Perrigo Company plc (PRGO) Bundle
A Brief History of Perrigo Company plc
Perrigo Company plc has a rich history dating back to 1887, when it was founded by a pharmacist, Charles Perrigo, in Allegan, Michigan. Initially, the company focused on producing and selling home remedies. Over the years, Perrigo expanded its product offerings and entered various markets through strategic acquisitions.
Key Milestones
- 1887: Founded by Charles Perrigo in Allegan, Michigan.
- 1994: Perrigo became a publicly traded company on NASDAQ.
- 2005: Acquired the private label business of the pharmaceutical company, Elan Corporation, expanding its market presence.
- 2013: Acquired the generic drug business of the privately held company, Paddock Laboratories, for approximately $540 million.
- 2020: Completed the acquisition of the European over-the-counter business of the company, HRA Pharma, for approximately $1.55 billion.
Recent Financial Performance
As of September 28, 2024, Perrigo reported a net income (loss) of $-127.3 million for the nine months ended, compared to a net income of $19.6 million for the same period in 2023. The effective tax rate for the nine months ended was 20.9%.
| Financial Metrics | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Net Income (Loss) (in millions) | $(127.3) | $19.6 |
| Earnings (Loss) per Share - Basic | $(0.15) | $0.10 |
| Total Assets (in millions) | $4,566.0 | $4,687.0 |
| Total Liabilities (in millions) | $2,207.7 | $2,078.3 |
| Total Shareholders' Equity (in millions) | $2,358.3 | $2,608.7 |
Debt and Liquidity Position
As of September 28, 2024, Perrigo had total borrowings of $1,437.8 million under its Term Loan A and B facilities, with a short-term debt of $440.7 million which includes the remaining portion of the 3.900% Senior Notes due 2024. The company reported compliance with all covenants under its debt agreements.
| Debt Overview | September 28, 2024 | December 31, 2023 |
|---|---|---|
| Term A Loans (in millions) | $453.1 | $471.9 |
| Term B Loans (in millions) | $984.7 | $1,386.2 |
| Total Debt (in millions) | $1,437.8 | $1,858.1 |
Recent Strategic Initiatives
Perrigo has been actively restructuring its operations to enhance profitability and streamline its business. In May 2024, the company cash settled $547.5 million of notional amount from its original cross-currency interest rate swap. Additionally, the company is undertaking restructuring charges to improve operational efficiencies, which totaled $98.1 million for the nine months ended September 28, 2024.
Market Position and Outlook
Perrigo remains a significant player in the global healthcare market, particularly in the OTC and generic pharmaceuticals sector. The company's ongoing efforts to optimize its product offerings and expand its market reach are expected to bolster its performance moving forward.
| Credit Ratings | Rating Agency | Rating |
|---|---|---|
| Issuer Credit Rating | Moody's | Ba2 (negative) |
| Issuer Credit Rating | S&P Global Ratings | BB- (stable) |
| Issuer Credit Rating | Fitch Ratings | BB (negative) |
A Who Owns Perrigo Company plc (PRGO)
Shareholder Structure
As of 2024, Perrigo Company plc (PRGO) has a diverse shareholder structure, including institutional investors, mutual funds, and individual shareholders. The ownership distribution is as follows:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 81.2% |
| Mutual Funds | 14.5% |
| Individual Shareholders | 4.3% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Perrigo Company plc as of 2024:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 19.0 | 13.9% |
| BlackRock, Inc. | 17.5 | 12.7% |
| State Street Corporation | 10.2 | 7.5% |
| Invesco Ltd. | 8.9 | 6.5% |
| Wellington Management Group LLP | 7.5 | 5.5% |
Recent Changes in Ownership
Recent changes in ownership include significant transactions and shifts in shareholding patterns:
- On July 10, 2024, Perrigo sold its Rare Diseases Business to Esteve Healthcare for $244.5 million, impacting its overall market valuation.
- In September 2024, Perrigo Finance issued $715 million in Senior Notes due 2032, which may affect share prices and investor interest.
Stock Performance
Perrigo's stock performance has been volatile in 2024, with key financial metrics as follows:
| Date | Closing Price (USD) | Market Capitalization (USD million) | Volume |
|---|---|---|---|
| January 2, 2024 | 39.50 | 5,453.5 | 1,200,000 |
| April 1, 2024 | 35.00 | 4,790.0 | 1,500,000 |
| July 1, 2024 | 30.25 | 4,138.8 | 1,800,000 |
| September 30, 2024 | 29.10 | 4,021.5 | 1,600,000 |
Market Trends and Analysis
The overall market trends impacting Perrigo include:
- Increased competition in the consumer healthcare market.
- Fluctuating raw material costs affecting profit margins.
- Regulatory changes influencing product offerings and market access.
Conclusion of Ownership Dynamics
The ownership dynamics of Perrigo Company plc reflect a robust institutional presence, with significant influence from major investment firms. The ongoing market activities and strategic decisions will continue to shape the company's shareholder landscape throughout 2024.
Perrigo Company plc (PRGO) Mission Statement
Mission Statement Overview
Perrigo Company plc aims to provide quality self-care products that improve the health and well-being of consumers worldwide. The company emphasizes innovation, customer satisfaction, and sustainability in its mission.
Financial Performance
As of September 28, 2024, Perrigo reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $1,285.5 |
| Gross Profit | $594.2 |
| Operating Income | $65.1 |
| Net Income (Loss) | $(127.3) |
| Cash Flow from Operating Activities | $50.3 |
| Cash, Cash Equivalents, and Restricted Cash | $1,463.5 |
| Total Assets | $11,203.2 |
Product Categories and Sales Performance
Perrigo's sales are categorized into several key segments, with notable performance across different product lines:
| Product Category | Net Sales (Nine Months Ended September 28, 2024) (in millions) | % Change from Previous Year |
|---|---|---|
| Skin Care | $333.5 | +13.8% |
| Upper Respiratory | $206.0 | -9.6% |
| Healthy Lifestyle | $175.2 | -2.3% |
| Pain and Sleep-Aids | $158.6 | -3.2% |
| VMS | $127.4 | -5.9% |
| Women's Health | $101.2 | +13.1% |
Debt and Financial Obligations
As of September 28, 2024, Perrigo's debt structure includes:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Term A Loans | $453.1 | April 20, 2027 |
| Term B Loans | $984.7 | April 20, 2029 |
| 3.900% Senior Notes | $400.0 | December 15, 2024 |
| 4.375% Senior Notes | $700.0 | March 15, 2026 |
| 6.125% Senior Notes | $715.0 | September 30, 2032 |
| Total Long-term Debt | $4,312.6 | N/A |
Shareholder Equity
Perrigo's shareholder equity as of September 28, 2024, is detailed below:
| Equity Component | Value (in millions) |
|---|---|
| Ordinary Shares | $6,763.9 |
| Accumulated Other Comprehensive Income | $9.8 |
| Retained Earnings (Accumulated Deficit) | $(2,207.7) |
| Total Shareholders' Equity | $4,566.0 |
Recent Developments
Perrigo completed the sale of its Rare Diseases Business to Esteve Healthcare S.L. for total consideration of $244.5 million as of July 10, 2024. This divestiture is part of the company's strategy to streamline operations and focus on core self-care products.
How Perrigo Company plc (PRGO) Works
Business Overview
Perrigo Company plc operates as a leading provider of consumer self-care products, primarily focusing on over-the-counter (OTC) healthcare and wellness products. The company has a diverse portfolio that includes categories like pain relief, allergy relief, and digestive health. As of 2024, Perrigo is actively restructuring its operations to enhance profitability and streamline its product offerings.
Financial Performance
For the nine months ended September 28, 2024, Perrigo reported the following key financial metrics:
| Metric | Amount (in millions) |
|---|---|
| Net Sales | $3,235.1 |
| Gross Profit | $1,156.8 |
| Operating Income (Loss) | $(1.3) |
| Net Income (Loss) | $(127.3) |
| Gross Profit Margin | 35.8% |
| Operating Margin | —% |
The decrease in net sales of $263.6 million, or 7.5%, was primarily attributed to lower sales in U.S. Nutrition and divestitures, notably the Rare Diseases Business. The gross profit margin remained stable despite the decline in sales.
Segment Performance
Perrigo's performance varies significantly across its product segments. The following table summarizes net sales by product category for the nine months ended September 28, 2024:
| Product Category | Net Sales (in millions) | % Change |
|---|---|---|
| Skin Care | $333.5 | +13.8% |
| Upper Respiratory | $206.0 | -9.6% |
| Healthy Lifestyle | $175.2 | -2.3% |
| Pain and Sleep Aids | $158.6 | -3.2% |
| Vitamins, Minerals, and Supplements (VMS) | $127.4 | -5.9% |
| Women's Health | $101.2 | +13.1% |
| Oral Care | $75.0 | -0.7% |
| Digestive Health | $27.0 | -10.0% |
Cash Flow and Liquidity
Perrigo's cash flow activities for the nine months ended September 28, 2024, are summarized below:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash from Operating Activities | $50.3 |
| Net Cash from Investing Activities | $115.9 |
| Net Cash from Financing Activities | $543.1 |
| Net Increase in Cash | $712.2 |
The significant increase in net cash from financing activities was mainly due to the issuance of new debt instruments, which were utilized to refinance existing obligations.
Debt and Credit Ratings
As of September 28, 2024, Perrigo's outstanding debt was as follows:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A Facility | $1,437.8 |
| Term Loan B Facility | $440.7 |
Perrigo's credit ratings as of September 28, 2024, were Ba2 (negative) from Moody's, BB- (stable) from S&P Global Ratings, and BB (negative) from Fitch Ratings Inc.
Market Presence and Strategic Initiatives
Perrigo's market strategy emphasizes innovation and product differentiation, particularly in high-growth categories such as women's health and skin care. The company has undertaken several strategic initiatives, including:
- Divestiture of the Rare Diseases Business for $244.5 million.
- Implementation of Project Energize to reduce costs and enhance operational efficiency.
- Focus on expanding product offerings in the U.S. Nutrition segment and enhancing inventory management.
Recent Developments
In July 2024, Perrigo completed the sale of its Rare Diseases Business, which was a strategic move to streamline its operations and focus on core consumer health products. The transaction resulted in a pre-tax gain of $5.8 million.
As of September 28, 2024, the company’s total assets amounted to $8,191.0 million, with total liabilities of $3,624.9 million, resulting in a shareholders' equity of $4,566.0 million.
How Perrigo Company plc (PRGO) Makes Money
Revenue Streams
Perrigo Company plc generates revenue primarily through various consumer self-care products across multiple categories. The core categories include Nutrition, Upper Respiratory, Digestive Health, Pain and Sleep Aids, Healthy Lifestyle, Oral Care, Skin Care, and Women's Health.
| Category | Net Sales (September 28, 2024, in millions) | Net Sales (September 30, 2023, in millions) | Change (%) |
|---|---|---|---|
| Nutrition | $303.8 | $436.3 | (30.4) |
| Upper Respiratory | $370.0 | $422.2 | (12.4) |
| Digestive Health | $361.7 | $368.2 | (1.7) |
| Pain and Sleep Aids | $251.9 | $294.6 | (14.5) |
| Healthy Lifestyle | $221.3 | $219.3 | 0.9 |
| Oral Care | $204.8 | $235.5 | (13.0) |
| Skin Care | $158.6 | $189.8 | (16.4) |
| Women's Health | $62.0 | $35.6 | 74.2 |
Market Performance
As of September 28, 2024, Perrigo reported total net sales of $3,235.1 million, a decrease from $3,498.7 million in the previous year, marking a decline of approximately 7.5%.
Operating Income
The operating income for the nine months ended September 28, 2024, was reported at $(1.3) million, a significant decrease from $167.5 million in the same period in 2023. This reflects a drastic change in operational efficiency and profitability.
| Financial Metric | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Net Sales | $3,235.1 million | $3,498.7 million |
| Gross Profit | $1,156.8 million | $1,253.1 million |
| Operating Income | $(1.3) million | $167.5 million | Net Income (Loss) | $(127.3) million | $19.6 million |
Sales by Geography
Perrigo's sales are distributed across various geographic regions, with significant contributions from the U.S. and Europe.
| Geographic Location | Net Sales (September 28, 2024, in millions) | Net Sales (September 30, 2023, in millions) |
|---|---|---|
| U.S. | $1,917.1 | $2,176.3 |
| Europe | $1,225.5 | $1,232.6 |
| All Other Countries | $92.5 | $89.8 |
Product Category Dynamics
Each product category has experienced varying degrees of growth or decline. The Women's Health category, for instance, saw a substantial increase of 74.2% in net sales, primarily driven by the new product launch of Opill®.
Cost Management and Operational Efficiency
Perrigo has focused on improving operational efficiency through Project Energize and Supply Chain Reinvention initiatives, aiming to reduce costs and enhance gross profit margins.
| Financial Metric | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Gross Profit Margin (%) | 35.8% | 35.8% |
| Operating Expenses | $1,158.1 million | $1,085.6 million |
| Net Income (Loss) | $(127.3) million | $19.6 million |
Future Outlook
Perrigo's strategic focus on product innovation and market expansion, particularly in the Women's Health segment, is expected to drive future revenue growth despite current challenges in other categories.
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Resources:
- Perrigo Company plc (PRGO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Perrigo Company plc (PRGO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Perrigo Company plc (PRGO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.