Perrigo Company (PRGO) UBS Global Consumer and Retail Conference summary

Company Overview and Market Position

• Leading OTC health and wellness provider with top U.S. volume and top 10 EU sales, operating in 30+ countries and no single product over 5% of sales.

• Delivers $30 billion in annual savings to U.S. and EU healthcare systems, with high household penetration: 2/3 in the U.S. and 80% in the U.K.

• Business model combines cash-generating store brands (60% of business) with high-margin brands, leveraging a scalable, low-cost supply chain and broad regulatory engagement.

• Store brand segment generates cash to reinvest in branded innovation and demand generation.

• Expanding categories and partnerships with retailers to drive household penetration.

Strategic Progress, Operational Initiatives, and Market Trends

• Three-S plan (Stabilize, Streamline, Strengthen) focuses on restoring core consistency, simplifying the portfolio, and improving cost structure.

• Achieved $320 million in cost savings through Project Energize and supply chain reinvention; announced a global workforce reduction of 7%.

• Exited non-core businesses and brands, including Dermacosmetics, with ongoing reviews for further optimization, partnership, or divestiture.

• Gained U.S. OTC market share in key categories, including smoking cessation and allergy, and EU brands like ellaOne and Jungle Formula saw share gains.

• Improved supply reliability and streamlined portfolio support operational agility.

Financial Performance and Outlook

• FY2026 organic net sales expected to range from -3.5% to +0.5% YoY, with adjusted EPS between $2.25 and $2.55.

• 2025 core baseline EPS was $2.52; 2026 EPS expected to be weighted 30% in H1 and 70% in H2 due to seasonality and timing of cost savings.

• Operational enhancement program targets $80M–$100M in annualized pre-tax savings, with $80M–$90M in expected cash costs.

• Adjusted gross margin projected at 39.0%–40.0% for CORE business, with operating margin at 15.0%–16.0%.

• Capital allocation prioritizes business investment, maintaining leverage below 3x in 2–3 years, and sustaining the dividend policy.