Perrigo shares rose slightly on fourth-quarter results and beat on revenue. By Investing.com

© Reuters.

DUBLIN – Perrigo Company plc (NYSE: NYSE:), a leading provider of consumer self-care products, announced financial results for the fourth quarter ended December 31, 2023.

The company reported a slight increase in both earnings and revenue, with adjusted EPS of $0.86, which beat analyst estimates of $0.83. The company reported revenue of $1.2 billion for the quarter, compared to the consensus estimate of $1.18 billion.

For fiscal 2024, Perrigo provided guidance for an adjusted EPS range of $2.50 to $2.65, which is below the analyst consensus of $3.00. Despite this low guidance, Perrigo’s stock price rose slightly by 0.09% following the earnings release, indicating some positive market reaction to the company’s quarterly results.

Perrigo’s fourth quarter results showed a 0.1% increase in net sales compared to the same quarter last year, with organic net sales down slightly by 0.6%. This included a 2.4 percentage point impact of strategic SKU prioritization actions aimed at improving margins as part of the company’s supply chain reinvention program.

The Consumer Self-Care International (CSCI) segment also increased net sales by 5.9% year-over-year, while the Consumer Self-Care Americas (CSCA) segment decreased 2.8%.

The company’s fourth quarter GAAP gross margin improved 380 basis points compared to the year-ago quarter, and adjusted gross margin increased 140 basis points. The reported loss per share was -$0.20 compared to a loss of -$0.09 in the year-ago quarter. However, adjusted diluted EPS increased 14.7% to $0.86 from $0.75 in the year-ago period.

Patrick Lockwood-Taylor, President and CEO of Perrigo, commented on the company’s progress: “We ended 2023 with a strong performance amidst a consumer environment with our international business firing on all cylinders and our U.S. OTC business returning to normal.” said.

For fiscal 2023, Perrigo reported a 4.6% year-over-year increase in net sales, with organic net sales up 1.7%. For the fiscal year, reported gross margin increased 340 basis points and adjusted gross margin increased 260 basis points.

The reported loss per share for the fiscal year was -$0.03, a significant improvement over the loss of -$0.97 the previous year. Adjusted diluted EPS for the fiscal year increased 24.6% to $2.58.

The Company’s outlook for fiscal 2024 includes organic net sales growth of 1.0% to 3.0% compared to the prior year, with reported net sales expected to be flat. The expected mid-teens adjusted diluted EPS growth, excluding infant formula, suggests Perrigo is taking steps to expand and strengthen its infant formula business, which is expected to impact its 2024 financial performance.

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