Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 196

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 7
Chunk 196
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 rates for the three months ended March 30, 2024. 

40

Perrigo Company plc - Item 2Consolidated

CONSOLIDATED FINANCIAL RESULTS

 Three Months Ended(in millions, except percentages)March 29, 2025March 30, 2024Net sales$1,043.9 $1,082.1 Gross profit$392.3 $357.7 Gross profit %37.6 %33.1 %Operating income $46.9 $(55.2)Operating income %4.5 %(5.1)%

Net sales decreased $38.2 million, or 3.5%, due primarily to:

•$21.3 million decrease due to the prior year divestitures of the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") and the Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") and the sale of branded products within our CSCI segment;

•$12.6 million decrease from unfavorable foreign currency translation; and

•$4.3 million decrease, or 0.4%, due primarily to lower net sales in the Digestive Health category, a prior year benefit in the Women's Health category of $15.2 million from initial retailer stocking of Opill® which launched at the end of the prior year quarter, and $8.7 million from previously disclosed net lost distribution of lower margin products within U.S. Store Brand. These were partially offset by higher net sales in the Upper Respiratory category due primarily to higher incidence levels of cough cold compared to the prior year period and improved supply of key products, the Nutrition category stemming from recovery in the infant formula business, and the Healthy Lifestyle category led by strong momentum in smoking cessation brand NiQuitin®.

Operating income increased $102.1 million, or 185.0%, due primarily to: 

•$34.6 million increase in gross profit driven by continuing recovery of the infant formula business generating $59.3 million more than the prior year period. This increase was partially offset by an $11.8 million impact from the divested Rare Diseases and Hospital and Specialty Businesses. Gross profit as a percentage of net sales increased 450 basis points compared to the prior year due to the same factors that drove gross profit.

•$67.5 million decrease in operating expenses due primarily to decreased securities litigation costs, decreased selling and administrative costs of $22.3