Perrigo Company (PRGO, Financial) filed Quarterly Report for the period ended 2008-12-27.
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 $2.67 billion; its shares were traded at around $22.94 with a P/E ratio of 14.1 and P/S ratio of 1.47. The dividend yield of Perrigo Company stocks is 0.76%. Perrigo Company had an annual average earning growth of 13.3% over the past 10 years.
Year-to-date net sales for fiscal 2009 increased 38% or $224,148 compared to fiscal 2008. The increase was comprised of $211,575 of domestic and $12,573 of international sales. The domestic increase resulted from approximately $141,400 of new product sales, primarily in the gastrointestinal and cough/cold categories, along with a $43,900 increase from higher unit sales of existing products in the nutrition, analgesics and smoking cessation categories. The domestic increases were also driven by $33,400 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $5,700 in sales of existing products, primarily in the cough/cold category. The increase in international sales was driven primarily by sales from Galpharm, Brunel and Diba of $37,200. These increases in international sales were partially offset by the absence of the U.K.s VMS businesss sales of $16,000 and unfavorable changes in the foreign currency exchange rate of $10,000.
Second quarter operating expenses for fiscal 2009 decreased 9% or $883 compared to fiscal 2008 due primarily to a $900 decrease in administrative expenses, as well as a $400 decrease in research and development expenses. These decreases were partially offset by recognizing a $400 loss on assets that fund Israeli post employment obligations. Year-to-date operating expenses for fiscal 2009 increased 4% or $641 compared to fiscal 2008. This increase was due primarily to recognizing a $500 loss on assets that fund Israeli post employment obligations, higher research and development expenses of $400 and slightly higher distribution costs. These increases were partially offset by $500 of lower administrative expenses.
Second quarter gross profit for fiscal 2009 decreased 6% or $949 compared to fiscal 2008 due primarily to increased pricing pressures of $1,400, $600 in lower margin resulting from unfavorable changes in the sales mix of products and a slight increase in the cost of raw material prices. These decreases were partially offset by favorable changes in the foreign exchange rate of $1,700. Year-to-date gross profit for fiscal 2009 decreased 2% or $630 compared to fiscal 2008. The decrease was due primarily to $5,400 in lower margin resulting from unfavorable changes in product sales mix, partially offset by favorable changes in the foreign exchange rate of $5,000.
Second quarter operating expense for fiscal 2009 increased 18% or $2,019 compared to fiscal 2008 due primarily to recognizing a $1,600 loss on assets that fund Israeli post employment obligations, as well as unfavorable changes in the foreign currency exchange rate of $900. These increases were partially offset by lower selling expenses of $500. Costs in the Israel Consumer Products operating segment are recorded in Israeli shekels, U.S. dollars and euros. Costs in the Israel Pharmaceutical and Diagnostic Products operating segment are recorded primarily in euros. Year-to-date operating expenses for fiscal 2009 increased 16% or $3,719 compared to fiscal 2008 due primarily to unfavorable changes in the foreign currency exchange rate of $3,300, as well as recognizing a $2,100 loss on assets that fund Israeli post employment obligations. These increases were partially offset by lower selling and administrative expenses of $1,500.
Interest expense for the second quarter was $13,642 for fiscal 2009 and $9,002 for fiscal 2008. Year-to-date interest expense was $26,642 for fiscal 2009 and $18,846 for fiscal 2008. The increase in interest expense for both the second quarter and year-to-date was due primarily to a higher debt balance following the increase in borrowings during the fourth quarter of fiscal 2008. Interest income for the second quarter was $6,178 for fiscal 2009 and $5,328 for fiscal 2008. Year-to-date interest income was $13,332 for fiscal 2009 and $10,517 for fiscal 2008. The increase in interest income for the second quarter and year-to-date was due primarily to the increase in cash and cash equivalents as a result of the increase in borrowings during the fourth quarter of fiscal 2008.
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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 $2.67 billion; its shares were traded at around $22.94 with a P/E ratio of 14.1 and P/S ratio of 1.47. The dividend yield of Perrigo Company stocks is 0.76%. Perrigo Company had an annual average earning growth of 13.3% over the past 10 years.
Highlight of Business Operations:
Second quarter net sales for fiscal 2009 increased 39% or $126,205 compared to fiscal 2008. The increase was comprised of $122,590 of domestic and $3,615 of international sales. The domestic increase resulted from approximately $75,000 of new product sales, primarily in the gastrointestinal and cough/cold categories, along with an $18,200 increase from higher unit sales of existing products in the nutrition, smoking cessation and analgesics categories. The domestic increases were also driven by $33,400 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $2,900 in sales of existing products in the cough/cold and gastrointestinal categories. The increase in international sales was driven primarily by sales of $18,900 from acquired businesses (Brunel, Diba and Galpharm Healthcare Ltd. (Galpharm), which was acquired by the Company in January 2008), as well as new product sales of $2,100. These increases in international sales were partially offset by the absence of the U.K.s VMS businesss sales of $9,600, as well as unfavorable changes in the foreign currency exchange rate of $9,300.Year-to-date net sales for fiscal 2009 increased 38% or $224,148 compared to fiscal 2008. The increase was comprised of $211,575 of domestic and $12,573 of international sales. The domestic increase resulted from approximately $141,400 of new product sales, primarily in the gastrointestinal and cough/cold categories, along with a $43,900 increase from higher unit sales of existing products in the nutrition, analgesics and smoking cessation categories. The domestic increases were also driven by $33,400 of sales from JBL and Unico. These combined domestic increases were partially offset by a decline of $5,700 in sales of existing products, primarily in the cough/cold category. The increase in international sales was driven primarily by sales from Galpharm, Brunel and Diba of $37,200. These increases in international sales were partially offset by the absence of the U.K.s VMS businesss sales of $16,000 and unfavorable changes in the foreign currency exchange rate of $10,000.
Second quarter operating expenses for fiscal 2009 decreased 9% or $883 compared to fiscal 2008 due primarily to a $900 decrease in administrative expenses, as well as a $400 decrease in research and development expenses. These decreases were partially offset by recognizing a $400 loss on assets that fund Israeli post employment obligations. Year-to-date operating expenses for fiscal 2009 increased 4% or $641 compared to fiscal 2008. This increase was due primarily to recognizing a $500 loss on assets that fund Israeli post employment obligations, higher research and development expenses of $400 and slightly higher distribution costs. These increases were partially offset by $500 of lower administrative expenses.
Second quarter gross profit for fiscal 2009 decreased 6% or $949 compared to fiscal 2008 due primarily to increased pricing pressures of $1,400, $600 in lower margin resulting from unfavorable changes in the sales mix of products and a slight increase in the cost of raw material prices. These decreases were partially offset by favorable changes in the foreign exchange rate of $1,700. Year-to-date gross profit for fiscal 2009 decreased 2% or $630 compared to fiscal 2008. The decrease was due primarily to $5,400 in lower margin resulting from unfavorable changes in product sales mix, partially offset by favorable changes in the foreign exchange rate of $5,000.
Second quarter operating expense for fiscal 2009 increased 18% or $2,019 compared to fiscal 2008 due primarily to recognizing a $1,600 loss on assets that fund Israeli post employment obligations, as well as unfavorable changes in the foreign currency exchange rate of $900. These increases were partially offset by lower selling expenses of $500. Costs in the Israel Consumer Products operating segment are recorded in Israeli shekels, U.S. dollars and euros. Costs in the Israel Pharmaceutical and Diagnostic Products operating segment are recorded primarily in euros. Year-to-date operating expenses for fiscal 2009 increased 16% or $3,719 compared to fiscal 2008 due primarily to unfavorable changes in the foreign currency exchange rate of $3,300, as well as recognizing a $2,100 loss on assets that fund Israeli post employment obligations. These increases were partially offset by lower selling and administrative expenses of $1,500.
Interest expense for the second quarter was $13,642 for fiscal 2009 and $9,002 for fiscal 2008. Year-to-date interest expense was $26,642 for fiscal 2009 and $18,846 for fiscal 2008. The increase in interest expense for both the second quarter and year-to-date was due primarily to a higher debt balance following the increase in borrowings during the fourth quarter of fiscal 2008. Interest income for the second quarter was $6,178 for fiscal 2009 and $5,328 for fiscal 2008. Year-to-date interest income was $13,332 for fiscal 2009 and $10,517 for fiscal 2008. The increase in interest income for the second quarter and year-to-date was due primarily to the increase in cash and cash equivalents as a result of the increase in borrowings during the fourth quarter of fiscal 2008.
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