Perrigo Company plc (PRGO): BCG Matrix [Dec-2025 Updated]

You're looking for the clearest picture of where Perrigo Company plc is making money now and where it's betting its future, so I've mapped out the current portfolio using the BCG Matrix as of late 2025. Honestly, the story is one of sharp contrast: the U.S. Store Brand business remains the bedrock, generating 60% of revenue, while high-flyers like Compeed are exploding with growth over 30%, driving us toward that $100 million to $200 million incremental goal. Still, we're actively pruning the Dogs, like the Dermacosmetics business slated for sale in Q1 2026, and wrestling with big Question Marks like the $360 million Infant Formula unit and the high-stakes Opill® launch. Dive in to see exactly which parts of Perrigo Company plc need investment and which are ready for divestment.

Background of Perrigo Company plc (PRGO)

You're looking at Perrigo Company plc (PRGO) as of late 2025, and honestly, the story right now is one of intense strategic focus following significant portfolio pruning. Perrigo Company plc is a global self-care company, primarily manufacturing over-the-counter (OTC) consumer health products, balancing its offerings between private label (store brand) and key national brands. Historically, the company has been reshaping itself, divesting its animal health and generic pharmaceuticals businesses since 2018 to zero in on this consumer self-care niche.

The operational structure is mainly split between Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). To give you a sense of scale, the U.S. healthcare system still accounts for roughly 70% of Perrigo Company plc's net sales. As of the third quarter of 2025, the trailing twelve months (TTM) revenue stood at $4.28 Billion USD, which was a decrease of about 2.51% year-over-year.

The recent performance reflects some headwinds, particularly in specific categories. For the third quarter ending September 27, 2025, net sales were $1.04 billion, marking a 4.1% drop compared to the same period last year, with organic net sales declining 4.4%. This softness was partly due to dynamics in the Infant Formula industry and generally soft OTC market consumption trends. Still, the core OTC store brand business showed resilience, achieving six consecutive months of volume share gains in the U.S. during the quarter.

Strategically, Perrigo Company plc is actively streamlining its portfolio. They are continuing the strategic review of the Infant Formula business and the Oral Care business. Furthermore, the company is on track to close the previously announced sale of its Dermacosmetics business, which involved a divestment of the OTC dermatology unit for up to €327 million in early 2025. This entire process is part of the multi-year Stabilize, Streamline and Strengthen (Three-S) plan, designed to sharpen focus and enhance agility.

Looking ahead, management revised its full-year 2025 outlook, now projecting reported net sales growth toward the lower end, between -2.5% and -3.0%, and organic net sales growth between -2.0% and -2.5%. On the profitability front, they are targeting an adjusted gross margin of approximately 40% and an adjusted operating margin near 15% for the full year 2025. Adjusted EPS guidance was updated to a range of $2.70-$2.80. This focus on efficiency, supported by programs like Supply Chain Reinvention, is key to navigating the current environment.

Perrigo Company plc (PRGO) - BCG Matrix: Stars

The Stars quadrant in the Boston Consulting Group Matrix represents Perrigo Company plc (PRGO) business units or brands operating in high-growth markets while simultaneously holding a high relative market share. These are the leaders that require significant investment to maintain their growth trajectory and market position, often consuming as much cash as they generate in the short term.

Within Perrigo Company plc (PRGO)'s portfolio, certain branded consumer self-care assets clearly fit this profile due to their strong performance in expanding categories. The strategic focus is on 'Strengthening' these high-potential Over-The-Counter (OTC) brands to aggressively capture market share where the market itself is growing. This investment is central to Perrigo Company plc (PRGO)'s 'Three-S' strategy, specifically the 'Strengthening' pillar.

The performance of key international brands exemplifies this Star status. For instance, the Compeed brand is noted as a $150 million brand that is growing at over 30%, which is a clear indicator of high growth and market leadership within its segment, driving high-margin revenue. Similarly, the Mederma brand has also shown significant momentum, with net sales increasing by over 35% in a recent period, further cementing the strength of the branded portfolio.

The growth in specific categories within the Consumer Self-Care International (CSCI) segment also reflects the characteristics of a Star portfolio. For the second quarter of 2025, the Pain & Sleep Aids and Upper Respiratory categories within CSCI demonstrated robust organic growth of +2.7%. Breaking that down further, Pain & Sleep Aids grew by 8%, adding one percentage point to total Perrigo growth, while Upper Respiratory added 0.7 points of growth, largely from restored supply of key products.

Perrigo Company plc (PRGO) has set clear financial expectations tied to the success of these high-potential assets. The company aims for these key 'High-Grow' brands to collectively contribute between $100 million and $200 million in incremental revenue by the year 2027. This target underscores the expectation that these Stars will eventually mature into Cash Cows as their respective high-growth markets slow down, provided their current market share success is sustained through continued investment.

Here's a quick look at the recent performance metrics for some of these high-growth areas:

The strategic imperative for Perrigo Company plc (PRGO) is to continue funding the promotion and placement of these leading brands. This investment is necessary to maintain their high market share, which is the key differentiator separating them from Question Marks. The company's OTC brands overall delivered organic net sales growth of 3.6% in the second quarter of 2025, showing the broader strength in the branded portfolio that is being nurtured as Stars.

The focus areas for investment within the Star quadrant include:

• Maintaining high ROI asset support for OTC brands.
• Driving focused innovation in key international brands.
• Capturing market share in growing self-care categories.
• Ensuring product supply restoration for key drivers like Solpadeine.

Perrigo Company plc (PRGO) - BCG Matrix: Cash Cows

The U.S. Over-The-Counter (OTC) Store Brand portfolio is the quintessential Cash Cow for Perrigo Company plc. This segment is explicitly noted to account for approximately 60% of the company's total revenue mix.

This business unit operates in a mature space, as evidenced by the broader Consumer Self-Care Americas (CSCA) segment reporting net sales of \$646 million for the third quarter of 2025, a year-over-year decline of 3.8%. However, the store brand engine itself shows resilience, with its OTC business achieving net sales growth of +0.6% in the same period, successfully offsetting soft overall OTC market consumption trends.

The competitive advantage here is clear through market share capture, which is the hallmark of a market leader in a mature category. You can see the specific performance metrics below:

This consistent in-market performance is what makes it the core cash-generative engine. It is the unit that provides the necessary cash flow to fund investments elsewhere, such as into the higher-margin 'High-Grow' branded products. For context on the market maturity, the year-to-date organic net sales for CSCA were down 3.1%, reflecting soft market consumption that the store brands are actively fighting against.

The stability of this cash flow is what allows Perrigo Company plc to support its corporate obligations, including returning capital to you, the shareholder. For instance, the Board declared a quarterly dividend of \$0.290 per share as of October 29, 2025. The strategy for these Cash Cows is to maintain productivity through efficiency improvements, rather than heavy promotion, to maximize the cash extraction. The benefits from initiatives like Project Energize and Supply Chain Reinvention are key to supporting this infrastructure and increasing cash flow from these stable lines.

Perrigo Company plc (PRGO) - BCG Matrix: Dogs

Dogs, in the Boston Consulting Group Matrix framework, represent business units or product lines operating in low-growth markets with a low relative market share. These units typically break even or consume minimal cash, but they tie up capital that could be deployed elsewhere. For Perrigo Company plc (PRGO), several areas fit this profile as the company executes its 'Streamline' strategy.

The Dermacosmetics business is a prime example of a unit being actively removed from the portfolio, aligning with the 'Streamline' pillar of the 'Three-S' plan. This business generated net sales of approximately €125 million in 2024 and contributed roughly 5% of the company's 2024 operating income. Perrigo Company plc (PRGO) agreed to sell this unit to Kairos Bidco, an investment vehicle managed by KKR, for a total consideration of up to €327 million, which includes €300 million upfront cash and up to €27 million in milestone payments. The transaction is on-track to close in the first quarter of 2026.

The impact of shedding non-core assets is visible in the top-line figures. For the First Half of 2025, certain exited product lines and divested businesses caused a net sales headwind of -1.9%. This pruning is intended to sharpen focus on higher-return opportunities.

The Oral Care business is another area undergoing strategic review, indicating its current positioning as a potential Dog or Question Mark requiring a decision on its future role. In Second Quarter 2025, the Oral Care category experienced lower net sales due to lost distribution of lower margin products. This segment also contributed to lower plant overhead absorption, impacting Adjusted Operating Income in Q2 2025.

The pressure from lower-margin, lower-share activities is quantified across the portfolio. For instance, in First Quarter 2025, the previously disclosed net lost distribution of lower margin products in U.S. Store Brand specifically accounted for an 0.8% negative impact on organic net sales. Overall organic net sales for Q1 2025 decreased by 0.4%.

The strategic actions, including divestitures and focusing on core categories, are contrasted by efficiency gains elsewhere. Project Energize, an efficiency program, delivered $159 million in annual savings by Q2 2025.

Here is a summary of the financial impacts related to portfolio streamlining and specific Dog-like categories:

The units identified as Dogs or candidates for divestiture are being managed through clear actions:

• The Dermacosmetics business is set for sale closing in Q1 2026.
• The Oral Care business is currently under strategic review.
• Lower-margin U.S. store brand product distribution loss contributed 0.8% to the Q1 organic decline.
• Divested businesses and exited products had an unfavorable impact of 70 basis points on Adjusted Gross Margin in Q2 2025.

Perrigo Company plc (PRGO) - BCG Matrix: Question Marks

You're looking at the business units within Perrigo Company plc that operate in high-growth markets but currently hold a low market share, meaning they are cash consumers with high potential. These are the classic Question Marks that require a clear decision: invest heavily or divest.

The Infant Formula business is a prime example here, as of November 2025, it is under a formal strategic review, even though the company notes that its operations have stabilized. This review is happening while the business is still projected to contribute significant, though relatively small, revenue.

Here are the key figures associated with this segment:

• The Infant Formula business is expected to generate approximately $360 million in 2025 net sales.
• This expected $360 million in sales represents less than 10% of Perrigo Company plc's total estimated 2025 annual revenue of $4.3 billion.
• The strategic review directly impacts a previously announced capital commitment: reassessing the $240 million investment earmarked for the Nutrition Network Optimization project within this segment.

The other key area fitting the Question Mark profile is the newer, high-profile launch of Opill®, the over-the-counter (OTC) daily birth control. This product is in a high-growth category, but market share is still being built following its FDA approval in July 2023. The overall oral contraceptive pill market size is projected to grow from $26.82 billion in 2024 to $30.43 billion in 2025, showing that high-growth potential is there.

To understand the initial market positioning and pricing strategy for Opill®, consider these figures:

This product is a key part of Perrigo Company plc's Consumer Self-Care division for the Americas, which also includes brands like Mederma®. The company is focused on driving growth in its OTC portfolio, making the success of this new launch critical for its future Star potential.

The Infant Formula business, despite stabilizing operations, is facing an external environment that has shifted its strategic fit, prompting the review to accelerate cash flows. This is the classic dilemma: a business unit consuming cash (reassessing the $240 million investment) in a segment that may not align with the core focus on OTC self-care.

For context on the company's financial discipline, Perrigo Company plc increased its quarterly dividend to $0.29 per share in 2025, which is a 5% increase from the prior year. The company's 2025 adjusted diluted EPS target range is $2.90 to $3.10. Finance: draft 13-week cash view by Friday.