Troubles in Europe drive Perrigo to a loss for Q1

ALLEGAN — Problems with operations in Europe drove Perrigo Co. plc to a loss in the first quarter amid higher sales.

Perrigo this morning reported quarterly sales of $1.38 billion, an increase of 32 percent that includes $318 million from the acquisition a year ago of Belgium-based Omega Pharma N.V. Sales figures exclude $47 million in revenue from the vitamins, minerals and supplements that Perrigo is seeking to sell.

The company, which is based in Dublin, Ireland, but run from Allegan, recorded a net loss of $133 million, or 93 cents per diluted share, that was driven by two, non-cash impairment charges totaling $467 million. Minus the charges, Perrigo had adjusted net income of $251 million, or $1.75 million per diluted share.

“Our recent track record of performance against our own expectations is unacceptable. I understand that and our team understands that,” CEO John Hendrickson told brokerage analysts. Hendrickson took over just three weeks ago following the departure of Joe Papa. “My focus, and that of my team, will be operational discipline.”

The European-based Branded Consumer Healthcare division is already operating under new leadership, Hendrickson said. The division recorded an operating loss of $483 million in the quarter.

Chief Financial Officer Judy Brown also has taken on expanded duties as executive vice president of business operations.

Perrigo reiterated prior reduced guidance for 2016 full-year adjusted earnings of $8.20 to $8.60 per share, versus $7.59 per share in 2015.


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