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Perrigo's Fourth Quarter & Fiscal Year 2024 Financial Results

Perrigo Company plc, a major player in consumer self-care products, recently unveiled its financial results for the fourth quarter and the entire fiscal year 2024. The company managed a challenging landscape, working through regulatory hurdles in its infant formula sector while achieving substantive growth and reorganizational improvements.

Highlights of Fourth Quarter 2024

In the fourth quarter, Perrigo's net sales reached $1.14 billion, reflecting a modest drop of 1.6% compared to the same period last year. This decline is attributed to negative adjustments from divested operations and currency fluctuations, which overshadowed a 0.7% increase in organic growth.

Key growth in net sales was observed in the Nutrition, Skin Care, and Women’s Health categories, offsetting some losses in other sectors like Pain and Sleep-Aids. The growth of infant formula sales, up by 17% year-over-year, was particularly notable, primarily driven by market share gains and the recovery of customer inventory levels.

Despite reported losses in specific segments, the adjusted operating income for the fourth quarter was $194 million, representing a considerable increase of 16% from the previous year. The adjusted diluted earnings per share stood at $0.93, reflecting an 8.1% increase, thanks mainly to effective restructuring and cost-saving measures through their 'Project Energize.'

Fiscal Year 2024 Overview

For the fiscal year ended December 31, 2024, Perrigo recorded net sales of $4.37 billion, a decrease of 6.1% compared to 2023. This downturn primarily resulted from challenging market conditions, with significant impacts from divestitures and weakened currency conditions affecting profitability. The organic growth rate for the year showed a decline of 4.5%.

Perrigo reported a full-year adjusted diluted EPS at $2.57, marginally declining from $2.58 in the previous year. Noteworthy was the improvement in adjusted operating income, which rose to $609 million, marking an increase of 6% as 'Project Energize' and other supply chain initiatives began to materialize.

Strategic Initiatives and Future Outlook

Looking ahead, Perrigo has planned an Investor Day event on February 28, 2025, to share its strategic roadmap for 2025-2027. The company aims to continue its journey towards stabilization, streamlining operations, and solidifying its market position to foster sustainable, long-term growth. CEO Patrick Lockwood-Taylor stated that the adjustments made during 2024 have set a robust foundation for the company moving forward, identifying the reinvigoration of the infant formula business and improved market positioning as critical objectives in the coming years.

Perrigo's commitment to enhancing shareholder value was also demonstrated by a steadfast dividend return, indicating strong performance even amidst financial challenges. Cash and cash equivalents totaled $559 million as of December 31, 2024, showcasing a solid liquidity position to support future investments and operational expansions.

Conclusion

Despite facing various pressures in the fiscal year 2024, Perrigo has demonstrated resilience through strategic efforts and successful adjustments. With a focus on regaining market share and optimizing operations, the company appears well-positioned to navigate the complexities of the healthcare market effectively. Investors and stakeholders are keenly awaiting the upcoming strategic plans aimed at enhancing performance in the years to come.