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Perrigo Company has lowered its full-year forecast after facing tougher conditions in the infant formula market and weaker demand for over-the-counter health products.
In the third quarter, the company reported adjusted earnings of $0.80 per share, slightly higher than what analysts expected at $0.76. However, revenue dropped by 4.1% from last year to $1.04 billion, falling short of the $1.1 billion forecast. Following the report, Perrigo’s shares plunged nearly 12% in premarket trading on Wednesday.
Even though earnings were better than predicted, Perrigo reduced its 2025 outlook. It now expects adjusted earnings between $2.70 and $2.80 per share, lower than analysts’ earlier estimate of $2.98. The company also said its organic net sales could fall between 2% and 2.5% for the year.
CEO Patrick Lockwood-Taylor said that while overall OTC demand was soft in the third quarter, Perrigo still performed well in the market. He pointed out that the company gained share in five out of seven store brand categories and also grew its key branded products, showing that shoppers continue to choose Perrigo products.
The company’s Consumer Self-Care Americas division saw sales fall 3.8% to $646 million, mainly due to a 4.4% drop from businesses under review, such as Infant Formula and Oral Care. Perrigo has also begun a formal review of its Infant Formula business, hinting that it may make changes or consider selling parts of it.
In the Consumer Self-Care International segment, sales slipped 4.5% to $398 million, with organic sales down 5.3%. Lockwood-Taylor said Perrigo is continuing to refine its product portfolio and confirmed that the company is on track to complete the sale of its Dermacosmetics business in early 2026.
Despite the softer sales, Perrigo said it still expects to achieve mid-to-high single-digit growth in adjusted earnings this year, supported by market share gains and other profit-boosting efforts.