Perrigo Reports FY2025 Results Amid Soft OTC Market
Consumer self-care company Perrigo reported its fiscal year 2025 financial results, meeting the midpoint of its adjusted earnings per share outlook. The company noted that its store-brand over-the-counter products and key brands gained market share despite soft overall category consumption. Perrigo is also launching a new operational enhancement program to deliver future cost savings.
- For the full fiscal year 2025, Perrigo reported net sales of $4.25 billion, a 2.8% decrease from the previous year, with organic sales dropping by 2.4%. The company recorded a significant reported earnings per share loss of ($10.12), largely due to a goodwill impairment charge, a stark contrast to the prior year's loss of ($1.17). - The newly announced operational enhancement program is expected to generate $80 million to $100 million in annualized pre-tax savings. This initiative follows a previous three-year program called "Project Energize," which concluded having generated $163 million in gross annual savings, surpassing its initial targets. - The downturn in annual organic sales was primarily driven by declines in the Infant Formula and Oral Care businesses, a reduction in lower-margin OTC contract manufacturing, and the absence of a stocking benefit from the previous year's launch of the Opill® oral contraceptive. - Perrigo's Consumer Self-Care Americas (CSCA) segment saw net sales fall 3.1% through the first three quarters of FY2025 to $1.89 billion. In contrast, the Consumer Self-Care International (CSCI) segment experienced 0.7% organic growth in the same period, led by its Pain & Sleep Aids and Healthy Lifestyle categories. - As part of its ongoing transformation into a focused self-care company, Perrigo is undertaking a strategic review of its Infant Formula business. This follows the recent divestiture of its generic prescription drug business for $1.55 billion and the acquisition of HRA Pharma for $2.1 billion. - Beginning in the first quarter of 2026, the company will transition to a new reporting structure aligned with its commercial operating model. This organizational shift could result in additional non-cash goodwill impairment charges of up to $350 million in Q1 2026.
