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DUBLIN - Perrigo Company plc (NYSE:PRGO) reported first quarter 2025 earnings that beat analyst expectations, while revenue fell short of estimates on Wednesday.
The consumer healthcare company’s shares slipped 1.13% in premarket trading following the mixed results.
Perrigo posted adjusted earnings per share of $0.60 for Q1, surpassing the analyst consensus of $0.55. However, revenue came in at $1.04 billion, below the $1.09 billion analysts had projected.
The company’s net sales declined 3.5% year-over-year, primarily due to a 3.2% impact from divested businesses, exited product lines and currency translation. Organic net sales decreased 0.4%.
"We delivered strong first quarter 2025 adjusted EPS growth and margin expansion, driven by infant formula and OTC brands," said Patrick Lockwood-Taylor, President and CEO of Perrigo.
Adjusted gross margin expanded 440 basis points to 41.0%, while adjusted operating margin increased 550 basis points to 14.0%. The improvements were attributed to recovery in the infant formula business and benefits from the company’s supply chain reinvention program.
For the full year 2025, Perrigo widened its net sales growth target range to 0% to 3% from the previous 1% to 3%, citing macroeconomic uncertainty. However, the company reaffirmed all other 2025 financial targets, including its adjusted EPS range of $2.90 to $3.10.
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