Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 276

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 15
Chunk 276
---
 addition to growth of the Lyclear® antiparasites brand and store brand nicotine replacement offerings. This growth was partially offset by the strategic exit of products within the weight loss sub-category; 

•Pain & Sleep-Aids: Net sales of $117.1 million increased 15.2%, inclusive of a 2.9% favorable effect of currency translation, as higher net sales of Solpadeine®, due primarily to improved supply, were partially offset by 4.2% from divested businesses and exited product lines;

•VMS: Net sales of $76.2 million decreased 9.8%, inclusive of a 0.9% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio, in addition to 1.3% from divested businesses and exited products;

•Women's Health: Net sales of $73.5 million increased 6.6%, inclusive of a 1.7% favorable effect of currency translation, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains;

•Oral Care: Net sales of $47.7 million decreased 7.7%, inclusive of a 1.8% favorable effect of currency translation, due primarily to lower net sales of store brand product;

•Digestive Health and Other: Net sales of $52.3 million decreased 33.1%, inclusive of a 1.1% favorable effect of currency translation, primarily due to the divestiture of the HRA Pharma Rare Diseases Business, which was partially offset by higher net sales of store brand digestive health products.

Operating income increased $82.6 million, or 509.9%, due primarily to:

•$16.7 million decrease in gross profit due primarily to the impact of divested businesses and exited products, lower manufacturing productivity and costs of goods sold inflation. These factors were partially offset by prior strategic pricing actions and improved supply of key products, and $4.4 million from favorable currency translation. Gross profit as a percentage of net sales decreased 130 basis points compared to the prior year due to the same factors impacting gross profit, partially offset by favorable brand mix due in part to improved supply of key products. Divested businesses and exited products had an unfavorable impact of 80 basis points. 

•$99.3 million decrease in operating expenses due primarily to decreased restructuring costs associated primarily with Project Energize and Supply Chain Reinvention activities, the absence of prior year impairment charges of