Perrigo Q1 Earnings Beat Estimates On Strategic Pricing, CEO Plans Retirement

Perrigo Company plc's (NYSE: PRGO) first-quarter FY23 sales increased nearly 10% year over year to $1.18 billion, marginally beating the consensus of $1.17 billion.
The health and wellness solutions provider registered an adjusted EPS of $0.45 (+35.6% Y/Y), beating the consensus of $0.42.
Strategic pricing actions, the Supply Reinvention Program, recent acquisitions (Gateway infant formula facility and U.S. & Canadian Good Start infant formula brand), and solid consumer demand bolstered the company's Q1 performance. Perrigo gained market share globally except in categories where the company is capacity constrained.
Adjusted gross margin was 37.5%, a 400 basis points improvement compared to the prior-year quarter.
"And finally, we further reduced uncertainty as the IRS has completely resolved its $843 million tax assessment with the Company, without any payment required, and also closed the matter related to the interest rate NOPA previously issued," said President and CEO Murray S. Kessler.
Kessler announced his intention to retire as President & CEO, effective July 31, 2023. He will be working with the board of directors to secure his successor and to ensure a smooth transition
Guidance: Perrigo reiterated its fiscal 2023 outlook. It expects total net sales growth of 7%-11% Y/Y, representing $4.763 billion-$4.941 billion, against the consensus of $4.82 billion.
Adjusted EPS of $2.50- $2.70 versus the consensus of $2.64.
Price Action: PRGO shares are trading down by 2.32% at $35.17 on the last check Tuesday.

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