Perrigo Company plc reported a decline in financial performance for the third quarter of 2025, with net sales of $1,043.3 million, down 4.1% from $1,087.5 million in the same period last year. The decrease was attributed primarily to lower sales in the Nutrition category and the impact of divestitures, including the Rare Diseases Business. Gross profit also fell to $377.1 million, resulting in a gross margin of 36.1%, compared to 37.2% in the prior year. Operating income decreased to $72.6 million from $80.4 million, reflecting a 9.7% decline.
For the nine months ending September 27, 2025, Perrigo's net sales totaled $3,143.5 million, a decrease of 2.8% from $3,235.1 million in the previous year. The company reported a significant improvement in operating income, which rose to $164.9 million from a loss of $1.3 million in the same period last year. This turnaround was driven by reduced operating expenses and benefits from restructuring initiatives, including the Supply Chain Reinvention Program and Project Energize.
Perrigo has been actively restructuring its operations, with ongoing initiatives aimed at enhancing efficiency and profitability. The Supply Chain Reinvention Program is expected to yield annual savings of $200 million to $300 million by 2028, while Project Energize aims to deliver annualized savings of $140 million to $170 million by the end of 2026. The company also announced a strategic review of its infant formula business, which is part of its broader effort to optimize its portfolio and improve cash flows.
In terms of operational metrics, Perrigo's cash and cash equivalents decreased to $432.1 million as of September 27, 2025, down from $558.8 million at the end of 2024. The company reported a working capital of $1,095.3 million, reflecting an increase from $915.3 million in the previous year. Perrigo's total assets rose to $10,084.0 million, compared to $9,647.7 million at the end of 2024, indicating a strengthening balance sheet despite the decline in cash reserves.
Looking ahead, Perrigo remains cautious about macroeconomic conditions, including inflation, interest rates, and geopolitical tensions, which could impact its operations and financial performance. The company is focused on stabilizing its core businesses while navigating these challenges and is committed to maintaining its strategic initiatives to drive long-term growth and shareholder value.
About PERRIGO Co plc
Perrigo Company plc is a global leader in self-care health and wellness products, primarily offering over-the-counter solutions, private label brands, and innovative health products across North America and Europe. Its portfolio includes skin care, women's health, respiratory, and infant nutrition products. The company focuses on accessible, high-quality solutions, leveraging a broad supply chain, regulatory expertise, and a commitment to sustainability to serve diverse consumer needs.
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