🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Perrigo stock up 1% on earnings, revenue beat; Affirms FY guidance

EditorRachael Rajan
Published 05/07/2024, 07:00 AM
© Reuters.
PRGO
-

DUBLIN - Perrigo Company plc (NYSE: NYSE:PRGO), a leading provider of Consumer Self-Care Products, today announced its financial results for the first quarter ended March 30, 2024.

The company reported adjusted diluted earnings per share (EPS) of $0.29, surpassing analyst expectations by $0.06, compared to the projected $0.23. Revenue for the quarter was reported at $1.1 billion, slightly above the consensus estimate of $1.09 billion. PRGO stock was up 1.1% in premarket trading.

Perrigo's first-quarter performance demonstrates resilience despite an 8.4% decrease in net sales compared to the same quarter last year. The decline was primarily attributed to a 7.0% drop in organic net sales, largely due to a 4.3 percentage point impact from lower net sales in infant formula and a 3.6 percentage point impact from SKU prioritization actions aimed at enhancing margins as part of the company's Supply Chain Reinvention Program. These factors were only partially offset by a 0.9 percentage point impact from organic net sales growth in other business areas.

President and CEO Patrick Lockwood-Taylor commented on the quarter's results, highlighting the successful launch of Opill®, the first-ever over-the-counter oral contraceptive in the U.S., and the strong topline growth in the Consumer Self-Care International (CSCI) segment, which saw a 4.7% increase in net sales. Lockwood-Taylor also noted the expected and significant financial impact from infant formula, praising the team's ability to deliver meaningful gross and operating margin expansion across the rest of the business.

Looking ahead, Perrigo reaffirmed its fiscal year 2024 outlook, maintaining an adjusted diluted EPS range of $2.50-$2.65, which aligns with the analyst consensus of $2.56. The company's confidence in its full-year guidance reflects its operational priorities and the anticipated recovery of manufacturing volumes in the second half of the year.

Perrigo's first-quarter achievements are part of its broader strategy, Project Energize, which aims to drive growth and efficiency. The company is also in the process of divesting its HRA Rare Diseases business, with plans to use the proceeds for debt paydown.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.