Perrigo reports record year-end income of $441.9M
Allegan-based Perrigo has announced record results for both its fourth quarter of 2013 and the entire fiscal year.
Perrigo (NYSE: PRGO) reported net sales in the fourth quarter of $967 million, a 16-percent increase over the same quarter a year ago.
Net sales in FY2013 were a record $3.5 billion, a 12-percent increase over last year.
Perrigo said the fourth-quarter increase was driven primarily by $83 million from newly acquired businesses over the past year, including Sergeant's Pet Care Products last fall. Other acquisitions that boosted the results were Rosemont Pharmaceuticals, Velcera and Fera Pharmaceuticals.
There were also new product sales of $30 million and base business growth of $21 million.
Perrigo chairman/CEO Joseph C. Papa said this was the seventh straight year that the company had record sales and adjusted earnings.
Papa said the fourth quarter “was a strong quarter where we continued to successfully drive growth across our segments, while managing costs to generate record bottom-line performance. We are continuing to execute on our growth strategy, invest in our future and drive shareholder returns.”
GAAP income in the fourth quarter increased 11 percent to $118 million, or $1.25 per diluted share, and adjusted income increased 22 percent to $148 million, or $1.57 per diluted share.
GAAP income for fiscal year 2013 increased 12 percent to a record $441.9 million, or $4.68 per diluted share, and adjusted income for the full year increased 13 percent to a record $529.7 million, or $5.61 per diluted share.
Papa noted the company’s announcement in July of its agreement to acquire Elan Corporation in Ireland, “which will combine two great companies to create value for our respective shareholders, patients and customers. The increased revenue stream and cash flow, combined with a more efficient corporate structure, will enable us to be more competitive and to better utilize our platform for future expansion.
“We are planning for integration and are employing a collaborative process with the Elan team,” he added. “Additionally, we are actively working with regulators to receive approvals and clearances for the transaction and expect to close by the end of calendar year 2013."
After the transaction is completed, Perrigo’s legal domicile will be in Ireland, although the company has said its management will still be from its Allegan facilities.
The corporate tax rate in Ireland is much lower than in the U.S. and other European countries, one of the reasons given by Perrigo for the change of domicile.