Perrigo reports sixth year of revenue, profit growth

The drug company expects growth to continue in fiscal year 2013.

Perrigo Company (Nasdaq:PRGO; TASE:PRGO) today reported its sixth straight year of revenue and profit growth for its 2012 fiscal year, and predicts further growth in fiscal 2013. Perrigo has four business areas: over-the-counter drugs, nutritionals, consumer healthcare, and active pharmaceutical ingredients (API)

Revenue rose 18% to $832 million for the fourth fiscal quarter from $704.6 million for the corresponding fiscal quarter of 2011. GAAP-based net profit rose to $107.1 million ($1.14 per share) for the fourth fiscal quarter from $85.6 million for the corresponding quarter, and non-GAAP net profit rose to $120.9 million ($1.28 per share) from $95.4 million.

For the fiscal year as a whole, revenue rose 15% to $3.17 billion from $2.76 billion in fiscal 2011. The company said that most of the growth was because $245 million in sales attributable by its acquired companies Paddock Laboratories and CanAm Care, and new product sales of $211 million. GAAP-based net profit rose to $393 million ($4.18 per share) in fiscal 2012 from $340.6 million in fiscal 2011, and non-GAAP net profit rose 25% to $469.4 million ($4.99 per share) from $375.4 million.

In its guidance, Perrigo expects earnings per share from continuing operations to rise to $4.77-4.97 per share in fiscal 2013 from $4.18 in fiscal 2012, and its non-GAAP earnings per share to rise 6-10% to $5.30-5.50 $4.99. Perrigo chairman and CEO Joseph Papa said, "With macroeconomic tailwinds blowing in our favor, we look to build on that success in fiscal 2013."

Papa said, "For the sixth straight year, we delivered year-over-year record sales and earnings while continuing to make investments in our facilities and production processes which we believe will further enhance our own already high standards of excellent product quality. During this fiscal year, we also announced the acquisition of CanAm Care to broaden our diabetes category offerings, multiple supply agreements for infant formula in China and numerous new product launches. The penetration of store brand share in the US market continues to gain momentum as retailers and patients continue to turn to high quality, affordable alternatives for their healthcare needs. We look forward to another great year, with many new products in the pipeline across all segments."

Perrigo's share price fell 3.5% in premarket trading on Nasdaq today to $112.70, giving a market cap of $10.9 billion, after falling 2% on the TASE to NIS 454.50.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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