Perrigo Reports Q3 2025 Results Amid Market Challenges

Perrigo Company plc has announced its financial results for the third quarter of 2025, reporting net sales of $1.04 billion, a decrease of 4.1% year-over-year. The decline is attributed to unfavorable market conditions and the impact of divestitures and exited products. Despite these challenges, the company achieved notable gains in five of seven over-the-counter (OTC) store brand categories and saw dollar share growth in key brands.

In a statement, President and CEO Patrick Lockwood-Taylor highlighted the company’s commitment to delivering trusted health solutions, stating, “While OTC consumption was increasingly soft in the third quarter, the Perrigo team delivered strong in-market performance.” He noted that the company gained dollar, unit, and volume share across multiple categories, which reflects its operational strength despite a tough marketplace.

The financial results reveal that organic net sales decreased by 4.4%. This decline stems from a 2.8% drop in businesses currently under strategic review, including the Infant Formula and Oral Care segments. The remaining decrease was primarily driven by sluggish consumption trends in the global OTC market.

Key Financial Metrics

Perrigo’s reported operating income for the quarter stood at $73 million, down from $80 million in the same period last year. Adjusted operating income fell to $173 million, reflecting a 4.9% decline. The company’s operating margin decreased to 7.0% for reported figures and 16.6% for adjusted figures.

Notably, diluted earnings per share (EPS) improved to $0.09, a significant recovery from a loss of $(0.13) in the prior year. Adjusted EPS declined slightly to $0.80, impacted by divestitures and exited products.

Year-to-date results also indicate a challenging environment. Total net sales reached $3.14 billion, down 2.8% compared to the previous year. However, adjusted net income rose to $1.97 per share, representing a growth of 20.9% when compared to the prior year.

Strategic Reviews and Future Outlook

Perrigo is actively reviewing its Infant Formula and Oral Care businesses, alongside the previously announced divestiture of its Dermacosmetics business, which is on track for closure in the first quarter of 2026. The company has adjusted its full-year 2025 outlook, projecting net sales growth of -2.5% to -3.0% and an adjusted EPS range of $2.70 to $2.80, equating to a year-over-year growth of 5% to 9%.

Lockwood-Taylor remarked on the adjustments, stating, “We are, however, managing through these with discipline by leveraging share gains and accretive initiatives to support expected mid-to-high single-digit adjusted EPS growth for the year.”

Perrigo’s ongoing initiatives, including its Project Energize program, aim to enhance operational efficiency and drive long-term performance. The company anticipates achieving annualized savings of $140 million to $170 million by the end of 2026, with a portion of these savings reinvested into the business.

In conclusion, while Perrigo faces external pressures, its strategic focus on market share gains and cost management positions it to navigate current challenges effectively. The company’s commitment to consumer health solutions remains steadfast as it adapts to evolving market dynamics.