Company: PRGO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001585364-25-000122
Chunk: 266

Company: PERRIGO Co plc
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 15
Chunk 266
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 of the Hospital & Specialty Business and the Rare Disease Business, decreased restructuring costs associated primarily with Project Energize and decreased selling and administrative costs of $26.6 million due primarily to Project Energize. 

42

Perrigo Company plc - Item 2Consolidated

Six Month Comparison

Six Months Ended(in millions, except percentages)June 28, 2025June 29, 2024Net sales$2,100.2 $2,147.5 Gross profit$755.2 $752.4 Gross profit %36.0 %35.0 %Operating income (loss) $92.3 $(81.7)Operating income (loss) %4.4 %(3.8)%

Net sales decreased $47.3 million, or 2.2%, due primarily to: 

•$47.5 million decrease due to the prior year divestitures of the Rare Diseases Business and the Hospital & Specialty Business and the sale of branded products within our CSCI segment; 

•$5.4 million decrease, or 0.3%, due primarily to lower net sales in the Digestive Health and Oral Care categories of $53.5 million, partially offset by the 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 $21.7 million. These were partially offset by

•$5.5 million increase from favorable foreign currency translation.

Operating income increased $174.0 million, or 213.0%, due primarily to: 

•$2.8 million decrease in gross profit driven primarily by the impact of divested businesses and exited products of $32.1 million, lower manufacturing efficiencies and lower net sales volumes primarily in U.S. OTC, partially offset by Supply Chain Reinvention benefits, Project Energize savings and a reduction of infant formula remediation costs of $7.9 million compared to the prior year. Gross profit as a percentage of net sales increased 100 basis points compared to the prior year due to the same factors that impacted gross profit; and

•$171.2 million decrease in operating expense due primarily to lower selling and administrative costs of $48.9 million due primarily to Project Energize, decreased restructuring costs associated primarily with Supply Chain Reinvention and Project Energize of $43.2 million, a decrease in expenses for litigation, and the absence of