Company: PRGO
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585364-25-000014
Chunk: 40

Company: PERRIGO Co plc
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 40
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3. 

CONSOLIDATED 

Consolidated Financial Results

Year Ended(in millions, except percentages)December 31, 2024December 31, 2023Net sales$4,373.4 $4,655.6 Gross profit$1,542.7 $1,680.4 Gross profit %35.3 %36.1 %Operating income $112.9 $151.9 Operating income %2.6 %3.3 %

Net sales decreased $282.2 million, or 6.1%, primarily due to:

•$206.1 million decrease, or 4.5%, due primarily to $179.2 million of lower net sales volumes, previously disclosed lost distribution of lower margin products, and a later start to the cough and cold season, primarily impacting the Pain & Sleep Aids, Upper Respiratory Digestive Health, and Oral Care categories compared to the prior year and $108.4 million of lower net sales in U.S. Nutrition category driven by actions to augment and strengthen infant formula network. These factors were partially offset by growth in Women's Health and Skin Care; and 

•$50.6 million decrease from the divestitures of the Rare Diseases Business, Hospital and Specialty Business and the sale of branded products; and

•$15.1 million decrease from exited product lines; and 

•$10.4 million decrease from unfavorable foreign currency translation. 

Operating income decreased $39.0 million, or 25.7%, due to: 

•$137.7 million decrease in gross profit driven by the impact of lower global OTC net sales volumes resulting from a focus on production of higher margin products, including positive impacts from $57.1 million of new products, and lower infant formula volumes within U.S. Nutrition driven by actions to augment and strengthen the infant formula network. These lower sales volumes led to lower manufacturing productivity of 

41

Perrigo Company plc - Item 7Consolidated

$131.1 million which was partially offset by benefits from strategic pricing actions and savings achieved through Supply Chain Reinvention and Project Energize of $56.6 million. Additionally, exited products and divested businesses negatively impacted gross profit by $35.8 million and $17.5 million negative impact from infant formula remediation. Gross profit as a percentage of net sales decreased 80 basis points compared to the prior year due to the same factors that impacted gross profit; and 

•