04)
|
|
0.01
|
|
0.63
|
Basic earnings (loss)
per share
|
$
(0.37)
|
|
$
(0.44)
|
|
$
(0.87)
|
|
$
(0.59)
|
Diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.39)
|
|
$
(0.40)
|
|
$
(0.88)
|
|
$
(1.22)
|
Discontinued
operations
|
0.02
|
|
(0.04)
|
|
0.01
|
|
0.63
|
Diluted earnings
(loss) per share
|
$
(0.37)
|
|
$
(0.44)
|
|
$
(0.87)
|
|
$
(0.59)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding
|
|
|
|
|
|
|
|
Basic
|
134.6
|
|
133.8
|
|
134.4
|
|
133.5
|
Diluted
|
134.6
|
|
133.8
|
|
134.4
|
|
133.5
|
PERRIGO COMPANY
PLC
|
CONSOLIDATED BALANCE
SHEETS
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
|
October 1,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
468.7
|
|
$
1,864.9
|
Accounts receivable,
net of allowance for credit losses of $6.9 and $7.2,
respectively
|
707.7
|
|
652.9
|
Inventories
|
1,085.2
|
|
1,020.2
|
Prepaid expenses and
other current assets
|
321.7
|
|
305.8
|
Current assets held
for sale
|
—
|
|
16.1
|
Total current
assets
|
2,583.3
|
|
3,859.9
|
Property, plant and
equipment, net
|
839.9
|
|
864.1
|
Operating lease
assets
|
209.8
|
|
166.9
|
Goodwill and
indefinite-lived intangible assets
|
3,492.4
|
|
3,004.7
|
Definite-lived
intangible assets, net
|
3,002.9
|
|
2,146.1
|
Deferred income
taxes
|
7.7
|
|
6.5
|
Other non-current
assets
|
541.5
|
|
377.5
|
Total non-current
assets
|
8,094.2
|
|
6,565.8
|
Total
assets
|
$
10,677.5
|
|
$
10,425.7
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$
461.4
|
|
$
411.2
|
Payroll and related
taxes
|
118.1
|
|
118.5
|
Accrued customer
programs
|
137.2
|
|
125.6
|
Other accrued
liabilities
|
242.7
|
|
279.4
|
Accrued income
taxes
|
22.1
|
|
16.5
|
Current
indebtedness
|
33.5
|
|
603.8
|
Current liabilities
held for sale
|
—
|
|
32.9
|
Total current
liabilities
|
1,015.0
|
|
1,587.9
|
Long-term debt, less
current portion
|
4,077.5
|
|
2,916.7
|
Deferred income
taxes
|
409.1
|
|
239.3
|
Other non-current
liabilities
|
573.2
|
|
530.1
|
Total non-current
liabilities
|
5,059.8
|
|
3,686.1
|
Total
liabilities
|
6,074.8
|
|
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
|
6,963.7
|
|
7,043.2
|
Accumulated other
comprehensive income
|
(317.1)
|
|
35.5
|
Retained earnings
(accumulated deficit)
|
(2,043.9)
|
|
(1,927.0)
|
Total shareholders'
equity
|
4,602.7
|
|
5,151.7
|
Total liabilities and
shareholders' equity
|
$
10,677.5
|
|
$
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)
|
|
|
Nine Months
Ended
|
|
October 1,
2022
|
|
October 2,
2021
|
Cash Flows From (For)
Operating Activities
|
|
|
|
Net income
(loss)
|
$
(116.9)
|
|
$
(78.5)
|
Adjustments to derive
cash flows:
|
|
|
|
Depreciation and
amortization
|
241.5
|
|
238.8
|
Share-based
compensation
|
46.7
|
|
50.2
|
Foreign currency
remeasurement loss
|
39.4
|
|
—
|
Restructuring
charges
|
32.2
|
|
11.8
|
Loss on sale of
business
|
1.4
|
|
(63.9)
|
Impairment
charges
|
—
|
|
162.1
|
(Gain) on sale of
assets
|
(5.8)
|
|
—
|
Deferred income
taxes
|
(19.6)
|
|
(24.0)
|
Amortization of debt
premium
|
(2.8)
|
|
(2.7)
|
Other non-cash
adjustments, net
|
3.4
|
|
9.2
|
Subtotal
|
219.5
|
|
303.0
|
Increase (decrease) in
cash due to:
|
|
|
|
Accounts
receivable
|
(38.6)
|
|
(182.3)
|
Inventories
|
(78.8)
|
|
(70.2)
|
Prepaid
expenses
|
6.7
|
|
(1.8)
|
Accounts
payable
|
46.1
|
|
(10.4)
|
Payroll and related
taxes
|
(40.5)
|
|
(60.6)
|
Accrued customer
programs
|
15.7
|
|
13.4
|
Accrued
liabilities
|
19.0
|
|
(5.8)
|
Accrued income
taxes
|
(50.1)
|
|
313.2
|
Other, net
|
22.4
|
|
(36.8)
|
Subtotal
|
(98.1)
|
|
(41.3)
|
Net cash from (for)
operating activities
|
121.4
|
|
261.7
|
Cash Flows From (For)
Investing Activities
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
(1,901.4)
|
|
—
|
Additions to property,
plant and equipment
|
(70.0)
|
|
(110.4)
|
Settlement of
acquisition-related foreign currency derivatives
|
(37.1)
|
|
—
|
Asset
acquisitions
|
(10.3)
|
|
(70.6)
|
Net proceeds from sale
of businesses
|
58.7
|
|
1,493.1
|
Proceeds from sale of
assets
|
24.8
|
|
—
|
Proceeds from royalty
rights
|
2.7
|
|
2.8
|
Other investing,
net
|
—
|
|
2.8
|
Net cash from (for)
investing activities
|
(1,932.6)
|
|
1,317.7
|
Cash Flows From (For)
Financing Activities
|
|
|
|
Issuances of long-term
debt
|
1,587.3
|
|
—
|
Payments on long-term
debt
|
(958.9)
|
|
—
|
Borrowings
(repayments) of revolving credit agreements and other financing,
net
|
(5.9)
|
|
(5.8)
|
Payments for debt
issuance costs
|
(20.9)
|
|
—
|
Premiums on early debt
retirement
|
(12.2)
|
|
—
|
Proceeds on
seller-financed disposal
|
4.3
|
|
—
|
Cash
dividends
|
(107.0)
|
|
(97.8)
|
Other financing,
net
|
(22.6)
|
|
(17.1)
|
Net cash from (for)
financing activities
|
464.1
|
|
(120.7)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(63.5)
|
|
(12.0)
|
Net increase
(decrease) in cash and cash equivalents
|
(1,410.6)
|
|
1,446.7
|
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
|
—
|
|
(10.1)
|
Cash and cash
equivalents of continuing operations, end of period
|
$
468.7
|
|
$
2,078.1
|
TABLE
I
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
SELECTED
CONSOLIDATED INFORMATION
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
|
Three Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Operating
Income
|
Interest
and
Other
|
Income
Tax
Expense
|
Income
(Loss) from
continuing
operations*
|
Diluted
Earnings
(Loss) per
Share*
|
Reported
|
$
1,100.2
|
$
362.9
|
$
29.8
|
$
281.0
|
$
19.0
|
$ 33.1
|
$
36.6
|
$
48.6
|
$
(52.1)
|
$
(0.39)
|
As a % of reported net
sales
|
|
33.0 %
|
2.7 %
|
25.5 %
|
1.7 %
|
3.0 %
|
3.3 %
|
4.4 %
|
(4.7) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
n/m
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired
intangible assets
|
|
34.6
|
(0.6)
|
(33.0)
|
—
|
68.2
|
(0.5)
|
—
|
68.7
|
0.50
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
(0.4)
|
(19.1)
|
19.5
|
—
|
—
|
19.5
|
0.15
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
3.7
|
—
|
(7.8)
|
—
|
11.5
|
—
|
—
|
11.5
|
0.08
|
Unusual
litigation
|
|
—
|
—
|
(0.8)
|
—
|
0.8
|
—
|
—
|
0.8
|
0.01
|
(Gain) loss on
divestitures and investment securities
|
|
—
|
—
|
—
|
0.1
|
(0.1)
|
(0.1)
|
—
|
—
|
—
|
Loss on early debt
extinguishment
|
|
—
|
—
|
—
|
—
|
—
|
0.3
|
—
|
(0.3)
|
—
|
Non-GAAP
tax adjustments**
|
|
—
|
—
|
—
|
—
|
—
|
—
|
(27.5)
|
27.5
|
0.21
|
Adjusted
|
|
$
401.2
|
$
29.2
|
$
239.0
|
$
—
|
$
133.0
|
$ 36.3
|
$
21.1
|
$
75.6
|
$
0.56
|
As a % of reported net
sales
|
|
36.5 %
|
2.7 %
|
21.7 %
|
|
12.1 %
|
3.3 %
|
1.9 %
|
6.9 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
21.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
Reported
|
|
|
|
|
|
|
134.6
|
|
|
|
Effect of
dilution as reported amount was a loss, while adjusted amount was
income***
|
1.6
|
|
|
|
Adjusted
|
|
|
|
|
|
|
136.2
|
n/m = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
*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 $28.6 million tax benefit related
to pre-tax non-GAAP adjustments and the effect of the interim tax
accounting requirements in ASC 740, Income Taxes, plus the removal
of $1.5 million of tax benefit for nonrecurring 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)
|
|
|
Three Months Ended
October 2, 2021
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Operating
Income
(loss)
|
Interest
and Other
|
Income
Tax
Expense
(Benefit)
|
Income
(Loss) from
continuing
operations*
|
Diluted
Earnings
(Loss) per
Share*
|
Reported
|
$
1,042.7
|
$
336.4
|
$
27.6
|
$
283.6
|
$
(413.1)
|
$
438.3
|
$
49.4
|
$
442.8
|
$
(53.9)
|
$
(0.40)
|
As a % of reported net
sales
|
|
32.3 %
|
2.6 %
|
27.2 %
|
(39.6) %
|
42.0 %
|
4.7 %
|
42.5 %
|
(5.2) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
113.9 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired intangible
assets
|
|
22.3
|
(1.4)
|
(28.7)
|
—
|
52.4
|
(0.6)
|
—
|
53.0
|
0.37
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
—
|
—
|
(2.7)
|
—
|
2.7
|
(13.1)
|
—
|
15.8
|
0.12
|
Unusual
litigation
|
|
—
|
—
|
(8.9)
|
—
|
8.9
|
—
|
—
|
8.9
|
0.07
|
Impairment
charges
|
|
—
|
—
|
—
|
(3.5)
|
3.5
|
—
|
—
|
3.5
|
0.03
|
(Gain) loss on
divestitures
|
|
—
|
—
|
—
|
—
|
—
|
(2.1)
|
—
|
2.1
|
0.02
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
(1.0)
|
1.0
|
—
|
—
|
1.0
|
0.01
|
Net SPA arbitration
settlement award
|
|
—
|
—
|
(22.4)
|
417.6
|
(395.2)
|
—
|
—
|
(395.2)
|
(2.92)
|
Non-GAAP tax
adjustments**
|
|
—
|
—
|
—
|
—
|
—
|
—
|
(426.2)
|
426.2
|
3.15
|
Adjusted
|
|
$ 358.7
|
$
26.2
|
$
220.9
|
$
—
|
$
111.6
|
$ 33.6
|
$
16.6
|
$
61.4
|
$
0.45
|
As a % of reported net
sales
|
|
34.4 %
|
2.5 %
|
21.2 %
|
|
10.7 %
|
3.2 %
|
1.6 %
|
5.9 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
21.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
|
Reported
|
|
|
|
|
|
|
133.8
|
|
|
|
Effect of
dilution as reported amount was a loss, while adjusted amount was
income***
|
1.7
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.5
|
|
|
|
|
|
|
|
|
|
|
|
*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: (1) removal of $308.6 million tax
expense related to the settlement of the Irish Notice of Amended
Assessment, (2) removal of $108.0 million tax expense related to
non-recurring intra-entity transfers of intellectual property, (3)
$4.9 million tax benefit related to pre-tax non-GAAP adjustments
calculated based upon their applicable jurisdictional income tax
rates and (4) removal of $3.6 million tax expense related to Base
Erosion and Anti-Abuse Tax (BEAT).
|
***In the period of a
net loss, reported 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)
|
|
|
Nine Months Ended
October 1, 2022
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Operating
Income
|
Interest
and Other
|
Income
Tax
Expense
(Benefit)
|
Income
(loss) from
continuing
operations*
|
Diluted
Earnings
(Loss) per
Share*
|
Reported
|
$
3,296.3
|
$
1,072.8
|
$
90.5
|
$
901.5
|
$
32.9
|
$
47.9
|
$
172.7
|
$
(6.6)
|
$
(118.2)
|
$
(0.88)
|
As a % of reported net
sales
|
|
32.5 %
|
2.7 %
|
27.3 %
|
1.0 %
|
1.5 %
|
5.2 %
|
(0.2) %
|
(3.6) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
5.3 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible
assets
|
|
86.8
|
(1.3)
|
(91.6)
|
—
|
179.7
|
(1.5)
|
—
|
181.2
|
1.34
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
10.2
|
—
|
(60.9)
|
—
|
71.1
|
(56.0)
|
—
|
127.1
|
0.94
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
(1.1)
|
(32.2)
|
33.3
|
—
|
—
|
33.3
|
0.25
|
Loss on early debt
extinguishment
|
|
—
|
—
|
—
|
—
|
—
|
(8.9)
|
—
|
8.9
|
0.07
|
Impairment
charges
|
|
—
|
—
|
—
|
(4.6)
|
4.6
|
—
|
—
|
4.6
|
0.03
|
Unusual
litigation
|
|
—
|
—
|
(3.6)
|
—
|
3.6
|
—
|
—
|
3.6
|
0.03
|
(Gain) loss on
divestitures and investment securities
|
|
—
|
—
|
—
|
3.9
|
(3.9)
|
(1.9)
|
—
|
(2.0)
|
(0.02)
|
Non-GAAP
tax adjustments**
|
|
—
|
—
|
—
|
—
|
—
|
—
|
59.2
|
(59.2)
|
(0.44)
|
Adjusted
|
|
$
1,169.8
|
$
89.2
|
$ 744.3
|
$
—
|
$
336.3
|
$
104.4
|
$
52.6
|
$
179.3
|
$
1.32
|
As a % of reported net
sales
|
|
35.5 %
|
2.7 %
|
22.6 %
|
|
10.2 %
|
3.2 %
|
1.6 %
|
5.4 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
22.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
Reported
|
|
|
|
|
|
|
134.4
|
|
|
|
Effect of
dilution as reported amount was a loss, while adjusted amount was
income***
|
1.3
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.7
|
|
|
|
|
|
|
|
|
*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 $45.7 million of tax expense
related to pre-tax non-GAAP adjustments, and the removal of (1)
$17.2 million tax benefit on dispositions of entities, offset by
(2) $4.5 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)
|
|
|
Nine Months Ended
October 2, 2021
|
Consolidated
Continuing Operations
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring
and Other
|
Operating
Income
|
Interest and
Other
|
Income
Tax
Expense
(Benefit)
|
Income
from
continuing
operations*
|
Diluted
Earnings
per Share*
|
Reported
|
$
3,033.8
|
$
1,053.8
|
$
91.7
|
$
842.1
|
$
(243.7)
|
$
363.7
|
$
114.9
|
$
411.8
|
$ (163.0)
|
$
(1.22)
|
As a % of reported net
sales
|
|
34.7 %
|
3.0 %
|
27.8 %
|
(8.0) %
|
12.0 %
|
3.8 %
|
13.6 %
|
(5.4) %
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
165.5 %
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired
intangible assets
|
|
69.0
|
(2.5)
|
(90.0)
|
—
|
161.5
|
(2.3)
|
—
|
163.8
|
1.24
|
Impairment
charges
|
|
—
|
—
|
—
|
(162.1)
|
162.1
|
—
|
—
|
162.1
|
1.20
|
Unusual
litigation
|
|
—
|
—
|
(25.2)
|
—
|
25.2
|
—
|
—
|
25.2
|
0.19
|
Acquisition and
integration-related charges and
contingent consideration adjustments
|
|
1.5
|
(0.4)
|
(3.9)
|
—
|
5.8
|
(13.1)
|
—
|
18.9
|
0.14
|
Indirect RX business
support costs**
|
|
2.9
|
0.3
|
(9.6)
|
—
|
12.2
|
—
|
—
|
12.2
|
0.09
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
(11.8)
|
11.8
|
—
|
—
|
11.8
|
0.09
|
(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
|
|
—
|
—
|
—
|
—
|
—
|
(2.5)
|
—
|
2.5
|
—
|
Net SPA arbitration
settlement award
|
|
—
|
—
|
(22.4)
|
417.6
|
(395.2)
|
—
|
—
|
(395.2)
|
(2.93)
|
Non-GAAP tax
adjustments***
|
|
—
|
—
|
—
|
—
|
—
|
—
|
(356.1)
|
356.1
|
2.64
|
Adjusted
|
|
$
1,127.2
|
$
89.1
|
$
690.6
|
$
—
|
$
347.5
|
$
96.1
|
$
55.7
|
$ 195.7
|
$
1.45
|
As a % of reported net
sales
|
|
37.2 %
|
2.9 %
|
22.8 %
|
|
11.5 %
|
3.2 %
|
1.8 %
|
6.5 %
|
|
Adjusted effective tax
rate
|
|
|
|
|
|
|
|
22.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (in millions)
|
|
|
|
|
Reported
|
|
|
|
|
|
|
133.5
|
|
|
|
Effect of dilution as
reported amount was a loss, while adjusted amount was
income**
|
1.5
|
|
|
|
Adjusted
|
|
|
|
|
|
|
135.0
|
|
*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) removal of $308.6 million tax
expense related to the settlement of the Irish Notice of Amended
Assessment, (2) removal of $48.0 million tax expense related to
non-recurring intra-entity transfers of intellectual property, (3)
removal of $8.9 million tax expense related to Base Erosion and
Anti-Abuse Tax (BEAT) and (4) removal of $3.3 million tax expense
impact on deferred taxes of the UK rate change, offset by (5) $22.1
million tax expense related to pre-tax non-GAAP adjustments
calculated based upon their applicable jurisdictional income tax
rates.
|
****In the period of a
net loss, reported diluted shares outstanding equal basic shares
outstanding.
|
|
|
|
|
TABLE
II
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
SELECTED SEGMENT
INFORMATION
|
(in
millions)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
October 1,
2022
|
|
October 2,
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
|
$
722.3
|
$
190.3
|
$ 16.7
|
$ 91.6
|
$ 75.2
|
|
$
694.2
|
$
187.6
|
$ 17.9
|
$ 76.7
|
$ 90.4
|
As a % of reported net
sales
|
|
26.3 %
|
2.3 %
|
12.7 %
|
10.4 %
|
|
|
27.0 %
|
2.6 %
|
11.0 %
|
13.0 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
7.1
|
—
|
(7.4)
|
14.6
|
|
—
|
5.4
|
(1.0)
|
(6.4)
|
12.7
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
5.9
|
—
|
(1.6)
|
7.5
|
|
—
|
—
|
—
|
—
|
—
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
(0.4)
|
7.2
|
|
—
|
—
|
—
|
—
|
0.1
|
Impairment
charges
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
2.6
|
Adjusted
|
|
$
203.3
|
$ 16.7
|
$ 82.2
|
$
104.4
|
|
$ 694.2
|
$
193.0
|
$ 16.9
|
$ 70.3
|
$
105.8
|
As a % of reported net
sales
|
|
28.2 %
|
2.3 %
|
11.4 %
|
14.5 %
|
|
|
27.8 %
|
2.4 %
|
10.1 %
|
15.2 %
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
October 1,
2022
|
|
October 2,
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
|
$
377.9
|
$
172.6
|
$ 13.1
|
$
151.8
|
$
1.3
|
|
$ 348.5
|
$
148.8
|
$ 9.7
|
$
133.2
|
$
4.3
|
As a % of reported net
sales
|
|
45.7 %
|
3.5 %
|
40.2 %
|
0.3 %
|
|
|
42.7 %
|
2.8 %
|
38.2 %
|
1.2 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
27.4
|
(0.6)
|
(25.6)
|
53.5
|
|
—
|
16.9
|
(0.4)
|
(22.3)
|
39.7
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
6.4
|
|
—
|
—
|
—
|
—
|
0.6
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
(2.1)
|
—
|
(3.0)
|
0.9
|
|
—
|
—
|
—
|
—
|
—
|
Impairment
charges
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
0.9
|
Adjusted
|
|
$
197.9
|
$ 12.5
|
$
123.2
|
$ 62.1
|
|
$ 348.5
|
$
165.7
|
$ 9.3
|
$
110.9
|
$ 45.5
|
As a % of reported net
sales
|
|
52.4 %
|
3.3 %
|
32.6 %
|
16.4 %
|
|
|
47.5 %
|
2.7 %
|
31.8 %
|
13.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE II
(CONTINUED)
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
SELECTED SEGMENT
INFORMATION
|
(in
millions)
|
(unaudited)
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
October 1,
2022
|
|
October 2,
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
|
$ 2,160.2
|
$
555.0
|
$
51.9
|
$
260.0
|
$
240.0
|
|
$ 1,957.0
|
$
569.5
|
$
57.3
|
$
233.2
|
$
113.9
|
As a % of reported net
sales
|
|
25.7 %
|
2.4 %
|
12.0 %
|
11.1 %
|
|
|
29.1 %
|
2.9 %
|
11.9 %
|
5.8 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired intangible assets
|
|
18.6
|
—
|
(22.1)
|
40.6
|
|
—
|
17.7
|
(1.1)
|
(19.6)
|
38.3
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
10.7
|
—
|
(1.6)
|
12.5
|
|
—
|
1.5
|
(0.4)
|
(1.2)
|
3.1
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
(0.4)
|
7.3
|
|
—
|
—
|
—
|
—
|
3.9
|
Indirect RX business
support costs*
|
|
—
|
—
|
—
|
—
|
|
—
|
2.9
|
0.3
|
—
|
2.8
|
Impairment
charges
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
161.2
|
(Gain) loss on
divestitures
|
|
—
|
—
|
—
|
(3.9)
|
|
—
|
—
|
—
|
—
|
—
|
Adjusted
|
|
$
584.3
|
$ 51.9
|
$
235.9
|
$
296.5
|
|
$ 1,957.0
|
$
591.6
|
$ 56.1
|
$
212.4
|
$
323.2
|
As a % of reported net
sales
|
|
27.0 %
|
2.4 %
|
10.9 %
|
13.7 %
|
|
|
30.2 %
|
2.9 %
|
10.9 %
|
16.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
*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.
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
October 1,
2022
|
|
October 2,
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
|
$ 1,136.1
|
$
517.8
|
$
38.6
|
$
452.1
|
$
19.0
|
|
$ 1,076.8
|
$
484.3
|
$
34.4
|
$
420.8
|
$
23.1
|
As a % of reported net
sales
|
|
45.6 %
|
3.4 %
|
39.8 %
|
1.7 %
|
|
|
45.0 %
|
3.2 %
|
40.1 %
|
2.1 %
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired intangible assets
|
|
68.2
|
(1.3)
|
(69.4)
|
139.0
|
|
—
|
51.3
|
(1.3)
|
(70.7)
|
123.2
|
Restructuring charges
and other termination benefits
|
|
—
|
—
|
—
|
8.1
|
|
—
|
—
|
—
|
—
|
5.2
|
Acquisition and
integration-related charges and contingent
consideration adjustments
|
|
(0.5)
|
—
|
(3.4)
|
2.8
|
|
—
|
—
|
—
|
—
|
—
|
Impairment
charges
|
|
—
|
—
|
—
|
—
|
|
—
|
—
|
—
|
—
|
0.9
|
Adjusted
|
|
$
585.5
|
$ 37.3
|
$
379.3
|
$
168.9
|
|
$ 1,076.8
|
$
535.6
|
$ 33.1
|
$
350.1
|
$
152.4
|
As a % of reported net
sales
|
|
51.5 %
|
3.3 %
|
33.4 %
|
14.9 %
|
|
|
49.7 %
|
3.1 %
|
32.5 %
|
14.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Nine Months
Ended
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Continuing
Operations
|
$
1,100.2
|
|
$
1,042.7
|
|
5.5 %
|
|
$
3,296.3
|
|
$
3,033.8
|
|
8.7 %
|
Less: Currency
impact(1)
|
(70.3)
|
|
—
|
|
6.8 %
|
|
(161.9)
|
|
—
|
|
5.3 %
|
Constant currency
Consolidated Continuing Operations net sales
|
$
1,170.5
|
|
$
1,042.7
|
|
12.3 %
|
|
$
3,458.2
|
|
$
3,033.8
|
|
14.0 %
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
October 1,
2022
|
|
|
|
|
October 1,
2022
|
|
|
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
HRA Pharma
sales
|
$
70.9
|
|
|
|
|
|
$
128.6
|
|
|
|
|
Less: Currency
impact(1)
|
10.1
|
|
|
|
|
|
17.0
|
|
|
|
|
Constant currency HRA
Pharma net sales
|
$
81.0
|
|
|
|
|
|
$
145.6
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Continuing
Operations
|
$
1,100.2
|
|
$
1,042.7
|
|
5.5 %
|
|
$
3,296.3
|
|
$
3,033.8
|
|
8.7 %
|
Less: Currency
impact(4)
|
(70.3)
|
|
—
|
|
6.7 %
|
|
(161.9)
|
|
—
|
|
5.3 %
|
Less:
Divestitures(2)
|
—
|
|
31.0
|
|
3.4 %
|
|
—
|
|
60.6
|
|
2.3 %
|
Less:
Acquisitions(3)
|
81.0
|
|
—
|
|
(7.9) %
|
|
145.5
|
|
—
|
|
(4.9) %
|
Organic Consolidated
Continuing Operations net sales
|
$
1,089.5
|
|
$
1,011.7
|
|
7.7 %
|
|
$
3,312.7
|
|
$
2,973.2
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(2)
|
represents divestiture
of Latin American 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.
|
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
|
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
Net
Sales
|
|
|
|
|
|
|
CSCA
|
$
722.3
|
|
$
694.2
|
|
4.0 %
|
|
Less:
Divestitures(2)
|
—
|
|
31.0
|
|
4.9 %
|
|
Less:
Acquisitions(3)
|
10.4
|
|
—
|
|
(1.6) %
|
|
Organic Consolidated
Continuing Operations net sales
|
$
711.9
|
|
$
663.2
|
|
7.3 %
|
|
|
Three Months
Ended
|
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
Net
Sales
|
|
|
|
|
|
|
CSCI
|
$
377.9
|
|
$
348.5
|
|
8.4 %
|
|
Less: Currency
impact(1)
|
(70.3)
|
|
—
|
|
20.2 %
|
|
Constant currency
Consolidated Continuing Operations net sales
|
448.2
|
|
348.5
|
|
28.6 %
|
|
|
Three Months
Ended
|
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
Net
Sales
|
|
|
|
|
|
|
CSCI
|
$
377.9
|
|
$
348.5
|
|
8.4 %
|
|
Less: Currency
impact(4)
|
(70.3)
|
|
—
|
|
20.2 %
|
|
Less:
Acquisitions(3)
|
70.7
|
|
—
|
|
(20.3) %
|
|
Organic Consolidated
Continuing Operations net sales
|
$
377.5
|
|
$
348.5
|
|
8.3 %
|
|
|
|
|
|
|
|
|
(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.
|
(2)
|
represents divestitures
of Latin American 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.
|
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)
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
Currency
Impact (1)
|
|
|
CSCI Net
Sales
|
|
|
|
|
|
|
|
|
|
|
Skin Care
|
$
132.4
|
|
$
114.2
|
|
15.9 %
|
|
21.3 %
|
|
37.2 %
|
|
Upper
Respiratory
|
63.2
|
|
52.3
|
|
20.8 %
|
|
23.0 %
|
|
43.8 %
|
|
Pain and
Sleep-Aids
|
29.0
|
|
33.7
|
|
(13.9) %
|
|
16.3 %
|
|
2.4 %
|
|
VMS
|
45.9
|
|
54.6
|
|
(15.9) %
|
|
15.7 %
|
|
(0.2) %
|
|
Healthy
Lifestyle
|
25.0
|
|
37.1
|
|
(32.6) %
|
|
12.7 %
|
|
(19.9) %
|
|
Women's
Health
|
29.9
|
|
13.4
|
|
123.1 %
|
|
40.3 %
|
|
163.4 %
|
|
Digestive health, Oral
Care and other
|
52.5
|
|
43.2
|
|
21.5 %
|
|
22.7 %
|
|
44.2 %
|
|
Total CSCI Net
Sales
|
$
377.9
|
|
$
348.5
|
|
8.4 %
|
|
20.2 %
|
|
28.6 %
|
|
|
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.
|
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
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross
profit
|
|
$ 401.2
|
|
$ 358.7
|
|
$ 42.5
|
|
11.8 %
|
|
$
1,169.8
|
|
$
1,127.2
|
|
$ 42.6
|
|
3.8 %
|
Adjusted gross
margin
|
|
36.5 %
|
|
34.4 %
|
|
|
|
210 bps
|
|
35.5 %
|
|
37.2 %
|
|
|
|
(170) bps
|
Adjusted operating
income
|
|
$ 133.0
|
|
$ 111.6
|
|
$ 21.4
|
|
19.2 %
|
|
$ 336.3
|
|
$ 347.5
|
|
$
(11.2)
|
|
(3.3) %
|
Adjusted net
income
|
|
$ 75.6
|
|
$ 61.4
|
|
$ 14.2
|
|
23.1 %
|
|
$ 179.3
|
|
$ 195.7
|
|
$
(16.4)
|
|
(8.4) %
|
Adjusted EPS
|
|
$ 0.56
|
|
$ 0.45
|
|
$ 0.11
|
|
24.4 %
|
|
$ 1.32
|
|
$ 1.45
|
|
$
(0.13)
|
|
(9.0) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$ 62.1
|
|
$ 45.5
|
|
$ 16.6
|
|
36.5 %
|
|
$ 168.9
|
|
$ 152.4
|
|
$ 16.5
|
|
10.8 %
|
|
|
Three Months
Ended
|
|
|
|
|
October 1,
2022
|
|
July 2,
2022
|
|
Total
Change
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
36.5 %
|
|
36.5 %
|
|
— 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
|
|
|
|
Nine Months
Ended
|
|
|
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
|
October 1,
2022
|
|
October 2,
2021
|
|
Total
Change
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$ 133.0
|
|
$ 111.6
|
|
|
|
$
336.3
|
|
$
347.5
|
|
|
Currency
impact(1)
|
|
$
14.5
|
|
$
—
|
|
|
|
$
31.7
|
|
$
—
|
|
|
Constant currency
adjusted operating income
|
|
$ 147.5
|
|
$ 111.6
|
|
32.2 %
|
|
$
368.0
|
|
$
347.5
|
|
5.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
62.1
|
|
$
45.5
|
|
|
|
|
|
|
|
|
Currency
impact(1)
|
|
$
13.7
|
|
$
—
|
|
|
|
|
|
|
|
|
Constant currency
adjusted operating income
|
|
$
75.8
|
|
$
45.5
|
|
66.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS
|
|
$
0.56
|
|
$
0.45
|
|
|
|
$
1.32
|
|
$
1.45
|
|
|
Currency
impact(1)
|
|
$
0.09
|
|
$
—
|
|
|
|
$
0.18
|
|
$
—
|
|
|
Constant currency
EPS
|
|
$
0.65
|
|
$
0.45
|
|
44.4 %
|
|
$
1.50
|
|
$
1.45
|
|
3.4 %
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/perrigo-reports-third-quarter-fiscal-year-2022-financial-results-from-continuing-operations-301671441.html
SOURCE Perrigo Company plc