-
Management attributes 2025 progress to the ‘Three-S’ strategy (Simplify, Streamline, Strengthen), which successfully stabilized the store brand business and recovered infant formula service levels above 90%.
-
Performance was driven by significant market share gains in U.S. OTC and European brands, despite a ‘soft’ market environment characterized by reduced consumer consumption and trade-down to smaller units.
-
The company secured over $100 million in new distribution and competitive takeaways, which management views as a reversal of years of share decline.
-
Operational results were supported by $320 million in benefits from Project Energize and supply chain reinvention, offsetting gross profit flow-through headwinds.
-
Management is pivoting the portfolio toward ‘CORE Perrigo’ by divesting non-core assets like Dermacosmetics to focus on high-scale consumer health categories.
-
The current market weakness is viewed as 90% transitory, caused by a lack of historical price increases and a weak cough and cold season rather than structural shifts.
-
2026 is designated as a transition year, with guidance assuming continued negative OTC consumption in the first half followed by a second-half recovery driven by innovation and distribution gains.
-
A significant temporary headwind of approximately $0.60 per share is expected in 2026 due to plant under-absorption stemming from lower 2025 sales volumes.
-
The company is launching a new two-year operational enhancement program targeting $80 million to $100 million in annualized savings, including a 7% global workforce reduction.
-
Strategic reviews for the Infant Formula and Oral Care businesses remain ongoing to assess plant optimization, partnerships, or potential divestment options.
-
Management expects to share a long-term growth algorithm for CORE Perrigo later in 2026, focusing on cash flow and margin expansion as conditions normalize in 2027.
-
A $1.3 billion non-cash goodwill impairment charge was recorded in 2025 to align historical acquisition costs with current market valuations.
-
Management warned of a potential additional non-cash impairment charge of up to $350 million in Q1 2026 due to the reallocation of goodwill into new reporting segments.
-
The Dermacosmetics divestiture is expected to close in Q2 2026, with proceeds earmarked for debt reduction to manage the 4x net leverage ratio.
-
Infant Formula continues to face structural challenges, including intensified competition and slower demand recovery, impacting overall corporate margins.
