Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 95

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Part II, Item 1
Chunk 95
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 of a 3.3% favorable effect of currency translation, as higher net sales of Solpadeine®, due primarily to improved supply, were partially offset by 3.8% from divested businesses and exited product lines;

•VMS: Net sales of $116.2 million decreased 8.8%, inclusive of a 2.4% favorable effect of currency translation, due primarily to deprioritization of the nutraceuticals portfolio, in addition to the unfavorable impact of 1.2% from divested businesses and exited products;

•Women's Health: Net sales of $103.3 million increased 2.2%, inclusive of a 2.6% favorable effect of currency translation, due primarily to higher net sales of contraceptive products including ellaOne®, driven by market share gains. These factors were more than offset by supply chain constraints that have since been resolved;

•Oral Care: Net sales of $71.6 million decreased 4.6%, inclusive of a 2.9% favorable effect of currency translation, due primarily to lower net sales of store brand products;

•Digestive Health and Other: Net sales of $74.8 million decreased 31.1%, inclusive of a 1.9% favorable effect of currency translation, due primarily to the divestiture of the Rare Diseases Business, which was partially offset by higher net sales of store brand digestive health products.

Operating income increased $71.1 million, or 109.2%, due primarily to:

•$30.2 million decrease in gross profit due primarily to the impact of divested businesses and exited products of $39.5 million, lower manufacturing productivity and unfavorable costs of goods sold inflation. These factors were partially offset by prior strategic pricing actions, $13.9 million from favorable currency translation, and new products. 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.

•$101.3 million decrease in operating expenses due primarily to the absence of the prior year impairment charges of $50.3 million recognized as part of the assets held for sale of the Hospital & Specialty Business and the Rare Diseases Business, decreased restructuring costs associated primarily with Project Energize and Supply Chain Reinvention activities, and lower variable costs of $35.4 million. These were partially offset by the absence of the prior year gain on the sale of branded products.

Unallocated Expenses

Unallocated expenses are comprised of certain corporate services not