ALLEGAN — Perrigo Co. plc recorded strong double-digit sales growth for the first quarter, as demand spiked for over-the-counter medications in March in the COVID-19 pandemic.
In reporting preliminary first quarter results Tuesday afternoon, Perrigo said sales grew 14 percent from the same period a year earlier to $1.3 billion. Perrigo estimated net income for the first quarter at $140 million to $145 million, versus $102 million in the same period of 2019.
“During the first quarter, Perrigo continued to experience strong growth across all business segments, while also benefiting from a dramatic surge in demand in March related to the COVID-19 pandemic,” President and CEO Murray Kessler said in a statement. “Through a herculean effort by our employees, especially our production employees around the world, we were able to supply most of the demand.
Consumer Self-Care Americas division, Perrigo’s largest division, grew sales by 20 percent to $700 million.
Perrigo expects to release final sales and earnings results for the first quarter during the last week in April.
In a regulatory filing Tuesday, Perrigo indicated that despite the March surge in business the COVD-19 pandemic has “had an adverse impact on our operations by, among other things, disrupting our manufacturing operations, affecting the supply of raw materials and third party supplied finished goods, and preventing our employees from coming to work.
“Senior management currently believes that the company has dealt with such impacts by, among other things, implementing protocols to protect the health of factory workers, adjusting production schedules, and seeking alternate suppliers where available, and so far, most of our facilities have continued to produce at high levels despite these challenges,” the company said in the filing with the U.S. Securities and Exchange Commission. “Going forward, the outbreak of the disease and the actions to slow it could have an adverse impact on our financial condition, the results of our operations, consumer demand for our products and our ability to access capital.
The effects of the pandemic will depend on its duration, intensity and continued spread of the disease, the company said.