Perrigo Q1 Net Sales Down 7.2% to $969M, €306M Divestiture Boosts Debt Reduction
PRGO•Perrigo’s Q1 continuing operations net sales fell 7.2% to $969 million while Core organic sales declined 11.0%, driven by lower seasonal cough/cold demand and retailer destocking. The company secured €306 million from its Dermacosmetics divestiture for debt reduction, took a $330.8 million goodwill impairment and upheld full-year 2026 guidance.
1. Q1 Financial Performance
Perrigo’s continuing operations net sales decreased 7.2% year-over-year to $969 million, with Core net sales of $842 million down 8.3%. Core organic net sales fell 11.0%, reflecting a 3.5% headwind from lower cough and cold incidence and a 3.0% headwind from retailer destocking, partially offset by U.S. Store Brand and Women’s Health share gains and Specialty Care growth led by Compeed, Opill and ellaOne.
2. Dermacosmetics Divestiture and Impairment
Shortly after quarter-end, Perrigo completed the sale of its Dermacosmetics business, generating €306 million in upfront proceeds to support debt reduction. The quarter also included a $330.8 million goodwill impairment charge, contributing to reported diluted EPS of $(2.81).
3. Full-Year Outlook and Strategic Plan
Perrigo maintained its full-year 2026 outlook, projecting second-half improvement driven by its Three-S category-led operating model, disciplined portfolio actions and market share momentum. Management cited a $21 million tariff recovery, reduced promotional spending and favorable currency translation as key margin catalysts.
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