Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 202

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 7
Chunk 202
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Digestive Health and Other: Net sales of $26.8 million decreased 40.9%, inclusive of a 3.0% favorable effect of currency translation, primarily due to divested businesses, including HRA Pharma Rare Diseases, and exited products.

47

Perrigo Company plc - Item 2CSCI

Operating income increased $69.5 million, or 674.8%, due primarily to:

•$4.8 million decrease in gross profit due primarily to $17.7 million from the impact of divested businesses and exited product lines, lower manufacturing productivity, and lower costs of good sold inflation. These factors were partially offset by $10.2 million from favorable currency translation, prior strategic pricing actions, and improved supply of key products. Gross profit as a percentage of net sales decreased 140 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 90 basis points.

•$74.3 million decrease in operating expenses due primarily to the absence of the 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, lower restructuring costs of $23.1 million compared to the prior year period, and lower selling and administrative costs due primarily to Project Energize. 

Six Month Comparison

 Six Months Ended(in millions, except percentages)June 28, 2025June 29, 2024Net sales$857.4 $869.3 Gross profit$392.5 $409.2 Gross profit %45.8 %47.1 %Operating income$98.8 $16.2 Operating income %11.5 %1.9 %

Net sales decreased $11.9 million, or 1.4%, 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; partially offset by

•$29.6 million increase, or 3.6%, due primarily to growth of $16.1 million in the Pain & Sleep Aids category led by restored supply of the Solpadeine brand, as well as higher net sales of $9.7 million in the Upper Respiratory category driven by higher cough/c