Perrigo Company Public Limited Company (NYSE:PRGO) Q2 2015 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 08:00 am ET

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Perrigo Company Public Limited Company (NYSE:PRGO) Q2 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Kayla, and I will be your conference operator today. At this time I would like to welcome everyone to the Perrigo Company Plc Second Quarter Calendar Year 2015 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session.

[Operator Instructions]

I will now hand today's call over to Mr. Art Shannon. Please go ahead, sir.

Executive
Arthur J. Shannon

Thank you very much, Kayla. Welcome to Perrigo's second calendar quarter earnings call. A copy of the earnings release we issued this morning is available on our website at perrigo.com. Also on our website is the slide presentation for this call. As you know Perrigo believes in being transparent and open to our investors, following today's conference call we will be actively reaching out to investors over the next few weeks.

Before we proceed with the call, I'd like to remind everyone that during the process of this call, management will make certain forward-looking statements. Please refer to the important information for investors and shareholders and Safe Harbor language regarding these statements in our press release issued this morning. Following management's review of the presentation, we will open up the call for questions.

I'd like to now turn the call over to Perrigo's Chairman and CEO, Joe Papa.

Executive
Joseph C. Papa

Thank you, Art, and welcome everyone to Perrigo's second quarter 2015 earnings conference call. Also joining me today is Judy Brown, Perrigo's Executive Vice President and Chief Financial Officer.

For our agenda today, first, I will make a few comments on the quarter. Next Judy will go through the details of the second quarter results. Then I will give you an overview of our recent success in both store brand and prescription product approvals. And finally, reiterate our position on Mylan's unsolicited offer to acquire Perrigo. Finally, you will have an opportunity for question and answers.

Before we get into the agenda however, I'd like to start by thanking Perrigo employees for their diligent focus, which has led to adjusted net income growth of 37%. Even with all the noise you've been following over the past few months, our nearly 13,000 Perrigo employees have announced three M&A transactions, delivered on our Omega integration plans, achieved great operational efficiencies and productivity improvement, executed on our new product launches, and delivered on our Base Plus Plus Plus strategy. It's great work by the team.

Now let's discuss the quarter. On Slide 4 you can see, despite some challenges, this is a very strong quarter. Our quarterly performance is highlighted by second quarter of record net sales of more than $1.5 billion. We also achieved record adjusted gross margin, record adjusted net income, and record operating cash flow.

Our Consumer Healthcare segment grew adjusted operating income an impressive 18% compared to last year. In fact our consumer-facing revenues now represent 75% of the total Perrigo company revenues. Moving on to Slide 5, you can see consolidated Perrigo grew the top line