Perrigo Company plc Begins Strategic Review of Infant Formula Business Amid Market Changes
- Perrigo Company plc initiates a strategic review of its infant formula business to enhance cash flows and align operations.
- The infant formula line is expected to contribute $360 million in net sales by 2025, less than 10% of total sales.
- CEO Patrick Lockwood-Taylor emphasizes disciplined portfolio positioning for sustainable growth and consumer welfare during the review process.
Perrigo Initiates Strategic Review of Infant Formula Business Amid Evolving Market Conditions
Perrigo Company plc, a leading provider of consumer health products, announces the initiation of a strategic review of its infant formula business as part of its 'Three-S' plan: Stabilize, Streamline, and Strengthen. This decision reflects the company's commitment to enhancing cash flows and reassessing its previously planned $240 million investment in this sector. The infant formula line is projected to contribute approximately $360 million in net sales in 2025, representing a significant portion of Perrigo's Nutrition category, although it accounts for less than 10% of the company's total annual sales. The review comes amidst a changing external environment and aims to ensure that Perrigo's operations align with its broader consumer health objectives, particularly in the over-the-counter (OTC) market.
President and CEO Patrick Lockwood-Taylor emphasizes the necessity for disciplined portfolio positioning to achieve sustainable growth and generate free cash flow. He highlights the importance of maintaining commitments to reducing leverage, sustaining dividends, and enhancing partnerships with customers. While Perrigo's infant formula operations have stabilized and are recognized for their quality, the company is committed to exploring alternatives that could enhance overall business performance. The review process prioritizes providing safe and affordable infant formula options to parents and caregivers, indicating a focus on consumer welfare as the company navigates its strategic realignment.
At this stage, no decisions have been made regarding the future of the infant formula business, and there is no established timeline for the review's completion. Updates will only be communicated if necessary or appropriate based on the ongoing evaluation. This strategic move positions Perrigo to maintain its leadership in the self-care market while adapting to the changing dynamics of consumer preferences and market demands.
In addition to this strategic review, Perrigo's leadership, including CEO Patrick Lockwood-Taylor and CFO Eduardo Bezerra, is set to participate in one-on-one investor meetings at the Jefferies Miami Consumer Conference on November 18, 2025. This engagement reflects the company's ongoing commitment to transparency and stakeholder communication, particularly as it navigates significant changes within its portfolio and the broader marketplace.
