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PR Newswire·

Perrigo Reports Fourth Quarter and Fiscal Year 2025 Financial Results From Continuing Operations

PRGO
  • Delivered FY2025 adjusted EPS at the midpoint of the updated outlook range despite soft category consumption.
  • Advanced the '3-S Plan' with Perrigo store brands gaining share & key brands growing in 2025.
  • Launched a new operational enhancement program expected to deliver pre-tax annualized savings of $80 million to $100 million by FY2027.
  • Transitioning to new reporting segments beginning Q1 2026 to align with the commercial operating model.
  • Reported fourth quarter 2025 net sales of $1.11 billion, a 2.5% year-over-year decrease driven by a 4.5% organic decline.
  • Fourth quarter organic sales were down primarily due to a 2.9% impact from infant formula & lower OTC contract manufacturing.
  • Reported Q4 diluted EPS of $(10.20) due to a $1.3 billion goodwill impairment charge.
  • Reported adjusted Q4 EPS of $0.77, down from $0.93 in the prior year.
  • Fiscal 2025 net sales totaled $4.25 billion, a 2.8% year-over-year decrease.
  • Fiscal 2025 adjusted EPS was $2.75, up 7.0% from the prior year.
  • Fiscal 2025 reported net loss was $1.40 billion, primarily due to the goodwill impairment charge.
  • Issued FY2026 'All In' net sales outlook of -5.5% to -1.5% & adjusted EPS range of $2.00 to $2.30.
  • Introduced FY2026 'CORE' outlook excluding infant formula & divestitures, projecting net sales of -3.0% to +1.0% & adjusted EPS of $2.25 to $2.55.
  • Concluded Project Energize with gross annualized pre-tax savings of approximately $167 million.
  • Completed the Supply Chain Reinvention Program achieving cumulative run-rate benefits of $157 million.
  • Signed an agreement to sell the Dermacosmetics business for up to €327 million, expected to close in Q2 2026.
  • Recorded a $1.3 billion goodwill impairment in Q4 2025 due to sustained share price decreases & lower cash flow expectations.
  • Anticipates potential additional non-cash goodwill impairment charges of up to $350 million in Q1 2026 following segment reallocation.
  • New reporting segments beginning Q1 2026 include Self Care, Specialty Care, Infant Formula, & Other.
  • The operational enhancement program aims to reduce workforce by approximately 7% & target supply chain cost reductions.
  • Year-to-date operating cash flow for 2025 was $239 million with $532 million in cash & cash equivalents at year-end.