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Perrigo Reports Fourth Quarter & Fiscal Year 2024 Financial Results From Continuing Operations
PRGOPerrigo(PRGO) Prnewswire·2025-02-27 22:20

Core Insights - Perrigo Company plc reported a fiscal year 2024 adjusted EPS of 2.57,aligningwiththemidpointofitsguidancerange,despiteareportedlossof2.57, aligning with the midpoint of its guidance range, despite a reported loss of (1.17) per share [5][19][43] - The company achieved a 17% growth in infant formula net sales in Q4 2024 compared to the prior year, primarily due to market share gains and recovering customer inventory levels [5][6][14] - The company is focused on stabilizing, streamlining, and strengthening its organization to foster long-term sustainable growth [6][7] Fiscal Year 2024 Highlights - Total net sales for fiscal year 2024 were 4.37billion,adecreaseof6.14.37 billion, a decrease of 6.1% compared to the prior year, with organic net sales declining by 4.5% [37][43] - Adjusted operating income increased by 6.0% to 609 million, driven by benefits from Project Energize and Supply Chain Reinvention [41][43] - Reported net loss for the year was (161)million,comparedtoalossof(161) million, compared to a loss of (4) million in the prior year [43] Fourth Quarter 2024 Highlights - Fourth quarter net sales were 1.14billion,down1.61.14 billion, down 1.6% year-over-year, with organic growth of 0.7% offset by divestitures and currency translation impacts [8][13][37] - Adjusted operating income for Q4 2024 was 194 million, a 16.0% increase from the prior year, attributed to Project Energize initiatives [17][41] - The reported operating margin improved to 10.0%, a significant increase of 1,130 basis points compared to the prior year quarter [18][41] Business Segment Performance - Consumer Self-Care Americas (CSCA) segment net sales were flat at 744million,withorganicgrowthdrivenbytheNutritioncategory,particularlyinfantformula[22][23]−ConsumerSelf−CareInternational(CSCI)segmentnetsalesdeclined4.5744 million, with organic growth driven by the Nutrition category, particularly infant formula [22][23] - Consumer Self-Care International (CSCI) segment net sales declined 4.5% to 394 million, with organic growth of 1.8% primarily from the Upper Respiratory and Pain & Sleep-Aids categories [29][51] - CSCI reported an adjusted operating income increase of 28.1% to 83million,reflectingthebenefitsofProjectEnergize[33][56]ProjectEnergize−ProjectEnergizeisaglobalinvestmentandefficiencyprogramaimedatenhancingorganizationalagilityandcapabilities,expectedtoyieldannualizedpre−taxsavingsof83 million, reflecting the benefits of Project Energize [33][56] Project Energize - Project Energize is a global investment and efficiency program aimed at enhancing organizational agility and capabilities, expected to yield annualized pre-tax savings of 140 million to 170millionby2026[9][10]−In2024,ProjectEnergizeachievedgrossannualsavingsofapproximately170 million by 2026 [9][10] - In 2024, Project Energize achieved gross annual savings of approximately 139 million while incurring restructuring charges of 95million[10][41]CashFlowandBalanceSheet−Fiscalyear2024operatingcashflowwas95 million [10][41] Cash Flow and Balance Sheet - Fiscal year 2024 operating cash flow was 363 million, with a cash conversion rate of 102% [57] - As of December 31, 2024, cash and cash equivalents totaled 559million,andthecompanyfullyrepaidits559 million, and the company fully repaid its 400 million Senior Notes [58]