Executive Summary

Q4 2024 delivered net sales of $1.14B (-1.6% YoY) and adjusted diluted EPS of $0.93; infant formula net sales rose 17% YoY on market share gains and inventory recovery, while adjusted operating margin expanded to 17.0% (+260 bps YoY) .
Full-year 2024 adjusted EPS was $2.57 (midpoint of guidance), with reported loss per share of $(1.17) due to tax expense, unusual litigation, and debt extinguishment impacts .
The FDA reclassified the Wisconsin infant formula facility to “No Action Indicated,” removing prior observations and supporting formula recovery momentum; management outlined FY2025 targets at Investor Day (EPS $2.90–$3.10, ~40% adj. gross margin, ~15% adj. operating margin) .
Balance sheet strengthened: $313M Q4 operating cash flow; $400M senior notes repaid; year-end cash $559M; total debt $3.62B .

What Went Well and What Went Wrong

What Went Well
- Infant formula recovery: Q4 infant formula net sales +17% YoY; FDA status upgrade to “No Action Indicated” for Wisconsin facility, removing prior 483 observations .
- Margin expansion and cost programs: Adjusted operating margin 17.0% (+260 bps YoY) driven by Project Energize and supply chain reinvention; adjusted operating income +16% YoY to $194M .
- Management tone: “We made substantial progress to rewire Perrigo… stabilizing CSCA, streamlining operations and strengthening the Company for the long term,” said CEO Patrick Lockwood‑Taylor .
What Went Wrong
- Volume/mix headwinds: Lower global OTC volumes; later U.S. cough/cold start pressured Upper Respiratory and Pain & Sleep-Aids categories; adjusted gross margin fell to 37.2% (-260 bps YoY) .
- CSCA gross pressure: CSCA adjusted gross margin down 330 bps YoY to 30.8% on lower OTC volumes and temporary infant formula equipment disruption (resolved) .
- VMS softness and divestiture drag: CSCI VMS demand weaker; divested businesses/exited product lines negatively impacted CSCI net sales (-5.9%) and margins (120 bps) .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$1,066	$1,088	$1,138
Adjusted Diluted EPS ($)	$0.53	$0.81	$0.93
Reported Diluted EPS ($)	$(0.77)	$(0.13)	$(0.30)
Adjusted Gross Margin %	40.6%	41.0%	37.2%
Adjusted Operating Margin %	13.1%	16.8%	17.0%

Segment performance

Segment	Q2 2024 Net Sales ($MM)	Q2 Adj. Op Margin %	Q3 2024 Net Sales ($MM)	Q3 Adj. Op Margin %	Q4 2024 Net Sales ($MM)	Q4 Adj. Op Margin %
CSCA	$634	14.4%	$671	19.7%	$744	19.6%
CSCI	$431	21.0%	$416	22.1%	$394	21.2%

Key category breakdown – CSCA (Q4 2024)

Category	Q4 2024 ($MM)	Q4 2023 ($MM)	YoY Change
Nutrition	$145.7	$126.9	+14.8%
Upper Respiratory	$130.3	$139.3	-6.4%
Digestive Health	$135.7	$139.3	-2.6%
Pain & Sleep-Aids	$93.6	$102.6	-8.8%
Healthy Lifestyle	$85.5	$92.1	-7.2%
Oral Care	$70.6	$74.9	-5.8%
Skin Care	$61.5	$50.8	+21.1%
Women’s Health	$19.1	$13.0	+47.5%
VMS & Other	$2.2	$5.4	-59.3%

Key KPIs

KPI	Q3 2024	Q4 2024
Operating Cash Flow ($MM)	$42	$313
Capital Expenditures ($MM)	$27	$38
Cash & Equivalents ($MM)	$1,463	$559
Total Debt ($B)	$4.8	$3.62
Dividends ($MM, quarter)	$38	$40

Estimates vs. Actuals

S&P Global consensus estimates could not be retrieved due to an SPGI daily limit error; estimate comparisons are unavailable for this report.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Diluted EPS	FY 2024	$2.50–$2.65 (reaffirmed in Q3 2024)	Actual: $2.57	Achieved midpoint
Organic Net Sales Growth	FY 2024	-3% to -1% (updated in Q2 2024)	Actual: -4.5% organic	Lower than guided range
Total Net Sales Growth	FY 2024	-5% to -3% (updated in Q2 2024)	Actual: -6.1%	Lower than guided range
Adjusted Diluted EPS	FY 2025	N/A	$2.90–$3.10	New
Adjusted Gross Margin	FY 2025	N/A	~40%	New
Adjusted Operating Margin	FY 2025	N/A	~15%	New
Operating Cash Flow Conversion	FY 2025	N/A	~100% of adjusted net income	New
Free Cash Flow (% net sales)	FY 2025	N/A	~6%	New
Net Leverage	FY 2025	N/A	~3.5x adjusted EBITDA	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Infant Formula Remediation & Recovery	Material production impacts; Nutrition down; EPS reaffirmed; remediation actions underway	Recovery: +58% sequential infant formula net sales; +3% YoY; margin expansion	+17% YoY infant formula net sales; FDA “No Action Indicated” status	Improving
Project Energize Cost Savings	On target; gross/operating margin expansion despite topline pressure	Drove adj. OI +21% YoY; margin +340 bps	Drove adj. OI +16% YoY; adj. op margin +260 bps	Sustained savings flow-through
Cough/Cold Seasonality	Lower seasonal demand in H1; UR category down	Later start noted; UR & Pain impacted	Later start continued; UR & Pain down	Persistent headwind into Q4
Skin Care & Women’s Health	CSCI Skin Care growth; Opill launch supporting Women’s Health	Skin Care brand gains; Opill momentum	CSCA Skin Care +21%; Women’s Health +47% (Opill)	Strengthening
VMS Demand	VMS pressured in Europe	VMS down on weaker demand	VMS down 8.3% (CSCI)	Weak
Portfolio Streamlining / Divestitures	HRA Rare Diseases divested; impairment charges	Exited product lines weighing on sales/margins	Divested/exited lines impacting CSCI (-5.9%) and margins	Portfolio mix shift ongoing

Management Commentary

“Though 2024 was a challenging year… we made substantial progress to rewire Perrigo through stabilizing our CSCA businesses, streamlining our operations and strengthening the Company for the long-term.” — CEO Patrick Lockwood‑Taylor .
“Perrigo store brand share of infant formula exited 2024 at a high for the year and we remain steadfast in our goal to continue recapturing market share.” — Patrick Lockwood‑Taylor .
Q3 tone: “Significant progress… stabilizing core businesses… executing accretive initiatives. Infant formula net sales growth +3% YoY and +58% sequential.” — Patrick Lockwood‑Taylor .
Q2 tone: “We continued to execute well… delivered meaningful margin expansion… increasingly confident in second half profit recovery of [infant formula].” — Patrick Lockwood‑Taylor .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the document catalog; key focus areas inferred from management disclosures include infant formula regulatory status, Project Energize savings realization, and margin trajectory across segments .
Guidance clarifications were provided at Investor Day (Feb 28, 2025), including FY2025 EPS, margin, cash flow, and leverage targets .

Estimates Context

S&P Global consensus estimates for Q4 2024 could not be retrieved due to an SPGI daily limit error; therefore, comparisons versus consensus EPS, revenue, and EBITDA are unavailable for this report.
Actuals: Revenue $1.14B; adjusted EPS $0.93; adjusted operating margin 17.0% .

Key Takeaways for Investors

Infant formula is back on offense: +17% YoY in Q4 and FDA “No Action Indicated” status materially de-risk operations, supporting further share recapture and category normalization .
Cost programs are delivering: Project Energize and supply chain reinvention drove adjusted operating margin to 17.0% (+260 bps YoY) despite OTC volume softness and seasonal timing .
Mix dynamics matter: Skin Care and Women’s Health (Opill) offset cough/cold timing and VMS softness; CSCA Skin Care +21%, Women’s Health +47% YoY .
Balance sheet improvement and cash generation: $313M Q4 operating cash flow, repayment of $400M senior notes, year-end cash $559M and total debt $3.62B provide flexibility for FY2025 targets .
Shareholder returns: Dividend increased 5% to $0.29/share, marking 22 consecutive annual increases (announced Feb 19, 2025) .
FY2025 targets set a clearer path: EPS $2.90–$3.10, ~40% adj. gross margin, ~15% adj. operating margin, ~100% cash conversion, net leverage ~3.5x—monitor execution and category demand normalization .
Watch risks: VMS demand softness, cough/cold season timing, and portfolio divestiture mix effects; continued discipline on SG&A and brand A&P spend should help protect margins .

Citations: All financial and qualitative data are sourced from Perrigo’s Q4 FY2024 8-K and press release, prior quarter 8-Ks and press releases, dividend and investor day press releases as cited in tables and statements above .

PERRIGO Co plc (PRGO)·Q4 2024 Earnings Summary