Perrigo Reports Broad Growth, But Investors Sour On Turnaround's Price Tag
Its reported worldwide consumer Q4 net sales increased 12.7%, or 16.4% adjusted for currency exchange rates, product launches and other changes from the prior-year period, to $1.1bn. The s results, though, sent share price plummeting $8.64, more than 14%, to $51.82.
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OTC private label giant said gaining another grocery chain as an infant formula customer was a key sales driver in the 2019 Q4, with nutrition sales up 21% to account for 17% of Americas consumer health sales growth. The firm plans to re-enter the broader VMS space, but infant formula helped its global consumer health net sales reach $1.1bn in the October-December period.
REACH and Dr. Fresh, as well as Firefly kids’ toothbrushes and mouth rinses featuring popular comic book and cartoon characters, will join Perrigo’s Ranir division under the $113m cash deal, which is subject to federal bankruptcy court approval but expected to close in the 2020 first quarter.
Perrigo's Turnaround Tools: 'National Brand,' Novel NRTs, CBD And Natural Products, Sponsoring OTC Switches
Following investor day conference, market analysts gave Perrigo points for an ambitious three-year plan while also noting the degree of difficulty it faces in succeeding. Other changes planned to stem slump sales and earnings slump include potentially getting into CBD supplement space and getting back into VMS manufacturing after leaving the sector in one of several moves since 2015 intended to help drive net income and improve its margin.