Perrigo reaffirms 2026 outlook, cites softer consumption in second quarter

Perrigo Company plc reported financial results from continuing operations for the second quarter ended June 27, 2026, on August 5, 2026. Core net sales were $907 million, declining 3.1% year-over-year, while Core organic net sales decreased 3.5%.¹ All In reported net sales declined 3.2% year-over-year to $1.02 billion.¹ The company attributed the softness to ongoing softness in consumption compared to a strong prior-year period, along with continued lower retail inventory levels¹, though it said consumption trends improved throughout the quarter, and Perrigo continued to gain market share across key categories driven by innovation and strong commercial execution.¹

Profitability also declined. All In adjusted diluted EPS declined $0.07 to $0.50, a 12.3% decrease from the prior year.¹ Core adjusted EPS declined $0.12 to $0.46, a 20.7% decrease from the prior year.¹

Perrigo said it completed the previously announced sale of its Dermacosmetics business and is continuing strategic reviews of its Infant Formula and Oral Care businesses, as stated in the release's summary of the quarter. The substantial majority of about $359 million of cash proceeds from the Dermacosmetics divestiture went toward debt reduction, cutting borrowings under the revolving credit facility, which the company said supports its Three-S plan and long-term value creation.¹

On guidance, the company reaffirmed its 2026 outlook.¹ Planned under absorption tied to lower prior-year sales volumes is expected to cut All In EPS by about $0.60 in 2026, with $0.26 of that recognized in the first quarter and $0.18 in the second quarter.¹

On the balance sheet, cash and cash equivalents as of June 27, 2026 were $400 million while total debt was $3.3 billion.¹ Net cash from operating activities was $83 million in the quarter, capital expenditures were $14 million, and the company returned $40 million to shareholders through dividends.¹