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Perrigo Company Plc Reports Record Third Quarter HIGHLIGHTED BY ORGANIC NET SALES GROWTH

The following excerpt is from the company's SEC filing.

Quarter Calendar Year 2015* Highlights:

Delivered record third quarter net sales of

$1.34 billion

, comprised of

$977 million

from consumer-facing businesses

Grew net sales by

, highlighted by organic net sales of

$95 million

, an increase of

from the prior year on a constant currency basis

Adjusted net income


to a record

$258 million

, with adjusted diluted earnings per share of

Achieved record third quarter adjusted gross margin of

and record

quarter adjusted o perating margin of


quarter GAAP net income of

$113 million

and GAAP diluted earnings per share of

with GAAP gross margin of

and GAAP operating margin of

Announced $2.0 Billion Share Repurchase Plan, including $500 Million in Q4 2015 that is Incremental to 2016 EPS Forecast of $9.30 per share

Perrigo narrows full year 2015 adjusted EPS guidance range to $7.65 - 7.85, excluding the benefits from Share Repurchase Plan

*As previously disclosed, the Company is changing its fiscal year end from June to December 31.

Dublin, Ireland -

October 22, 2015

- Perrigo Company plc (NYSE: PRGO; TASE) today announced results for the

calendar quarter ended

September 26, 2015

Perrigo’s Chairman and CEO Joseph C. Papa commented, “The team delivered record third quarter performance. Looking at the results, net sales grew

, highlighted by consolidated organic growth of

, and Consumer Healthcare ("CHC") growth of

on a constant currency basis. Our world-class supply chain team demonstrated their expertise once again, helping to deliver CHC adjusted operating margin growth of

basis points over the prior year. The Rx segment continues its track record of impressive quarterly growth as net sales increased

versus last year. We continue to execute on our 'Base Plus Plus Plus' strategy, closing three acquisitions in the quarter that will build upon our global platform, as well as a licensing agreement this month that will give us new capabilities in the development of a portfolio of over-the-counter (OTC) extended release suspension products. Our durable business model and future growth prospects are self-evident as we continue to deliver value for our shareholders and provide "Quality Affordable Healthcare Products

to our customers and patients worldwide."

Refer to Tables I, II, III and IV at the end of this press release for a reconciliation of non-GAAP adjustments to the current year and prior year periods and additional non-GAAP information. The Company’s reported results are summarized in the attached Condensed Consolidated Statements of Operations.

Perrigo Company plc**

(in millions, except per share amounts)

(see the attached Table I for reconciliation to GAAP numbers)

(YoY % Change may not calculate due to rounding)

Calendar 2015

Calendar 2014

Third Quarter

Constant Currency


Net Sales



Branded Consumer Healthcare




Specialty Science

Total Net Sales



Reported Net Income


Adjusted Net Income



Reported Diluted EPS

Adjusted Diluted EPS

Reported Diluted Shares

Adjusted Diluted Shares

**This press release contains non-GAAP measures. The reconciliation of these measures to the most comparable GAAP measures is included at the end of this press release. As a part of these non-GAAP measures, we report sales performance using the financial measure of "constant currency". We believe this provides meaningful information to assist our shareholders in understanding our financial results and true operational performance by assuming that foreign exchange rates had not changed between the prior and current period. The comparisons presented at constant currency reflect current year results translated at the prior year's exchange

rates. This includes the royalty revenue related to Biogen Inc.'s sales of its Multiple Sclerosis drug Tysabri

included in the Specialty Sciences Segment.

Calendar Quarter Results

Net sales in the quarter were

$1.34 billion

on a reported basis. On a constant currency basis, net sales in the quarter increased

quarter of

, attributable primarily to

$302 million

related to the inclusion of the Branded Consumer Healthcare ("BCH") segment,

growth in the Rx segment and

growth in the CHC segment on a constant currency basis. New product sales were

$114 million

driven by

$84 million

from legacy Perrigo and a

$31 million

contribution from BCH. This increase was offset partially by

$54 million

in discontinued products. Net sales were impacted by

$22 million

of unfavorable foreign currency movements.

Excluding charges as outlined in Table I at the end of this release,

quarter calendar year

adjusted net income increased

$258 million

per diluted share versus

for the same period last year.

Segment Results

$675 million

increase on a constant currency basis, reflecting new product sales of

$65 million

and an increase in sales of existing products of

$49 million

(primarily in the gastrointestinal, infant formula and cough/cold categories). These increases were offset by discontinued products of

$52 million

, a decline of

$27 million

in existing products (primarily in animal health, diabetes and analgesics). Net sales were impacted by

$14 million

Record adjusted gross profit margin of

basis points compared to last year primarily due to product mix and manufacturing efficiencies.

Adjusted operating income of

$139 million


$45 million

, compared to the prior year due to higher gross profit contribution and relatively lower operating expenses compared to last year.

Net sales of

included new product sales of

calendar quarter adjusted gross profit percent to sales was

and adjusted operating income was

$44 million

of sales.

Rx Pharmaceuticals

$260 million

, an increase of

over the prior year, were driven by an increase in existing products of

$47 million

and new product sales of

$18 million

$110 million

$28 million

, compared to the prior year, even after making enhanced R&D investments on new product...