Perrigo Provides Detailed Plan to Consumerize, Simplify and Scale its Unique Global Self-Care Platform at its Virtual Investor Day
Perrigo (NYSE: PRGO) unveiled its strategic 'Three-S' plan at its Virtual Investor Day, focusing on consumerizing, simplifying, and scaling its global self-care platform. The plan includes: Stabilizing Consumer Self-Care Americas store brand and infant formula businesses, Streamlining the global portfolio and operations, and Strengthening investments in key 'High-Grow' brands.
The company announced its fiscal year 2025 targets, including: 1-3% all-in net sales growth, 2.5-4.5% organic net sales growth, ~40% adjusted gross margin, and adjusted EPS of $2.90-$3.10 (13-21% growth). For fiscal years 2025-2027, Perrigo targets organic net sales CAGR of 2.5-4.5%, adjusted gross margin expansion of 200-400 basis points, and net leverage reduction to less than 3x adjusted EBITDA by 2027.
Perrigo (NYSE: PRGO) ha presentato il suo piano strategico 'Tre-S' durante il Virtual Investor Day, concentrandosi sulla consumerizzazione, semplificazione e scalabilità della sua piattaforma globale di self-care. Il piano include: Stabilizzare il marchio di negozi Consumer Self-Care Americas e le attività di formula per neonati, Semplificare il portafoglio e le operazioni globali, e Rafforzare gli investimenti nei principali marchi 'High-Grow'.
L'azienda ha annunciato i suoi obiettivi per l'anno fiscale 2025, che includono: una crescita delle vendite nette complessive del 1-3%, una crescita delle vendite nette organiche del 2,5-4,5%, un margine lordo rettificato di circa il 40% e un EPS rettificato di $2.90-$3.10 (crescita del 13-21%). Per i fiscal years 2025-2027, Perrigo prevede un CAGR delle vendite nette organiche del 2,5-4,5%, un'espansione del margine lordo rettificato di 200-400 punti base e una riduzione della leva netta a meno di 3x EBITDA rettificato entro il 2027.
Perrigo (NYSE: PRGO) presentó su plan estratégico 'Tres-S' durante su Día Virtual del Inversor, enfocándose en la consumerización, simplificación y escalabilidad de su plataforma global de autocuidado. El plan incluye: Estabilizar la marca de tienda Consumer Self-Care Americas y los negocios de fórmula infantil, Racionalizar el portafolio y las operaciones globales, y Fortalecer las inversiones en marcas clave de 'Alto Crecimiento'.
La compañía anunció sus objetivos fiscales para 2025, que incluyen: un crecimiento de ventas netas del 1-3%, un crecimiento de ventas netas orgánicas del 2.5-4.5%, un margen bruto ajustado de aproximadamente el 40% y un EPS ajustado de $2.90-$3.10 (crecimiento del 13-21%). Para los fiscal years 2025-2027, Perrigo tiene como objetivo un CAGR de ventas netas orgánicas del 2.5-4.5%, una expansión del margen bruto ajustado de 200-400 puntos básicos y una reducción de la deuda neta a menos de 3x EBITDA ajustado para 2027.
페리고 (NYSE: PRGO)는 가상 투자자의 날에 '세 가지 S' 전략 계획을 발표하며, 글로벌 셀프케어 플랫폼의 소비자화, 단순화 및 확장에 중점을 두었습니다. 이 계획에는 소비자 셀프케어 아메리카스의 상점 브랜드 및 유아용 조제 분유 사업 안정화, 글로벌 포트폴리오 및 운영 간소화, 주요 '고성장' 브랜드에 대한 투자 강화가 포함됩니다.
회사는 2025 회계연도 목표를 발표했으며, 여기에는 1-3%의 총 순매출 성장, 2.5-4.5%의 유기적 순매출 성장, 약 40%의 조정 총 마진, 조정 EPS가 $2.90-$3.10 (13-21% 성장)이 포함됩니다. 2025-2027 회계연도 동안 페리고는 2.5-4.5%의 유기적 순매출 CAGR, 200-400 베이시스 포인트의 조정 총 마진 확장, 2027년까지 조정 EBITDA의 3배 미만으로 순 레버리지 감소를 목표로 하고 있습니다.
Perrigo (NYSE: PRGO) a dévoilé son plan stratégique 'Trois-S' lors de sa Journée Virtuelle des Investisseurs, axé sur la consommation, la simplification et l'expansion de sa plateforme mondiale de soins personnels. Le plan comprend : Stabiliser la marque de magasins Consumer Self-Care Americas et les activités de formule pour nourrissons, Rationaliser le portefeuille et les opérations mondiales, et Renforcer les investissements dans les principales marques à 'forte croissance'.
L'entreprise a annoncé ses objectifs pour l'exercice fiscal 2025, comprenant : une croissance des ventes nettes de 1-3%, une croissance des ventes nettes organiques de 2,5-4,5%, un marge brute ajustée d'environ 40%, et un BPA ajusté de 2,90 $ à 3,10 $ (croissance de 13 à 21 %). Pour les exercices fiscaux 2025-2027, Perrigo vise un CAGR des ventes nettes organiques de 2,5-4,5%, une expansion de la marge brute ajustée de 200 à 400 points de base et une réduction de l'endettement net à moins de 3x EBITDA ajusté d'ici 2027.
Perrigo (NYSE: PRGO) stellte seinen strategischen 'Drei-S'-Plan an seinem virtuellen Investorentag vor, der sich auf die Konsumierung, Vereinfachung und Skalierung seiner globalen Self-Care-Plattform konzentriert. Der Plan umfasst: Stabilisierung der Marken im Bereich Consumer Self-Care Americas und der Produkte für Säuglingsnahrung, Rationalisierung des globalen Portfolios und der Abläufe sowie Stärkung der Investitionen in wichtige 'High-Grow'-Marken.
Das Unternehmen gab seine Ziele für das Geschäftsjahr 2025 bekannt, einschließlich: 1-3% Wachstum der Nettoumsätze insgesamt, 2,5-4,5% organisches Umsatzwachstum, ~40% bereinigte Bruttomarge und bereinigtes EPS von $2,90-$3,10 (Wachstum von 13-21%). Für die Geschäftsjahre 2025-2027 strebt Perrigo ein organisches Umsatz-CAGR von 2,5-4,5%, eine Ausweitung der bereinigten Bruttomarge um 200-400 Basispunkte und eine Reduzierung des Nettoschuldenstands auf weniger als 3x bereinigtes EBITDA bis 2027 an.
- Projected EPS growth of 13-21% for FY2025
- Expected organic sales growth of 2.5-4.5% through 2027
- Targeted gross margin expansion of 200-400 basis points by 2027
- Strong operating cash flow conversion target of ~100%
- Relatively modest all-in net sales growth target of 1-3% for FY2025
- Current high leverage with 3.5x adjusted EBITDA target for 2025
Insights
Perrigo's comprehensive strategic overhaul announcement reveals a well-structured Three-S plan designed to stabilize underperforming segments while focusing investment on higher-margin growth opportunities. The financial targets are particularly noteworthy, with projected adjusted EPS of $2.90-$3.10 for FY2025, representing 13-21% growth from 2024 baselines.
The company's longer-term projections through 2027 demonstrate management's confidence in their transformation strategy, targeting organic sales CAGR of 2.5-4.5% while expanding gross margins by 200-400 basis points and operating margins by 150-250 basis points. This suggests a meaningful profitability improvement pathway rather than just sales growth.
Perrigo's cash flow conversion target of approximately 100% of adjusted net income indicates operational discipline, while the company's commitment to reduce leverage to below 3x EBITDA by 2027 (from approximately 3.5x in 2025) shows prudent balance sheet management. The capital allocation strategy appears to prioritize funding growth opportunities in their higher-margin brands while maintaining what management describes as a "high-quality and growing dividend."
The company's self-described "unique complementary businesses" model presents a pragmatic approach to using cash-generating segments (store brands, infant formula) to fund investment in higher-growth, higher-margin brands. This portfolio balancing act, if executed effectively, could create a more sustainable earnings growth profile than Perrigo has demonstrated historically.
Perrigo's strategic pivot represents a significant shift in how the company is approaching its consumer self-care portfolio. The "consumerize, simplify, scale" mantra indicates management is adopting contemporary CPG strategies rather than continuing with a traditional OTC pharmaceutical approach. This distinction is important for investors to understand.
The company's emphasis on its "global scale and reach with 100-plus molecules at 100% consumer price point coverage" highlights Perrigo's unique positioning at the intersection of pharmaceuticals and consumer goods. This breadth gives them pricing flexibility and retail partnership leverage that pure CPG or pharmaceutical companies lack.
Their integrated approach to brand and store-brand management is particularly notable. Unlike competitors who typically focus on either branded or private label products, Perrigo's strategy of cross-pollinating innovation between segments could drive higher margins across both categories if properly executed. The reference to "consumer-led innovation that is scaled across brands, store brands and geographies" suggests they're shifting from a manufacturing-led to a consumer-insights-led innovation model.
The CEO's reference to having "faced challenges head-on" and "pivoted effectively" acknowledges recent operational difficulties while framing them as resolved issues. The 21-month timeframe mentioned suggests management believes they've reached an inflection point after nearly two years of restructuring work, with the strategic and financial benefits now beginning to materialize. The emphasis on "stabilizing" their Americas store brand business indicates they recognize this core segment needs reinforcement before pursuing aggressive growth initiatives.
Perrigo's unique complementary businesses enables each individually to play a specific reinforcing role, where 1) store brands and infant formula generate cash for investments into the Company's key higher margin, higher growth or 'High-Grow' brands, 2) branding and innovation capabilities that deliver brand and store brand demand generation leading to stronger customer partnerships, 3) consumer-led innovation that is scaled across brands, store brands and geographies, and 4) the Company's global supply chain scale and reach with 100-plus molecules, at
The Company's plan to drive cash flow and total shareholder return is anchored behind its 'Three-S' plan – 'Stabilizing' Consumer Self-Care Americas (CSCA) store brand and infant formula businesses; 'Streamlining' the global portfolio, enterprise operating model and Consumer Self-Care International (CSCI) business; and 'Strengthening' what is working by prioritizing and increasing investments behind key 'High-Grow' brands.
President and CEO Patrick Lockwood-Taylor commented, "The team and I are incredibly excited about the significant opportunities ahead and our clear path forward. Over the past 21 months, we have faced challenges head-on, pivoted effectively and anchored our strategy to stabilize our business, streamline complexity and strengthen areas that are leading performance. These imperatives are expected to yield significant earnings growth and cash flow, and coupled with a high-quality and growing dividend, have the potential to translate into notable total shareholder returns. We look forward to presenting our plan at today's Virtual Investor Day."
In conjunction with its Investor Day, the Company is providing select financial targets for fiscal year 2025 and for fiscal years 2025 to 2027.
Fiscal Year 2025 Financial Targets1 (fiscal year 2024 actuals as the baseline):
- All-in net sales growth of
1% to3% . - Organic net sales growth of
2.5% to4.5% . - Adjusted gross margin of approximately
40% . - Adjusted operating margin of approximately
15% . - Adjusted diluted earnings per share ("EPS") range of
$2.90 $3.10 13% to21% . - Operating cash flow conversion to adjusted net income of approximately
100% . - Free cash flow as a percentage of net sales of approximately
6% . - Net leverage of approximately 3.5x adjusted EBITDA.
Fiscal Years 2025 to 2027 Financial Targets1, (fiscal year 2024 actuals as the baseline):
- Organic net sales CAGR of
2.5% to4.5% . - Adjusted gross margin expansion of +200 to +400 basis points by 2027.
- Adjusted operating margin expansion of +150 to +250 basis points by 2027.
- Adjusted diluted EPS CAGR of high-single to low-double digit percentage.
- Operating cash flow conversion to adjusted net income of approximately
100% or more. - Free cash flow as a percentage of net sales of approximately +200 basis points by 2027.
- Net leverage of less than 3x adjusted EBITDA in 2027.
1. Assumes exchange rates constant to fiscal year 2024 actual exchange rates (USD/EURO of approximately
Virtual Investor Day Details
Perrigo's 2025 Virtual Investor Day will start today, Friday, February 28, 2025, at 8:00 A.M. EST and will be available at https://investor.perrigo.com/events-webcasts. A replay will also be available.
About Perrigo
Perrigo Company plc (NYSE: PRGO) is a leading provider of Consumer Self-Care Products and over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. Visit Perrigo online at www.perrigo.com.
Forward-Looking Statements
Certain statements in this press release are "forward-looking statements." These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "forecast," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or the negative of those terms or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control, including: supply chain impacts on the Company's business, including those caused or exacerbated by armed conflict, trade and other economic sanctions and/or disease; general economic, credit, and market conditions; the impact of the war in
Non-GAAP Measures
This press release contains certain non-GAAP measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different from the most directly comparable measure calculated and presented in accordance with
These non-GAAP financial measures should be considered as supplements to the GAAP reported measures, should not be considered replacements for, or superior to the GAAP measures and may not be comparable to similarly named measures used by other companies. The Company presents these non-GAAP financial measures in order to provide transparency to our investors because they are measures that management uses to assess both management performance and the financial performance of our operations and to allocate resources. In addition, management believes that these measures may assist investors with understanding and evaluating our initiatives to drive improved financial performance and enables investors to supplementally compare our operating performance with the operating performance of our competitors including with those of our competitors having different capital structures. While we have excluded certain of these items from historical non-GAAP financial measures, there is no guarantee that the items excluded from non-GAAP financial measures will not continue into future periods. For instance, we expect to continue to experience and report restructuring-related charges associated with continued execution of our strategic initiatives.
The Company provides non-GAAP financial measures as additional information that it believes is useful to investors and analysts in evaluating the performance of the Company's ongoing operating trends, facilitating comparability between periods and, where applicable, with companies in similar industries and assessing the Company's prospects for future performance. These non-GAAP financial measures exclude items, such as amortization expense, impairment charges, restructuring charges, and acquisition and integration-related charges, that by their nature affect comparability of operational performance or that we believe obscure underlying business operational trends. The intangible asset amortization excluded from these non-GAAP financial measures represents the entire amount recorded within the Company's GAAP financial statements and is excluded because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. The non-GAAP measures the Company provides are consistent with how management analyzes and assesses the operating performance of the Company, and disclosing them provides investor insight into management's view of the business. Management uses these adjusted financial measures for planning and forecasting in future periods, and evaluating segment and overall operating performance. In addition, management uses certain of the profit measures as factors in determining compensation.
Non-GAAP measures related to profit measurements, which may include adjusted gross margin, adjusted operating margin, adjusted EPS, operating cash flow conversion, free cash flow, and net leverage are useful to investors as they provide them with supplemental information to enhance their understanding of the Company's underlying business performance and trends, and enhance the ability of investors and analysts to compare the Company's period-to-period financial results. Management believes that adjusted gross margin and adjusted operating margin are useful to investors, in addition to the reasons discussed above, by allowing them to more easily compare and analyze trends in the Company's peer business group and assisting them in comparing the Company's overall performance to that of its competitors. The Company also discloses net sales growth excluding the impact of currency on an organic basis. The Company believes these supplemental financial measures provide investors with consistency in financial reporting, enabling meaningful comparisons of past and present underlying operating results, and also facilitate analysis of the Company's operating performance and acquisition and divestiture trends.
The Company cannot reconcile its expected fiscal year 2025 financial targets or fiscal years 2025-2027 financial targets without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include, but are not limited to, timing of restructuring charges, acquisition/divestiture costs, gains or losses on sales of assets, and the income tax effects of these items.
Perrigo Contact
Bradley Joseph, Vice President, Global Investor Relations & Corporate Communications, (269) 686-3373, E-mail: bradley.joseph@perrigo.com
Nicholas Gallagher, Senior Manager, Global Investor Relations & Corporate Communications, (269) 686-3238, E-mail: nicholas.gallagher@perrigo.com
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SOURCE Perrigo Company plc
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