Perrigo, a producer of personal care products and private label over-the-counter medicines, has released its financial figures for the fourth quarter of 2021 as well as the full fiscal year. Both periods saw net sales rise, after the company declared a mild cold season and supply issues impacted Q3 2021.
“Faced with another year of unprecedented pandemic-related challenges, the Perrigo team achieved the company’s three main strategic objectives: to divest the generic RX business, to reallocate proceeds from the sale to acquire an asset consumer self-care star at HRA Pharma, and significantly reduce uncertainty by favorably settling the Irish tax assessment,” Perrigo Chairman and CEO Murray S. Kessler said. “Perrigo’s transformation into a consumer-centric self-care company is now complete and our focus going forward is long-term, profitable growth.”
Perrigo’s net sales for the fourth quarter of 2021 were $1.1 billion, an increase of $52 million, or 4.9%, from 2020. Acquisitions accounted for 0.2 percentage points growth, while unfavorable currency movements offset growth by 0.8 percentage point. Organic revenue growth was 5.5%.
Fourth quarter 2021 reported operating income was $47 million in 2021, compared to $38 million in 2020. Adjusted operating income increased $15 million, or 12.5%, to reach $132 million in 2021. The increase was driven by higher new product earnings and lower operating expenses, including lower expected advertising and promotional investments and cost savings from Project Momentum. The upper respiratory tract, painkillers and sleeping pills, nutrition and vitamins categories saw sales increase, while skincare and healthy lifestyle products saw sales decline.
For the full year 2021, net sales for the year were $4.1 billion, an increase of $51 million, or 1.2%, over 2020. Operating income increased $145 million to $410 million from $265 million in 2020. Adjusted operating income decreased $61 million. to $479 million in 2021, a decline due to lower operational efficiencies, including lower volumes and lower cough and cold sales.
“We are also entering 2022 with a higher level of cost inflation and productivity challenges related to COVID-19, which negatively impacted our gross margin in the second half of 2021,” Kessler said. “We expect to ride out these headwinds in the second half of 2022, driven in part by higher pricing, higher volumes and productivity gains. Our guidance reflects strong revenue growth and depressed margins in the first half. 2022, anticipating that as gross margin pressure eases and the highly accretive acquisition of HRA closes by mid-year, Perrigo is poised to experience meteoric revenue growth. sales and profits.