Sales Increase for Perrigo in Q2

Private label self-care and over-the-counter medicine producer Perrigo has shared its Q2 2022 financial results, highlighted by a large increase in net sales.

Net sales were $1.1 billion in the quarter ended July 2, 2022, an increase of 14.3%, or 20.2% excluding the impact of currency translation, versus the prior year quarter. Sales were led by large increases in the new Women’s Health (48.1%), Upper Respiratory (38.6%) and Nutrition (30.6%) categories of Perrigo’s portfolio.

In Q2, Perrigo created the new Women's Health reporting category, comprised of the women's health portfolio of recently-acquired HRA, including ellaOne and Hana, in addition to legacy Perrigo women's health products, including feminine hygiene and pregnancy products. Perrigo also created the Skin Care reporting category, comprised of Compeed, Mederm, and all of the products in the legacy Perrigo "Skincare and Personal Hygiene" category except for legacy Perrigo women's health products. An Other category was added as well, and now includes the HRA Rare Diseases business.

“This was a truly remarkable quarter for the Perrigo team. During the quarter,” said Perrigo President and CEO Murray S. Kessler. “We closed the HRA transaction, closed on $2.6 billion senior secured credit facilities, received FDA approval for and launched the company's first led Rx-to-OTC switch of Nasonex 24HR, filed with the FDA for the first ever Rx-to-OTC switch for a daily birth control pill, and worked around the clock at our infant formula facilities to help mitigate the shortage in the United States - all the while delivering a constant currency 20% increase in net sales and a 310 basis points sequential improvement in our consolidated adjusted gross margin. All of this was achieved despite a dynamic external environment, including severe inflationary headwinds. I couldn't be prouder of the performance of my Perrigo colleagues as our self-care strategy is being executed with excellence."

Following the results, Perrigo is increasing its fiscal 2022 organic net sales growth range outlook to 9.0%-10.0%, from 8.0%-9.0%, versus the prior year, due to high demand. The company is reaffirming its fiscal 2022 total net sales growth range outlook of 8.5%-9.5%, as the organic net sales growth outlook increase is expected to be offset by the worsening inflation.