Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 229

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 15
Chunk 229
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 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. 

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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 primarily in CSCI and the Nutrition category, and divested businesses and exited product lines of $7.4 million, partially offset by favorable foreign currency translation of $9.3 million and new products. Gross profit as a percentage of net sales decreased 110 basis points compared to the prior year due primarily to the same factors that drove gross profit, partially offset by Supply