Perrigo Company plc Reviews Infant Formula Business Amid Market Changes and Strategic Goals
- Perrigo initiates a strategic review of its infant formula business to enhance cash flows and reassess a $240 million investment.
- The infant formula segment generates about $360 million in sales, comprising 90% of Perrigo's Nutrition category.
- Perrigo aims to adapt to market changes while maintaining commitment to quality and strong customer partnerships.
Perrigo Initiates Strategic Review of Infant Formula Business Amid Evolving Market Conditions
On November 5, 2025, Perrigo Company plc, a key player in the consumer health sector, announces a strategic review of its infant formula business as part of its 'Three-S' plan—Stabilize, Streamline, Strengthen. This initiative is designed to explore various alternatives to enhance cash flows while reassessing a previously planned $240 million investment in this segment. The infant formula business is estimated to generate around $360 million in net sales in 2025, representing approximately 90% of Perrigo's Nutrition category and less than 10% of its total annual sales. This review reflects the company's proactive approach to align its operations with broader consumer health objectives and market dynamics.
Perrigo's decision to scrutinize its infant formula operations comes amid a rapidly changing external environment that necessitates careful consideration of portfolio positioning. President and CEO Patrick Lockwood-Taylor underscores the importance of maintaining a disciplined approach to achieve sustainable growth and generate free cash flow. While the infant formula operations have stabilized and are known for their quality products, the company recognizes the need to adapt to evolving market conditions. The strategic review aims to balance the commitment to providing safe, affordable infant formula with the company's overarching goals of reducing leverage and fostering strong customer partnerships.
Despite the initiation of this review, Perrigo emphasizes that no decisions have been made regarding the future direction of the infant formula business, and there is currently no established timeline for completion. The company remains focused on keeping stakeholders informed, providing updates as necessary based on the circumstances. Perrigo's longstanding expertise in the self-care market positions it to navigate this strategic shift effectively while continuing to prioritize consumer needs.
In addition to the review of its infant formula business, Perrigo's broader strategy reflects a commitment to enhancing operational efficiencies across its product lines. As the company navigates challenges such as inflation and supply chain disruptions, it remains dedicated to delivering accessible health and wellness solutions to consumers without prescriptions. This strategic focus aligns with the growing demand for consumer health products, positioning Perrigo to capitalize on future market opportunities while ensuring the well-being of its customers.
