Perrigo Company plc

What they do

Perrigo develops, manufactures and markets OTC self-care products, with a portfolio diversified across categories and geographies and no single product representing more than 5% of total revenue. In the U.S. and Canada it primarily supplies store-brand products to retail drug, supermarket, mass merchandise, e-commerce and wholesale customers, alongside a select branded lineup. Outside North America it sells mainly branded products in Europe and Australia plus store brands in the UK and parts of Europe and Asia.

Revenue drivers

• Self Care — OTC health and wellness products for common conditions including pain & sleep, upper respiratory, digestive health and healthy lifestyle categories such as vitamins, minerals and supplements and oral electrolyte beverages; this is the core reporting segment following the segment reorganisation.
• Store-brand consumer self-care in North America — Store-brand products sold under retailers' own or exclusive brands; management describes Perrigo as the leading store-brand private label provider of self-care in many North American categories. These products are priced below comparable national brands and are promoted largely through retailer activity.
• Branded self-care portfolio — Brands include Compeed, Dr. Fresh, Firefly, Good Sense, Good Start, Mederma, Nasonex, Plackers, Prevacid 24HR, REACH, Rembrandt, Steripod and Opill, with European brands including ellaOne, Solpadeine and Jungle Formula.
• Specialty Care / Infant Formula — Specialty Care covers more targeted self-care needs such as women's health and skin health (skin healing and insect repellent). Infant Formula is now outside the Core go-forward business and is under strategic review.

Recent performance

Second quarter 2026 net sales were $1,023 million, down 3.2% year over year, with Core net sales of $907 million down 3.1%. Core organic net sales declined 3.5%, reflecting category softness versus a strong prior-year period, lower retail inventory levels and a 2.4% volume mix decline, partially offset by continued share gains. Reported All In gross margin fell 370 basis points to 30.7% and reported operating margin was 2.3%, while adjusted diluted EPS was $0.50 versus $0.57 a year earlier. Full-year 2025 results included a net loss of $1.43 billion and diluted EPS of -$10.29.

Strategy

Management is executing a Three-S plan — Stabilizing, Streamlining and Strengthening — focused on restoring consistency in the core business, reducing cost and debt, and building scalable long-term growth. The portfolio is being simplified: the Dermacosmetics divestiture closed in the second quarter of 2026, and strategic reviews of Infant Formula and Oral Care continue. Perrigo is also transitioning from geographic reporting segments to a category-based view (Self Care, Specialty Care, Infant Formula). Capital is being directed toward higher-margin, higher-growth brands while store brands generate cash to fund them, and the company reports results on both an All In and a Core basis.

Risks

• Category and consumption softness — Second quarter 2026 Core organic net sales declined 3.5% on lower consumption and reduced retail inventory levels, and the timing of cough/cold/flu and allergy seasons can make results volatile.
• Retail landscape and channel shift — Growth of e-commerce, direct-to-consumer brands, subscription services and buying clubs may pressure pricing and shift market share in ways the company says are difficult to predict.
• Dependence on retailer promotion — The U.S. store-brand business does not advertise like national brands and relies largely on retailer promotional spending, so reduced customer promotions could hurt sales.
• Margin pressure and portfolio transition — Reported gross margin fell 370 basis points year over year to 30.7% in the second quarter of 2026 on lower volumes and carryover under-absorption, while divestitures and business reviews reshape the revenue base.

Outlook

Management reaffirmed its full-year 2026 outlook and expects a sequentially stronger second half. Cited drivers include moderation of planned under-absorption tied to lower prior-year sales volumes, more favourable category comparisons and continued operational execution. Management also flagged an uncertain consumer and macroeconomic environment.