Perrigo Reports $4.25 Billion in Net Sales for 2025, Operating Loss of $1.12 Billion

Perrigo Company plc, a leading self-care company, reported net sales of $4.25 billion for the year ended December 31, 2025, a decrease of 2.8% compared to $4.37 billion in 2024. The decline was primarily attributed to lower net sales in the Digestive Health and Nutrition categories, particularly infant formula, and the absence of the prior-year Opill® launch stocking benefit. These decreases were partially offset by higher net sales in Upper Respiratory. The company's operating loss was $1.12 billion, a significant decrease from the operating income of $112.9 million in the previous year. This was largely due to a $1.3 billion goodwill impairment charge.

The Consumer Self-Care Americas (CSCA) segment experienced a 4.0% decrease in net sales, totaling $2.59 billion, driven by lower sales in Digestive Health and Nutrition. The Consumer Self-Care International (CSCI) segment's net sales decreased by 0.7% to $1.67 billion, primarily due to prior year divestitures, partially offset by favorable foreign currency translation. The company's effective tax rate was (8.0)%, compared to (99.3)% in the prior year, primarily due to the impact of the One Big Beautiful Bill Act ("OBBBA") in 2025 and the net impact of an intercompany intellectual property sale in 2024, offset by the establishment of a full valuation allowance in the United States and the impact of the goodwill impairment charges in 2025.

Perrigo continued its strategic focus on self-care, advancing its Supply Chain Reinvention Program and Project Energize. The Supply Chain Reinvention Program, aimed at reducing structural costs and improving profitability, achieved approximately $157 million of annualized benefits by the end of 2025. Project Energize, a global investment and efficiency program, delivered approximately $167 million of annualized pre-tax savings. The company also initiated a strategic review of its infant formula business, focusing on accelerating cash flows and reassessing investments. During the year, Perrigo completed the sale of the Richard Bittner Business for $14.4 million, resulting in a pre-tax loss of $1.6 million.

As of December 31, 2025, Perrigo's cash and cash equivalents totaled $531.6 million, and the company had $3.6 billion in total indebtedness. The company did not repurchase any shares during the year. The Board of Directors authorized up to $1.0 billion of share repurchases with no expiration date in October 2018, subject to the Board of Directors’ approval of the pricing parameters and amount that may be repurchased under each specific share repurchase program. The company declared and paid $159.3 million in dividends, or $1.16 per share, during the year. The company is transitioning from a geographic segment reporting structure to a category-based segment view in the first quarter of 2026.