Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 85

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Part II, Item 1
Chunk 85
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 sale of branded products of $26.0 million. 

Nine Month Comparison

Nine Months Ended(in millions, except percentages)September 27, 2025September 28, 2024Net sales$3,143.5 $3,235.1 Gross profit$1,132.3 $1,156.8 Gross profit %36.0 %35.8 %Operating income (loss) $164.9 $(1.3)Operating income (loss) %5.2 %— %

Net sales decreased $91.6 million, or 2.8%, due primarily to: 

•$62.3 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products within our CSCI segment; 

•$52.4 million decrease, or 1.7%, due primarily to lower net sales in the Digestive Health category of $39.9 million and Oral Care category of $24.6 million driven by soft OTC category consumption, as well as a prior year benefit in the Women's Health category of $15.0 million from initial retailer stocking of Opill® which launched at the end of the first quarter in the prior year, partially offset by higher net sales in the Upper Respiratory category of $21.6 million. These were partially offset by

•$23.1 million increase from favorable foreign currency translation. 

44

Perrigo Company plc - Item 2Consolidated

Operating income increased $166.2 million, due primarily to: 

•$24.5 million decrease in gross profit driven by lower net sales volumes flow through primarily in U.S. OTC, the impact of divested businesses and exited products of $39.5 million, and lower manufacturing efficiencies, partially offset by the infant formula business recovery, Supply Chain Reinvention benefits, Project Energize savings, favorable currency translation of $14.0 million and new products. Gross profit as a percentage of net sales increased 20 basis points compared to the prior year due to the same factors that impacted gross profit; and

•$190.7 million decrease in operating expense driven by lower selling and administrative costs of $73.8 million due primarily to benefits from Project Energize and lower variable employee expenses, the absence of prior year impairment charges of $50.3 million recognized as part of the assets held for sale of the Hospital & Specialty