Perrigo shares rise 3% as company reaffirms full-year outlook despite challenging market

Published 06/08/2025, 11:56
 Perrigo shares rise 3% as company reaffirms full-year outlook despite challenging market

DUBLIN - On Wednesday, Perrigo Company plc (NYSE:PRGO) reported second-quarter results that slightly missed analyst expectations but reaffirmed its full-year guidance despite challenging market conditions.

The consumer self-care products maker’s shares gained 3.31% in pre-market trading after the release.

The company posted adjusted earnings of $0.57 per share for the second quarter, slightly below the analyst estimate of $0.59. Revenue came in at $1.06 billion, compared to the consensus estimate of $1.08 billion and down 0.9% YoY. Despite these misses, investors responded positively to the company’s maintained full-year outlook and strategic progress.

"Our second quarter results reflect the continued execution by the global Perrigo team against our ’Three-S’ strategic plan," said President and CEO Patrick Lockwood-Taylor. "Despite a challenging consumer environment in the U.S. and EU, our diversified portfolio—spanning more molecules at more price points—continues to provide resilience and stability."

Organic net sales were essentially flat at -0.1% as growth in Pain & Sleep-Aids, Nutrition, and Upper Respiratory categories was offset by declines in Digestive Health and Oral Care. The company’s adjusted operating income decreased 2.9% to $135 million, while adjusted operating margin declined slightly to 12.8% from 13.1% in the prior year quarter.

Perrigo reaffirmed its full-year 2025 outlook, including an adjusted EPS range of $2.90 to $3.10, though it noted that reported and organic net sales growth are expected toward the lower end of their respective ranges due to infant formula industry dynamics and challenging market consumption trends.

The company also highlighted progress on its strategic initiatives, including the recently announced agreement to sell its Dermacosmetics business, which is expected to close in the first quarter of 2026. Proceeds from this transaction will be prioritized toward strengthening the company’s balance sheet and accelerating net leverage goals.

"Our share gains, operating discipline and cost efficiencies are enabling us to reaffirm our full-year earnings outlook," added Lockwood-Taylor. "Our unique offerings continue to support agile execution in a dynamic environment."

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