Perrigo Reports Q2 2025 Financial Results with Decline in Net Sales but Improved Operating Income

Perrigo Company plc reported its financial results for the second quarter of 2025, revealing a slight decline in net sales to $1,056.3 million, down from $1,065.5 million in the same period last year. The company's gross profit also decreased to $362.9 million, compared to $394.7 million in the prior year, resulting in a gross profit margin of 34.4%, down from 37.0%. Despite the decline in sales, Perrigo achieved an operating income of $45.4 million, a significant recovery from an operating loss of $26.5 million in the previous year, primarily due to reduced operating expenses and the absence of prior year impairment charges.

In the first half of 2025, Perrigo's net sales totaled $2,100.2 million, a decrease from $2,147.5 million in the same period of 2024. The decline was attributed to divestitures, including the Rare Diseases Business and the Hospital & Specialty Business, which collectively accounted for a $47.5 million reduction in sales. However, the company reported an operating income of $92.3 million, a substantial improvement from an operating loss of $81.7 million in the prior year, driven by lower operating expenses and improved gross profit margins.

Strategically, Perrigo has been active in restructuring its operations, including the completion of the sale of the Richard Bittner Business in April 2025. The company is also focused on its Supply Chain Reinvention Program and Project Energize, which aim to enhance operational efficiency and drive long-term growth. These initiatives are expected to yield annual savings of $200 million to $300 million by 2028, with significant cost reductions anticipated in the near term.

Operationally, Perrigo's Consumer Self-Care Americas segment reported net sales of $622.0 million, a decrease from $634.1 million, while the Consumer Self-Care International segment saw a slight increase in sales to $434.3 million from $431.3 million. The company noted that favorable foreign currency translation contributed positively to its international sales figures. Additionally, Perrigo's gross profit margin in the international segment remained strong at 46.1%, although it was slightly lower than the previous year's 47.5%.

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 actively monitoring these factors and adjusting its strategies accordingly. Perrigo's management believes that its ongoing restructuring efforts and strategic initiatives will position the company for sustainable growth and improved profitability in the future.