Perrigo(PRGO) - 2024 Q4 - Annual Results

Financial Performance - Fiscal Year 2024 adjusted EPS was $2.57, at the midpoint of the company's guidance range, despite a reported loss of$(1.17) per share[1]. - Fourth Quarter 2024 net sales were $1.14 billion, a decline of 1.6$4.37 billion, a decrease of 6.1%, with organic net sales down 4.5% due to lower cough and cold demand and SKU prioritization actions[5]. - Reported net loss for the fiscal year was $(161) million, or$(1.17) per diluted share, compared to a net loss of $(4) million in the prior year[53]. - For the twelve months ended December 31, 2024, reported net sales were$4,373.4 million, a decline of 6.0% from $4,655.6 million in 2023[100]. Operating Income and Margins - Fourth Quarter 2024 adjusted operating income increased by$27 million, or 16.0%, to $194 million, driven by Project Energize and Supply Chain Reinvention programs[3]. - Reported operating margin for Q4 2024 was 10.0$609 million, with an adjusted operating margin of 13.9%, expanding by 160 basis points[51][52]. - Adjusted operating income for CSCA for the three months ended December 31, 2024, was $145.8 million, representing 19.6$143.0 million or 19.2% in 2023[116]. - Adjusted operating income for CSCI for the three months ended December 31, 2024, was $83.4 million, which is 21.2$65.1 million or 15.8% in 2023[116]. Cash Flow and Assets - Fiscal Year 2024 operating cash flow was $363 million, reflecting a cash flow conversion rate of 103$363 million, down from $406 million in the previous year, resulting in a cash conversion rate of approximately 103$559 million, with total debt at $3.62 billion after repaying$400 million in senior notes[71]. - Total assets decreased to $9,647.7 million as of December 31, 2024, from$10,809.1 million in 2023[90]. - Total liabilities decreased to $5,328.3 million as of December 31, 2024, from$6,041.2 million in 2023[90]. Sales by Segment - Consumer Self-Care International (CSCI) net sales were $394 million, down 4.5$744 million, with growth in Nutrition and Skin Care offset by lost distribution of lower margin products[3]. - CSCA net sales for the fiscal year decreased by 9.1% to $2.69 billion, with organic net sales declining by 8.6$1.68 billion, a decrease of 0.8% compared to the prior year, primarily due to divested businesses and currency translation impacts[64]. - Nutrition segment net sales increased by 14.8% to $145.7 million for the three months ended December 31, 2024, driven by a 17$33 million, or 13.0%, to $217 million, with a reported gross margin of 29.1$138 million, or 8.2%, to $1.54 billion, with a reported gross margin of 35.3$1,697.9 million, accounting for 38.8% of reported net sales, consistent with the prior year[99]. - Adjusted gross profit for Q4 2024 was $423.9 million, a decrease of$36.4 million or 7.9% compared to Q4 2023[134]. Strategic Initiatives - Project Energize is expected to deliver annualized pre-tax savings of $140 million to$170 million by 2026, with $40 million to$60 million reinvested[13]. - The company plans to share its 2025-2027 strategic plan at an upcoming Investor Day event[11]. - The company anticipates ongoing restructuring-related charges as part of its strategic initiatives[81]. - The company reported a gain on divestitures and investment securities of $28.1 million during the twelve months ended December 31, 2024[107][109]. - The divestiture of the HRA Pharma Rare Diseases Business significantly impacted the Digestive Health and Other segment, which saw a 50.0$25 million[133].