Perrigo Company plc

Reported Q2 2026 figures: Core net sales declined 3.1% year over year and Core organic net sales declined 3.5%; all-in net sales declined 3.2%. Core adjusted EPS was $0.46 and all-in adjusted EPS was $0.50. Core adjusted gross margin declined 250 basis points to 37%, and all-in adjusted gross margin declined 250 basis points to 35.6%; Core adjusted operating margin was 13% and all-in adjusted operating margin was 12.2%. Cash from operating activities was $83 million, capex was $14 million, cash and cash equivalents were $400 million, and total debt was $3.3 billion. The company said it used most of the $359 million Dermacosmetics sale proceeds to reduce debt. For 2026, management maintained full-year Core and all-in net sales, margin, and EPS outlooks, raised the estimated full-year tax rate to approximately 18% from approximately 20%, and updated diluted shares outstanding to 139.6 million. Management said the full year remains weighted to the second half.

Albert Manzone framed the call as the start of a reset in execution and credibility, saying Perrigo is focused on being a world leader in affordable consumer self-care and that investor confidence must be re-earned. He emphasized the Three-S plan—stabilize, streamline, strengthen—highlighting better service levels, portfolio simplification, debt reduction, and a larger innovation pipeline. His tone was confident but measured: he repeatedly called 2026 a transition year and said the company is executing on what it controls while remaining mindful of consumer uncertainty.

Eduardo Bezerra walked through a quarter marked by lower sales volumes, retailer inventory reductions, and seasonal weakness, especially in Europe and summer categories. He cited Core adjusted gross margin of 37% and all-in adjusted gross margin of 35.6%, both down 250 basis points, and said Core adjusted EPS of $0.46 was above expectations due mainly to lower operating expenses from the operational enhancement program and a $6 million CEO-transition benefit. He also noted $83 million of operating cash flow, $14 million of capex, $400 million of cash, $3.3 billion of debt, and that the $359 million Dermacosmetics proceeds were largely used for debt reduction; he added that tariff recovery contributed about $10 million in Q2.

Analysts pressed for updates on the Infant Formula strategic review, and management said the review is proceeding well but no decision timing was given. They also asked about 2027 earnings drivers, and Albert said the main levers are share gains, platform-based innovation, demand generation, retailer partnerships, and execution, while acknowledging ongoing consumer caution. On the quarter’s one-time items, Eduardo quantified about $10 million of tariff benefit and $6 million of CEO-transition OpEx benefit; he also reiterated that retailer inventory destocking, particularly in Europe, hurt sales by about 1.8%.