NYSE$PRGO

Perrigo Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter and fiscal year 2021 financial results.

Perrigo's fourth quarter net sales grew by 4.9% to $1.1 billion, driven by a strong rebound in demand for cough/cold products. The company's transformation into a focused, consumer-centric Self-Care company is now complete and their focus going forward is on long-term, profitable growth.

  • Fourth quarter net sales grew 4.9%, or 5.7% excluding the impact of currency, compared to the prior year to $1.1 billion led by a strong rebound in the demand for cough/cold products.
  • Fourth quarter GAAP (reported) diluted earnings per share (EPS) was $0.24, compared to a net loss per diluted share of $0.39 in the prior year.
  • Fourth quarter non-GAAP (adjusted) diluted EPS increased 27.7% to $0.60.
  • Completed milestone transformation initiatives during 2021: Divested the generic RX pharmaceutical business, announced the acquisition of HRA Pharma, and significantly reduced uncertainty by settling the Irish Tax assessment.

Headline financials

Total Revenue

$1.1B

Previous: $1.29B-14.3%
EPS (adj)

$0.60

Previous: $0.93-35.5%
Adjusted Operating Income

$132M

No prior period
Reported Operating Margin

4.2%

Previous: -4.1%+202.4%
Capital Expenditures

$41.7M

Previous: $66.1M-36.9%
Free Cash Flow

-$147M

Previous: $44.3M-432.1%
Net Income

$32.1M

Previous: -$175M+118.3%
Operating Income

$47M

Previous: -$52.3M+189.9%
Gross Profit

$362M

Previous: $469M-22.8%
Cash & Equivalents

$1.86B

Previous: $632M+195.3%
Total Assets

$10.4B

Previous: $11.5B-9.3%
Stock-Based Comp

$9.9M

Previous: $14.6M-32.2%

Revenue & EPS history

Perrigo · Revenue · Quarterly

$1.1B

Q4 2021-14.3%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Perrigo · $1.1B total across 2 segments · Q4 2021

  • Consumer Self-Care Americas
    $736M+5.0%
  • Consumer Self-Care International
    $369M+4.8%

Forward guidance

The Company expects net sales growth of 3.5% to 4.5%, inclusive of negative impacts of approximately 2.0 percentage points from the planned divestiture of the Latin American businesses and 1.5 percentage points from adverse currency movements, Organic net sales growth of 7.0% to 8.0%, Adjusted diluted EPS of $2.10 to $2.30.

Tailwinds

  • Net sales growth of 3.5% to 4.5%
  • Organic net sales growth of 7.0% to 8.0%
  • First half margin compression and second half margin expansion
  • Adjusted effective tax rate of approximately 23%
  • Adjusted diluted EPS of $2.10 to $2.30

Headwinds

  • Negative impacts of approximately 2.0 percentage points from the planned divestiture of the Latin American businesses
  • 1.5 percentage points from adverse currency movements
  • First half margin compression
  • Higher level of cost inflation
  • COVID-19 related productivity challenges

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 Q4 2021

Historical avgQ4 2021

-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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