Perrigo reports record earnings

November 14, 2009
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Perrigo reports record earnings

Perrigo Co. (Nasdaq: PRGO; TASE) recently announced results for its first quarter ended Sept. 26.

“We delivered record earnings for the quarter, with strong performance across all business segments,” said Perrigo’s Chairman and CEO Joseph C. Papa in a news release. “Cash flow from operations continues to be strong as we generated $38 million during a period when we are preparing for the cough, cold, flu season. Store brands grew nearly 13 percent during a period when the over-the-counter) category grew only 3 percent. Rx sales continued to gain market share as a result of our strong investment in quality and high customer service levels along with the continued growth of over-the-counter Rx sales. We continue to make quality health care more affordable at a time when consumers need to save money more than ever.”

Net sales from continuing operations for the first quarter of fiscal 2010 were $528 million, an increase of 16 percent. Reported income from continuing operations was $61 million, or 65 cents per share, a strong increase over $38 million, or 41 cents per share, a year ago.

Consumer health care segment net sales in the first quarter were $437 million compared with $366 million in the first quarter last year, an increase of $71 million or 19 percent. The increase resulted from approximately $49 million of new products and higher volume of existing products primarily in the gastrointestinal, smoking cessation, analgesics and cough/cold categories, and approximately $36 million of incremental sales from the acquisitions of JB Laboratories, Unico and Diba. 

These increases were partially offset by approximately $10 million in unfavorable changes in foreign currency exchange rates and a decline of approximately $4 million in sales from exited products. Reported operating income was $71 million, compared with $59 million a year ago, largely driven by increased sales and favorable product mix. Reported operating margin remained strong, up 20 basis points to 16.3 percent due to improved operating expense leverage.  

On Oct. 6, the company announced that it had received final approval from the U.S. Food and Drug Administration to market OTC Polyethylene Glycol 3350, the store brand equivalent of MiraLAX.

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