Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 269

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 15
Chunk 269
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 2024..

•VMS and Other: Net sales of $3.1 million decreased 42.9% due primarily to volume decline in the VMS category.

44

Perrigo Company plc - Item 2CSCA

Operating income decreased $24.2 million, or 34.9%, due primarily to:

•$26.9 million decrease in gross profit primarily driven by isolated production variability in infant formula, which caused an increase in product scrap in the second quarter, and lower net sales volumes primarily in U.S. OTC. These factors were partially offset by favorable impacts from lower materials inflation and savings from Project Energize. Gross profit as a percentage of net sales decreased 370 basis points compared to the prior year due primarily to the same factors that drove gross profit.

•$2.7 million decrease in operating expenses due primarily to lower selling costs of $7.4 million due primarily to Project Energize, partially offset by bad debt expense recognized primarily related to a customer bankruptcy and higher restructuring costs compared to the prior year period.

Six Month Comparison

 Six Months Ended(in millions, except percentages)June 28, 2025June 29, 2024Net sales$1,242.8 $1,278.3 Gross profit$362.8 $343.3 Gross profit %29.2 %26.9 %Operating income$109.1 $85.0 Operating income %8.8 %6.6 %

Net sales decreased $35.5 million, or 2.8%, due primarily to:

•$35.0 million decrease, or 2.7%, due primarily to lower net sales in the Digestive Health category of $35.5 million, a prior year benefit in the Women's Health category of $18.0 million from initial retailer stocking of Opill® which launched at the end of the first quarter in the prior year, and lower net sales in the Oral Care category of $16.0 million. These were partially offset by higher net sales in the Nutrition category of $23.9 million, stemming from recovery in the infant formula business, as well as higher net sales in the Upper Respiratory category of $12.1 million due to higher incidence levels of cough cold compared to the prior year.

CSCA net sales by product category were as follows:

SalesSix Months Ended(in millions, except percentages)June 28,