Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 155

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 7
Chunk 155
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. Significant exchange rate fluctuations, especially in the Euro or the British Pound Sterling, have had, and could continue to have, a significant impact on our net sales, net earnings and cash flows.

For additional information, refer to Item 1A - Risk Factors. 

RESULTS OF OPERATIONS

Currency Translation

Any currency translation effects described below represent estimates of the net differences between translation of foreign currency transactions into U.S. dollars for the three and nine months ended September 27, 2025 at the average exchange rates for the reporting period and average exchange rates for the three and nine months ended September 28, 2024. 

43

Perrigo Company plc - Item 2Consolidated

CONSOLIDATED FINANCIAL RESULTS

Three Month Comparison

 Three Months Ended(in millions, except percentages)September 27, 2025September 28, 2024Net sales$1,043.3 $1,087.5 Gross profit$377.1 $404.4 Gross profit %36.1 %37.2 %Operating income$72.6 $80.4 Operating income %7.0 %7.4 %

Net sales decreased $44.2 million, or 4.1%, due primarily to:

•$47.1 million decrease, or 4.4%, due primarily to lower net sales in the Nutrition category of $27.3 million driven by a strong product pipeline refill to contract manufacturing customers and consumer pantry loading ahead of a port strike threat in the prior year quarter and lost distribution of the Good Start® brand, and unfavorable impacts across our global OTC businesses due to soft category consumption. These were partially offset by higher net sales in the Skin Care category of $5.7 million driven by new distribution and increased consumption in the Minoxidil store brand franchise, along with higher net sales of Mederma®; 

•$14.7 million decrease due to the prior year divestitures of the Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") and the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") and the sale of branded products within our CSCI segment; partially offset by

•$17.6 million increase from favorable foreign currency translation.

Operating income decreased $7.8 million, or 9.7%, due primarily to: 

•$27.3 million decrease in gross profit driven by lower net sales volumes flow through