Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 60

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 1
Chunk 60
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•Oral Care: Net sales of $22.5 million decreased 21.6%, inclusive of a 1.5% unfavorable effect of currency translation, due primarily to lower net sales of store brand products.

•Digestive Health and Other: Net sales of $25.5 million decreased 22.3%, inclusive of a 1.5% unfavorable effect of currency translation, primarily due to the divestiture of the HRA Pharma Rare Diseases Business, which was partially offset by higher net sales of store brand digestive health products.

Operating income increased $13.1 million, or 49.4%, due primarily to:

•$12.0 million decrease in gross profit due primarily to the impact of the divested Rare Diseases and Hospital and Specialty Businesses of $11.8 million, as well as unfavorable impacts of $8.2 million from materials inflation and $5.8 million from unfavorable foreign currency translation. These factors were partially offset by strategic pricing actions and improved supply of key products. Gross profit as a percentage of net sales decreased 120 basis points compared to the prior year due to the same factors impacting gross profit, partially offset by favorable volume/mix towards higher margin products; and

•$24.9 million decrease in operating expenses due primarily to lower selling and administrative costs of $13.5 million due primarily to Project Energize, and lower restructuring costs of $11.7 million compared to the prior year period. 

44

Perrigo Company plc - Item 2Unallocated, Interest, Other, and Taxes

Unallocated Expenses

Unallocated expenses are comprised of certain corporate services not allocated to our reporting segments and are recorded in Operating income on the Condensed Consolidated Statements of Operations. Unallocated expenses were as follows (in millions):

Three Months EndedMarch 29, 2025March 30, 2024$56.6 $97.4 

The decrease of $40.8 million in unallocated expenses during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in expenses for litigation as well as restructuring associated primarily with Project Energize. 

Interest expense, net, and Other (income) expense, net

Three Months Ended(in millions)March 29, 2025March 30, 2024Interest expense, net$39.0 $43.0 Other (income) expense, net$(0.4)$0.4