Perrigo Company Stock Earnings Reports

Perrigo reported Q3 2025 results in a soft consumer health environment and updated its 2025 outlook. Key points for investors: 1) Market context — overall OTC consumption softened in Q3 (U.S. volume down, Europe weak), but Perrigo delivered sustained share gains: six consecutive months of U.S. store-brand OTC volume share gains and five consecutive months of dollar share gains for key EU brands. 2) Strategic focus — management continues to execute its "Three-S" plan (Stabilize, Streamline, Strengthen), including supply-chain reinvention and Project Energize (generating meaningful savings). 3) Portfolio actions — Dermacosmetics sale remains on track to close in Q1 2026; the company announced a strategic review of the Infant Formula business and continues a review of Oral Care. The previously announced $240M investment in Infant Formula is paused pending the review. 4) Financials — Q3 adjusted EPS $0.80 (roughly flat y/y); year-to-date adjusted EPS $1.97, up ~21% (27% organically). Q3 organic net sales declined 4.4%; year-to-date organic net sales declined 1.7%. Gross margin pressured by sales deleverage and mix; operating margin guidance of ~15% for 2025 reaffirmed. 5) Guidance update — 2025 organic net sales outlook revised to approximately -2% to -2.5%; full-year gross margin expected ~39%; adjusted EPS guidance $2.70–$2.80 (5%–9% growth vs. 2024). Year-end net debt / EBITDA now expected ~3.8x (vs prior 3.5x target), with Dermacosmetics proceeds expected to aid deleveraging. 6) Operational notes — Infant Formula operationally stabilized but share recovery slower than anticipated (store-brand share ~16% today; management believes 18%–20% is achievable over 12 months). Management expects Q4 global OTC organic growth roughly flat to +1% and reiterated priorities: reduce leverage, sustain dividend, return cash to shareholders, and focus investment on high-potential OTC brands.