Perrigo Company plc has released its fourth-quarter and fiscal year 2025 financial results. The company reported a 2.5% year-over-year decrease in net sales for the fourth quarter, totaling $1.11 billion. This decline was attributed to a 4.5% decrease in organic net sales, partially offset by a 2.3% favorable impact from currency exchange rates. The company's organic net sales were primarily impacted by a 2.9% decrease in infant formula sales, as well as lower sales in OTC contract manufacturing and soft total OTC category consumption, partially offset by market share gains.
Diluted earnings per share (EPS) for the fourth quarter reflected a significant decrease from the prior year, reporting $(10.20) compared to $(0.30) in the previous year. Adjusted EPS for the same period was $0.77, down from $0.93. The company cited a goodwill impairment charge as a primary contributor to the decline in reported EPS.
For fiscal year 2025, Perrigo reported a 2.8% year-over-year decrease in net sales, amounting to $4.25 billion. This decrease was driven by a 2.4% decline in organic net sales, as well as a 1.5% impact from divestitures and exited products. Similar to the fourth quarter, infant formula sales were a significant factor in the decline, along with lower sales in OTC contract manufacturing, oral care, and absence of prior-year Opill® launch stocking benefit.
Reported EPS for fiscal year 2025 was $(10.12), down from $(1.17) in the prior year, primarily due to the goodwill impairment charge. However, adjusted EPS for the same period showed an increase of 7.0% to $2.75, up from $2.57, driven by favorable currency exchange rates and offset by the impact of divestitures and exited products.
Looking ahead to fiscal year 2026, Perrigo issued its 'all in' total net sales outlook, anticipating a range of -5.5% to -1.5% compared to the prior year. The company also introduced a 'core' outlook, excluding infant formula and previously announced divestitures, with reported net sales expected to range from -3.0% to +1.0% and core organic net sales projected to range from -3.5% to +0.5%. The core adjusted EPS outlook for fiscal year 2026 is $2.25 to $2.55, compared to $2.52 in fiscal year 2025.
Perrigo also highlighted its operating cash flow for the year-to-date, reporting $239 million, with a cash and cash equivalents balance of $532 million as of December 31, 2025.
Furthermore, the company announced the launch of a new operational enhancement program expected to deliver pre-tax annualized savings of $80 million to $100 million and its transition to new reporting segments beginning in the first quarter of 2026, aligned to its commercial operating model.
As a result of these announcements, the company's shares have moved -0.92% on the market, and are now trading at a price of $15.03. If you want to know more, read the company's complete 8-K report here.
