Perrigo Plan to Consumerize, Simplify, Scale Global Self-Care Platform at Virtual Investor Day

 Perrigo Company plc (NYSE: PRGO), a leading provider of Consumer Self-Care Products, today announced that at its Virtual Investor Day, scheduled to begin today at 8:00 AM EST, the management team will lay out its plan to consumerize, simplify and scale its global self-care platform, with a clear path to return to stable and reliable performance.

Perrigo's unique complementary businesses enables each individually to play a specific reinforcing role, where 1) store brands and infant formula generate cash for investments into the Company's key higher margin, higher growth or 'High-Grow' brands, 2) branding and innovation capabilities that deliver brand and store brand demand generation leading to stronger customer partnerships, 3) consumer-led innovation that is scaled across brands, store brands and geographies, and 4) the Company's global supply chain scale and reach with 100-plus molecules, at 100% consumer price point coverage, serves the most consumers.

The Company's plan to drive cash flow and total shareholder return is anchored behind its 'Three-S' plan – 'Stabilizing' Consumer Self-Care Americas (CSCA) store brand and infant formula businesses; 'Streamlining' the global portfolio, enterprise operating model and Consumer Self-Care International (CSCI) business; and 'Strengthening' what is working by prioritizing and increasing investments behind key 'High-Grow' brands.

President and CEO Patrick Lockwood-Taylor commented, "The team and I are incredibly excited about the significant opportunities ahead and our clear path forward. Over the past 21 months, we have faced challenges head-on, pivoted effectively and anchored our strategy to stabilize our business, streamline complexity and strengthen areas that are leading performance. These imperatives are expected to yield significant earnings growth and cash flow, and coupled with a high-quality and growing dividend, have the potential to translate into notable total shareholder returns. We look forward to presenting our plan at today's Virtual Investor Day."

In conjunction with its Investor Day, the Company is providing select financial targets for fiscal year 2025 and for fiscal years 2025 to 2027.

Fiscal Year 2025 Financial Targets1 (fiscal year 2024 actuals as the baseline):

• All-in net sales growth of 1% to 3%.

• Organic net sales growth of 2.5% to 4.5%.

• Adjusted gross margin of approximately 40%.

• Adjusted operating margin of approximately 15%.

• Adjusted diluted earnings per share ("EPS") range of $2.90 to $3.10, equating to growth of 13% to 21%.

• Operating cash flow conversion to adjusted net income of approximately 100%.

• Free cash flow as a percentage of net sales of approximately 6%.

• Net leverage of approximately 3.5x adjusted EBITDA.

• Fiscal Years 2025 to 2027 Financial Targets, (fiscal year 2024 actuals as the baseline):

  • Organic net sales CAGR of 2.5% to 4.5%.

  • Adjusted gross margin expansion of +200 to +400 basis points by 2027.

  • Adjusted operating margin expansion of +150 to +250 basis points by 2027.

  • Adjusted diluted EPS CAGR of high-single to low-double digit percentage.

  • Operating cash flow conversion to adjusted net income of approximately 100% or more.

  • Free cash flow as a percentage of net sales of approximately +200 basis points by 2027.

  • Net leverage of less than 3x adjusted EBITDA in 2027.

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  Virtual Investor Day Details

  Perrigo's 2025 Virtual Investor Day will start today, Friday, February 28, 2025, at 8:00 A.M. EST and will be available at https://investor.perrigo.com/events-webcasts. A replay will also be available.

• https://finance.yahoo.com/news/perrigo-provides-detailed-plan-consumerize-121500494.html