# Perrigo Company plc (PRGO) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PRGO/thesis · /stocks/PRGO/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: PRGO
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Annual P&L Summary (USD millions)

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | Commentary |
|--------|--------|--------|--------|--------|-----------|
| **Revenue** | $4,452 | $4,656 | $4,373 | $4,253 | Declining since FY2023 peak |
| **Gross Profit** | $1,455 | $1,680 | $1,543 | $1,495 | — |
| **Gross Margin %** | 32.7% | 36.1% | 35.3% | 35.2% | Recovered from HRA-dilution low |
| **Operating Income (GAAP)** | $79 | $152 | $113 | -$1,122 | FY2025 devastated by impairments |
| **EBIT Margin (GAAP)** | 1.8% | 3.3% | 2.6% | -26.4% | Not meaningful; impairment-driven |
| **Adj. EBITDA** | ~$418 | ~$511 | ~$439 | n/m | Adjusted basis used by company |
| **Adj. EBITDA Margin** | ~9.4% | ~11.0% | ~10.0% | est. ~10–11% | Approximately stable core profitability |
| **Net Income (GAAP)** | -$141 | -$13 | -$172 | -$1,425 | Perennial GAAP losses; impairments + interest |
| **EPS Diluted (GAAP)** | -$1.04 | -$0.09 | -$1.25 | -$10.29 | FY2025 massive impairment |
| **Adj. EPS (Non-GAAP)** | n/a | n/a | est. ~$2.60 | est. ~$2.50 | Management's preferred earnings metric |

**Key Note on GAAP vs. Adjusted:** Perrigo's GAAP financials are persistently negative due to (1) non-cash amortization of acquired intangibles from HRA Pharma and other M&A, and (2) recurring restructuring/impairment charges. The FY2025 GAAP net loss of -$1,425M was driven primarily by ~$1.3B+ in non-cash goodwill and intangible impairments (Q4 2025 and Q1 2026 charges) tied to the CSCI portfolio revaluation following the Dermacosmetics divestiture announcement and weaker-than-expected performance. Management and analysts focus on **adjusted EPS** (excluding amortization, impairments, restructuring) for normalized earnings power. Adjusted EPS of ~$2.50 in FY2025 vs. GAAP EPS of -$10.29 illustrates the magnitude of these adjustments.

#### Revenue Trend Analysis

Revenue grew from $4,139M in FY2021 to a peak of $4,656M in FY2023 (+12.5% over 2 years), benefiting from:
- HRA Pharma consolidation (added ~$500–600M of CSCI revenue from mid-2022)
- Abbott infant formula recall market share gains (2022)
- Post-COVID cough/cold volume recovery

The subsequent decline to $4,373M (FY2024) and $4,253M (FY2025) reflects:
- CSCA softness: competitive pricing pressure and infant formula volume normalization
- CSCI headwinds: unfavorable currency, Dermacosmetics under review
- Absence of 2022's non-repeating infant formula windfall

FY2026 consensus: ~$4,140M (-2.7% further decline), as divestitures partially offset Opill ramp and Project Energize cost savings.

#### Gross Margin Analysis

Gross margin collapsed to 32.7% in FY2022 (HRA integration costs, supply chain inflation, working capital build) then recovered to 36.1% in FY2023. FY2024–FY2025 stabilization at ~35% represents the new normalized level. Management targets 22–24% adjusted EBIT margin (implying incremental operating leverage above the current ~35% gross margin level). Adjusted EBIT margin in FY2024 was roughly 10–11%, leaving a gap vs. target.

#### Cost Structure

| Cost Line | Est. % of Revenue | Commentary |
|-----------|------------------|-----------|
| COGS | ~65% | Manufacturing, raw materials, packaging |
| SG&A | ~15–18% | Marketing (CSCI branded), corporate overhead |
| R&D | ~3–5% | Primarily Rx-to-OTC switch development (HRA heritage) |
| Amortization | ~6–8% | HRA intangibles ($3.2B acquired intangible base) |
| Restructuring | ~1–2% | Project Energize ongoing |

The dominant intangible amortization burden (~$250–350M/year) is the primary driver of the GAAP vs. adjusted divergence.

#### Interest Expense

With ~$3.6B in total debt, interest expense is substantial:
- FY2024: ~$210–230M (estimated at ~5.5–6% blended rate on mix of fixed senior notes and floating revolver)
- FY2025: similar level — ~$200–225M

Interest expense effectively absorbs approximately half of adjusted EBITDA (~$450M), leaving FCF generation thin relative to debt level.

#### Adjusted EBITDA Trend

| Year | Adj. EBITDA | Adj. EBITDA Margin | Commentary |
|------|-------------|-------------------|-----------|
| FY2022 | ~$418M | ~9.4% | HRA integration drag |
| FY2023 | ~$511M | ~11.0% | Best recent performance |
| FY2024 | ~$439M | ~10.0% | Revenue decline + pricing pressure |
| FY2025 | ~$400–440M (est.) | ~9.5–10.3% | Project Energize saves begin; volume headwinds |
| FY2026E | ~$450–480M (est.) | ~10.9–11.6% | Energize savings ramp + divestitures |

Management is targeting a path to 22–24% adjusted EBIT margin, roughly double the FY2024–FY2025 level, through Project Energize ($140–170M gross savings by end-2026) and portfolio optimization.

#### EPS Bridge (GAAP to Adjusted)

Starting from GAAP EPS of -$1.25 (FY2024):
- Add back: ~$250–300M amortization of acquisition-related intangibles
- Add back: ~$50–100M restructuring/impairment charges
- Add back: ~$30–50M non-cash share-based comp and other items
- Tax impact on adjustments
- Approximate **adjusted EPS ≈ $2.50–2.70**

This bridge is essential for evaluating whether the business is generating real economic returns. The ~$280M+ in annual amortization from HRA is a non-cash charge that distorts GAAP earnings for 10–15 years post-acquisition.

#### Three-Year P&L Scorecard

| KPI | FY2022 | FY2023 | FY2024 | Trend |
|-----|--------|--------|--------|-------|
| Revenue Growth | +7.6% | +4.6% | -6.1% | Declining |
| Gross Margin | 32.7% | 36.1% | 35.3% | Recovering/Stable |
| Adj. EBITDA Margin | ~9.4% | ~11.0% | ~10.0% | Volatile |
| FCF ($M) | $211 | $304 | $245 | Declining |
| GAAP Net Loss ($M) | -$141 | -$13 | -$172 | Persistently negative |
| Net Debt ($B) | ~$3.5 | ~$3.3 | ~$3.1 | Gradually declining |
| Dividend Covered by FCF? | Yes | Yes | Yes (barely) | Thin coverage |

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PRGO/fundamental

## Navigation

- Overview: /stocks/PRGO
- Financials (this page): /stocks/PRGO/financials
- Thesis: /stocks/PRGO/thesis
- Investment Memo: /stocks/PRGO/memo
- Coverage universe: /stocks