Perrigo Company Stock Earnings Reports

Perrigo reported a challenging Q1 2026 driven by weaker category demand (notably cough & cold) and retailer destocking, but management says its Three‑S plan (Stabilize, Streamline, Strengthen) is producing tangible progress and the company is reaffirming full‑year 2026 guidance. Key financials and operational takeaways: CORE net sales declined 8.3% (organic CORE down ~11%); CORE adjusted EPS was $0.40 and All‑In adjusted EPS was $0.43. Management attributes ~3.5% CORE sales headwind to softer cough/cold incidence and an additional ~3 points to retailer inventory reductions. Prior‑year manufacturing volume variances are expected to produce an unfavorable All‑In EPS impact of ~ $0.60 for 2026 (approximately $0.26 realized in Q1). Market share progress: U.S. store brand OTC volume share improved significantly (management cites 270 basis points of share gain in Q1 and 12 consecutive periods of share improvement), with share gains in 6 of 7 OTC categories. Cost and portfolio actions: operational enhancement program delivered >$7 million in Q1 and remains on track for ~$60–80 million in 2026 (plus $20–40 million in 2027); Dermacosmetics divestiture completed after quarter end for ~€306 million in upfront cash expected to be used for debt reduction; strategic reviews of Infant Formula and Oral Care remain ongoing. Non‑cash items and liquidity: recorded a non‑cash goodwill impairment of $331 million in Q1 (no cash impact); cash and equivalents ~$357 million and total debt ~$3.6 billion; revolver amended and used to refinance Term Loan A to extend maturities. Guidance and outlook: company reaffirms 2026 outlook, expecting results to be back‑half weighted (approx. 30–35% of CORE adjusted EPS in H1, 65–70% in H2), citing expected stabilization of seasonal incidence, lapping of prior manufacturing headwinds, benefits from innovation, distribution/demand generation, geographic expansion and cost savings.