Perrigo Company · Q1 2023 earnings

Briefing

Perrigo's first quarter results were tremendous, delivering double-digit top line growth and adjusted EPS growth. Materially reduced company uncertainty by resolving the IRS Notice of Proposed Adjustment.

Perrigo Company plc reported a 10.0% increase in net sales to $1.2 billion for the first quarter of fiscal year 2023. Adjusted diluted EPS increased by 35.6% to $0.45. The company reaffirms its fiscal 2023 organic net sales and total net sales growth outlook range of 3.0%-6.0% and 7.0%-11.0%, respectively, versus the prior year, and adjusted diluted EPS range outlook of $2.50-$2.70.

• Net sales grew 10.0% versus the prior year quarter to $1.2 billion.
• Consumer Self-Care Americas and International segments delivered strong net sales growth of 7.6% and 14.7%, respectively.
• Reported gross margin was 35.0%, a 360 basis points improvement compared to the prior year quarter. Adjusted gross margin was 37.5%, a 400 basis points improvement compared to the prior year quarter.
• Adjusted diluted EPS was $0.45, an increase of 35.6%, compared to $0.33 in the prior year quarter.

Headline financials

Revenue & EPS history

The Company reaffirms its fiscal year 2023 guidance: •Reported net sales growth of 7.0% to 11.0% compared to the prior year, •Organic net sales growth of 3.0% to 6.0% compared to the previous year, •Non-GAAP (“adjusted”) diluted EPS range of between $2.50 to $2.70, •Adjusted tax expense rate of approximately 21.5%, •Interest expense of approximately $180 million, and •Cash conversion (operating cash flow as a percentage of adjusted net income) of approximately 100%.