DUBLIN, Aug. 5, 2020 /PRNewswire/ -- Perrigo Company
plc (NYSE; TASE: PRGO), a leading provider of Quality,
Affordable Self-Care Products, today announced financial
results for the second quarter ended June 27, 2020.
President and CEO Murray S.
Kessler commented, "Strong second quarter and first half
results in the face of COVID-19 pandemic uncertainty demonstrates
just how far Perrigo has come over the past 2 years in its consumer
self-care transformation and reflects the countless contributions
from our dedicated employees worldwide. The Perrigo team met the
challenge in the second quarter and first half of elevated consumer
demand related to the COVID-19 surge, while remarkably continuing
to make meaningful progress on our consumer self-care
transformation."
Kessler continued, "While uncertainty related to the pandemic
remains, we believe we now have sufficient line of sight to
reaffirm 2020 adjusted diluted EPS guidance. We base this on the
fact that our team has been able to keep 27 world-wide
manufacturing facilities, most of which are running 24-hours a day,
7 days a week, without missing a single shift due to COVID-19.
Demand on products within our portfolio deemed essential remains
strong, non-essential product categories are slowly but surely
recovering from the impact of reduced store traffic and patient
visits, our e-Commerce business more than doubled, wholesale and
retail inventories have been mostly restored, and we believe we
have a good estimate of the incremental COVID related costs on our
operations."
Kessler concluded, "Even though it will likely be a while before
the COVID-19 pandemic is behind us, Perrigo's transformed business
model, now based on Self-Care and Value combined with
its passionate workforce, have the Company well-positioned for
sustainable and profitable long-term growth."
Second Quarter Financial Highlights
- Consolidated second quarter net sales were $1.2 billion, an increase of 6.1% compared to the
prior year quarter. Excluding the impact from divested
businesses(2) and currency, net sales increased
10.0%.
- Worldwide Consumer second quarter net sales grew 4.3% compared
to the prior year quarter. Excluding the impact from divested
businesses and currency, Worldwide Consumer net sales were 9.2%
higher year-over-year.
- Consumer Self-Care Americas ("CSCA") achieved second quarter
net sales of $628 million, up 7.8%
versus the prior year quarter on a reported basis and 12.9% higher,
excluding the impact from divested businesses and currency;
Consumer Self-Care International ("CSCI") second quarter net sales
decreased 2.0% versus the prior year quarter and 2.9% higher,
excluding the impact from divested businesses and currency.
- Reported diluted EPS for the second quarter of 2020 was
$0.44 per diluted share as compared
to EPS of $0.07 in the prior year
quarter.
- Adjusted diluted EPS for the second quarter of 2020 increased
19.8% to $1.03 as compared to
$0.86 per diluted share in the prior
year quarter.
- Cash flow from operations as a percentage to adjusted net
income was 206%.
- Provided assurance of liquidity by completing a $750 million bond offering to refinance bonds
previously due in 2021.
First Half 2020 Financial Highlights
- Consolidated first half net sales were $2.6 billion, up 10.2% compared to the prior
year. Excluding the impact of currency and divested businesses, net
sales increased 13.8%, with organic net sales growth of 6.8%.
- Worldwide Consumer net sales increased 10.3% compared to the
prior year. Excluding the impact of currency and divested
businesses, Worldwide Consumer net sales were 15.0% higher
year-over-year.
- CSCA achieved first half net sales of $1.3 billion, a 14.1% increase versus the prior
year, or 18.8% higher excluding the impact of currency and divested
businesses, highlighted by 8.3% organic growth.
- CSCI first half net sales increased 3.8% versus the prior year,
or 8.7% higher excluding divested businesses and the impact of
currency, with organic growth of 2.6%.
- Cash flow from operations as a percentage to adjusted net
income was 155%.
See attached
Appendix for reconciliation of adjusted (non-GAAP) to reported
(GAAP) financial measures.
|
|
(1) Organic net
sales growth excluded oral self-care acquisitions, divested
businesses and the impact of currency.
|
|
(2) Divested
businesses excluded 1) $20 million and $22 million from the
divested animal health business in the prior year first quarter and
second quarter periods, respectively, and was previously included
in the Consumer Self-Care Americas segment, and 2) $4 million and
$3 million from the divested Canoderm prescription product in the
prior year first quarter and second quarter periods, respectively,
which was previously included in the Consumer Self-Care
International segment.
|
Refer to Tables I - IV at the end of this press release for a
reconciliation of non-GAAP adjustments to the current year and
prior year periods and additional non-GAAP information. The
Company's reported results are included in the attached Condensed
Consolidated Statements of Operations, Balance Sheets and
Statements of Cash Flows.
Second Quarter 2020 Consolidated Results Versus Second Quarter
2019
Consolidated net sales for the second quarter of calendar year
2020 increased 6.1%, or $70.1
million, to $1.2 billion.
Net sales excluding divested businesses and unfavorable currency
movements increased 10.0%, with organic net sales growth of
2.6%.
The increase in net sales was driven by 1) $82 million from the oral self-care portfolio
acquisitions, 2) a $31 million net
increase from the Prescription Pharmaceuticals ("RX") segment as
$73 million in net sales generated by
the launch of generic albuterol sulfate were partially offset by
lower U.S. prescription dermatology volumes, 3) increased U.S. OTC
sales due to continued strong fundamentals and rapid growth from
channel shifting into e-commerce, both accelerated by a surge in
consumer demand related to COVID-19, and 4) a less than expected
consumer pantry de-load in U.S. OTC. These gains were partially
offset by 1) lower demand in a number of CSCI categories due to
travel bans, school closings and country lock-downs resulting from
COVID-19, and 2) $26 million from divested businesses,
$16 million from unfavorable currency movements and
discontinued products of $11 million.
Reported net income was $61
million, or $0.44 per diluted
share, versus net income of $9 million, or $0.07 per diluted share in the prior year period.
Excluding certain charges as outlined in Table I, second quarter
2020 adjusted net income was $141
million, or $1.03 per diluted
share, versus $117 million, or
$0.86 per diluted share, for the same
period last year. The 19.8% growth in adjusted diluted EPS was due
primarily to the sales drivers mentioned above, reduced and delayed
advertising and promotion expenditures compared to a year ago to
align with consumer behavior surrounding COVID-19, and a decrease
of approximately 640 basis points, or $0.08 per adjusted diluted share, in the adjusted
effective tax rate compared to the prior year. This decrease was
due primarily to a positive impact from the CARES Act, which was
enacted in the first quarter 2020.
Worldwide Consumer Self-Care Second Quarter 2020 Results Versus
Second Quarter 2019
Worldwide Consumer is comprised of the CSCA segment, CSCI
segment and Corporate.
Worldwide Consumer Self-Care second quarter net sales increased
4.3% to $949 million. Net sales
excluding $26 million from divested businesses and
$17 million from the impact of currency increased 9.2%, while
organic net sales were flat.
Second quarter reported gross profit margin was 36.8%. Adjusted
gross profit margin of 39.3%, was 190 basis points lower
year-over-year due to product mix, prioritization of products most
needed by society surrounding COVID-19 and the acquisition of the
lower gross margin oral self-care portfolio. These were partially
offset by favorable operational efficiencies versus last year.
Reported operating margin was 7.3%. Adjusted operating margin
increased 60 basis points year-over-year to 13.9% due primarily to
operating leverage on gross margin flow-through and purposefully
reduced and delayed advertising and promotion expenditures in
response to consumer behavior surrounding COVID-19.
CSCA Second Quarter 2020 Results Versus Second Quarter 2019
Consumer Self-Care Americas achieved second quarter net sales of
$628 million, an increase of 7.8%,
and included $63 million in net sales
attributable to the oral self-care portfolio. Organic net sales
were up 1.6%.
OTC net sales growth was driven by 1) continued robust growth in
e-Commerce, more than offsetting category declines due to
lower foot traffic at brick and mortar customers, 2) increased
consumer COVID-19 related demand, and 3) increased distribution of
Perrigo products to retail customers. All of these drivers, which
benefited from $9 million in new
products, led to a share gain of 60 basis points in the product
categories where Perrigo competes. These growth drivers were
partially offset by 1) lower net sales on products Perrigo
de-prioritized in order to keep up with demand for products most
needed by society during COVID-19, 2) $22
million from the divested animal health business, and 3)
normal pricing pressure on specific products.
In Nutrition, an increase in net sales was led by
the December 2019 store brand infant formula launch at a
major retailer, greater shipments in the infant formula contract
manufacturing business, and growth in customer e-Commerce
activities.
Second quarter reported gross margin was 31.8%. Adjusted gross
margin of 32.9% was 110 basis points lower than the prior year due
to the impact of normal pricing pressure, incremental expenses
related to COVID-19 and the addition of the oral self-care
portfolio, partially offset by favorable operational
efficiencies.
Reported operating margin was 16.9%. Adjusted operating margin
decreased 50 basis points to 19.8% as operating leverage on gross
margin flow-through and delayed expenditures compared to a
year ago in response to consumer behavior surrounding COVID-19 were
more than offset by the addition of the oral self-care
portfolio.
CSCI Second Quarter 2020 Results Versus Second Quarter 2019
Consumer Self-Care International net sales decreased 2.0% to
$321 million. Excluding unfavorable
currency movements of $12 million and $3 million from divested businesses, net sales
were higher by 2.9%. Organic net sales were lower by 3.0%.
Net sales growth, excluding unfavorable currency movements and
divested businesses, was due primarily to new product sales of
$23 million, driven by XLS-Medical
Forte 5 and products in the skincare and personal hygiene category,
and $19 million in additional net
sales from Ranir. These positive drivers were partially offset by
1) lower category sales due to COVID-19 travel bans, school
closings and country lock-downs, which impacted consumer demand for
certain CSCI products, and 2) some consumer pantry de-stocking of
COVID-19 essential products after a surge in demand in the first
quarter of 2020.
Reported gross margin was 46.5%. Adjusted gross margin of 51.7%
declined 180 basis points as favorable operational efficiencies
versus last year were more than offset by less favorable product
mix and the addition of the oral self-care portfolio, which has a
relatively lower gross margin than the legacy CSCI portfolio.
Reported operating margin was 3.3% and adjusted operating margin
improved 30 basis points year over year to 15.6%. Lower gross
profit flow-through was more than offset by purposefully
delayed advertising and promotion expenditures in response to
consumer behavior surrounding COVID-19.
RX Second Quarter 2020 Results Versus Second Quarter 2019
RX net sales increased 12.9% to $270
million due primarily to new product sales of
$81 million led by the generic albuterol sulfate inhalation
aerosol. This was partially offset by fewer patient visits to
dermatologists compared to last year, leading to lower new and
total U.S. prescription dermatology volumes(3) of 16%
and 4%, respectively, which impacted Rx. Discontinued low
margin products were $9 million.
Reported gross margin was 31.7% and adjusted gross margin was
39.5%. The 220 basis point decline in adjusted gross margin was due
primarily to less favorable product mix.
Reported operating margin was 17.6%. Adjusted operating margin
was 25.3%, down 210 basis points due primarily to gross profit
flow-through.
(3) Source: IQVIA:
COVID-19 Market Impact - w/e July 3, 2020; National Prescription
Audit (NPA), National Prescription Audit: New to Brand (NPA NTB);
2019-2020.
|
Fiscal 2020 Outlook
The Company reaffirms its fiscal 2020 outlook with expected net
sales growth of 6% to 7% highlighted by organic net sales growth of
approximately 3%. Adjusted diluted EPS is expected to be in the
range of $3.95 to $4.15.
The Company reaffirms its adjusted EPS guidance despite the
addition of $0.12 - $0.15 per adjusted diluted share of incremental
COVID-19 related costs and a $0.06
per share impact from the divested Rosemont Rx business, which the
Company sold on June 19, 2020.
The Company cannot reconcile its expected adjusted diluted
earnings per share to diluted earnings per share under "Fiscal 2020
Outlook" 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.
About Perrigo
Perrigo Company plc (NYSE; TASE: PRGO) is dedicated to making
lives better by bringing Quality, Affordable Self-Care
Products that consumers trust everywhere they are
sold. The Company is a leading provider of over-the-counter
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.
Webcast and Conference Call Information
The conference call will be available live via webcast to
interested parties in the investor relations section of the Perrigo
website at http://perrigo.investorroom.com/events-webcasts or by
phone at 888-317-6003, International 412-317-6061, and reference ID
#3715615. A taped replay of the call will be available beginning at
approximately 12:00 p.m. (EST)
Wednesday, August 5, until midnight Wednesday, August 12, 2020. To listen to the
replay, dial 877-344-7529, International 412-317-0088, and use
access code 10146229.
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: the effect of the novel coronavirus
(COVID-19) pandemic and the associated economic downturn and supply
chain impacts on the Company's business; general economic, credit,
and market conditions; future impairment charges; customer
acceptance of new products; competition from other industry
participants, some of whom have greater marketing resources or
larger market shares in certain product categories than the Company
does; pricing pressures from customers and consumers; resolution of
uncertain tax positions, including the Company's appeal of the
Notice of Assessment (the "NoA") issued by the Irish tax authority
and the draft and final Notices of Proposed Assessment ("NOPAs")
issued by the U.S. Internal Revenue Service and the impact that an
adverse result in any such proceedings would have on operating
results, cash flows, and liquidity; pending and potential
third-party claims and litigation, including litigation relating to
the Company's restatement of previously-filed financial information
and litigation relating to uncertain tax positions, including the
NoA and the NOPAs; potential impacts of ongoing or future
government investigations and regulatory initiatives; potential
costs and reputational impact of product recalls or sales halts;
the impact of tax reform legislation and healthcare policy; the
timing, amount and cost of any share repurchases; fluctuations in
currency exchange rates and interest rates; the consummation of
announced acquisitions or dispositions and the success of such
transactions, and the Company's ability to realize the desired
benefits thereof; and the Company's ability to execute and achieve
the desired benefits of announced cost-reduction efforts and
strategic and other initiatives. An adverse result with
respect to our appeal of any material outstanding tax assessments
or pending litigation, including securities or drug pricing
matters, could ultimately require the use of corporate assets to
pay such assessments, damages from third-party claims, and related
interest and/or penalties, and any such use of corporate assets
would limit the assets available for other corporate purposes.
Statements regarding the separation of the Rx business, including
the expected benefits, anticipated timing, form of any such
separation and whether the separation ultimately occurs, are all
subject to various risks and uncertainties, including future
financial and operating results, our ability to separate the
business, the effect of existing interdependencies with our
manufacturing and shared service operations, and the tax
consequences of the planned separation to the Company or its
shareholders. These and other important factors, including those
discussed under "Risk Factors" in the Company's Form 10-K for the
year ended December 31, 2019, as well as the Company's
subsequent filings with the United States Securities and Exchange
Commission, may cause actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. The forward-looking statements in this
press release are made only as of the date hereof, and unless
otherwise required by applicable securities laws, the Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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 U.S. Generally Accepted Accounting
Principles (GAAP) in the statements of operations, balance sheets
or statements of cash flows of the Company. Pursuant to the
requirements of the U.S. Securities and Exchange Commission, the
Company has provided reconciliations for net sales growth excluding
exited businesses, which includes the divested animal health
business and the Canoderm prescription product, as well as on a
constant currency basis and on an organic basis, which excludes the
2019 acquisition of Ranir, exited businesses and the impact of
currency as well as adjusted gross profit, adjusted net income,
adjusted diluted earnings per share, adjusted gross margin, and
adjusted operating margin, within this press release to the most
directly comparable U.S. GAAP measures for these non-GAAP measures.
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 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 companies in
similar industries and assessing the Company's prospects for future
performance. These non-GAAP financial measures exclude items, such
as 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 measure
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 include
adjusted gross profit, adjusted net income, adjusted diluted
EPS, adjusted gross margin and adjusted operating margin 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 discloses net sales growth
excluding exited businesses, as well as on a constant currency
basis and on an organic basis. The Company believes these
supplemental financial measures provide investors with consistency
in financial reporting, enabling meaningful comparisons of past,
present and future underlying operating results, and also
facilitate comparison of the Company's operating performance to the
operating performance of its competitors.
A copy of this press release, including the reconciliations, is
available on the Company's website at www.perrigo.com.
PERRIGO COMPANY
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
|
June 27,
2020
|
|
June 29,
2019
|
Net sales
|
$
|
1,219.1
|
|
|
$
|
1,149.0
|
|
|
$
|
2,560.1
|
|
|
$
|
2,323.5
|
|
Cost of
sales
|
784.4
|
|
|
718.2
|
|
|
1,642.2
|
|
|
1,443.9
|
|
Gross
profit
|
434.7
|
|
|
430.8
|
|
|
917.9
|
|
|
879.6
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Distribution
|
23.6
|
|
|
23.7
|
|
|
47.8
|
|
|
47.1
|
|
Research and
development
|
47.1
|
|
|
43.9
|
|
|
89.0
|
|
|
84.0
|
|
Selling
|
127.6
|
|
|
140.1
|
|
|
275.3
|
|
|
288.7
|
|
Administration
|
118.8
|
|
|
127.2
|
|
|
241.4
|
|
|
252.3
|
|
Impairment
charges
|
—
|
|
|
27.8
|
|
|
—
|
|
|
31.9
|
|
Restructuring
|
1.1
|
|
|
12.2
|
|
|
1.1
|
|
|
21.5
|
|
Other operating
expense (income)
|
(0.9)
|
|
|
0.9
|
|
|
0.2
|
|
|
(3.2)
|
|
Total operating
expenses
|
317.3
|
|
|
375.8
|
|
|
654.8
|
|
|
722.3
|
|
|
|
|
|
|
|
|
|
Operating
income
|
117.4
|
|
|
55.0
|
|
|
263.1
|
|
|
157.3
|
|
|
|
|
|
|
|
|
|
Change in financial
assets
|
(2.1)
|
|
|
(5.5)
|
|
|
(3.7)
|
|
|
(15.9)
|
|
Interest expense,
net
|
33.4
|
|
|
31.2
|
|
|
63.6
|
|
|
59.8
|
|
Other (income)
expense, net
|
14.3
|
|
|
2.3
|
|
|
16.7
|
|
|
5.5
|
|
Income before income
taxes
|
71.8
|
|
|
27.0
|
|
|
186.5
|
|
|
107.9
|
|
Income tax
expense
|
11.2
|
|
|
18.0
|
|
|
19.5
|
|
|
35.0
|
|
Net income
|
$
|
60.6
|
|
|
$
|
9.0
|
|
|
$
|
167.0
|
|
|
$
|
72.9
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
0.44
|
|
|
$
|
0.07
|
|
|
$
|
1.23
|
|
|
$
|
0.54
|
|
Diluted
|
$
|
0.44
|
|
|
$
|
0.07
|
|
|
$
|
1.22
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
136.4
|
|
|
136.0
|
|
|
136.3
|
|
|
136.0
|
|
Diluted
|
137.5
|
|
|
136.5
|
|
|
137.3
|
|
|
136.3
|
|
PERRIGO COMPANY
PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
|
June 27,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,456.3
|
|
|
$
|
354.3
|
|
Accounts receivable,
net of allowance for credit losses of $6.2 and $6.7,
respectively
|
1,001.2
|
|
|
1,243.2
|
|
Inventories
|
1,034.7
|
|
|
967.3
|
|
Prepaid expenses and
other current assets
|
311.3
|
|
|
165.8
|
|
Total current
assets
|
3,803.5
|
|
|
2,730.6
|
|
Property, plant and
equipment, net
|
892.3
|
|
|
902.8
|
|
Operating lease
assets
|
136.7
|
|
|
129.9
|
|
Goodwill and
indefinite-lived intangible assets
|
4,046.5
|
|
|
4,185.5
|
|
Definite-lived
intangible assets, net
|
2,879.8
|
|
|
2,921.2
|
|
Deferred income
taxes
|
7.2
|
|
|
5.4
|
|
Other non-current
assets
|
362.3
|
|
|
426.0
|
|
Total non-current
assets
|
8,324.8
|
|
|
8,570.8
|
|
Total
assets
|
$
|
12,128.3
|
|
|
$
|
11,301.4
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts
payable
|
$
|
489.1
|
|
|
$
|
520.2
|
|
Payroll and related
taxes
|
135.0
|
|
|
156.4
|
|
Accrued customer
programs
|
364.5
|
|
|
394.4
|
|
Other accrued
liabilities
|
240.6
|
|
|
229.2
|
|
Accrued income
taxes
|
24.0
|
|
|
32.2
|
|
Current
indebtedness
|
606.5
|
|
|
3.4
|
|
Total current
liabilities
|
1,859.7
|
|
|
1,335.8
|
|
Long-term debt, less
current portion
|
3,536.0
|
|
|
3,365.8
|
|
Deferred income
taxes
|
291.6
|
|
|
280.6
|
|
Other non-current
liabilities
|
530.1
|
|
|
515.1
|
|
Total non-current
liabilities
|
4,357.7
|
|
|
4,161.5
|
|
Total
liabilities
|
6,217.4
|
|
|
5,497.3
|
|
Commitments and
contingencies - Refer to Note 14
|
|
|
|
Shareholders'
equity
|
|
|
|
Controlling
interests:
|
|
|
|
Preferred shares,
$0.0001 par value per share, 10 shares authorized
|
—
|
|
|
—
|
|
Ordinary shares,
€0.001 par value per share, 10,000 shares authorized
|
7,318.2
|
|
|
7,359.9
|
|
Accumulated other
comprehensive income
|
120.7
|
|
|
139.4
|
|
Retained earnings
(accumulated deficit)
|
(1,528.5)
|
|
|
(1,695.5)
|
|
Total controlling
interests
|
5,910.4
|
|
|
5,803.8
|
|
Noncontrolling
interest
|
0.5
|
|
|
0.3
|
|
Total shareholders'
equity
|
5,910.9
|
|
|
5,804.1
|
|
Total liabilities and
shareholders' equity
|
$
|
12,128.3
|
|
|
$
|
11,301.4
|
|
|
|
|
|
Supplemental
Disclosures of Balance Sheet Information
|
|
|
|
Preferred shares,
issued and outstanding
|
—
|
|
|
—
|
|
Ordinary shares,
issued and outstanding
|
136.5
|
|
|
136.1
|
|
PERRIGO COMPANY
PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
millions)
|
(unaudited)
|
|
|
Six Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
Cash Flows From (For)
Operating Activities
|
|
|
|
Net income
|
$
|
167.0
|
|
|
$
|
72.9
|
|
Adjustments to derive
cash flows:
|
|
|
|
Depreciation and
amortization
|
187.8
|
|
|
191.5
|
|
Loss on sale of
business
|
17.4
|
|
|
—
|
|
Share-based
compensation
|
29.7
|
|
|
28.0
|
|
Impairment
charges
|
—
|
|
|
31.9
|
|
Change in financial
assets
|
(3.7)
|
|
|
(15.9)
|
|
Restructuring
charges
|
1.1
|
|
|
21.5
|
|
Deferred income
taxes
|
11.7
|
|
|
9.2
|
|
Amortization of debt
premium
|
(1.3)
|
|
|
(3.0)
|
|
Other non-cash
adjustments, net
|
(11.5)
|
|
|
26.4
|
|
Subtotal
|
398.2
|
|
|
362.5
|
|
Increase (decrease)
in cash due to:
|
|
|
|
Accounts
receivable
|
227.9
|
|
|
(55.3)
|
|
Inventories
|
(38.6)
|
|
|
(78.3)
|
|
Prepaid
expenses
|
(32.4)
|
|
|
2.4
|
|
Accounts
payable
|
(21.6)
|
|
|
41.2
|
|
Payroll and related
taxes
|
(20.4)
|
|
|
(23.0)
|
|
Accrued customer
programs
|
(31.9)
|
|
|
(52.8)
|
|
Accrued
liabilities
|
(7.9)
|
|
|
(19.2)
|
|
Accrued income
taxes
|
(12.8)
|
|
|
(36.7)
|
|
Other, net
|
2.2
|
|
|
17.5
|
|
Subtotal
|
64.5
|
|
|
(204.2)
|
|
Net cash from (for)
operating activities
|
462.7
|
|
|
158.3
|
|
Cash Flows From (For)
Investing Activities
|
|
|
|
Proceeds from royalty
rights
|
2.4
|
|
|
1.7
|
|
Purchase of equity
method investment
|
(15.0)
|
|
|
—
|
|
Acquisitions of
businesses, net of cash acquired
|
(106.0)
|
|
|
—
|
|
Proceeds from the
Royalty Pharma contingent milestone
|
—
|
|
|
250.0
|
|
Asset
acquisitions
|
(32.8)
|
|
|
(35.0)
|
|
Additions to
property, plant and equipment
|
(60.1)
|
|
|
(54.7)
|
|
Net proceeds from
sale of business
|
187.8
|
|
|
—
|
|
Other investing,
net
|
2.0
|
|
|
—
|
|
Net cash from (for)
investing activities
|
(21.7)
|
|
|
162.0
|
|
Cash Flows From (For)
Financing Activities
|
|
|
|
Issuances of
long-term debt
|
743.8
|
|
|
—
|
|
Payments on long-term
debt
|
—
|
|
|
(158.9)
|
|
Borrowings
(repayments) of revolving credit agreements and other financing,
net
|
1.6
|
|
|
397.5
|
|
Deferred financing
fees
|
(5.0)
|
|
|
—
|
|
Issuance of ordinary
shares
|
—
|
|
|
0.3
|
|
Cash
dividends
|
(61.9)
|
|
|
(54.8)
|
|
Other financing,
net
|
(11.7)
|
|
|
(5.9)
|
|
Net cash from (for)
financing activities
|
666.8
|
|
|
178.2
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5.8)
|
|
|
6.1
|
|
Net increase
(decrease) in cash and cash equivalents
|
1,102.0
|
|
|
504.6
|
|
Cash and cash
equivalents, beginning of period
|
354.3
|
|
|
551.1
|
|
Cash and cash
equivalents, end of period
|
$
|
1,456.3
|
|
|
$
|
1,055.7
|
|
TABLE
I
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
SELECTED
CONSOLIDATED INFORMATION
|
(in millions, except
per share amounts)
|
(unaudited)
|
|
Three Months Ended
June 27, 2020
|
Consolidated
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring,
Impairment
Charges, and
Other
Operating
Income
|
Operating
Income
|
Interest,
Other,
and
Change in
Financial
Assets
|
Income
Tax
Expense
|
Net
Income**
|
Diluted
Earnings
per
Share**
|
Reported
|
$
|
1,219.1
|
|
$
|
434.7
|
|
$
|
47.1
|
|
$
|
270.0
|
|
$
|
0.2
|
|
$
|
117.4
|
|
$
|
45.6
|
|
$
|
11.2
|
|
$
|
60.6
|
|
$
|
0.44
|
|
As a % of reported
net sales
|
|
35.7
|
%
|
3.9
|
%
|
22.1
|
%
|
—
|
%
|
9.6
|
%
|
3.7
|
%
|
0.9
|
%
|
5.0
|
%
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
15.6
|
%
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
|
$
|
43.1
|
|
$
|
(0.1)
|
|
$
|
(29.6)
|
|
$
|
—
|
|
$
|
72.8
|
|
$
|
—
|
|
$
|
—
|
|
$
|
72.8
|
|
$
|
0.53
|
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
|
|
1.5
|
|
—
|
|
(3.3)
|
|
0.9
|
|
3.9
|
|
—
|
|
—
|
|
3.9
|
|
0.03
|
|
(Gain) loss on
divestitures
|
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
0.3
|
|
(17.4)
|
|
—
|
|
17.7
|
|
0.13
|
|
Unusual
litigation
|
|
|
—
|
|
—
|
|
(4.5)
|
|
—
|
|
4.5
|
|
—
|
|
—
|
|
4.5
|
|
0.03
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
—
|
|
|
(1.1)
|
|
1.1
|
|
—
|
|
—
|
|
1.1
|
|
0.01
|
|
Change in financial
assets
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.1
|
|
—
|
|
(2.1)
|
|
(0.02)
|
|
(Gain) Loss on
investment securities
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.4
|
|
—
|
|
(0.4)
|
|
—
|
|
Non-GAAP tax
adjustments*
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17.1
|
|
(17.1)
|
|
(0.12)
|
|
Adjusted
|
|
|
|
$
|
479.3
|
|
$
|
47.0
|
|
$
|
232.3
|
|
$
|
—
|
|
$
|
200.0
|
|
$
|
30.7
|
|
$
|
28.3
|
|
$
|
141.0
|
|
$
|
1.03
|
|
As a % of reported
net sales
|
|
39.3
|
%
|
3.9
|
%
|
19.1
|
%
|
|
16.4
|
%
|
2.5
|
%
|
2.3
|
%
|
11.6
|
%
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
16.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
|
|
Reported
|
|
|
|
137.5
|
|
|
*The non-GAAP tax
adjustments are primarily due to $17.1 million of tax effects of
pretax non-GAAP adjustments that are calculated based upon the
specific rate of the applicable jurisdiction of the pretax
items.
|
**Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
TABLE I
(CONTINUED)
|
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
June 29, 2019
|
Consolidated
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring,
Impairment
Charges,
and Other
Operating
Income
|
Operating
Income
|
Interest,
Other,
and
Change
in
Financial
Assets
|
Income
Tax
Expense
|
Net
Income***
|
Diluted
Earnings
per
Share***
|
Reported
|
$
|
1,149.0
|
|
$
|
430.8
|
|
$
|
43.9
|
|
$
|
291.0
|
|
$
|
40.9
|
|
$
|
55.0
|
|
$
|
28.0
|
|
$
|
18.0
|
|
$
|
9.0
|
|
$
|
0.07
|
|
As a % of reported
net sales
|
|
37.5
|
%
|
3.8
|
%
|
25.3
|
%
|
3.6
|
%
|
4.8
|
%
|
2.4
|
%
|
1.6
|
%
|
0.8
|
%
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
66.6
|
%
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
primarily related to acquired intangible assets
|
$
|
—
|
|
$
|
45.9
|
|
$
|
(0.2)
|
|
$
|
(28.3)
|
|
$
|
—
|
|
$
|
74.4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
74.4
|
|
$
|
0.56
|
|
Restructuring charges
and other termination benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
(12.2)
|
|
12.2
|
|
—
|
|
—
|
|
12.2
|
|
0.09
|
|
Separation and
reorganization expense
|
—
|
|
—
|
|
—
|
|
(7.5)
|
|
—
|
|
7.5
|
|
—
|
|
—
|
|
7.5
|
|
0.05
|
|
Impairment
charges
|
—
|
|
—
|
|
—
|
|
—
|
|
(27.8)
|
|
27.8
|
|
—
|
|
—
|
|
27.8
|
|
0.20
|
|
Acquisition and
integration-related charges and contingent consideration
adjustments
|
—
|
|
—
|
|
—
|
|
(2.2)
|
|
(0.9)
|
|
3.1
|
|
—
|
|
—
|
|
3.1
|
|
0.02
|
|
Unusual
litigation
|
—
|
|
—
|
|
—
|
|
(7.0)
|
|
—
|
|
7.0
|
|
—
|
|
—
|
|
7.0
|
|
0.05
|
|
Loss on investment
securities
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1.8)
|
|
—
|
|
1.8
|
|
0.01
|
|
Operating results
attributable to held-for-sale business*
|
(22.3)
|
|
(11.2)
|
|
(0.4)
|
|
(7.3)
|
|
—
|
|
(3.5)
|
|
—
|
|
—
|
|
(3.5)
|
|
(0.03)
|
|
(Gain) loss on
divestitures
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.8)
|
|
—
|
|
0.8
|
|
0.01
|
|
Change in financial
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5.5
|
|
—
|
|
(5.5)
|
|
(0.04)
|
|
Non-GAAP tax
adjustments**
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17.2
|
|
(17.2)
|
|
(0.13)
|
|
Adjusted
|
$
|
1,126.7
|
|
$
|
465.5
|
|
$
|
43.3
|
|
$
|
238.7
|
|
$
|
—
|
|
$
|
183.5
|
|
$
|
30.9
|
|
$
|
35.2
|
|
$
|
117.4
|
|
$
|
0.86
|
|
As a % of adjusted
net sales
|
|
41.3
|
%
|
3.8
|
%
|
21.2
|
%
|
|
16.3
|
%
|
2.7
|
%
|
3.1
|
%
|
10.4
|
%
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
23.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
|
|
Reported
|
|
|
|
136.5
|
|
|
|
|
|
|
|
|
*Held-for-sale
business includes our now divested animal health
business.
|
**The non-GAAP tax
adjustments are due to tax effects of pretax non-GAAP adjustments
that are calculated based upon the specific rate of the applicable
jurisdiction of the pretax items.
|
***Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
TABLE I
(CONTINUED)
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
SELECTED
CONSOLIDATED INFORMATION
|
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
|
(unaudited)
|
Six Months Ended
June 27, 2020
|
Consolidated
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Restructuring,
Impairment
Charges,
and
Other
Operating
Income
|
Operating
Income
|
Interest,
Other,
and
Change
in
Financial
Assets
|
Income
Tax
Expense
|
Net
Income**
|
Diluted
Earnings
per
Share**
|
Reported
|
$
|
2,560.1
|
|
$
|
917.9
|
|
$
|
89.0
|
|
$
|
564.5
|
|
$
|
1.3
|
|
$
|
263.1
|
|
$
|
76.6
|
|
$
|
19.5
|
|
$
|
167.0
|
|
$
|
1.22
|
|
As a % of reported
net sales
|
|
35.9
|
%
|
3.5
|
%
|
22.1
|
%
|
0.1
|
%
|
10.3
|
%
|
3.0
|
%
|
0.8
|
%
|
6.5
|
%
|
|
Effective tax
rate
|
|
|
|
|
|
|
|
10.5
|
%
|
|
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
|
$
|
85.1
|
|
$
|
(0.4)
|
|
$
|
(58.4)
|
|
$
|
—
|
|
$
|
143.9
|
|
$
|
—
|
|
$
|
—
|
|
$
|
143.9
|
|
$
|
1.05
|
|
Acquisition and
integration-related charges and contingent consideration adjustments
|
|
|
1.6
|
|
—
|
|
(5.3)
|
|
(0.2)
|
|
7.1
|
|
—
|
|
—
|
|
7.1
|
|
0.05
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
—
|
|
—
|
|
(1.1)
|
|
1.1
|
|
—
|
|
—
|
|
1.1
|
|
0.01
|
|
(Gain) loss on
divestitures
|
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
0.3
|
|
(17.4)
|
|
—
|
|
17.7
|
|
0.13
|
|
Change in financial
assets
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3.7
|
|
—
|
|
(3.7)
|
|
(0.03)
|
|
Unusual
litigation
|
|
|
—
|
|
—
|
|
(9.0)
|
|
—
|
|
9.0
|
|
—
|
|
—
|
|
9.0
|
|
0.06
|
|
Separation and
reorganization expense
|
|
|
—
|
|
—
|
|
(0.7)
|
|
—
|
|
0.7
|
|
—
|
|
—
|
|
0.7
|
|
0.01
|
|
(Gain) Loss on
investment securities
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2.6)
|
|
—
|
|
2.6
|
|
0.02
|
|
Non-GAAP tax
adjustments*
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
47.6
|
|
(47.6)
|
|
(0.35)
|
|
Adjusted
|
|
|
|
$
|
1,004.6
|
|
$
|
88.6
|
|
$
|
490.8
|
|
$
|
—
|
|
$
|
425.2
|
|
$
|
60.3
|
|
$
|
67.1
|
|
$
|
297.8
|
|
$
|
2.17
|
|
As a % of reported
net sales
|
|
39.2
|
%
|
3.5
|
%
|
19.2
|
%
|
|
16.6
|
%
|
2.4
|
%
|
2.6
|
%
|
11.6
|
%
|
|
Adjusted effective
tax rate
|
|
|
|
|
|
|
|
18.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
|
|
|
|
|
Reported
|
137.3
|
|
|
*The non-GAAP tax
adjustments are primarily due to: (1) $31.4 million of tax effects
of pretax non-GAAP adjustments that are calculated based upon the
specific rate of the applicable jurisdiction of the pretax items
and (2) $15.8 million of tax benefits from the U.S. CARES Act
related to retroactive adjustments to the 2018 and 2019 tax years
recorded in the first quarter of 2020.
|
**Individual pre-tax
line item adjustments have not been tax effected, as tax expense on
these items are aggregated in the "Non-GAAP tax adjustments" line
item.
|
TABLE
II
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
SELECTED SEGMENT
INFORMATION
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
Worldwide
Consumer*
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
|
948.7
|
|
$
|
348.9
|
|
$
|
30.4
|
|
$
|
248.1
|
|
$
|
69.6
|
|
|
$
|
909.6
|
|
$
|
352.2
|
|
$
|
30.1
|
|
$
|
269.6
|
|
$
|
40.3
|
|
As a % of reported
net sales
|
|
36.8
|
%
|
3.2
|
%
|
26.2
|
%
|
7.3
|
%
|
|
|
38.7
|
%
|
3.3
|
%
|
29.6
|
%
|
4.4
|
%
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
|
$
|
22.0
|
|
$
|
(0.1)
|
|
$
|
(29.5)
|
|
$
|
51.6
|
|
|
$
|
—
|
|
$
|
24.7
|
|
$
|
(0.2)
|
|
$
|
(28.2)
|
|
$
|
53.1
|
|
Unusual
litigation
|
|
|
—
|
|
—
|
|
(4.5)
|
|
4.5
|
|
|
—
|
|
—
|
|
—
|
|
(7.0)
|
|
7.0
|
|
Separation and
reorganization expense
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(6.7)
|
|
6.7
|
|
Operating results
attributable to held-for-sale business**
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(22.3)
|
|
(11.2)
|
|
(0.4)
|
|
(7.3)
|
|
(3.5)
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
—
|
|
—
|
|
0.7
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12.2
|
|
(Gain) loss on
divestitures
|
|
|
—
|
|
—
|
|
(0.3)
|
|
0.3
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
integration-related charges and contingent consideration adjustments
|
|
|
1.5
|
|
—
|
|
(3.3)
|
|
4.9
|
|
|
—
|
|
—
|
|
—
|
|
(2.2)
|
|
2.2
|
|
Adjusted
|
|
|
|
$
|
372.4
|
|
$
|
30.3
|
|
$
|
210.5
|
|
$
|
131.6
|
|
|
$
|
887.3
|
|
$
|
365.7
|
|
$
|
29.5
|
|
$
|
218.2
|
|
$
|
118.0
|
|
As a % of reported
net sales (2020) / As a % of adjusted net sales (2019)
|
|
39.3
|
%
|
3.2
|
%
|
22.2
|
%
|
13.9
|
%
|
|
|
41.2
|
%
|
3.3
|
%
|
24.6
|
%
|
13.3%
|
|
*Worldwide Consumer
includes the CSCA and CSCI segments in addition to
Corporate.
|
**Held-for-sale
business includes our now divested animal health
business.
|
TABLE II
(CONTINUED)
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
SELECTED SEGMENT
INFORMATION
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
Consumer Self-Care
Americas
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
|
627.6
|
|
$
|
199.6
|
|
$
|
16.7
|
|
$
|
76.3
|
|
$
|
106.3
|
|
|
$
|
582.1
|
|
$
|
196.8
|
|
$
|
18.8
|
|
$
|
70.2
|
|
$
|
107.8
|
|
As a % of reported
net sales
|
|
31.8
|
%
|
2.7
|
%
|
12.2
|
%
|
16.9
|
%
|
|
|
33.8
|
%
|
3.2
|
%
|
12.1
|
%
|
18.5
|
%
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
|
$
|
5.4
|
|
|
|
|
$
|
(7.2)
|
|
$
|
12.5
|
|
|
$
|
—
|
|
$
|
4.7
|
|
$
|
—
|
|
$
|
(4.5)
|
|
$
|
9.2
|
|
Unusual
litigation
|
|
|
—
|
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
0.2
|
|
Operating results
attributable to held-for-sale business*
|
|
|
—
|
|
|
|
—
|
|
—
|
|
|
(22.3)
|
|
(11.2)
|
|
(0.4)
|
|
(7.3)
|
|
(3.5)
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
|
|
—
|
|
0.3
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
integration-related charges and contingent consideration adjustments
|
|
|
1.5
|
|
|
|
(3.4)
|
|
5.0
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Adjusted
|
|
|
|
$
|
206.5
|
|
|
|
|
$
|
65.7
|
|
$
|
124.1
|
|
|
$
|
559.8
|
|
$
|
190.3
|
|
$
|
18.4
|
|
$
|
58.2
|
|
$
|
113.7
|
|
As a % of reported
net sales (2020) / As a % of adjusted net sales (2019)
|
|
32.9
|
%
|
|
%
|
10.5
|
%
|
19.8
|
%
|
|
|
34.0
|
%
|
3.3
|
%
|
10.4
|
%
|
20.3%
|
|
*Held-for-sale
business includes our now divested animal health
business.
|
TABLE II
(CONTINUED)
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
SELECTED SEGMENT
INFORMATION
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
Consumer Self-Care
International
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
(Loss)
|
Reported
|
$
|
321.1
|
|
$
|
149.3
|
|
$
|
13.7
|
|
$
|
124.7
|
|
$
|
10.5
|
|
|
$
|
327.5
|
|
$
|
155.4
|
|
$
|
11.2
|
|
$
|
138.0
|
|
$
|
(2.9)
|
|
As a % of reported
net sales
|
|
46.5
|
%
|
4.3
|
%
|
38.8
|
%
|
3.3
|
%
|
|
|
47.4
|
%
|
3.4
|
%
|
42.1
|
%
|
(0.9)
|
%
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
|
$
|
16.6
|
|
$
|
(0.2)
|
|
$
|
(22.3)
|
|
$
|
39.1
|
|
|
|
|
|
$
|
19.9
|
|
$
|
(0.1)
|
|
$
|
(23.8)
|
|
$
|
43.8
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
—
|
|
—
|
|
0.4
|
|
|
|
|
—
|
|
—
|
|
—
|
|
9.1
|
|
(Gain) loss on
divestitures
|
|
|
—
|
|
—
|
|
(0.3)
|
|
0.3
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
integration-related charges and contingent consideration adjustments
|
|
|
—
|
|
—
|
|
0.1
|
|
(0.1)
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Adjusted
|
|
|
|
$
|
165.9
|
|
$
|
13.5
|
|
$
|
102.2
|
|
$
|
50.2
|
|
|
|
|
|
$
|
175.3
|
|
$
|
11.1
|
|
$
|
114.2
|
|
$
|
50.0
|
|
As a % of reported
net sales
|
|
51.7
|
%
|
4.2
|
%
|
31.8
|
%
|
15.6
|
%
|
|
|
53.5
|
%
|
3.4
|
%
|
34.9
|
%
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 27,
2020
|
|
June 29,
2019
|
Prescription
Pharmaceuticals
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
|
Net
Sales
|
Gross
Profit
|
R&D
Expense
|
DSG&A
Expense
|
Operating
Income
|
Reported
|
$
|
270.4
|
|
$
|
85.8
|
|
$
|
16.7
|
|
$
|
21.9
|
|
$
|
47.8
|
|
|
$
|
239.4
|
|
$
|
78.6
|
|
$
|
13.8
|
|
$
|
21.4
|
|
$
|
14.7
|
|
As a % of reported
net sales
|
|
31.7
|
%
|
6.2
|
%
|
8.1
|
%
|
17.6
|
%
|
|
|
32.8
|
%
|
5.8
|
%
|
8.9
|
%
|
6.1
|
%
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense
related primarily to acquired intangible assets
|
|
|
$
|
21.1
|
|
|
|
|
$
|
(0.1)
|
|
$
|
21.2
|
|
|
|
|
$
|
21.2
|
|
|
|
|
$
|
(0.1)
|
|
$
|
21.3
|
|
Separation and
reorganization expense
|
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
|
—
|
|
|
|
(0.8)
|
|
0.8
|
|
Restructuring charges
and other termination benefits
|
|
|
—
|
|
|
|
—
|
|
0.4
|
|
|
|
|
—
|
|
|
|
—
|
|
—
|
|
Impairment
charges
|
|
|
—
|
|
|
|
—
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
27.8
|
|
Acquisition and
integration-related charges and contingent consideration adjustments
|
|
|
—
|
|
|
|
—
|
|
(1.0)
|
|
|
|
|
—
|
|
|
|
—
|
|
0.9
|
|
Adjusted
|
|
|
|
$
|
106.9
|
|
|
|
|
$
|
21.8
|
|
$
|
68.4
|
|
|
|
|
|
$
|
99.8
|
|
|
|
|
$
|
20.5
|
|
$
|
65.5
|
|
As a % of reported
net sales
|
|
39.5
|
%
|
|
|
8.0
|
%
|
25.3
|
%
|
|
|
41.7
|
%
|
|
|
8.6
|
%
|
27.4
|
%
|
TABLE
III
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
ADJUSTED NET SALES
GROWTH - SELECTED SEGMENTS
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
27,
2020
|
|
June
29,
2019
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,219.1
|
|
|
$
|
1,149.0
|
|
|
6.1%
|
|
|
|
|
CSCA
|
$
|
627.6
|
|
|
$
|
582.1
|
|
|
7.8%
|
|
|
|
|
CSCI
|
$
|
321.1
|
|
|
$
|
327.5
|
|
|
(2.0)%
|
|
|
|
|
RX
|
$
|
270.4
|
|
|
$
|
239.4
|
|
|
12.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
1,219.1
|
|
|
$
|
1,149.0
|
|
|
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(22.3)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.3)
|
|
|
|
|
|
|
|
Consolidated net
sales as so adjusted
|
$
|
1,219.1
|
|
|
$
|
1,123.4
|
|
|
8.5%
|
|
1.5%
|
|
10.0%
|
Less:
Ranir
|
(62.0)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(19.8)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Consolidated
net sales as so adjusted
|
$
|
1,137.3
|
|
|
$
|
1,123.4
|
|
|
1.2%
|
|
1.4%
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Consumer
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
627.6
|
|
|
$
|
582.1
|
|
|
|
|
|
|
|
CSCI
|
321.1
|
|
|
327.5
|
|
|
|
|
|
|
|
Total Worldwide
Consumer
|
$
|
948.7
|
|
|
$
|
909.6
|
|
|
4.3%
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(22.3)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.3)
|
|
|
|
|
|
|
|
Worldwide Consumer
net sales as so adjusted
|
$
|
948.7
|
|
|
$
|
884.0
|
|
|
7.3%
|
|
1.9%
|
|
9.2%
|
Less:
Ranir
|
(62.0)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(19.8)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Worldwide
Consumer net sales as so adjusted
|
$
|
866.9
|
|
|
$
|
884.0
|
|
|
(1.9)%
|
|
1.8%
|
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
627.6
|
|
|
$
|
582.1
|
|
|
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(22.3)
|
|
|
|
|
|
|
|
CSCA net sales as so
adjusted
|
$
|
627.6
|
|
|
$
|
559.8
|
|
|
12.1%
|
|
0.8%
|
|
12.9%
|
Less:
Ranir
|
(44.7)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(18.5)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCA net
sales as so adjusted
|
$
|
564.4
|
|
|
$
|
559.8
|
|
|
0.8%
|
|
0.8%
|
|
1.6%
|
|
*Dr. Fresh
acquisition comprises all oral self-care assets purchased from High
Ridge Brands, including the brands Dr. Fresh®,
REACH® and Firefly®.
|
TABLE III
(CONTINUED)
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
ADJUSTED NET SALES
GROWTH - SELECTED SEGMENTS
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
27,
2020
|
|
June
29,
2019
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
CSCI
|
$
|
321.1
|
|
|
$
|
327.5
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(3.3)
|
|
|
|
|
|
|
|
CSCI net sales as so
adjusted
|
$
|
321.1
|
|
|
$
|
324.2
|
|
|
(1.0)%
|
|
3.9%
|
|
2.9%
|
Less:
Ranir
|
(17.3)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(1.3)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCI net
sales as so adjusted
|
$
|
302.5
|
|
|
$
|
324.2
|
|
|
(6.7)%
|
|
3.7%
|
|
(3.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
27,
2020
|
|
June
29,
2019
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
2,560.1
|
|
|
$
|
2,323.5
|
|
|
10.2%
|
|
|
|
|
CSCA
|
$
|
1,328.2
|
|
|
$
|
1,163.9
|
|
|
14.1%
|
|
|
|
|
CSCI
|
$
|
703.8
|
|
|
$
|
678.3
|
|
|
3.8%
|
|
|
|
|
RX
|
$
|
528.1
|
|
|
$
|
481.3
|
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
$
|
2,560.1
|
|
|
$
|
2,323.5
|
|
|
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(41.9)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(7.0)
|
|
|
|
|
|
|
|
Consolidated net
sales as so adjusted
|
$
|
2,560.1
|
|
|
$
|
2,274.6
|
|
|
12.6%
|
|
1.2%
|
|
13.8%
|
Less:
Ranir
|
(138.2)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(19.9)
|
|
|
—
|
|
|
|
|
|
|
|
Organic Consolidated
net sales as so adjusted
|
$
|
2,402.0
|
|
|
$
|
2,274.6
|
|
|
5.6%
|
|
1.2%
|
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
Worldwide
Consumer
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
1,328.2
|
|
|
$
|
1,163.9
|
|
|
|
|
|
|
|
CSCI
|
703.8
|
|
|
678.3
|
|
|
|
|
|
|
|
Total Worldwide
Consumer
|
$
|
2,032.0
|
|
|
$
|
1,842.2
|
|
|
10.3%
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(41.9)
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(7.0)
|
|
|
|
|
|
|
|
Worldwide Consumer
net sales as so adjusted
|
$
|
2,032.0
|
|
|
$
|
1,793.3
|
|
|
13.3%
|
|
1.7%
|
|
15.0%
|
|
*Dr. Fresh
acquisition comprises all oral self-care assets purchased from High
Ridge Brands, including the brands Dr. Fresh®,
REACH® and Firefly®.
|
TABLE III
(CONTINUED)
|
|
|
|
|
|
|
PERRIGO COMPANY
PLC
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES
|
|
|
|
|
|
|
ADJUSTED NET SALES
GROWTH - SELECTED SEGMENTS
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June
27,
2020
|
|
June
29,
2019
|
|
Total
Change
|
|
FX
Change
|
|
Constant
Currency
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
CSCA
|
$
|
1,328.2
|
|
|
$
|
1,163.9
|
|
|
|
|
|
|
|
Less: Animal
health
|
—
|
|
|
(41.9)
|
|
|
|
|
|
|
|
CSCA net sales as so
adjusted
|
$
|
1,328.2
|
|
|
$
|
1,122.0
|
|
|
18.4%
|
|
0.4%
|
|
18.8%
|
Less:
Ranir
|
(100.0)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(18.5)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCA net
sales as so adjusted
|
$
|
1,209.7
|
|
|
$
|
1,122.0
|
|
|
7.8%
|
|
0.5%
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
CSCI
|
$
|
703.8
|
|
|
$
|
678.3
|
|
|
|
|
|
|
|
Less: Canoderm
prescription product
|
—
|
|
|
(7.0)
|
|
|
|
|
|
|
|
CSCI net sales as so
adjusted
|
$
|
703.8
|
|
|
$
|
671.3
|
|
|
4.8%
|
|
3.9%
|
|
8.7%
|
Less:
Ranir
|
(38.2)
|
|
|
—
|
|
|
|
|
|
|
|
Less: Dr.
Fresh*
|
(1.4)
|
|
|
—
|
|
|
|
|
|
|
|
Organic CSCI net
sales as so adjusted
|
$
|
664.2
|
|
|
$
|
671.3
|
|
|
(1.1)%
|
|
3.7%
|
|
2.6%
|
|
*Dr. Fresh
acquisition comprises all oral self-care assets purchased from High
Ridge Brands, including the brands Dr. Fresh®,
REACH® and Firefly®.
|
TABLE
IV
|
PERRIGO COMPANY
PLC
|
RECONCILIATION OF
NON-GAAP MEASURES
|
SELECTED
CONSOLIDATED AND SEGMENT INFORMATION
|
(unaudited)
|
|
|
Three Months
Ended
|
|
|
June
27,
2020
|
|
June
29,
2019
|
|
Total
Change
|
Consolidated
adjusted EPS
|
|
$
|
1.03
|
|
|
$
|
0.86
|
|
|
19.8%
|
Consolidated
adjusted effective tax rate
|
|
16.7
|
%
|
|
23.1
|
%
|
|
(640) bps
|
|
|
|
|
|
|
|
Adjusted gross
margin
|
|
|
|
|
|
|
Worldwide
Consumer
|
|
39.3
|
%
|
|
41.2
|
%
|
|
(190) bps
|
CSCA
|
|
32.9
|
%
|
|
34.0
|
%
|
|
(110) bps
|
CSCI
|
|
51.7
|
%
|
|
53.5
|
%
|
|
(180) bps
|
RX
|
|
39.5
|
%
|
|
41.7
|
%
|
|
(220) bps
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
|
|
|
|
|
Worldwide
Consumer
|
|
13.9
|
%
|
|
13.3
|
%
|
|
60 bps
|
CSCA
|
|
19.8
|
%
|
|
20.3
|
%
|
|
(50) bps
|
CSCI
|
|
15.6
|
%
|
|
15.3
|
%
|
|
30 bps
|
RX
|
|
25.3
|
%
|
|
27.4
|
%
|
|
(210) bps
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
27,
2020
|
|
June
27,
2020
|
|
Operating cash
flow
|
|
$
|
290.9
|
|
|
$
|
462.7
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$
|
141.0
|
|
|
$
|
297.8
|
|
|
Cash conversion
ratio
|
|
206
|
%
|
|
155
|
%
|
|
|
Six Months Ended
December 31, 2019
|
Rosemont
Pharmaceuticals business
|
Diluted Earnings
per Share
|
Reported
|
$
|
0.02
|
|
Amortization expense
related primarily to acquired intangible assets
|
0.05
|
|
Tax effect of
non-GAAP adjustments
|
(0.01)
|
|
Adjusted
|
$
|
0.06
|
|
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SOURCE Perrigo Company plc