Perrigo Q2 Earnings Call Highlights

Perrigo NYSE: PRGO reported second-quarter 2026 results that exceeded its internal earnings expectations, while sales declined amid soft consumer self-care categories, retailer inventory reductions and a slower start to seasonal demand. The company maintained its full-year outlook, citing improving category trends, market-share gains and expected second-half contributions from innovation, distribution and demand-generation efforts. Core net sales fell 3.1% year over year, while all-in net sales declined 3.2%. Core adjusted earnings per share were $0.46, down $0.12 from the prior-year period, while all-in adjusted diluted EPS was $0.50, down $0.07. CFO Eduardo Bezerra said earnings exceeded expectations primarily because of lower operating expenses, including accelerated operational-enhancement savings and a one-time $6 million benefit associated with the CEO transition. Interim President and CEO Albert Manzone said the company remains focused on its “Three-S” plan to stabilize operations, streamline the portfolio and strengthen growth capabilities. Manzone, who recently assumed the interim CEO role, said Perrigo’s board and management are working to rebuild investor confidence through consistent execution. Bezerra said continued softness in category consumption reduced core sales by approximately 1.2%, particularly in cough, cold and certain summer seasonal categories. Retailer inventory reductions, most notably in Europe, reduced sales by another approximately 1.8%. Seasonal demand was particularly weak in Europe, where delayed allergy and sun seasons weighed on self-care sales. Skin-health performance also reflected a slower seasonal start, lower sales of store-brand minoxidil and a difficult comparison for Mederma related to prior-year inventory restocking. Despite the sales decline, management pointed to improved category conditions later in the quarter and into the third quarter. Manzone said U.S. OTC volumes in Perrigo’s categories turned positive during the four weeks ended July 19. He said the company expects category comparisons to become easier through the balance of the year, though executives remained cautious about consumer demand and macroeconomic conditions. Infant formula was a notable offset to the broader sales pressure, with revenue increasing 23% year over year. Bezerra attributed the increase to the timing of contract sales and growth in store-brand formula. He cautioned that the timing-related contract-sales benefit is not expected to translate into a higher full-year outlook. Management emphasized that Perrigo gained share in both the United States and Europe. In the U.S., the categories in which Perrigo competes declined 1.1% in volume, while the company’s combined store-brand OTC volumes across self-care and specialty care increased.