Slides
Page 1
Perrigo Q2 2026 Earnings Presentation August 5 , 2026 Compeed INSTANT PAIN RELIEF DIRECTE PIJNVERLICHTING Heals Fast Snelle genezing BLISTER BLAREN PLASTERS PLEISTERS Compeed yourbrand MEDIUM 5 FULL PRESCRIPTION STRENGTH NON - DROWSY Compare to Flonase® Allergy Relief active ingredient allergy relief NASAL SPRAY Fluticasone Propionate ( Glucocorticoid ) 50 mcg per spray ALLERGY SYMPTOM RELIEVER 24 HOUR RELIEF NASAL SPRAY 24 HOUR RELIEF OF Itchy Watery Eyes Nasal Congestion • Runny Nose Oltchy Nose Sneezing METERED 60 SPRAYS 0.34 FL OZ ( 9.9 mL ) ها yourbrand Compare to Nicorette Gum active ingredient Sum JUNGLE FORMULA MOSQUITO REPELLENT nicotine gum nicotine polacrilex gum , 4 mg ( nicotine ) STOP SMOKING AID MAXIMUM IRF | 1 | 2 | 3 \ 4 / INSECT REPELLENT FACTOR ORIGINAL mg FOR THOSE WHO SMOKE THEIR FIRST CIGARETTE WITHIN 30 MINUTES OF WAKING UP . MORE THAN 30 MINUTES up , use Nicotine Palacrilex Gum , 2 mg Coated FOR EXTREME FLAVOR Ice Mint 160 PIECES 4 mg each
Page 2
2 Eric Jacobson VP Global Investor Relations
Page 3
3 Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this presentation are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” "outlook," "momentum," "continue," “estimate,” "forecast," “predict,” “potential” or the negative of those terms or other comparable terminology. The information presented under "Fiscal 2026 Outlook" is inherently forward-looking. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including: supply chain impacts on our business, including those caused or exacerbated by armed conflict, trade and other economic sanctions and/or disease; general economic, credit, and market conditions; increased or new tariffs by the U.S. or foreign governments (and any retaliatory or reciprocal tariffs) and changes in global trade relations; the impact of the war in Ukraine and any escalation thereof, including the effects of economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries related thereto; the outbreak or escalation of conflict in other regions where we do business, including the ongoing conflict and social, political and economic environment in Israel and the broader Middle East; current and future impairment charges, if we determine that the carrying amount of specific assets may not be recoverable from the expected future cash flows of such assets; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources or larger market shares in certain product categories than we do; pricing pressures from customers and consumers; resolution of uncertain tax positions and any litigation relating thereto, ongoing or future government investigations and regulatory initiatives; uncertainty regarding our ability to obtain and maintain our regulatory approvals; potential costs and reputational impact of product recalls or sales halts; potential adverse changes to U.S. and foreign tax, healthcare and other government policy; the effect of epidemic or pandemic disease; the timing, amount and cost of any share repurchases (or the absence thereof) and/or any refinancing of outstanding debt at or prior to maturity; fluctuations in currency exchange rates and interest rates; receipt of potential earnout payments in connection with the sale of the HRA Rare Diseases Business and the risk that potential costs or liabilities incurred or retained in connection with this transaction may exceed our estimates or adversely affect our business or operations; the risk that potential costs or liabilities incurred or retained in connection with the sale of our Rx business may exceed our estimates or adversely affect our business or operations; the satisfaction of certain deferred payment milestones associated with the Dermacosmetics business divestment; the consummation and success of other announced and unannounced acquisitions or dispositions, and our ability to realize the desired benefits thereof; and our ability to execute and achieve the desired benefits of announced cost-reduction efforts and other strategic initiatives and investments, including our ability to achieve the expected benefits from our ongoing restructuring programs and strategic review processes described herein. Adverse results with respect to pending litigation could have a material adverse impact on our operating results, cash flows and liquidity, and could ultimately require the use of corporate assets to pay damages, reducing assets that would otherwise be available for other corporate purposes. These and other important factors, including those discussed in our Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Page 4
Agenda • Introduction • Leadership Transition & Priorities • Three-S Plan • Market Overview & Q2’26 Performance • Key Priorities • Financial Review • FY2026 Outlook • Q&A Albert Manzone Eduardo Bezerra All Eric Jacobson
Page 5
5 Albert Manzone Interim President and CEO
Page 6
6 Key Messages 6 • Three-S plan driving increased focus and improved business fundamentals • Streamlined portfolio through Dermacosmetics divestiture • Gained market share in U.S. store-brand OTC and key European brands • Categories improving sequentially • Reaffirmed 2026 guidance with sequentially stronger 2H performance
Page 7
7 Demonstrating ability to convert platform capabilities into sustained growth, share gains, and improved performance The foundation for how we intend to drive growth, improve profitability, and create shareholder value over time Three-S Plan is Enhancing Execution Stabilize Delivering consistent execution Streamline Simplifying the business to enhance focus and efficiency Strengthen Leverage platform to drive growth • Stabilized operations, enabling share gains in U.S. store-brand OTC and improved Infant Formula service reliability • U.S. service levels increased 1,600 bps to 91% since 2023, while international service levels grew 1,000 bps points to 95%. • Divestitures since 2024 generated ~$600 million in upfront proceeds used to deleverage (Dermacosmetics ~$359 million) • $80-100M cost savings expected by 2027 (80% in 2026) • Ongoing strategic reviews of Infant Formula and Oral Care • New category-led model launched in 1Q’26 • Gained 50 bps of volume share1 in U.S. and 50 bps of value share2 in key E.U. brands • Innovation pipeline value +3x vs. 2024 • Expanded retailer partnerships & capabilities (e.g., demand generation) 1. Circana MULO+ Omnichannel in the categories where Perrigo participates in cough cold, allergy, digestive health, pain, nicotine replacement, skin care and women’s health for 13WE 6/28/2026. 2. Consolidation of various data sources (IQVIA, Nielsen, and Circana) for last 3 months ending May 2026.
Page 8
8 Consumption headwinds moderating Category Growth Showing Sequential Improvement as Expected 1. 2025 Net Sales by Category U.S. & European Consumption1,2,3 OTC Market Growth U.S. OTC Market Growth Europe 1. Circana MULO+ Omnichannel in the categories where Perrigo participates in cough cold, allergy, digestive health, pain, nicotine replace ment, skin care and women’s health. 2. Consolidation of various data sources (IQVIA, Nielsen, and Circana). 3. Historical figures reflective of reconstitution 3.9% -1.3% -3.1% -4.4% -3.3% -1.8% 3.2% 0.8% -0.4% -2.1% -1.6% -1.1% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Value Volume Sequential Improvement 6.9% 3.6% 0.9% 1.4% -3.1% -0.6% 3.7% 0.2% -1.7% -1.1% -4.6% -2.8% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Value Units Sequential Improvement
Page 9
9 Perrigo continues to outperform relevant categories in both the U.S. and Europe Market Share Gains Demonstrate Benefits of Three-S Plan 1. 2025 Net Sales by Category1. Circana MULO+ Omnichannel in the categories where Perrigo participates in cough cold, allergy, digestive health, pain, nicoti ne replacement, skin care and women’s health for 13WE 6/28/2026. 2. Consolidation of various data sources (IQVIA, Nielsen, and Circana) for last 3 months ending May 2026. Total Category Volume Growth -1.1% U.S. OTC Q2 20261 Total Category Value Growth -0.6% E.U. OTC Latest Available 3-Months2 Category PRGO Volume Growth PRGO Volume Share Women’s Health +9.8% +50 bps Cough / Cold +7.6% +60 bps Smoking Cessation +6.6% +280 bps Pain and Sleep Aids +3.2% +120 bps Digestive Health +3.1% +10 bps Allergy +1.2% +130 bps Skin Health -1.9% -20 bps Oral Electrolytes -29.6% -460 bps Total Perrigo +1.5% +50 bps Key E.U. Brands PRGO Value Growth PRGO Value Share 11.8% +230 bps +4.5% +40 bps +4.5% +20 bps +2.6% -30 bps -0.7% +10 bps -2.6% -170 bps -5.0% +10 bps Total Perrigo Key E.U. Brands +3.3% +50 bps
Page 10
10 Innovation, demand generation, distribution gains, and commercial execution are translating into measurable results Market Share Gains Supported by Multiple Growth Drivers 1. Circana MULO+ Omnichannel in the categories where Perrigo participates in cough cold, allergy, digestive health, pain, nicoti ne replacement, skin care and women’s health for 13WE 6/28/2026. 2. Consolidation of various data sources (IQVIA, Nielsen, and Circana) for last 3 months ending May 2026. Value Share1 +30 bps Value Share2 +40 bps Volume Share1 +130 bps • Strong repeat rates and growing consumer loyalty • Increasing velocities and trade up to larger packs • New campaign and media support accelerating awareness • Growing engagement and market share gains • Demand generation driving momentum • Distribution and execution expanding reach • Share gains across key allergy segments • Distribution wins expanding reach • Demand generation driving penetration Store Brand Allergy
Page 11
11 Q2’26 Financial Results All In Adj. EPS2Net Sales YoY Change -3.1% YoY Change -20.7% YoY Change -3.2% YoY Change -12.3% Core1 $936 $907 Q2'25 Core Q2'26 Core $1,056 $1,023 Q2'25 All In Q2'26 All In $0.58 $0.46 Q2'25 Core Q2'26 Core $0.57 $0.50 Q2'25 All In Q2'26 All In • Net Sales: Infant Formula growth partly offset category softness and divestiture impacts. • Adj. EPS: Improved profitability in Infant Formula and Operational Enhancement Program savings partly offset reduced Self Care and Specialty Care profitability. • Net Sales: Category softness and retailer inventory destocking. • Adj. EPS: Volume, mix, and manufacturing headwinds, partly offset by Operational Enhancement Program savings and operational execution. Core All In 1. Core Perrigo excludes the Infant Formula business and previously announced divestitures, primarily Dermacosmetics and exited products. 2. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts.
Page 12
12 Transition Year – 2026 Remains on Track • Increased share in U.S. OTC and key brands in Europe • Innovation and demand generation gaining traction • Distribution gains progressing across key retailers 2026 Assumptions H1’26 Status Continued market share gains Benefit of revenue building blocks • H1 market performance roughly in line with expectation • Seeing sequential quarterly improvement as expected Soft H1 OTC consumption, transitioning to growth in H2
Page 13
13 Key Priorities 13 • Sustain market share gains and grow category by expanding access to quality, affordable self- care products • Further simplify and strengthen our portfolio to sharpen focus, discipline, and consistency • Strengthen balance sheet and enhance financial flexibility • Deliver our 2026 commitments and position Perrigo for sustainable long-term growth
Page 14
14 Eduardo Bezerra Chief Financial Officer
Page 15
15 $936M -$20M -$6M -$3M $907M Q2'25 Core Net Sales Self Care Specialty Care All Other Q2'26 Core Net Sales Q2 Segment Net Sales Overview All In Net SalesCore Net Sales1,2 YoY Change -3.2% YoY Change -3.1% • Self Care impacted by softer category consumption, retailer destocking in Europe, and a delayed allergy season. • Specialty Care supported by strong Women's Health momentum, partially offset by softer Skin Health performance • All In results reflected the same category dynamics as Core. • Infant Formula growth of 23% partially offset the impact of the Dermacosmetics divestiture. 1. See attached Appendix for reconciliation of Adjusted (Non-GAAP) to Reported (GAAP) amounts. 2. Core Perrigo excludes the Infant Formula business and previously announced divestitures, primarily Dermacosmetics and exited products. $1,056M -$22M -$6M $19M -$24M $1,023M Q2'25 All In Net Sales Self Care Specialty Care Infant Formula All Other Q2'26 All In Net Sales
Page 16
16 Q2 Segment Adj. Operating Income Overview All In Adj. Operating Income Core Adj. Operating Income1 YoY Change -13.9% YoY Change -7.9% • Self Care impacted by lower volumes, unfavorable mix, and planned under absorption stemming from lower prior-year sales volumes. • Specialty Care impacted by Skin Health pressures, higher Opill® marketing investment, and planned under absorption stemming from lower prior-year sales volumes. • All In trends broadly consistent with Core operating income performance. • Infant Formula profitability improved, driven by volume growth and lapping prior-year production variability. * See attached Appendix for reconciliation of Adjusted (Non- GAAP) to Reported (GAAP) amounts. 1. Core Perrigo excludes the Infant Formula business and previously announced divestitures, primarily Dermacosmetics and exited products. $135M -$15M -$18M $16M $0M $7M $125M Q2'25 All In Adj. Op. Income Self Care Specialty Care Infant Formula All Other Corporate Q2'26 All In Adj. Op. Income $137M -$14M -$18M $7M $7M $118M Q2'25 Core Adj. Op. Income Self Care Specialty Care All Other Corporate Q2'26 Core Adj. Op. Income
Page 17
17 Consolidated Adj. Gross & Operating Margins • Adj. gross margin trends broadly consistent with Core, with Infant Formula partially offsetting divestiture impacts. • Adj. operating margin reflected strong Infant Formula performance and Operational Enhancement Program savings benefits. • Adj. gross margin impacted by lower volumes, unfavorable mix, and planned under absorption stemming from lower prior-year sales volumes. • Adj. operating margin benefited from Operational Enhancement Program savings, partially offsetting gross margin pressure. Core1 All In Adj. Gross Margin Adj. Operating Margin YoY Change -250bps YoY Change -250bps YoY Change -60bps YoY Change -160bps 39.5% 37.0% Q2'25 Core Q2'26 Core 14.6% 13.0% Q2'25 Core Q2'26 Core 38.1% 35.6% Q2'25 All In Q2'26 All In 12.8% 12.2% Q2'25 All In Q2'26 All In Core All In * See attached Appendix for reconciliation of Adjusted (Non- GAAP) to Reported (GAAP) amounts. 1. Core Perrigo excludes the Infant Formula business and previously announced divestitures, primarily Dermacosmetics and exited products.
Page 18
18 $0.57 $0.50 Q2'25 All In Q2'26 All In Consolidated Adj. EPS Core1 All In Adj. EPS YoY Change -20.7% $0.58 $0.46 Q2'25 Core Q2'26 Core YoY Change -12.3% • Adj. EPS exceeded expectations, supported by lower operating expenses and continued benefits from the Operational Enhancement Program. • Adj. diluted EPS reflected lower sales volumes and planned under absorption stemming from lower prior-year sales volumes in U.S. OTC and Infant Formula. Core All In * See attached Appendix for reconciliation of Adjusted (Non- GAAP) to Reported (GAAP) amounts. 1. Core Perrigo excludes the Infant Formula business and previously announced divestitures, primarily Dermacosmetics and exited products.
Page 19
19 Balance Sheet & Cash Flow Q2 Cash Flow & Uses Capital Allocation Cash on balance sheet of $400M Operating cash flow of $83M in line with outlook Uses of cash • Capital expenditures of $14M • Dividends paid of $40M Priorities • Sustainable business growth, reducing total debt and net leverage, and maintaining a disciplined and balanced capital allocation framework • Completed the sale of Dermacosmetics business for net cash delivered of approx. $359 million, supporting further debt reduction
Page 20
20 Metric FY2025 CORE Perrigo Actuals FY2026 CORE Perrigo Outlook Drivers of FY2026 CORE Outlook vs. FY2025 CORE Actuals FY2026 All In Perrigo Outlook Reported Net Sales $3,754M -3.0% to +1.0% YoY • Grow share ahead of the market driven by consumer-centric innovation, amplified demand generation and continued distribution gains -5.5% to -1.5% YoY Organic Net Sales -3.5% to +0.5% YoY Adj. Gross Margin 39.6% 39.0% to 40.0% • Prior-year manufacturing volume headwind, higher A&P and the reset of variable incentives plans offset by Operational Enhancement Program and targeted cost savings 36.5% to 37.5% Adj. Operating Margin 15.6% 15.0% to 16.0% 12.5% to 13.5% Net Interest Expense $163M ~$156M ~$156M Adj. Effective Tax Rate 17.0% ~18.0% • Benefits in 2025 not expected to repeat in 2026 ~18.0% Adj. Diluted EPS $2.52 $2.25 to $2.55 $2.00 to $2.30 Diluted Shares Outstanding 138.9M 139.3M 139.3M Cash From Operations as a % to Adj. Net Income N/A N/A Mid-60% FY2026 Outlook Reaffirmed
Page 21
21 H2’26 growth expectations driven by growth building blocks and continued category normalization On Track to Deliver FY’26 Net Sales Growth Outlook 2H’26 Net Sales Drivers: • Growth building blocks (innovation, distribution gains and demand generation) expected to drive improved H2 performance. • Category trends improved throughout Q2 and are expected to continue normalizing through the balance of the year 1. Implied 2H'26 Core and All In net sales are based on the Company's 2026 guidance ranges. Chart not to scale -$53M -$191M 1H'26 All In Divestitures Infant Formula 1H'26 Core Growth Building Blocks Category Normalization Base Business & Seasonality 2H'26 Core Infant Formula 2H'26 All In + Innovation + Distribution + Demand Generation Chart not to scale Sequential Bridge: H1 2026 Net Sales to Implied1 H2 2026 Net Sales ~$1.9B - $2.1B ~$2.0B - $2.2B $2.0B $1.7B
Page 22
22 FY’26 Adj. EPS Outlook 2H’26 Adj. EPS Drivers: • Improved net sales driven by growth building blocks and more normalized category trends • Moderation of planned under absorption stemming from lower prior- year sales volumes • Timing of Operational Enhancement Program and targeted cost savings • Lower interest expense Partly Offset By: • First-half tariff-related benefits • Higher A&P spending • Normalization of incentive program accruals 1. Implied 2H'26 Core and All In adjusted EPS are based on the Company's 2026 guidance ranges. $0.93 -$0.09 $0.02 $0.86 H1'26 All In Adj. EPS Divestitures Infant Formula H1'26 Core Adj. EPS Base Business Moderating Absorption Headwind Op. Enh. Program Tariffs Higher A&P & Incentives Normalization H2'26 Core Adj. EPS Infant Formula H2'26 All In Adj. EPS + Growth building blocks + Category normalization + Seasonality + Lower int. exp. − Unfav. Mix − Tax rate 2026 Adj. EPS H1 vs Implied1 H2 Approx. $1.40 - $1.70 Approx. $1.10 - $1.40 Chart not to scale
Page 23
23 Thank you 23
Page 24
24 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 25
25 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 26
26 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 27
27 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 28
28 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 29
29 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures
Page 30
30 Reconciliation of Non-GAAP Measures
Page 31
31 New Operating Model Enhances Scale Reconciliation of Non-GAAP Measures