Perrigo Co. plc grew sales more than 6 percent in the second quarter as earlier high demand eased for some medications during the COVID-19 pandemic.
The $1.21 billion in quarterly sales compares to $1.14 billion in the same period a year earlier. The quarterly growth rate was tempered from the 14 percent year-over-year increase in sales Perrigo (NYSE: PRGO) recorded in the first quarter as demand surged early in the pandemic when consumers stocked up on products such as the pain reliever acetaminophen.
Excluding revenue a year ago from businesses that Perrigo has since sold, including in animal health, sales grew 10 percent organically.
The company recorded what President and CEO Murray Kessler called “another period of superior financial results well ahead of expectations, despite the constant set of challenges we face” from the pandemic. Perrigo maintained 24-hour production with interruptions at all 27 manufacturing facilities globally during the quarter and made progress on a transformation plan even as staff worked at home, Kessler said.
“While there is still significant uncertainty regarding the potential for a second wave of COVID and its implications for supply and demand, we know a lot more now than we did three months ago and have a lot more experience managing through this horrific pandemic,” Kessler said today in a conference call to discuss quarterly results.
Perrigo recorded $60.6 million in net income during the second quarter, or 44 cents per diluted share. That compares with $9.0 million in net income for the second quarter of 2019, or 7 cents per diluted share.
Midyear sales grew 10 percent over the first six months of 2019 to $2.56 billion. Net income for the first half of 2020 more than doubled from the first six months of 2019 to $167.0 million, or $1.22 per diluted share, from $72.9 million, or 534 cents per diluted share.
Perrigo affirmed earlier guidance for 2020 sales growth of 3 percent over 2019 with adjusted net income of $3.95 to $4.15 per diluted share. The guidance includes 12 to 15 cents per share of COVID-related costs and 6 cents from divesting the generic drug business.
“One could argue that this is a conservative estimate, but there is significant uncertainty and I believe reaffirming is prudent at this time,” Kessler told analysts.
The guidance does not include expectations for another major consumer demand for medications, even in a second wave of COVID, Kessler said.