NYSE$PRGO

Perrigo Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Perrigo reported strong organic net sales growth driven by consumer demand and rebounded cough/cold product sales. First quarter earnings were in line with expectations, despite increased cost headwinds and a strengthening U.S. dollar.

Perrigo's Q1 2022 net sales reached $1.1 billion, a 6.4% increase year-over-year, with organic net sales growing by 9.7%. Adjusted diluted EPS was $0.33, compared to $0.50 in the prior year. The company raised its fiscal year 2022 net sales growth guidance to 8.5%-9.5% and adjusted EPS guidance to $2.30-$2.40.

  • Net sales increased by 6.4% to $1.1 billion, with organic net sales up 9.7% driven by strong consumer demand.
  • Reported loss per diluted share was $0.01, while adjusted diluted EPS was $0.33, impacted by cost headwinds and unfavorable foreign exchange.
  • Cash flow from operations was a strong 176% of adjusted net income.
  • Fiscal 2022 net sales growth guidance raised to 8.5%-9.5% and adjusted EPS guidance raised to $2.30-$2.40.

Headline financials

Total Revenue

$1.08B

Previous: $1.01B+6.4%
EPS (adj)

$0.33

Previous: $0.50-34.0%
Adjusted Operating Income

$87M

Previous: $119M-26.6%
Reported Operating Margin

2.0%

No prior period
Capital Expenditures

$20.3M

Previous: -$45.4M+144.7%
Free Cash Flow

$58.8M

Previous: -$7.3M+905.5%
Net Income

-$1.3M

Previous: $38.1M-103.4%
Operating Income

$22M

Previous: $51.4M-57.2%
Gross Profit

$338M

Previous: $368M-8.3%
Cash & Equivalents

$1.97B

Previous: $471M+317.4%
Total Assets

$10.4B

Previous: $11.3B-8.3%
Stock-Based Comp

$26.3M

Previous: $25M+5.2%

Revenue & EPS history

Perrigo · Revenue · Quarterly

$1.08B

Q1 2022+6.4%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Perrigo · $1.07B total across 2 segments · Q1 2022

  • Consumer Self-Care Americas
    $710M+10.8%
  • Consumer Self-Care International
    $365M-1.5%

Forward guidance

Perrigo is raising its fiscal 2022 net sales growth outlook from 3.5%-4.5% to 8.5%-9.5% and its adjusted diluted EPS range from $2.10-$2.30 to $2.30-$2.40.

Tailwinds

  • Fiscal 2022 net sales growth range outlook raised to 8.5%-9.5%.
  • Fiscal 2022 organic growth range outlook raised to 8%-9%.
  • Adjusted diluted EPS range increased to $2.30-$2.40.
  • Includes approximately $0.35 from the HRA acquisition.
  • Cash flow from operations as a percentage of adjusted net income is now expected to be above the Company's original range of 95%-105%.

Headwinds

  • Approximately $0.10 impact from additional unfavorable exchange rate movements.
  • $0.05 from stopping distribution of product to Russia.
  • Approximately $0.05 in higher interest expense from refinancing.
  • First half margin compression is expected.
  • The Company cannot reconcile its expected adjusted diluted earnings per share to diluted earnings per share 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-3.4%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+20.2%

Q4 2024

Best reaction

-25.2%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.3%-5.0%-7.0%
Q4 2025-1.5%-21.0%-33.9%
Q3 2025-25.2%-29.4%-33.4%
Q1 2025+7.2%+9.4%+6.0%
Q4 2024+20.2%+22.1%+16.3%
Q3 2024+6.2%+5.4%+10.7%
Q2 2024+1.8%-1.5%+3.3%
Q1 2024-6.9%-8.1%-19.2%
Q4 2023-17.9%-18.2%+0.1%
Q3 2023+2.0%-0.2%+7.3%
Q2 2023+5.8%+7.3%-8.4%
Q1 2023+1.3%-2.2%-6.5%
Q4 2022+3.9%+6.9%-3.2%
Q3 2022-18.3%-14.9%-18.2%
Q2 2022-1.9%-1.7%-9.3%
Q1 2022+9.1%+15.6%+19.7%
Q4 2021+6.4%+4.8%+8.2%
Q3 2021-8.7%-9.8%-23.0%
Q2 2021-16.0%-16.6%-11.1%
Q1 2021+6.1%+6.4%+13.3%
Q4 2020+4.3%+1.7%+0.3%
Q3 2020-0.3%+1.5%+9.9%
Q2 2020-8.5%-6.1%-7.7%
Q1 2020-3.0%-4.4%+0.8%
Q4 2019-16.4%-12.1%-24.0%
Q3 2019-8.1%-9.3%-3.4%
Q2 2019-7.1%-5.4%-1.1%
Q1 2019+7.5%+1.7%-10.1%
Q4 2018+0.8%+4.0%-0.3%
Q3 2018-14.7%-13.0%-20.2%
Q2 2018-10.7%-11.3%-3.3%
Q1 2018-4.9%+0.4%-5.2%
Q4 2017+1.9%-6.0%-5.6%
Q3 2017+8.0%+5.9%+5.4%
Q2 2017+18.3%+17.2%+24.7%
Q1 2017+4.1%+5.0%+8.5%
Q3 2016+6.9%+6.7%-1.2%
Q2 2016-9.8%-7.2%-6.7%
Q1 2016-4.7%
Q4 2015-10.9%
Q3 2015-1.3%
Q2 2015+1.7%
Q1 2015-1.7%
Q4 2014+6.7%
Q3 2014-11.3%
Q2 2014-4.9%
Q1 2014+10.7%
Q4 2013-5.1%
Q3 2013-0.5%
Q2 2013+5.2%
Q1 2013-8.8%
Q4 2012-8.3%
Q3 2012-4.5%
Q1 2012+1.8%
Q2 2012-0.1%
Q4 2011+1.3%
Q3 2011-7.6%
Q2 2011+2.7%
Q1 2011+1.7%
Q4 2010+0.6%
Q3 2010-0.1%
Q2 2010-2.9%
Q1 2010+0.7%

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