Perrigo reported a decline in revenue, but exceeded profit forecasts in the 4th quarter

Perrigo, known for producing personal care products and pharmaceuticals, published its fourth-quarter results, showing a decline in revenue, but profit exceeded analysts' expectations.

Key results:

• Revenue: In the fourth quarter, Perrigo recorded revenue of $1.29 billion, which is 2.8% lower compared to the same period last year. This figure fell short of expert predictions, who expected revenue of $1.31 billion.
• Net profit: Despite the revenue decline, the company showed an increase in net profit, which amounted to $77 million, which is 35% higher than in the fourth quarter of 2023.
• Earnings per share: Adjusted earnings per share (EPS) amounted to $0.52. This significantly exceeded analysts' forecasts, who expected a figure of $0.46 per share.

Reasons for revenue decline and profit growth Despite the decline in revenue, the improvement in financial performance was achieved through successful cost management and effective profit growth in some segments. The company noted that supply chain issues and increased competition in some product markets were constraints on revenue. Nevertheless, the company managed to improve profitability and show growth in the pharmaceutical and skincare sectors.

Future forecasts Perrigo also updated its forecasts for the next year, noting that it expects further growth in earnings per share despite current challenges. The company forecasts revenues in the range of $5.1 – $5.3 billion for 2025, which corresponds to a growth of 2 to 4%.

Conclusion Perrigo was able to overcome revenue challenges by exceeding profit expectations. The company continues to work on improving its financial stability and plans to further increase its profitability despite the challenges it faces