Company: PRGO
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001585364-25-000056
Chunk: 263

Company: PERRIGO Co plc
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 15
Chunk 263
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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 

The $4.0 million decrease in Interest Expense, net during the three months ended March 29, 2025 compared to the prior year period was due primarily to a decrease in interest expense associated with a decrease in outstanding borrowings under our Senior Secured Credit Facilities. 

Income Taxes (Consolidated) 

The effective tax rates were as follows: 

Three Months EndedMarch 29, 2025March 30, 202499.0 %104.2 %

The effective tax rate on the pre-tax income for the three months ended March 29, 2025 decreased