Perrigo Reports Fourth Quarter Fiscal Year 2024 Financial Results From Continuing Operations Making Significant Progress on Stabilizing, Streamlining and Strengthening Organization to Build Long-Term Sustainable, Value A

Perrigo Reports Fourth Quarter Fiscal Year 2024 Financial Results From Continuing Operations

Making Significant Progress on Stabilizing, Streamlining and Strengthening Organization to Build Long-Term Sustainable, Value Accretive Growth

Delivered Fiscal Year 2024 Adjusted EPS of $2.57 the Mid-Point of the Company's Communicated Guidance Range, on Reported Loss of $(1.17) Per Share

Fourth Quarter 2024 Infant formula Net Sales Grew 17% Compared to the Prior Year Quarter, Due Primarily to Market Share Gains1 and Recovering Customer Inventory Levels

Fourth Quarter 2024 Highlights

Net sales of $1.14 billion declined 1.6%, as organic growth of 0.7% was more than offset by unfavorable impacts from divested businesses and exited product lines and currency translation of 2.3%.

Organic2 net sales increased 0.7%, as higher net sales in the Nutrition, Skin Care and Women's Health Categories more than offset previously disclosed lost distribution of lower margin products in U.S. Store Brand of 1.2%, and lower net sales in the Pain and Sleep-Aids and Upper Respiratory categories stemming from a later start to the U.S. cough and cold season compared to the prior year.

Consumer Self-Care International ( CSCI ) net sales of $394 million declined 4.5% compared to the prior year quarter, including an unfavorable impact of 6.2% from divested businesses and exited product lines, and currency translation. Organic net sales grew 1.8% due primarily to higher net sales in the Upper Respiratory and Pain Sleep-Aids categories.

Consumer Self-Care Americas ( CSCA ) net sales of $744 million were flat compared to the prior year quarter, as growth in the Nutrition, Skin Care and Women's Health categories was offset by the previously disclosed lost distribution of lower margin products and lower net sales in the Pain and Sleep-Aids and Upper Respiratory categories stemming from a later start to the U.S. cough and cold season.

GAAP ( reported ) operating income was $114 million compared to a loss of $(16) million in the prior year quarter. Adjusted operating income of $194 million increased $27 million, or 16.0%, compared to the prior year period due primarily to benefits from the Company's 'Project Energize' (see Project Energize section below for details) and Supply Chain Reinvention programs.

Reported operating margin was 10.0%, an increase of 1,130 basis points compared to the prior year quarter. Adjusted operating margin expanded 260 basis points to 17.0% driven primarily by benefits from Project Energize.

Reported diluted loss per share was $(0.30), compared to reported diluted loss per share of $(0.20) in the prior year quarter.

Adjusted diluted EPS $0.93, compared to $0.86 in the prior year quarter, an increase of $0.07, or 8.1%, per share. The prior year quarter included favorable tax benefits of $0.08 per diluted share. Adjusted EPS in the quarter was impacted by $0.01 due to an increase of adjusted diluted weighted average shares outstanding of 1.3 million from 137.0 million to 138.3 million.

Company provides update on previously issued U.S. Food and Drug Administration (FDA) Warning Letter for Perrigo's Wisconsin infant formula facility following FDA's inspection of the facility in October and November 2024, the FDA did not issue written observations via a Form FDA 483, and Perrigo Wisconsin was informed the site's inspection status would be reclassified to "No Action Indicated". This marks a substantial advancement from the facility's "Voluntary Action Indicated" status existing prior to this 2024 inspection.

Fiscal Year 2024 Highlights

Fiscal year 2024 net sales of $4.37 billion decreased 6.1% versus the prior year period, including an unfavorable impact of 1.6% from divested businesses and exited product lines, and currency translation. Organic net sales decreased 4.5%, as growth from new products and e-commerce, in addition to strategic pricing actions, were more than offset by the impacts from 1) actions to augment and strengthen the infant formula network, 2) lower cough and cold and allergy seasonal demand compared to the prior year, and 3) SKU prioritization actions to enhance margins and previously disclosed lost distribution in U.S. Store Brand during the second half of 2024.

CSCI net sales of $1.68 billion declined 0.8% compared to the prior year. Organic net sales grew 2.9%, driven by share gains in key brands within the Skin Care category, including Compeed and ACO , and the Women's Health category, led by ellaOne .

CSCA net sales of $2.69 billion decreased 9.1% compared to the prior year. Organic net sales declined 8.6% primarily stemming from lower net sales in the Nutrition category of 3.7% and 4.9% from lower volumes and lost distribution in U.S. Store Brand during the second half of the year and SKU prioritization actions.

Fiscal year 2024 reported operating income was $113 million compared to $152 million in the prior year, a decline of 26%. Adjusted operating income of $609 million increased 6.0% compared to the prior year period as Project Energize and Supply Chain Reinvention benefits more than offset unfavorable impacts from actions to augment and strengthen infant formula and divested businesses and exited product lines.

Fiscal year 2024 reported loss per share was $(1.17), as compared to a loss per share of $(0.03) in the prior year. The reported loss per share in the current year was driven primarily by income tax expense in the current year versus a tax benefit in the prior year, increased operating expenses associated with unusual litigation in the current year and a loss on debt extinguishment compared to a gain in the prior year.

Fiscal year 2024 adjusted diluted EPS was $2.57, compared to $2.58 in the prior year. Fiscal year 2024 adjusted diluted EPS included unfavorable year-over-year impacts of $0.26 from infant formula and $0.03 from currency translation. The prior year included favorable

tax benefits of $0.18 per diluted share. Adjusted EPS in the full year was impacted by $0.01 due to an increase of adjusted diluted weighted average shares outstanding of 1.3 million from 136.7 million to 138.3 million.

Fiscal year 2024 operating cash flow was $363 million, reflecting a cash flow conversion rate of 103%. During the fourth quarter, the Company fully repaid its $400 million 3.9% Senior Notes due December 2024. Cash and cash equivalents on the balance sheet as of December 31, 2024, was $559 million.

Company to hold a virtual Investor Day event tomorrow, February 28, 2025, where management will share its 2025-2027 strategic plan to Stabilize, Streamline and Strengthen the Company, as well as provide fiscal 2025 guidance (webcast details below).

(1) Share gains according to Circana Scanner panel latest 13-weeks ending 12 29 24 vs. prior period 13-weeks ending 11 30 24, total US Multi Outlet+, non-WIC (Women, Infants, and Children program) powder formula, excluding ready-to-feed and toddler formula.

(2) See attached Appendix for details. Change in net sales on an organic basis excludes the effects of acquisitions, divestitures, exited product lines and the impact of currency. Change in net sales on a constant currency basis excludes the impact of currency on the change in net sales.

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

Dublin, Ireland - February 27, 2025 - Perrigo Company plc (NYSE PRGO) ("Perrigo" or the "Company"), a leading provider of Consumer Self-Care Products, today announced financial results from continuing operations for the fourth quarter and fiscal year ended December 31, 2024. All comparisons are against the prior year fiscal fourth quarter and fiscal year, unless otherwise noted.

President and CEO, Patrick Lockwood-Taylor commented, Though 2024 was a challenging year as we had to quickly overcome evolving regulatory dynamics within our infant formula business, we made substantial progress to rewire Perrigo through stabilizing our CSCA businesses, streamlining our operations and strengthening the Company for the long-term.

Lockwood-Taylor concluded, I am pleased to report that the team achieved full-year adjusted EPS at the midpoint of our guidance range. Together, we achieved solid adjusted operating income growth and margin expansion, thanks in part to our accretive initiatives and new products. Perrigo store brand share of infant formula exited 2024 at a high for the year and we remain steadfast in our goal to continue recapturing market share. We look forward to sharing our 2025-2027 operational and financial plans tomorrow at our Investor Day, as we continue to make substantial progress for long-term sustainable growth.

Refer to Tables I through VII at the end of this press release for a reconciliation of non-GAAP adjustments to the current year and prior year periods and additional non-GAAP information. The Company's reported results are included in the attached Consolidated Statements of Operations, Balance Sheets and Statements of Cash Flows.

Perrigo has successfully transformed into a pure-play consumer self-care company and is embarking on the next stage of its self-care journey - evolving to One Perrigo. This evolution will create sustainable, value accretive growth by providing consumer needed self-care solutions at multiple price points.

As part of the Company's sustainable, value accretive growth strategy, the Company launched Project Energize - a global investment and efficiency program to drive the next evolution of capabilities and organizational agility - during the first quarter of 2024. This three-year program is expected to produce significant benefits in the Company's long-term business performance by

enabling our One Perrigo growth strategy, increasing organizational agility and resetting our SG A operating expense base.

Project Energize is expected to deliver annualized pre-tax savings in the range of $140 million to $170 million by 2026. The Company expects $40 million to $60 million of these savings to be reinvested. Restructuring and related charges associated with these actions are estimated to be in the range of $140 million to $160 million, including $20 million to $40 million in investments to enhance capabilities, and are expected to be substantially incurred by the end of 2026. During 2024, Project Energize achieved gross annual savings of approximately $139 million while reinvesting $17 million. Restructuring charges incurred by the Company over the same period in connection with Project Energize were $95 million.

Perrigo Fourth Quarter 2024 Results from Continuing Operations

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

Net sales of $1.1 billion decreased 1.6%, or $19 million, as organic net sales growth of 0.7% was more than offset by the unfavorable impacts of 2.1% from businesses and exited product lines and currency translation of 0.1%.

Organic net sales growth was primarily due to net pricing benefits of +0.9 percentage points and volume mix of -0.2 percentage points. Volume mix included an unfavorable impact of 1.7 percentage points from previously disclosed lost distribution of lower margin products in U.S. Store Brand and lower net sales in the Pain and Sleep-Aids and Upper Respiratory categories stemming from a later start to the U.S. cough cold season compared to the prior year. Category growth was led by 1) Nutrition, stemming from infant formula net sales growth of 17%, 2) Skin Care, led by ACO , Mederma and Compeed , and 3) the Women's Health category, led by ellaOne and Opill .

Reported gross profit of $386 million, decreased $41 million, or 9.7%. Adjusted gross profit of $424 million decreased $36 million, or 7.9%, as net pricing benefits, new products, Supply Chain Reinvention benefits and Project Energize savings were more than offset by lower global OTC sales volumes and a temporary equipment disruption in infant formula, which was resolved and did not have any impact on shipments or service, in addition to divestitures and exited product lines of $16 million.

Reported gross margin was 33.9%, a decrease of 300 basis points versus the prior year quarter. Adjusted gross margin decreased 260 basis points to 37.2%, due primarily to the same factors as adjusted gross profit. Divested businesses and exited product lines unfavorably impacted gross margin by 60 basis points.

Reported operating income was $114 million as compared to a loss of $(16) million in the prior year period. Adjusted operating income increased $27 million, or 16.0%, to $194 million driven by Project Energize savings and lower variable expenses. These factors more than offset lower gross profit flow-through and divested businesses and exited product lines of $9 million.

Reported operating margin was 10.0%, an increase of 1,130 basis points versus the prior year quarter. Adjusted operating margin of 17.0%, increased 260 basis points versus the prior year quarter due primarily to the same factors as adjusted operating income and included an unfavorable impact of 120 basis points from divested businesses and exited product lines.

Reported net loss was $(41) million, or ($0.30) per diluted share, compared to $(28) million, or ($0.20) per diluted share, in the prior year period. Fourth quarter 2024 adjusted net income was $129 million, or $0.93 per diluted share, compared to $117 million, or $0.86 per diluted share, in the prior year period. Fourth quarter 2024 adjusted diluted EPS included a year-over-year unfavorable impact of $0.08 from tax benefits realized in the prior year quarter.

Fourth Quarter 2024 Business Segment Results from Continuing Operations

Consumer Self-Care Americas Segment (CSCA)

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

CSCA net sales of $744 million were flat compared to the prior year.

Organic net sales were driven by 1) 2.6% from the Nutrition category, led by infant formula net sales growth of 17%, 2) 1.5% from the Skin Care category, led by Mederma and Minoxidil, and 3) 0.8% from the Women's Health category, led by Opill . This growth was offset by 4.8% from lower volumes, previously disclosed lost distribution of lower margin products, and a later start to the cough and cold season (all primarily impacting the Pain Sleep Aids, Upper Respiratory, and Digestive Health categories) compared to the prior year.

Reported gross profit of $217 million decreased $33 million, or 13.0%. Adjusted gross profit decreased $25 million, or 9.8%, to $229 million as new products, Supply Chain Reinvention benefits and Project Energize savings were more than offset by lower OTC sales volumes and a temporary equipment disruption in infant formula, which was resolved and did not have any impact on shipments or service.

Reported gross margin of 29.1% decreased 440 basis points versus the prior year quarter. Adjusted gross margin decreased 330 basis points to 30.8%, driven by the same factors as adjusted gross profit.

Reported operating income was $81 million compared to $118 million in the prior year quarter, a decrease of 30.9%. Adjusted operating income increased $3 million, or 2.0%, to $146 million driven by benefits from Project Energize savings and lower variable expenses, which more than offset lower gross profit flow through.

Reported operating margin of 10.9% decreased 490 basis points versus the prior year quarter. Adjusted operating margin expanded 40 basis points to 19.6% driven by the same factors as adjusted operating income.

Consumer Self-Care International Segment (CSCI)

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

CSCI net sales of $394 million declined 4.5%, or $19 million, as organic net sales growth of 1.8% was more than offset by unfavorable impacts from divested businesses and exited product lines of 5.9%, and currency translation of 0.3%.

Organic net sales growth was driven by a relatively stronger sell-in of cough and cold products ahead of the season and improved supply of key products, both of which benefited the Upper Respiratory and Pain Sleep-Aids categories. This growth was partially offset by lower net sales in the Vitamins, Minerals and Supplements (VMS) category stemming from lower consumer demand compared to the prior year.

Reported gross profit of $169 million decreased $9 million, or 5.0%. Adjusted gross profit of $194 million declined $12 million, or 5.8%, as strategic pricing actions and Supply Chain Reinvention benefits were more than offset by cost of goods sold inflation and the impact of $17 million from divested businesses and exited product lines.

Reported gross margin of 43.0% decreased 20 basis points compared to the prior year. Adjusted gross margin declined 70 basis points to 49.3% driven by the same factors as adjusted gross profit, partially offset by favorable brand mix. Divested businesses and exited product lines had an unfavorable impact of 120 basis points.

Reported operating income was $40 million. Adjusted operating income increased $18 million, or 28.1%, to $83 million due primarily to benefits from Project Energize and lower variable expenses, partially offset by divested businesses and exited product lines of $10 million.

Reported operating margin was 10.1%, a 2,920 basis points increase versus the prior year. Adjusted operating margin expanded 540 basis points to 21.2%, as operating leverage more than offset an unfavorable impact from divested businesses and exited product lines of 110 basis points.

Perrigo Fiscal Year 2024 Results from Continuing Operations

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

Net sales of $4.37 billion decreased 6.1%, or $282 million, due primarily to a decline in organic net sales of 4.5%, and unfavorable impacts from divested businesses and exited product lines of 1.3% and currency translation of 0.2%.

The 4.5% decline in organic net sales was due primarily to 1) 2.4% from lower net sales in the Nutrition category stemming from actions to augment and strengthen the infant formula network, and 2) 3.8% lower volumes, previously disclosed lost distribution of lower margin products, and a later start to the cough and cold season (all primarily impacting the Pain Sleep Aids, Upper Respiratory, Digestive Health, and Oral Care categories) compared to the prior year. These factors

more than offset organic net sales growth of 1.6% primarily from growth in Women's Health and Skin Care. Organic net sales comprised net pricing benefits of +2.7 percentage points and volume mix of -7.1 percentage points.

Reported gross profit of $1.54 billion, decreased $138 million, or 8.2%. Adjusted gross profit of $1.70 billion decreased $111 million, or 6.1%, as net pricing benefits, new products, Supply Chain Reinvention benefits and Project Energize savings were more than offset by lower global OTC sales volumes, lower sales volumes and manufacturing productivity in infant formula, and divested businesses and exited product lines of $66 million.

Reported gross margin was 35.3%, a decrease of 80 basis points versus the prior year. Adjusted gross margin was flat to the prior year due primarily to the same factors as adjusted gross profit, including an unfavorable impact from divested businesses and exited product lines of 20 basis points.

Reported operating income of $113 million decreased $39 million compared to $152 million in the prior year period. Adjusted operating income increased $34 million, or 6.0%, to $609 million as Project Energize savings and lower variable expenses more than offset unfavorable gross profit flow-through and divested businesses and exited product lines of $24 million.

Reported operating margin was 2.6%, a decrease of 70 basis points versus the prior year. Adjusted operating margin of 13.9%, expanded 160 basis points versus the prior year due primarily to the same factors as adjusted operating income, including an unfavorable impact from divested businesses and exited product lines of 110 basis points.

Reported net loss was $(161) million, or ($1.17) per diluted share, compared to reported net loss of $(4) million, or ($0.03) per diluted share, in the prior year. Fiscal year 2024 adjusted net income was $354 million, or $2.57 per diluted share, compared to $352 million, or $2.58 per diluted share, in the prior year. Fiscal year 2024 adjusted diluted EPS included unfavorable year-over-year impacts of $0.26 from infant formula and $0.03 from currency translation.

Fiscal Year 2024 Business Segment Results from Continuing Operations

Consumer Self-Care Americas Segment

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

CSCA net sales of $2.69 billion decreased 9.1%, or $269 million.

Organic net sales declined 8.6% due primarily to 1) 3.7% from lower net sales in the Nutrition category stemming from actions to augment and strengthen the infant formula network, and 2) 6.0% lower volumes, previously disclosed lost distribution of lower margin products and a later start to the cough and cold season (all primarily impacting the Pain Sleep Aids, Upper Respiratory, Digestive Health, and Oral Care categories) compared to the prior year. These factors more than offset organic net sales growth of 1.1% in the Women's Health category driven primarily by Opill new product sales.

Reported gross profit of $779 million, decreased $129 million, or 14.2%. Adjusted gross profit of $829 million decreased $98 million, or 10.5%, as new products, Supply Chain Reinvention benefits and Project Energize savings were more than offset by lower OTC sales volumes, and lower sales volumes and manufacturing efficiencies in infant formula due to actions to augment and strengthen the business.

Reported gross margin was 28.9%, a decrease of 180 basis points versus the prior year. Adjusted gross margin decreased 50 basis points to 30.8% due primarily to the same factors as adjusted gross profit, partially offset by benefits from SKU prioritization actions and previously disclosed lost distribution in U.S. store brand.

Reported operating income of $270 million decreased $120 million compared to $390 million in the prior year. Adjusted operating income decreased $43 million, or 9.2%, to $422 million as Project Energize savings and lower variable expenses were more than offset by unfavorable gross profit flow-through and higher investments in advertising and promotion, primarily for Opill .

Reported operating margin was 10.0%, a decrease of 320 basis points versus the prior year. Adjusted operating margin of 15.7% was flat versus the prior year due primarily to the same factors as adjusted operating income.

Consumer Self-Care International Segment

(3) All tables and data may not add due to rounding. Percentages are based on actuals.

CSCI net sales of $1.68 billion decreased 0.8%, or $14 million, as organic net sales growth of 2.9% was more than offset by unfavorable impacts from divested businesses and exited product lines of 3.1% and currency translation of 0.6%.

Organic net sales growth was led by 1) share gains in brands within the Skin Care category, including Compeed , ACO and Sebamed , and 2) increasing consumption in the Women's Health category, led by ellaOne . This growth was partially offset by 1) lower net sales in the Upper Respiratory category due primarily to lower cough and cold and allergy seasonal demand during the first half of the year, and 2) lower net sales in the Vitamins, Minerals and Supplements (VMS) category stemming from lower consumer demand compared to the prior year.

Reported gross profit of $764 million, decreased $9 million, or 1.1% compared to the prior year. Adjusted gross profit of $869 million decreased $13 million, a decline of 1.5%, or flat on a constant currency basis, as pricing benefits, new products and Supply Chain Reinvention benefits were more than offset by lower sales volumes, cost of goods sold inflation, and divested businesses and exited product lines of $34 million.

Reported gross margin was 45.5%, a decrease of 10 basis points versus the prior year. Adjusted gross margin of 51.7% decreased 40 basis points due primarily to the same factors as adjusted gross profit, including an unfavorable impact from divested businesses and exited product lines of 40 basis points.

Reported operating income of $105 million increased $140 million compared to an operating loss of $(35) million in the prior year. Adjusted operating income increased $67 million, or 23.5%, to $352 million as Project Energize savings and lower variable expenses more than offset unfavorable gross profit flow through and a $22 million impact from divested businesses and exited product lines.

Reported operating margin was 6.3%, an increase of 840 basis points versus the prior year. Adjusted operating margin of 21.0%, expanded 410 basis points due primarily to the same factors as adjusted operating income, including an unfavorable impact from divested businesses and exited product lines of 70 basis points.