Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 123

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part II, Item 1
Chunk 123
---
 offset by favorable foreign currency translation of $11.0 million and Project Energize savings. Gross profit as a percentage of net sales decreased 260 basis points compared to the prior year due primarily to the same factors that drove gross profit, partially offset by favorable net sales mix of brand to store brand. Divested businesses and exited products unfavorably impacted gross margin by 70 basis points.

•$103.7 million decrease in operating expenses due primarily to the absence of prior year impairment charges of $34.1 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Disease Business, decreased restructuring costs associated primarily with Project Energize and decreased selling and administrative costs of $26.6 million due primarily to Project Energize. 

42

Perrigo Company plc - Item 2Consolidated

Six Month Comparison

Six Months Ended(in millions, except percentages)June 28, 2025June 29, 2024Net sales$2,100.2 $2,147.5 Gross profit$755.2 $752.4 Gross profit %36.0 %35.0 %Operating income (loss) $92.3 $(81.7)Operating income (loss) %4.4 %(3.8)%

Net sales decreased $47.3 million, or 2.2%, due primarily to: 

•$47.5 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; 

•$5.4 million decrease, or 0.3%, due primarily to lower net sales in the Digestive Health and Oral Care categories of $53.5 million, partially offset by the higher net sales in the Nutrition category of $23.9 million, stemming from recovery in the infant formula business, as well as higher net sales in the Upper Respiratory category of $21.7 million. These were partially offset by

•$5.5 million increase from favorable foreign currency translation.

Operating income increased $174.0 million, or 213.0%, due primarily to: 

•$2.8 million decrease in gross profit driven primarily by the impact of divested businesses and exited products of $32.1 million, lower manufacturing efficiencies and lower net sales volumes primarily in U.S. OTC, partially offset by Supply Chain Reinvention benefits, Project Energize savings and a reduction