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Published in Health Care

Perrigo builds sales momentum as key segment rebounded in 2021

BY Tuesday, March 01, 2022 10:55am

ALLEGAN — Perrigo Co. plc gained momentum toward the end of 2021 as sales in its key cough and cold medication segment rebounded and the company moves forward as a consumer self-care company.

Perrigo today reported $1.1 billion in sales for the final three months of the year, a nearly 5-percent increase from the $1.05 billion in the same period a year earlier.

Murray Kesler COURTESY PHOTO

Perrigo President and CEO Murray Kessler told analysts this morning that the quarterly results included a rebound in the sale of cough and cold medications following “historically weak” sales earlier in the year for those products, which represent nearly 20 percent of the company’s total sales.

Sales grew sequentially in each quarter through 2021 and the “positive trend” continued into January and February this year, Kessler said.

“We entered 2022 with strong topline momentum and strong global consumer demand,” Kessler said. “We also entered 2022 with most major topline headwinds behind us.”

Perrigo faced “severe material price inflation” and supply chain disruptions in the second half of 2021 that affected fourth-quarter results, Kessler said. The company also had to address COVID-related disruptions, he said.

Perrigo reported $32.1 million in net income for the fourth quarter, or 24 cents per share. That compares to a net loss of $52.2 million, or 39 cents per share, in the fourth quarter of 2020.

Sales for all of 2021 totaled $4.13 billion, versus $4.08 billion in 2020. Perrigo recorded a $68.9 million net loss, or 98 cents per share, for last year.

The company projects net sales growth of 3.5 percent to 4.5 percent in 2022 with $2.10 to $2.30 in adjusted earnings per share.

While Perrigo missed internal financial objectives for 2021, the company accomplished three major goals with the sale of its generic drug division for $1.3 billion, the acquisition of Paris-based HRA Pharma for $2.1 billion that should close by midyear and add $170 million to $190 million in sales, and settling a tax case in Ireland.

Kessler told analysts that his primary focus for 2022 is on improving Perrigo’s profitability after transitioning the company since 2019 into a producer and provider of self-care consumer products.

“We have changed this company over the last three years, dramatically changed it. It is now a consumer self-care company and we have gotten the top line growing,” he said. “The job now, with laser focus, is profitability and profitable growth going forward and we believe we’ll get there.”

The quarterly earnings report sent Perrigo’s rising more than 8 percent this morning.

Read 1157 times Last modified on Tuesday, 01 March 2022 10:58
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