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Thursday, 15 August 2013 09:41

Recent acquisitions boost Perrigo sales

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Allegan-based Perrigo Co. notched another consecutive year of record sales and adjusted year based on results it reported this morning and thanks to growth in each of the company’s business segments.

In the fourth quarter of the 2013 fiscal year that ended June 29, Perrigo reported net sales of more than $967.2 million, a 16-percent increase over the same period a year ago. The $135 million increase was driven by $83 million in sales attributable to the recent acquisitions of Sergeant’s Pet Care Products Inc., Rosemont Pharmaceuticals Ltd., Velcera Inc. and Fera Pharmaceuticals LLC acquisition, the company stated in a release.

The company reported net income of $118.5 million, or $1.25 per diluted share, up 11 percent from $107.1 million, or $1.14 per diluted share, a year ago. Excluding charges related to the recent acquisitions, inventory and restructuring, Perrigo’s net income would have been $148.1 million, or $1.57 per diluted share, an increase of 22 percent from adjusted net income of $120.9 in the same period last year.

Perrigo’s reported revenue missed analysts’ consensus estimate by $32.08 million, but fourth quarter adjusted earnings per share beat their estimate by 1 cent.

For the full year, Perrigo reported net sales of more than $3.539 billion, up 12 percent from a $3.173 billion a year ago. Annual net income of $ 441.9 million, or $4.68 per diluted share, rose 12 percent from the $393.0 million, or $4.18 per diluted share, in the previous fiscal year. Excluding acquisition and other related charges, net income would have been $529.7 million.

Sales in each of Perrigo’s business segments improved for the year. Consumer health care sales rose more than 16 percent for the year to $562.5 million, nutritionals sales increased 10.6 percent to $149.7 million, prescription drug sales spiked 24 percent to $194.7 million and sales of active pharmaceutical ingredients went up 6.4 percent to $40.9 million.

This was the seventh consecutive fiscal year that Perrigo broke records in sales and adjusted earnings.

In providing guidance for the 2014 fiscal year — exclusive of the impact of the proposed acquisition of the Ireland-based Elan Corp. — Perrigo said it expects adjusted earnings to grow 13 percent to 18 percent on a year-over-year basis. Executives expect reported earnings of $5.51 to $5.76 per diluted share, compared to $4.68, and adjusted earnings of $6.35 to $6.60 per diluted share, compared to $5.61.

While the company said it is limited by Irish law in what it can discuss about the impact of the acquisition of Elan in which Perrigo plans to redomicile to Ireland to take advantage of the better tax climate, Perrigo executives expect the transaction to be “at least” $0.10 accretive to adjusted earnings of Perrigo in the 2014 fiscal year and between $0.70 and $0.80 accretive in the 2015 fiscal year, including synergies.

Read 1445 times Last modified on Thursday, 15 August 2013 12:53

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