#Ireland #Dublin #Perrigo Company #Self-Care Products #Patrick Lockwood-Taylor

Perrigo Unveils Comprehensive Plan for the Future of Self-Care

Perrigo Company plc (NYSE: PRGO), renowned for its innovative consumer self-care products, revealed an ambitious strategy during its Virtual Investor Day held on February 28, 2025. The primary goal of the event was to outline a plan aimed at consumerizing, simplifying, and scaling its unique global self-care platform. This initiative comes at a time when the company seeks a return to stable and reliable performance after navigating various challenges in recent years.

During this virtual meeting, company officials, including President and CEO Patrick Lockwood-Taylor, expressed their commitment to rejuvenate the brand by reinforcing the key strengths of Perrigo’s diverse portfolio. The management team highlighted that Perrigo’s various business segments can collectively enhance value through a carefully coordinated approach. This includes leveraging the cash flow generated from store brands and infant formula to invest in higher-margin and faster-growing 'High-Grow' brands. Additionally, the focus on brand and consumer-led innovation is set to strengthen customer partnerships and expand globally across different markets.

Perrigo's strategy is anchored on a three-pronged approach known as the 'Three-S' plan: Stabilizing, Streamlining, and Strengthening.
1. Stabilizing the performance of its Consumer Self-Care Americas (CSCA) store brand and infant formula divisions.
2. Streamlining both global operations and the Consumer Self-Care International (CSCI) portfolio to achieve greater efficiency.
3. Strengthening the successful segments by prioritizing investments in 'High-Grow' brands.

Lockwood-Taylor expressed enthusiasm about the opportunities that lie ahead. He stated, “Over the past 21 months, we have faced challenges head-on, pivoted effectively, and anchored our strategy to stabilize our business.” The CEO emphasized the company's expectations for significant earnings growth and cash flow while maintaining a strong dividend policy, which can lead to enhanced shareholder returns.

Financial Targets for 2025 and Beyond

As a part of the event, Perrigo also communicated financial targets for fiscal year 2025, outlining their expectations for solid growth. Some highlights include:

• - All-in net sales growth projected between 1% to 3%.
• - Organic net sales growth expected between 2.5% and 4.5%.
• - Adjusted gross margin anticipated at approximately 40%.
• - Adjusted operating margin projected around 15%.
• - An EPS range forecast of $2.90 to $3.10, marking a growth of 13% to 21%.
• - They expect a strong operating cash flow conversion to adjusted net income of 100% and free cash flow as a percentage of net sales at about 6%.

Looking further into the future, the company set guidance for fiscal years 2025-2027, forecasting a compound annual growth rate (CAGR) of organic net sales at 2.5% to 4.5%. The plan includes a focus on adjusted gross margin improvements and aims for a net leverage of less than 3x adjusted EBITDA by 2027.

Webinar Access and Future Outlook

The Virtual Investor Day commenced at 8:00 AM EST and was accessible for all stakeholders via the company’s investor relations website. A replay of the event will be available, providing insight into the meticulous preparation and thought leadership embedded in Perrigo's strategy for the future.

Perrigo Company's commitment to empowering consumers through its self-care products is promising as they pivot towards a more consumer-oriented, streamlined operational approach. The corporation seems poised to not only stabilize performance but to significantly scale its impact in the self-care market, fostering enduring relationships with its consumer base and ensuring long-term shareholder value.

About Perrigo

Perrigo Company plc is a prominent player in the consumer self-care industry, dedicated to providing over-the-counter health solutions that empower consumers to take charge of their health. For more information, visit their official website at www.perrigo.com.