On November 7, 2023, Perrigo Co PLC (PRGO, Financial) released its third quarter fiscal year 2023 financial results. The company reported a 2.2% increase in net sales, reaching $1.1 billion compared to the prior year quarter. Despite a decrease in organic net sales by 1.2%, the company achieved its fifth consecutive quarter of double-digit adjusted gross profit, adjusted operating income, and adjusted EPS growth year-over-year.
Financial Performance
Perrigo Co PLC (PRGO, Financial)'s third quarter GAAP gross margin was 36.6%, a 360 basis points improvement compared to the prior year quarter. The company's adjusted gross margin was 39.5%, a 300 basis points improvement compared to the prior year quarter, and an 80 basis points improvement compared to the second quarter of 2023.
The company's third quarter reported earnings per share (EPS) was $0.11, compared to a loss of $(0.39) in the prior year quarter. Adjusted diluted EPS was $0.64, compared to $0.56 in the prior year quarter, marking an increase of 14.3%. The company's third quarter operating cash flow was $125 million, leading to an operating cash flow conversion of 143%.
Year-to-Date 2023 Highlights
Year-to-date 2023 net sales were $3.5 billion, an increase of 6.1% versus the prior year period. Organic net sales increased 2.4%, including -1.9 percentage points from purposeful SKU prioritization actions and the HRA distributor transitions. Year-to-date GAAP gross margin was 35.8%, a 330 basis points improvement compared to the prior year period. Year-to-date adjusted diluted EPS was $1.72, as compared to $1.32 in the prior year period, an increase of 30.3%.
Outlook for Fiscal 2023
Perrigo Co PLC (PRGO, Financial) updated its fiscal 2023 organic net sales and total net sales growth outlook range to 1.0%-3.0% and 4.0%-6.0%, respectively, versus the prior year. The company also updated its adjusted diluted EPS range outlook to $2.50-$2.60.
Patrick Lockwood-Taylor, President and CEO of Perrigo, commented,
The Perrigo team delivered third quarter double-digit gross profit, operating income and EPS growth year-over-year led by strong business fundamentals across the global portfolio, which more than offset continued volatility in infant formula."
Explore the complete 8-K earnings release (here) from Perrigo Co PLC for further details.
