- Adjusted EPS for Perrigo (PRGO, Financial) surged 106.9% year-over-year to $0.60.
- Net sales fell by 3.5% to $1.04 billion, impacted by divestitures and currency effects.
- 'Project Energize' has generated $159 million in gross annual savings, aiding profitability.
Perrigo Company plc (PRGO) reported mixed financial results for Q1 2025, with significant strides in profitability despite a decline in net sales. Adjusted earnings per share (EPS) skyrocketed by 106.9% to reach $0.60, as compared to $0.29 in the previous year. This increase was largely attributed to a 57.6% rise in adjusted operating income, which amounted to $147 million.
Net sales experienced a 3.5% decline to $1.04 billion, driven primarily by divestitures and currency translation impacts which accounted for a 3.2% unfavorable effect. However, excluding lost distribution and the absence of initial benefits from Opill® launch stocking, organic net sales grew by 1.8%.
The company's infant formula segment showed remarkable recovery, contributing to a 16% growth in the Nutrition category. This recovery, along with cost-saving initiatives like ‘Project Energize,’ were pivotal in expanding the adjusted gross margin by 440 basis points to 41.0%.
Perrigo's efficiency program, Project Energize, has already achieved $159 million in gross annual savings, with $20 million reinvested, reflecting strong progress toward its $140-170 million target by the end of 2026.
Despite the decline in net sales, the company's reaffirmation of its adjusted EPS guidance, alongside a widened 2025 net sales growth outlook from 0-3%, underscores its cautious stance amidst macroeconomic uncertainties, particularly tariff impacts affecting its Oral Care segment.
