/Perrigo Reports Second Quarter 2026 Financial Results From Continuing Operations

NEWS

8h ago

Perrigo Reports Second Quarter 2026 Financial Results From Continuing Operations

PRNewswire

2026/08/05Earnings

Perrigo Reports Second Quarter 2026 Financial Results From Continuing Operations

Execution of Three-S plan driving continued improvement in underlying business fundamentals, including market share growth in U.S. store-brand OTC and key European brands
Streamlined portfolio through completion of Dermacosmetics divestiture and continuing strategic reviews of Infant Formula and Oral Care businesses
Reaffirmed full-year 2026 outlook with sequentially stronger second-half performance

DUBLIN, Aug. 5, 2026 — Perrigo Company plc (NYSE: PRGO) ("Perrigo" or the "Company"), a leading provider of Consumer Self-Care Products*,* today announced financial results from continuing operations for the second quarter ended June 27, 2026.

"We continued to execute our Three-S plan in the second quarter, strengthening areas of the business within our control, improving operational performance, streamlining our portfolio, and further reducing debt," said Albert Manzone, Interim President and Chief Executive Officer. "While results were impacted by ongoing category softness and macroeconomic headwinds, we again drove market share gains as our broad portfolio of quality self-care products across all price points continues to resonate with consumers seeking value and affordability. We also took another important step in simplifying our portfolio by completing the previously announced sale of our Dermacosmetics business, and are continuing the strategic reviews of our Infant Formula and Oral Care businesses. We are becoming a more focused consumer self-care company, and are making progress in strengthening the underlying fundamentals of our business."

"Looking ahead, we are reaffirming our full-year 2026 outlook with a sequentially stronger second half, supported by clear and tangible drivers, including the expected moderation of planned under absorption stemming from lower prior-year sales volumes, more favorable category comparisons, and continued strong operational execution. While mindful of an uncertain consumer and macroeconomic environment, we are continuing to gain market share, streamline our portfolio, and strengthen our balance sheet. At the same time, we remain focused on converting our operational progress into sustainable growth and long-term shareholder value."

Second Quarter Results As announced previously, the Company now reports results on both an All In and Core Perrigo basis. All In results reflect the entirety of our business, while Core represents our go-forward business and excludes Infant Formula and previously announced divestitures.

All In

Core

2Q'26

2Q'25

Change

2Q'26

2Q'25

Change

Reported Net Sales

$1,023

$1,056

(3.2) %

$907

$936

(3.1) %

Reported Gross Margin

30.7 %

34.4 %

(370)bps

Reported Operating Margin

2.3 %

4.3 %

(200)bps

Reported Diluted Earnings Per Share ("EPS")

$0.63

$0.00

n/m

All In

Core

2Q'26

2Q'25

Change

2Q'26

2Q'25

Change

Organic Net Sales(1)

$1,019

$1,033

(1.3) %

$903

$936

(3.5) %

Adj. Gross Margin

35.6 %

38.1 %

(250)bps

37.0 %

39.5 %

(250)bps

Adj. Operating Margin

12.2 %

12.8 %

(60)bps

13.0 %

14.6 %

(160)bps

Adj. Diluted EPS

$0.50

$0.57

(12.3) %

$0.46

$0.58

(20.7) %

*** Absolute amounts in millions. Data may not add due to rounding. Percentages are based on actuals.

(1) See attached Appendix for details. Change in net sales on an organic basis excludes the effects of acquisitions, divestitures and exited products, and the impact of currency.

Net Sales

Core net sales were $907 million, declining 3.1% year-over-year, while Core organic net sales decreased 3.5%. Core results reflected ongoing softness in consumption compared to a strong prior-year period, along with continued lower retail inventory levels. Consumption trends improved throughout the quarter, and Perrigo continued to gain market share across key categories driven by innovation and strong commercial execution. Pricing declined 0.7% and volume/mix decreased 2.4%.
All In reported net sales declined 3.2% year-over-year to $1.02 billion. All In results were primarily driven by the same factors as Core net sales in addition to Infant Formula net sales growth of 23.1% year-over-year, which was more than offset by the impact of divestitures.

Gross Margin

Reported All In gross margin was 30.7%, a decrease of 370 basis points versus the prior year due to the impact of lower net sales volumes, primarily within the Self Care segment, the carry over impact of planned under absorption stemming from lower prior-year sales volumes, and unfavorable mix, partially offset by improved Infant Formula productivity and the net recognition of a recovery of a portion of previously paid tariffs.
Core adjusted gross margin decreased 250 basis points to 37.0% driven by lower net sales volumes, the carry over impact of planned under absorption stemming from lower prior-year sales volumes in U.S. OTC, and unfavorable mix. These headwinds were partially offset by the net recognition of a recovery of a portion of previously paid tariffs and the gross margin contribution from innovation and continued market share gains.
All In adjusted gross margin decreased 250 basis points to 35.6%, driven by the same factors impacting Core adjusted gross margin in addition to the impact of divestitures. These pressures were partially offset by improved Infant Formula productivity, which more than offset planned under absorption stemming from lower prior-year sales volumes.

Operating Margin

Reported operating margin was 2.3% compared to 4.3% in the prior year due to unfavorable gross profit flow through partially offset by lower administrative expenses primarily related to the Operational Enhancement Program.
Core adjusted operating margin decreased 160 basis points to 13.0% primarily due to unfavorable gross profit flow through. This decline was partially offset by reduced operating expenses primarily driven by benefits from the Operational Enhancement Program.
All In adjusted operating margin decreased 60 basis points to 12.2%, driven by the same factors impacting Core adjusted operating margin as well as the impact of divestitures. These factors were partially offset by the strong performance of Infant Formula.

Other Items

Reported net interest and other income increased $124.1 million to $81.9 million primarily due to the gain on the sale of the Dermacosmetics business.
Net adjusted interest and other expense decreased $0.6 million to $39.3 million due to the reduction in debt outstanding.
The Company's reported effective tax rate was 16.0%. The Company's adjusted effective tax rate increased 60 basis points to 17.5%.

Diluted EPS

Reported diluted EPS was $0.63 compared to $0.00 in the prior year, benefiting from the gain on sale of the Dermacosmetics business, as well as prior year isolated production variability in Infant Formula and restructuring expenses.
Core adjusted EPS declined $0.12 to $0.46, a 20.7% decrease from the prior year.
All In adjusted diluted EPS declined $0.07 to $0.50, a 12.3% decrease from the prior year.

Business Segment Results

2Q'26

2Q'25

Change

Organic Change

Segment net sales:

Self Care

$577

$599

(3.7) %

(3.9) %

Specialty Care

227

233

(2.8) %

(2.9) %

Infant Formula

101

23.1 %

Total segment net sales

904

914

(1.0) %

(1.2) %

All Other

119

143

(16.9) %

(2.4) %

Consolidated net sales

$1,023

$1,056

(3.2) %

(1.3) %

2Q'26

2Q'25

Change

Segment operating income:

Self Care

$79

$94

(16.2) %

Specialty Care

(27.9) %

Infant Formula

(12)

n/m

Total segment operating income

$131

$148

(11.8) %

All Other

0.5 %

Unallocated

(32)

(38)

(17.3) %

Consolidated adjusted operating income

$125

$135

(7.9) %

*** Absolute amounts in millions. Data may not add due to rounding. Percentages are based on actuals.

Self Care

Net sales decreased 3.7% compared to the prior year, inclusive of a 0.5% favorable impact of currency translation. The decline was driven by continued softness in category consumption across both the U.S. and Europe and a slower start to certain summer seasonal categories, which led to a continued reduction of retail inventory levels, most notably in Europe. Innovation, distribution gains, and strong commercial execution drove continued market share gains across key categories.

Segment operating income decreased 16.2%, primarily due to lower net sales volumes, unfavorable mix, and the planned under absorption stemming from lower prior-year sales volumes. These pressures were partially offset by benefits from the Operational Enhancement Program.

Specialty Care

Net sales decreased 2.8%, inclusive of a 0.1% favorable impact of currency translation. The decline was driven by Skin Health results, which were impacted by a slower start in summer seasonal categories, lower sales of store brand Minoxidil, and a difficult prior-year comparison for Mederma® due to the timing of inventory restocking. This sales decline was partially offset by growth in the Women's Health category led by continued momentum from Opill® and ellaOne®.

Segment operating income decreased 27.9% due to unfavorable mix, higher advertising and promotional investments to support second-half growth initiatives, and the planned under absorption stemming from lower prior-year sales volumes. These pressures were partially offset by benefits from the Operational Enhancement Program.

Infant Formula

Net sales increased 23.1% primarily driven by timing of contract infant formula shipments, in addition to increased net sales of store brand formula. This growth was partially offset by lower net sales of branded infant formula.

Segment operating income increased primarily due to improved gross profit flow through from the lapping of isolated production variability in the prior-year period that resulted in higher product scrap, and the benefit of higher net sales. These factors were partially offset by planned under absorption stemming from lower prior-year sales volumes.

All Other

Net sales decreased 16.9%, inclusive of a 0.1% favorable impact of currency translation, primarily due to the impact of divestitures.

Segment operating income increased 0.5% due to the net recognition of a recovery of a portion of previously paid tariffs in addition to improved productivity and lower operating expenses in the Oral Care category. These factors more than offset the impact of divestitures.

Cash Flow and Balance Sheet

Net cash from operating activities was $83 million in the second quarter.
Second quarter capital expenditures were $14 million and the Company returned $40 million to shareholders through dividends.
Cash and cash equivalents as of June 27, 2026 were $400 million while total debt was $3.3 billion.
The substantial majority of the approximately $359 million of cash proceeds from the Dermacosmetics divestiture were applied toward debt reduction, reducing borrowings under the revolving credit facility and enhancing financial flexibility to support the Company's Three-S plan and long-term value creation.

Fiscal 2026 Outlook

The Company reaffirms its 2026 outlook. Second-half results are expected to benefit from the moderation of planned under absorption stemming from lower prior-year sales volumes, more favorable category comparisons, lower interest expense, continued cost benefits from the Operational Enhancement Program and progress across the Company's key growth initiatives, including innovation, distribution gains and demand generation. As indicated previously, planned under absorption stemming from lower prior-year sales volumes is expected to result in an unfavorable All In EPS impact of approximately $0.60 in 2026. Approximately $0.26 of that impact was recognized in the first quarter and $0.18 was recognized in the second quarter. The Company continues to closely monitor the consumer and macroeconomic environment.

All In

Ex Infant Formula

Ex Divestitures

Core

Foreign Currency

Organic Core

Net Sales Growth

(5.5)% to (1.5)%

—

~270 bps

(3.0)% to +1.0%

(0.5) %

(3.5)% to +0.5%

Adj. Gross Margin

36.5% to 37.5%

~240 bps

~(10) bps

39.0% to 40.0%

Adj. Operating Margin

12.5% to 13.5%

~260 bps

~(10) bps

15.0% to 16.0%

Adj. EPS

$2.00 to $2.30

~$0.30

~$(0.05)

$2.25 to $2.55

Other assumptions

Net interest expense of approximately $156 million.
Adjusted effective tax rate of approximately 18.0%.
Adjusted weighted average shares outstanding of approximately 139.3 million.
Net leverage of, or slightly lower than, approximately 4.0 times adjusted EBITDA.
Cash from operating activities as a percentage of adjusted net income in the mid-60% range.

Webcast and Conference Call Information

Perrigo previously announced that management will host a call/webcast to discuss its second quarter 2026 financial results beginning at 08:30 A.M. (EDT) Wednesday, August 5, 2026. The call will be available live via webcast to interested parties in the investor relations section of the Perrigo website at http://perrigo.investorroom.com/events-webcasts or by phone at 800-836-8184, International 646-357-8785, and reference ID # 98476. A taped replay of the call will be available beginning at approximately 12:00 P.M. (EDT) Wednesday, August 5, until midnight Wednesday, August 12, 2026. To listen to the replay, dial 888-660-6345, International 646-517-4150, and use access code 98476#.

About Perrigo

Perrigo Company plc (NYSE: PRGO) is a leading provider of Consumer Self-Care Products and over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed.

For more information, visit www.perrigo.com.

PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net sales

$ 1,022.8

$ 1,056.3

$ 1,992.0

$ 2,100.2

Cost of sales

708.9

693.4

1,352.6

1,345.0

Gross profit

313.9

362.9

639.4

755.2

Operating expenses

Distribution

21.7

23.6

44.3

46.4

Research and development

23.7

22.0

48.4

48.7

Selling

129.5

136.5

259.2

282.7

Administration

100.0

113.0

215.0

225.2

Impairment charges

1.0

1.5

331.8

4.6

Restructuring

14.4

8.7

89.5

38.1

Other operating expense, net

—

12.2

—

17.2

Total operating expenses

290.5

317.5

988.3

662.9

Operating income (loss)

23.5

45.4

(348.9)

92.3

Interest expense, net

38.4

39.6

79.3

78.6

Other (income) expense, net

(120.5)

2.6

(126.5)

2.2

Loss on extinguishment of debt

0.1

—

1.4

—

Income (loss) from continuing operations before income taxes

105.4

3.2

(303.1)

11.5

Income tax expense (benefit)

16.9

3.7

(1.8)

11.9

Income (loss) from continuing operations

88.5

(0.5)

(301.3)

(0.4)

Loss from discontinued operations, net of tax

(14.1)

(7.9)

(22.8)

(14.4)

Net income (loss)

$ 74.5

$ (8.4)

$ (324.1)

$ (14.8)

Earnings (loss) per share

Basic

Continuing operations

$ 0.64

$ (0.00)

$ (2.17)

$ 0.00

Discontinued operations

(0.10)

(0.06)

(0.16)

(0.10)

Basic earnings (loss) per share

$ 0.54

$ (0.06)

$ (2.33)

$ (0.10)

Diluted

Continuing operations

$ 0.63

$ (0.00)

$ (2.17)

$ 0.00

Discontinued operations

(0.10)

(0.06)

(0.16)

(0.10)

Diluted earnings (loss) per share

$ 0.53

$ (0.06)

$ (2.33)

$ (0.10)

Weighted-average shares outstanding

Basic

139.1

138.2

138.9

138.0

Diluted

139.6

138.2

138.9

138.0

PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

(unaudited)

June 27, 2026

December 31, 2025

Assets

Cash and cash equivalents

$ 399.7

$ 531.6

Accounts receivable, net of allowance for credit losses of $3.9 and $6.5, respectively

709.9

612.8

Inventories

1,064.5

1,149.0

Prepaid expenses and other current assets

277.7

231.4

Current assets held for sale

—

272.6

Total current assets

2,451.7

2,797.4

Property, plant and equipment, net

849.0

898.7

Operating lease assets

156.0

167.8

Goodwill and indefinite-lived intangible assets

1,697.6

2,054.7

Definite-lived intangible assets, net

2,190.2

2,351.5

Deferred income taxes

6.3

3.3

Other non-current assets

258.6

261.8

Total non-current assets

5,157.7

5,737.8

Total assets

$ 7,609.5

$ 8,535.2

Liabilities and Shareholders' Equity

Liabilities

Accounts payable

$ 400.4

$ 474.5

Payroll and related taxes

153.2

112.2

Accrued customer programs

109.4

111.4

Other accrued liabilities

265.4

216.1

Accrued derivative liabilities

86.2

14.5

Accrued income taxes

28.8

20.8

Current indebtedness

11.4

36.6

Current liabilities held for sale

—

26.8

Total current liabilities

1,054.8

1,012.9

Non-current liabilities

Long-term debt, less current portion

3,283.4

3,603.6

Deferred income taxes

146.7

168.9

Other non-current liabilities

608.8

814.3

Total non-current liabilities

4,038.9

4,586.8

Total liabilities

5,093.7

5,599.7

Contingencies - Refer to Note 16

Shareholders' equity

Controlling interests:

Preferred shares, $0.0001 par value per share, 10 shares authorized

—

Ordinary shares, €0.001 par value per share, 10,000 shares authorized

6,540.5

6,608.2

Accumulated other comprehensive income (loss)

(22.8)

4.8

Retained earnings (accumulated deficit)

(4,001.9)

(3,677.5)

Total shareholders' equity

2,515.8

2,935.5

Total liabilities and shareholders' equity

$ 7,609.5

$ 8,535.2

Supplemental Disclosures of Balance Sheet Information

Preferred shares, issued and outstanding

—

Ordinary shares, issued and outstanding

138.7

137.6

PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

Six Months Ended

June 27, 2026

June 28, 2025

Cash Flows From (For) Operating Activities

Net income (loss)

$ (324.1)

$ (14.8)

Adjustments to derive cash flows:

Depreciation and amortization

179.1

166.2

Restructuring charges

84.9

35.0

Share-based compensation

21.2

28.4

Impairment charges

331.8

4.6

Amortization of debt discount

4.1

4.4

Deferred income taxes

(19.3)

9.6

(Gain) loss on sale of business

(129.5)

1.6

Amortization on hedging instruments

(10.3)

(12.6)

Other non-cash adjustments, net

(8.7)

1.2

Subtotal

129.3

223.6

Increase (decrease) in cash due to:

Inventories

74.2

(97.4)

Accrued income taxes

(13.4)

(54.5)

Payroll and related taxes

(45.0)

(23.6)

Accounts payable

(66.8)

(19.9)

Accrued customer programs

0.5

(0.6)

Other accrued liabilities

44.4

(29.3)

Accounts receivable

(102.3)

(5.9)

Other long term liabilities

2.6

2.4

Prepaid expenses and other current assets

(54.6)

16.6

Subtotal

(160.3)

(212.2)

Net cash (for) from operating activities

(31.0)

11.4

Cash Flows From (For) Investing Activities

Net proceeds from sale of businesses

362.9

14.4

Asset acquisitions, net

—

(1.5)

Additions to property, plant and equipment

(28.1)

(44.7)

Other investing, net

2.2

2.3

Net cash from (for) investing activities

337.0

(29.5)

Cash Flows From (For) Financing Activities

Payments on long-term debt

(759.3)

(17.6)

Cash dividends

(80.1)

(79.5)

Borrowings of revolving credit agreements and other financing, net

427.6

—

Payments for debt issuance costs

(5.5)

—

Shares used to settle taxes

(7.0)

(17.7)

Other financing, net

(9.9)

(1.0)

Net cash for financing activities

(434.2)

(115.8)

Effect of exchange rate changes on cash and cash equivalents

(6.1)

29.3

Net decrease in cash and cash equivalents

(134.2)

(104.6)

Cash and cash equivalents of continuing operations, beginning of period

531.6

558.8

Cash and cash equivalents held for sale, beginning of period

2.3

—

Less cash and cash equivalents held for sale, end of period

—

Cash and cash equivalents of continuing operations, end of period

$ 399.7

$ 454.2

TABLE I

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended June 27, 2026

Three Months Ended June 28, 2025

Consolidated Continuing Operations

Gross Profit

Operating Income

Income from Continuing Operations

Diluted Earnings per Share

Gross Profit

Operating Income

Income (Loss) from Continuing Operations

Diluted Earnings (Loss) per Share

Reported

$ 313.9

$ 23.5

$ 88.5

$ 0.63

$ 362.9

$ 45.4

$ (0.5)

$ 0.00

As a % of reported net sales(1)

30.7 %

2.3 %

8.7 %

34.4 %

4.3 %

— %

Pre-tax adjustments(2)**:

Amortization expense related primarily to acquired intangible assets

35.3

54.5

0.39

35.5

56.8

57.3

0.41

Impairment charges(3)

—

1.0

0.01

—

1.5

0.01

Unusual litigation

—

12.4

0.09

—

15.4

0.11

Restructuring charges and other termination benefits

—

14.4

0.10

—

8.7

0.06

(Gain) Loss on divestitures(4)

—

(129.4)

(0.93)

—

1.8

0.01

Other(5)

15.3

18.8

26.8

0.19

4.3

7.4

0.05

Non-GAAP tax adjustments(6)

—

2.0

0.01

—

(12.4)

(0.09)

Adjusted

$ 364.5

$ 124.5

$ 70.3

$ 0.50

$ 402.8

$ 135.2

$ 79.2

$ 0.57

As a % of reported net sales(1)

35.6 %

12.2 %

6.9 %

38.1 %

12.8 %

7.5 %

Diluted weighted average shares outstanding (in millions)

Reported

139.6

138.2

Effect of dilution as reported amount was a loss, while adjusted amount was income(7)

—

0.4

Adjusted

139.6

138.6

Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.

(1)

Reported net sales for the three months ended June 27, 2026 and June 28, 2025 were $1,022.8 million and $1,056.3 million, respectively.

(2)

Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.

(3)

During the three months ended June 27, 2026, we determined the carrying value of an in process R&D asset was impaired by $1.0 million. During the three months ended June 28, 2025, we determined the carrying value of our Prevacid® branded product was impaired by $1.5 million.

(4)

Represents the gain on the divestiture of our Dermacosmetics business for the three months ended June 27, 2026.

(5)

Other pre-tax adjustments impacting reported income from continuing operations for the three months ended June 27, 2026 includes $15.4 million of accelerated depreciation, $6.5 million of professional consulting fees for potential divestiture activity and other legal matters and $4.9 million of unfavorable hedging activity related to divestiture activity. Other pre-tax adjustments impacting reported income (loss) from continuing operations for the three months ended June 28, 2025 are related to $4.5 million of accelerated depreciation as a result of Nutrition Network Optimization and $2.8 million of professional consulting fees for divestiture activity.

(6)

Non-GAAP tax adjustments for the three months ended June 27, 2026 are primarily due to removal of $2.0 million of tax expense on pre-tax non-GAAP adjustments. Non-GAAP tax adjustments for the three months ended June 28, 2025 are primarily due to $13.9 million of tax expense on pre-tax non-GAAP adjustments.

(7)

In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding.

TABLE II

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended June 27, 2026

Three Months Ended June 28, 2025

Consolidated Continuing Operations

R&D Expense

DSG&A Expense

Restructuring, Impairments and Other

R&D Expense

DSG&A Expense

Restructuring, Impairments and Other

Reported

$ 23.7

$ 251.3

$ 15.4

$ 22.0

$ 273.1

$ 22.4

As a % of reported net sales(1)

2.3 %

24.6 %

1.5 %

2.1 %

25.9 %

2.1 %

Pre-tax adjustments(2)**:

Amortization expense related primarily to acquired intangible assets

(0.2)

(19.0)

—

(21.2)

—

Impairment charges(3)

—

(1.0)

—

(1.5)

Restructuring charges and other termination benefits

—

(14.4)

—

(8.7)

Unusual litigation

—

(12.4)

—

(3.2)

(12.2)

Other(4)

(0.1)

(3.4)

—

(0.2)

(2.9)

—

Adjusted

$ 23.4

$ 216.6

$ —

$ 21.8

$ 245.8

$ —

As a % of reported net sales(1)

2.3 %

21.2 %

— %

2.1 %

23.3 %

— %

Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.

(1)

Reported net sales for the three months ended June 27, 2026 and June 28, 2025 were $1,022.8 million and $1,056.3 million, respectively.

(2)

Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.

(3)

(4)

Other pre-tax adjustments for the three months ended June 27, 2026 and June 28, 2025 are due primarily to professional consulting fees for divestiture activity.

TABLE III

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended June 27, 2026

Three Months Ended June 28, 2025

Consolidated Continuing Operations

Interest and Other

Income Tax Expense

Interest and Other

Income Tax Expense

Reported

$ (81.9)

$ 16.9

$ 42.2

$ 3.7

As a % of reported net sales(1)

(8.0) %

1.7 %

4.0 %

0.3 %

Effective tax rate

16.0 %

115.7 %

Pre-tax adjustments(2)**:

Amortization expense related primarily to acquired intangible assets

—

(0.5)

—

Gain (loss) on divestitures(3)

129.4

—

(1.8)

—

Other(4)

(8.0)

—

Non-GAAP tax adjustments(5)

—

(2.0)

—

12.4

Adjusted

$ 39.3

$ 14.9

$ 39.9

$ 16.0

As a % of reported net sales(1)

3.8 %

1.5 %

3.8 %

1.5 %

Adjusted effective tax rate

17.5 %

16.8 %

Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.

(1)

Reported net sales for the three months ended June 27, 2026 and June 28, 2025 were $1,022.8 million and $1,056.3 million, respectively.

(2)

Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.

(3)

Represents the gain on the divestiture of our Dermacosmetics business for the three months ended June 27, 2026.

(4)

Other pre-tax adjustments impacting reported interest and other from continuing operations for the three months ended June 27, 2026 are primarily due to $4.9 million of unfavorable hedging activity related to divestiture activity.

(5)

TABLE IV

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended

Consolidated Continuing Operations

June 27, 2026

June 28, 2025

% Change

Net Sales

$ 1,022.8

$ 1,056.3

(3.2) %

Less: Currency impact(1)

3.7

—

0.3 %

Constant currency net sales

$ 1,019.1

$ 1,056.3

(3.5) %

Less: Divestitures and exited products(2)

—

23.6

(2.2) %

Organic net sales

$ 1,019.1

$ 1,032.8

(1.3) %

Self Care

Net Sales

$ 576.6

$ 598.6

(3.7) %

Less: Currency impact(1)

3.2

—

0.5 %

Constant currency net sales

$ 573.4

$ 598.6

(4.2) %

Less: Divestitures and exited products(2)

—

2.1

(0.3) %

Organic net sales

$ 573.4

$ 596.5

(3.9) %

Specialty Care

Net Sales

$ 226.6

$ 233.1

(2.8) %

Less: Currency impact(1)

0.2

—

0.1 %

Organic net sales

$ 226.4

$ 233.1

(2.9) %

Infant Formula

Net Sales

$ 100.9

$ 82.0

23.1 %

Less: Currency impact(1)

—

— %

Organic net sales

$ 100.9

$ 82.0

23.1 %

All Other

Net Sales

$ 118.6

$ 142.7

(16.9) %

Less: Currency impact(1)

0.3

—

0.1 %

Constant currency net sales

$ 118.4

$ 142.7

(17.0) %

Less: Divestitures and exited products(2)

—

21.5

(14.7) %

Organic net sales

$ 118.4

$ 121.3

(2.4) %

Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.

(1)

Currency impact is calculated using the exchange rates used to translate our financial statements in the comparable prior-year period to show what current period US dollar results would have been if such currency exchange rates had not changed.

(2)

Represents divestiture of the Dermacosmetics business within All Other and Richard Bittner Business and exited products within the Self Care segment.

TABLE V

PERRIGO COMPANY PLC

RECONCILIATION OF NON-GAAP MEASURES

SELECTED CONSOLIDATED INFORMATION

(in millions, except per share amounts)

(unaudited)

Three Months Ended June 27, 2026

Three Months Ended June 28, 2025

Consolidated Continuing Operations

Net Sales

Gross Profit

Operating Income

Income from Continuing Operations

Diluted Earnings per Share

Net Sales

Gross Profit

Operating Income

Income from Continuing Operations

Diluted Earnings (Loss) per Share

All In Adjusted

$ 1,022.8

$ 364.5

$ 124.5

$ 70.3

$ 0.50

$ 1,056.3

$ 402.8

$ 135.2

$ 79.2

$ 0.57

As a % of reported net sales

35.6 %

12.2 %

6.9 %

38.1 %

12.8 %

7.5 %

Core Adjustments:

Less: Infant Formula

100.9

20.7

4.0

0.03

82.0

10.8

(12.2)

(0.09)

Less: Previously Announced Divestitures(1)

15.2

8.3

3.0

0.02

38.2

22.0

10.8

0.08

Non-GAAP tax adjustments

—

(0.8)

0.01

—

0.2

—

Core Adjusted

$ 906.7

$ 335.5

$ 117.6

$ 64.1

$ 0.46

$ 936.2

$ 370.0

$ 136.6

$ 80.4

$ 0.58

As a % of Core net sales

37.0 %

13.0 %

6.3 %

39.5 %

14.6 %

8.6 %

Less: Currency impact(2)

3.7

Core Organic

$ 903.0

Diluted weighted average shares outstanding (in millions)

Reported

139.6

138.2

Effect of dilution as reported amount was a loss, while adjusted amount was income(3)

—

0.4

Adjusted

139.6

138.6

Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.

(1)

Represents previously announced divestitures, primarily Dermacosmetics, and exited products.

(2)

Currency impact is calculated using the exchange rates used to translate our financial statements in the comparable prior-year period to show what current period U.S. dollar results would have been if such currency exchange rates had not changed.

(3)

In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding.

Summary

Execution of Three-S plan driving continued improvement in underlying business fundamentals, including market share growth in U.S. store-brand OTC and key European brands Streamlined portfolio through completion of Dermacosmetics divestiture and continuing strategic reviews of Infant...