The following is a summary of the Perrigo Company Plc (PRGO) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Perrigo experienced a decline in Q1 EPS due to a stressful period with their infant formula resulting in a drop of $0.30 compared to the previous year.

• Net sales also saw a decline of over 8% due to challenges presented by infant formula strategies and SKU prioritization actions, elements of their much larger supply chain reinvention program.

• Gross margin suffered a slight decrease by 90 basis points to 36.5%.

Business Progress:

• Perrigo is working hard to strengthen their infant formula business, anticipating a recovery of manufacturing volumes in H2.

• The US launch of Opill, their oral contraceptive, has shown promise with quick consumer conversions.

• The company has planned cost savings of $25 million in incremental HRA synergies, $12 million from their supply chain reinvention, and $17 million from Project Energize.

• A leadership change is expected in August as Svend Andersen, President of CSCI, will retire and Roberto Khoury will take his place.

• The infant formula recovery process is showing positive results, with production and facility throughput outperforming expectations.

• Continued success with Opill is seen through expanded insurance coverage which is predicted to be advantageous.

• Growth in the skincare sector, driven largely by Compeed and its extensions, has been noticed, and plans are underway to focus more in these profitable categories.

More details: Perrigo IR

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