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Perrigo Posts Record Sales Earnings
ALLEGAN — Perrigo Co. net sales for the second quarter of fiscal 2008 were a record $435.5 million, an increase of $64.9 million over last year’s second quarter. Net income was $34.3 million, or 36 cents per share, compared with $21.1 million, or 23 cents per share, a year ago. Second quarter 2007 net income included the expense of a product recall totaling $3.2 million after tax.
Perrigo Chairman and CEO Joseph C. Papa said record sales were achieved through double digit sales growth in each of the company’s business segments:
- Perrigo’s Consumer Healthcare segment net sales in the quarter were a record $320.2 million, up $44 million form the prior year period. The sales increase resulted from $9.9 million in new product revenue, with strong sales in the smoking cessation, analgesics and cough/cold categories, as well as increases in non-U.S. businesses.
- Perrigo’s Rx Pharmaceuticals segment saw sales for the quarter increase by $10.4 million to $38.7 million, including $5 million of service and royalty revenue and $13.5 million in sales of acquired products.
- Perrigo’s API segment sales were $34.6 million, compared with $28.6 million a year ago.
- Perrigo’s Israel Consumer Products and Israel Pharmaceutical and Diagnostic Products segments reported second quarter sales of posted second quarter sales of $42 million, up from $37.8 million in last year’s second quarter.
Papa noted that operating income in the quarter grew 85 percent from last year on a 390 basis point improvement in gross margins. The improvements generated $67 million in cash flow from operations, an increase of $3 million over last year’s second quarter results.
Net sales for the first six months were $81.2 million, an increase of $107.4 million, or 15 percent, over the first half of 2007. Net income for the first half was $68.3 million, or 72 cents per share, versus $38 million, or 41 cents per share for the same six-month period the year before.
Perrigo increased its full-years guidance and now anticipates adjusted earnings per share for the full fiscal year in the range of $1.50 to $1.60 per share, up 69 to 80 percent from last year.