PRGO · Perrigo Company plc

Perrigo's first quarter 2026 results reflect a challenging operating environment with lower seasonal cough/cold incidence and retailer destocking pressuring top-line performance. Core net sales declined 8.3% to $842 million, and Core organic net sales fell 11.0%, driven by volume/mix of -11.0% partially offset by 0.2% pricing. The company reported a GAAP net loss of $(2.81) per diluted share, primarily due to a $330.8 million goodwill impairment charge. On an adjusted basis, All In diluted EPS was $0.43, down 28.3% year-over-year, while Core adjusted EPS declined 20.0% to $0.40. Gross margin compression was a key theme: Core adjusted gross margin fell 160 basis points to 39.2%, impacted by lower volumes, prior-year manufacturing headwinds, and unfavorable mix, partially offset by a $21 million tariff recovery. Operating margins also contracted, with Core adjusted operating margin down 110 basis points to 12.8%. Segment performance was mixed: Self Care net sales dropped 11.5% due to weak cough/cold and digestive health categories, while Specialty Care grew 4.0% driven by Women's Health brands Opill and ellaOne. Infant Formula net sales increased 2.1% on contract growth. Management highlighted progress on the Three-S plan and category-led operating model, noting market share gains in U.S. store brand OTC. The company completed the divestiture of its Dermacosmetics business post-quarter for upfront proceeds of approximately €306 million, expected to support debt reduction. Full-year 2026 guidance was reaffirmed, with Core adjusted EPS of $2.25-$2.55 and Core adjusted operating margin of 15.0%-16.0%, implying a significant second-half improvement as the company laps prior-year headwinds and benefits from growth initiatives. Cash flow was negative in the quarter at -$114 million from operations, in line with expected phasing, and total debt stood at $3.6 billion against $357 million cash.