Perrigo Company (PRGO) filed Quarterly Report for the period ended 2009-09-26.
Perrigo Company is the nations largest manufacturer of store brand over-the-counter (non-prescription) pharmaceutical products and also manufactures store brand nutritional products. Store brand products are sold by national and regional supermarket drugstore and mass merchandise chains under their own labels and compete with nationally advertised brands. The Company's products include analgesics cough and cold remedies antacids laxatives feminine hygiene and smoking cessation products and vitamins nutritional supplements and nutritional drinks. Perrigo Company has a market cap of $3.43 billion; its shares were traded at around $37.19 with a P/E ratio of 19.78 and P/S ratio of 1.71. The dividend yield of Perrigo Company stocks is 0.59%. Perrigo Company had an annual average earning growth of 13.3% over the past 10 years.
Highlight of Business Operations:
Current Year Results – Net sales from continuing operations for the first quarter of fiscal 2010 were $528,001, an increase of 16% over fiscal 2009. The increase was driven by both the Consumer Healthcare and Rx Pharmaceuticals segments and included approximately $10,700 of consolidated new product sales. Gross profit of $163,994 was an increase of 21% over fiscal 2009. The gross profit percentage in the first quarter of fiscal 2010 was 31.1%, up from 29.9% last year. Operating expenses were $77,425, relatively flat compared to the first quarter of fiscal 2009. As a percentage of net sales, operating expenses were 14.7%, down from 16.9% in the first quarter of fiscal 2009. Income from continuing operations was $61,025, an increase of 59% over fiscal 2009. Net income was $61,298, an increase of 61% over fiscal 2009.
First quarter net sales for fiscal 2010 increased 19% or $71,119 compared to fiscal 2009. The increase was comprised of $73,200 of domestic sales offset slightly by a $2,100 decrease in international sales. The domestic increase resulted from approximately $35,800 from higher unit sales of existing products in the gastrointestinal, smoking cessation, analgesics, and cough/cold categories, along with approximately $34,000 in incremental sales from the acquisitions of J.B. Laboratories (JBL) and Unico Holdings (Unico). In addition, new product sales were approximately $7,800, primarily in the analgesics and smoking cessation categories. These combined domestic increases were partially offset by a decline of $3,800 in sales from exited products. The slight decrease in international sales was driven primarily by unfavorable changes in foreign currency exchange rates of approximately $10,000 partially offset by an increase in sales of existing products of approximately $4,700, sales of $2,200 from the acquisition of Laboratorios Diba (Diba), along with new product sales of $1,000.
First quarter gross profit for fiscal 2010 increased 16% or $17,082 compared to fiscal 2009. The increase resulted from a favorable mix of products sold domestically within the gastrointestinal, smoking cessation, analgesics, and cough/cold categories of $15,000, incremental gross profit from the acquisitions of JBL, Unico and Diba of $7,000 and higher gross margins attributable to new product sales. These increases were partially offset by $4,000 of higher inventory costs and unfavorable changes in foreign currency exchange rates.
Interest expense for the first quarter was $11,971 for fiscal 2010 and $13,145 for fiscal 2009. Interest income for the first quarter was $5,308 for fiscal 2010 and $7,159 for fiscal 2009. Other expense, net for the first quarter was $1,017 for fiscal 2010 compared to $307 for fiscal 2009.
Cash, cash equivalents and current portion of investment securities increased $7,773 to $257,089 at September 26, 2009 from $249,316 at September 27, 2008. Working capital from continuing operations, including cash, decreased $10,540 to $600,153 at September 26, 2009 from $610,693 at September 27, 2008.
Cash, cash equivalents and current portion of investment securities decreased $59,047 to $257,089 at September 26, 2009 from $316,136 at June 27, 2009. Working capital from continuing operations, including cash, decreased $20,171 to $600,153 at September 26, 2009 from $620,324 at June 27, 2009.
PRGO is in the portfolios of Edward Owens of Vanguard Health Care Fund, John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, NWQ Managers of NWQ Investment Management Co.
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