Company: PRGO
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001585364-25-000156
Chunk: 93

Company: PERRIGO Co plc
Filing Date: 2025-11-05
Form: 10-Q
Item: Part II, Item 1
Chunk 93
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ive Health and Other: Net sales of $22.5 million decreased 26.1%, inclusive of a 4.0% favorable effect of currency translation, primarily due to divested businesses, including HRA Pharma Rare Diseases, and exited products.

49

Perrigo Company plc - Item 2CSCI

Operating income decreased $11.5 million, or 23.5%, due primarily to:

•$13.5 million decrease in gross profit due primarily to lower net sales volumes flow through, as well as $7.4 million from the impact of divested businesses and exited product lines. These factors were partially offset by $9.5 million increase from favorable currency translation. Gross profit as a percentage of net sales decreased 130 basis points compared to the prior year due to the same factors impacting gross profit.

•$2.0 million decrease in operating expenses driven by the absence of the prior year impairment charges of $16.2 million recognized as part of the assets held for sale of the Hospital & Specialty Business, and decreased administrative costs due primarily to lower variable employee expenses, partially offset by the absence of the prior year gain on the sale of branded products. 

Nine Month Comparison

 Nine Months Ended(in millions, except percentages)September 27, 2025September 28, 2024Net sales$1,255.1 $1,285.5 Gross profit$564.0 $594.2 Gross profit %44.9 %46.2 %Operating income$136.2 $65.1 Operating income %10.9 %5.1 %

Net sales decreased $30.4 million, or 2.4%, due primarily to: 

•$62.3 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products; partially offset by

•$23.7 million increase from favorable foreign currency translation;

•$8.2 million increase, or 0.7%, due primarily to growth of $15.1 million in the Pain & Sleep Aids category led by restored supply of the Solpadeine® brand, partially offset by unfavorable impacts across multiple OTC businesses due to soft category consumption, including lower net sales of $12.5 million in the VMS category.

CSCI net sales by product category were as follows:

SalesNine Months Ended(in millions, except percentages)September 27