Perrigo Pushes Through Portfolio Overhaul Amid Sales Slump

Interim President and CEO Albert Manzone characterized the quarter as a period of transition, noting that the firm is actively narrowing its footprint. The company finalized the sale of its Dermacosmetics business during the quarter, with proceeds directed toward debt reduction, while strategic reviews of its Infant Formula and Oral Care divisions remain ongoing. These moves are designed to transform Perrigo into a more agile consumer health player.

While the company faced significant pressure—including a 250-basis-point drop in adjusted gross margin to 35.6%—management reaffirmed its full-year 2026 outlook. Executives anticipate a stronger second half, citing expected moderation in inventory-related under-absorption and continued gains in market share for key store-brand products. The company's adjusted diluted EPS for the quarter fell to $0.50, down from $0.57 in the same period last year, reflecting the broader volatility in the consumer and macroeconomic environment.