Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 122

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Part II, Item 1
Chunk 122
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 estimates of the net differences between translation of foreign currency transactions into U.S. dollars for the three and six months ended June 28, 2025 at the average exchange rates for the reporting period and average exchange rates for the three and six months ended June 29, 2024. 

CONSOLIDATED FINANCIAL RESULTS

Three Month Comparison

 Three Months Ended(in millions, except percentages)June 28, 2025June 29, 2024Net sales$1,056.3 $1,065.5 Gross profit$362.9 $394.7 Gross profit %34.4 %37.0 %Operating income (loss)$45.4 $(26.5)Operating income (loss) %4.3 %(2.5)%

Net sales decreased $9.2 million, or 0.9%, due primarily to:

•$26.2 million decrease due to the prior year divestitures of the HRA Pharma Rare Diseases Business (the "Rare Diseases Business") and the Orion Laboratories Hospital & Specialty Business (the "Hospital & Specialty Business") and the sale of branded products within our CSCI segment;

•$1.1 million decrease, or 0.1%, due primarily to lower net sales in the Digestive Health category of $14.9 million due to lower consumption of specific molecules, and in the Oral Care category of $12.1 million due to lost distribution of lower margin products. These were partially offset by higher net sales in the Pain and Sleep-Aids category of $10.3 million led by improved supply of the Solpadeine brand, in the Nutrition category of $9.4 million driven by continued recovery in the infant formula business, and in the Upper Respiratory category of $7.1 million primarily from share gains and new distribution in U.S. store brand allergy product offerings and restored supply of the Physiomer® brand. This was all partially offset by

•$18.1 million increase from favorable foreign currency translation.

Operating income increased $71.9 million, or 271.3%, due primarily to: 

•$31.8 million decrease in gross profit driven primarily by divested businesses and exited product lines of $17.7 million, isolated production variability in infant formula, which caused an increase in product scrap in the quarter, lower net sales volumes primarily in U.S. OTC and lower manufacturing efficiencies. These factors were partially