Perrigo Company plc (PRGO): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise on Perrigo Company plc (PRGO) to see exactly how this self-care leader makes its money while executing that 'Stabilize, Streamline, Strengthen' plan. Honestly, mapping out their business model reveals a dual engine: cash-generative store brands funding growth brands, but that strategy is playing out against a backdrop where they hold $3.65 billion in total debt while sitting on $454 million in cash as of June 28, 2025, all while projecting net sales to dip between -2.5% and -3.0% for the full year. Let's break down the nine essential blocks of their canvas so you can see the real levers they are pulling right now.

Perrigo Company plc (PRGO) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Perrigo Company plc's consumer self-care strategy, which relies heavily on deep, functional relationships across the retail, manufacturing, and regulatory landscapes. Honestly, for a company whose North American product mix is 60% store brand, these partnerships aren't just important; they are the revenue stream itself.

Major global and national retailers for store brand distribution

Perrigo Company plc's Consumer Self-Care Americas (CSCA) segment is anchored in private-label consumer health goods sold to the largest U.S. retailers. Key partners include Walmart, Amazon, Costco, and CVS. The success of these relationships is reflected in market share gains; for instance, the U.S. OTC Store Brand Volume Share increased by 110 basis points in May and 50 basis points in April of 2025. This segment contributes significantly, with store brand products making up 60% of the total net sales revenue mix. The company is focused on driving demand generation through multiple activities with these biggest retailers in the U.S., which is expected to have a material impact on 2026 performance.

The scale of this distribution network is supported by Perrigo Company plc's ability to compete with 250 plus molecules and dosage form combinations across 100% price point coverage.

Contract manufacturing partners for specialized production

Perrigo Company plc maintains a dual role, serving as both a major producer of its own goods and a leading contract manufacturer for other blue chip brands. The company has collaborated with major brands in traditional toll manufacturing and contract new product development for over 4 decades. While Perrigo Company plc divested its contract manufacturing entity, Richard Bittner Business AG in Austria, in March 2025, its core competency remains. In the past, contract manufacturing revenue was reported at $350.1 million for the year ended December 31, 2022. The company's support structure is geared toward delivering projects on time, evidenced by past awards like the 'Supplier of the year' award from GSK & Tesco.

Here's a look at the operational scale that supports these manufacturing partnerships:

Regulatory bodies (e.g., FDA) for Rx-to-OTC switches

Partnerships with regulatory bodies like the U.S. Food and Drug Administration (FDA) are critical, as Rx-to-OTC switches are explicitly part of Perrigo Company plc's future growth strategy. Store brand products must meet the same stringent FDA requirements as national brands in the U.S.. A prime example of this partnership in action is the exclusive U.S. licensing agreement for a non-prescription version of Nasonex®. The annual prescription brand and generic market sales for Nasonex® ending June 2018 were approximately $214 million. Perrigo Company plc also secured the approved Opill® through its acquisition of HRA Pharma, further bolstering its OTC portfolio. If regulatory agencies reassess OTC classifications, the company's growth prospects could be impaired.

The company's commitment to regulatory compliance is foundational to its entire U.S. store brand offering.

Ingredient and raw material suppliers for global supply chain

The global supply chain relies on a vast network of ingredient and raw material suppliers, which Perrigo Company plc is actively working to diversify through its Supply Chain Reinvention Program. The company manages a portfolio of over 100 molecules. However, this supply chain faces external pressures; Perrigo estimates a gross increase to global cost of goods sold in 2025 due to tariffs, beginning in the fourth quarter, of approximately $10 million to $20 million, with a full-year impact of approximately $50 million to $60 million. To mitigate this, Perrigo plans strategic pricing actions and insourcing to its U.S.-based manufacturing facilities, where 50% of materials and components are sourced.

Key supply chain metrics related to sourcing and scale include:

• - Molecules and dosage form combinations managed: Over 250.
• - U.S. sourced materials and components: 50%.
• - Estimated full-year 2025 COGS increase from tariffs: $50 million to $60 million.
• - Expected operating cash flow conversion to adjusted net income for 2025-2027: Approximately 100% or more.

Perrigo Company plc (PRGO) - Canvas Business Model: Key Activities

You're looking at the core actions Perrigo Company plc is taking right now to reshape its business, which is all about executing a clear, multi-step plan. This isn't just talk; you can see the structure changing to support it.

Executing the 'Stabilize, Streamline, Strengthen' (Three-S) strategic plan

The company's primary activity centers on driving the multi-year 'Three-S' plan: Stabilize, Streamline, and Strengthen. This plan was detailed back in February 2025. Stabilizing specifically targeted the Consumer Self-Care Americas (CSCA) store brand and infant formula businesses, which faced challenges. Streamlining involved optimizing the global portfolio and enterprise operating model, including the Consumer Self-Care International (CSCI) business. Strengthening means prioritizing and increasing investments behind key 'High-Grow' brands.

The execution is showing mixed results as of late 2025. For instance, while the company reaffirmed its 2025 Adjusted diluted Earnings Per Share (EPS) range of $2.90 to $3.10 following Q1 results, subsequent macroeconomic uncertainty and infant formula dynamics led to a Q3 2025 guidance slash to an adjusted EPS range of $2.70 to $2.80 per share. This adjustment reflects the ongoing stabilization work.

Here are the key financial targets Perrigo Company plc set for fiscal year 2025:

Global Category Leadership and Market Activation model scaling

A major activity in mid-2025 was scaling and optimizing the proven growth model, anchored in global Category Leadership and Market Activation, across the entire organization. This move, announced July 1, 2025, was designed to enhance agility and reduce bureaucracy, linking the organization to the strategy of 'scaling more molecules, more efficiently, to more consumers across more markets.'

This scaling involved a significant organizational alignment:

• Centralizing commercial leadership under the new EVP & Chief Commercial Officer, Roberto Khoury, who now leads Global Market Activation.
• Centralizing global brand-building capabilities.
• Empowering market activation for deeper customer and consumer engagement.

This model was already delivering measurable success in the Consumer Self-Care International (CSCI) business before being scaled enterprise-wide. Anyway, this structural activity is crucial for future performance.

Manufacturing and quality assurance for 100+ molecules

Perrigo Company plc's operational backbone involves manufacturing a vast portfolio of products. The company's global supply chain scale supports over 100-plus molecules, aiming for 100% consumer price point coverage. This scale is a fundamental differentiating asset.

Domestically, Perrigo Company plc is the largest U.S. manufacturer of over-the-counter (OTC) self-care products by volume. This production relies on:

• 11 U.S. manufacturing facilities.
• 85% of finished goods manufactured in the U.S.
• 50% of materials and components sourced from the U.S. (as of Q2 2025).

Quality assurance has been a focus; following Q1 2025, management noted that quality production metrics across the network had 'dramatically improved,' which enabled a 19% year-over-year net sales growth in the infant formula category for that quarter.

Consumer-led innovation and brand-building capabilities

The business model activity relies on using cash generated from store brands to fuel investments into key higher-margin, higher-growth brands. Leading brands mentioned include Opill®, Mederma®, Compeed®, EllaOne®, and Jungle Formula®. The company expects its High-Growth Brands to contribute high single-digit growth.

The focus on innovation is quantified by future expectations:

• Targeting $100-$200 million in incremental revenue from high-growth brands by 2027.
• In Q1 2025, organic net sales grew 1.8% when excluding the impact of the Opill® launch stocking benefit from the prior year.

The revenue mix activity shows a reliance on both segments: the Q2 2025 presentation indicated a revenue mix of 40% from branded products and 60% from store brand products.

Strategic review and potential divestiture of Infant Formula business

A critical, ongoing activity as of November 2025 is the strategic review of the infant formula business, initiated to ensure the portfolio is best positioned for sustainable growth and free cash flow generation. This review assesses a full range of alternatives for the segment.

The financial scope of this business unit in 2025 is:

• Expected net sales of approximately $360 million for 2025.
• This represents less than 10% of Perrigo Company plc's total annual net sales (estimated at $4.3 billion for 2025).
• The review will reassess a previously announced investment in this business of $240 million.

The company stated that while operations have stabilized-evidenced by a 19% net sales increase in Q1 2025 for the Nutrition category-the external environment has shifted, making the fit with core consumer health OTC businesses 'less strategic.' Finance: draft 13-week cash view by Friday.

Perrigo Company plc (PRGO) - Canvas Business Model: Key Resources

Perrigo Company plc relies on several critical assets to execute its pure-play self-care strategy.

The physical and logistical backbone includes a significant manufacturing footprint.

This infrastructure supports the company as the largest U.S. manufacturer of Over-The-Counter (OTC) self-care products by volume. The new EVP of Global Supply Chain brings experience managing a complex supply chain valued at $54 billion and comprising 5,000 SKUs from a prior role. Cash-generative store brand private label offerings fuel investments into the portfolio of leading brands.

The portfolio of leading brands includes:

• - Opill®
• - Mederma®
• - Compeed®
• - EllaOne®
• - Jungle Formula®

Perrigo Company plc maintains extensive regulatory expertise for OTC products, which has enabled the achievement of accelerated regulatory milestones across its business units.

Financial liquidity is a key resource, with Cash and cash equivalents of $454 million as of June 28, 2025. Total debt on the balance sheet was $3.65 billion as of that same date. The company returned $80 million to shareholders through dividends year-to-date June 28, 2025.

Perrigo Company plc (PRGO) - Canvas Business Model: Value Propositions

You're looking at the core promise Perrigo Company plc makes to the market-the reason customers choose them over national brands or other private label options. Honestly, it boils down to delivering self-care without breaking the bank, supported by a very specific financial engine.

Quality, affordable self-care products across all price points

Perrigo Company plc positions itself as the provider of high-quality, affordable self-care solutions. This isn't just a slogan; the numbers show where the focus is. The company estimates it saves its consumers approximately $7.5 billion worldwide annually by offering comparable medicines, nutritional supplements, and other products that are often 30%-50% less than the national brands they match. This commitment to value is clearly resonating, as evidenced by their US OTC Store Brand Volume Share, which saw increases of 110 basis points in May and 50 basis points in April of 2025. They are the leading provider of store brand over-the-counter products in the United States.

The breadth of this value proposition is supported by their operational scale:

• The business model includes over 100+ molecules.
• This portfolio covers 100% price point coverage across the market.
• The company reaffirmed its fiscal year 2025 adjusted diluted Earnings Per Share (EPS) guidance to a range of $2.90 to $3.10, which represents a projected growth of 13% to 21% over the prior year.

Dual model: cash-generative store brands fund high-growth brands

Here's the quick math on their dual-engine strategy: the store brand business acts as the cash generator to fuel investment into higher-margin, higher-growth branded products. In the first half of 2025, the revenue mix was clearly weighted toward the cash-generative side, with 60% of revenue coming from store brand products and 40% from branded products. This structure is designed to deliver stable performance. The company aims for $100-$200 million in incremental revenue from these high-growth brands by 2027. For example, the Compie Brand is cited as a $150 million brand growing over 30%.

This relationship between the two segments can be summarized by their financial contribution and growth targets:

Accessibility to self-care solutions without a prescription

Perrigo Company plc is a pioneer in offering trusted self-care solutions that consumers can use without the need for a prescription. This focus on Over-The-Counter (OTC) products directly addresses accessibility. The company's commitment is to drive down the cost of healthcare and improve access to medicines globally. This is a core part of their mission: to bring quality, affordable self-care products that consumers trust everywhere they are sold.

Broad portfolio coverage of 100% consumer price point coverage

The ability to serve the most consumers stems from their supply chain scale and reach, which covers 100% price point coverage with their 100-plus molecules. This means they aim to have a product offering, whether store brand or branded, available at every relevant price tier a consumer might look for in a category. This extensive coverage, combined with significant U.S.-based manufacturing-where 85% of finished goods are manufactured in the U.S.-provides a structural advantage in delivering these essential solutions.

The company's Q3 2025 adjusted operating margin was 16.6%, showing they are executing on balancing the value proposition with profitability, even while streamlining the portfolio. Finance: draft 13-week cash view by Friday.

Perrigo Company plc (PRGO) - Canvas Business Model: Customer Relationships

Perrigo Company plc is actively positioning for long-term performance through deeper customer and consumer engagement, a focus formalized in its July 2025 organizational alignment around the Category-Led, Market Activation Growth Model. Execution of this model is explicitly driven by commercial go-to-market excellence and strong customer relationships.

Strong, long-term customer partnerships with major retailers

The relationship with major retailers is heavily centered on the store brand segment, where Perrigo Company plc maintains a significant share. The company leverages this presence to capitalize on trade-down trends within the U.S. market. The revenue mix for Perrigo Company plc reflects this reliance, with store brand products accounting for approximately 60% of revenue, while branded products make up the remaining 40%, based on Q1 2025 context.

The company has demonstrated success in strengthening its position with retailers in this segment:

• U.S. Store Brand Service levels were reported back to over 90% as of June 2025.
• U.S. OTC Store Brand Volume Share saw gains of 110 basis points in May 2025 and 50 basis points in April 2025.
• The organic net sales for Q1 2025 reflected a previously disclosed net lost distribution of lower margin products in U.S. Store Brand of 0.8%.

Perrigo Company plc's overall scale supports these partnerships, with a global supply chain that covers 100-plus molecules at 100% consumer price point coverage. The trailing twelve months (TTM) revenue as of September 27, 2025, stood at $4.28 Billion USD.

Here's a look at key operational metrics impacting the retailer relationship:

Consumer-led engagement and demand generation

Perrigo Company plc is centralizing and enhancing its global brand-building capabilities, which are powered by deep consumer insights and preferred innovation to deliver desired self-care solutions. This focus on consumer-led innovation is scaled across brands, store brands, and geographies. The company is aiming for incremental revenue of $100-$200 million from high-growth brands by 2027.

The strategy includes specific brand performance metrics:

• The Compie Brand is reported as growing over 30%.
• The Moderna Brand saw net sales increase by over 35%.
• Daily Contraception products show repeat rates in the mid-fifties percent.

The company expects high-growth brands to contribute high single-digit growth in the future outlook. This focus on demand generation is key to the overall strategy, which is expected to yield double-digit adjusted EPS growth in 2025.

Dedicated commercial go-to-market excellence teams

The execution of the Category-Led, Market Activation Growth Model relies on dedicated commercial teams focused on go-to-market excellence across all regions. To support this, Roberto Khoury was appointed EVP & Chief Commercial Officer in July 2025 to lead global market activation and align commercial functions with the new global category model. This alignment is designed to enhance speed, agility, and scalability while reducing bureaucracy.

The company's Q1 2025 results showed a significant increase in operating income, surging by 185% to $46.9 million, partially driven by reduced operating expenses. Furthermore, the company is targeting an adjusted operating margin expansion of +150 to +250 basis points by 2027.

Perrigo Company plc (PRGO) - Canvas Business Model: Channels

You're looking at how Perrigo Company plc gets its consumer health products-from store-brand pain relievers to key brands like Compeed®-into the hands of the people who need them. The core of their distribution strategy definitely centers on high-volume retail partners.

Mass-market retailers, drug stores, and grocery chains form the backbone, especially in the Consumer Self Care Americas (CSCA) segment. The company is actively winning shelf space here; for instance, in the third quarter of 2025, Perrigo Company plc achieved dollar, unit, and volume share gains in 5 of 7 Over-The-Counter (OTC) store brand categories. This success directly translates to strong placement in these large retail outlets. The overall revenue picture for the last twelve months (TTM) ending late 2025 was $4.28 Billion USD, showing the scale of this channel dependency.

Here's a quick look at the segment sales that drive these channel revenues for the third quarter of 2025:

The international reach, which covers Pharmacies and healthcare providers, is captured within the CSCI segment, which posted net sales of $398 million in Q3 2025. Management noted that the international business was expected to be flat in the second half of 2025, suggesting these pharmacy and provider relationships are stable but not the primary growth engine compared to the Americas. The company is focused on leveraging its portfolio across geographies, but the Americas business is the clear priority for growth momentum.

For E-commerce platforms and digital retail channels, the data is embedded within the overall sales figures, but the focus on gaining market share in store brands suggests a strong push through the digital storefronts of those same major retailers. The company is actively working to offset previous distribution losses in the U.S. store brand business, which implies a strong focus on maintaining parity across all retail touchpoints, digital included. The overall organic net sales decline in Q3 2025 was -4.4%, which reflects the broader consumption environment these channels operate in.

Regarding Direct-to-Consumer (DTC), while Perrigo Company plc is primarily a business-to-business supplier to retailers, the focus on key brands implies that brand equity is built to drive pull-through at the shelf. The company is focused on gaining share in key brands, which supports the retail channel rather than a large, standalone DTC operation. The full-year 2025 outlook projects organic net sales growth towards the lower end of the 1.5% to 4.5% target range, which is the ultimate measure of channel effectiveness.

• Store brand market share gains in 5 of 7 OTC categories (Q3 2025).
• CSCA segment sales were $621 million in Q1 2025.
• CSCI segment sales were $398 million in Q3 2025.
• Full Year 2025 Net Sales Growth Outlook: -2.5% to -3.0%.
• The company is aiming for Adjusted EPS between $2.70 and $2.80 for Fiscal Year 2025.

Perrigo Company plc (PRGO) - Canvas Business Model: Customer Segments

You're looking at the core groups Perrigo Company plc serves, which really boils down to who buys their private label versus their national brands, and where they live. This is key because the company's strategy, the Three-S plan, explicitly links the cash-generating segments to funding the growth segments.

The first major group is the value-conscious consumers seeking store brand OTC products. This is the bedrock of the Consumer Self-Care Americas (CSCA) segment. Perrigo Company plc is the only large-scale U.S. store brand and contract manufacturer for many self-care items. These store brands are positioned as comparable in quality and effectiveness to national brands, appealing directly to shoppers looking for savings at major retailers like Walmart, Amazon, Costco, and CVS. Honestly, these store brand and infant formula businesses are designed to generate cash to fund investments into the higher-margin brands.

Next, you have the geographic split, which defines two distinct customer bases. Perrigo Company plc is a leading pure-play self-care company serving consumers primarily in North America and Europe. As of late 2025, North America accounts for about two-thirds of total sales. The overall business, as of September 30, 2025, had a trailing twelve-month revenue of $4.28 billion. The customer base is split between the two main operating segments:

Then there are the parents and caregivers of infants. This group is served by the Nutrition category, which is dominated by the infant formula business. This segment is expected to generate approximately $360 million in net sales for 2025. To put that in perspective, that's less than 10% of the company's estimated annual net sales of $4.3 billion for 2025. Because the external environment has shifted, Perrigo Company plc is currently conducting a strategic review of this business, which includes reassessing a previously announced $240 million investment.

Finally, you have the customers seeking specialized, higher-margin self-care brands. These consumers are the target for the 'High-Grow' brands that Perrigo Company plc prioritizes investment in. In the CSCI segment, which focuses outside the U.S. and Canada, revenue generation is primarily through these national brands, such as Compeed®, Solpadeine®, and ellaOne®. These are the areas management is strengthening to drive better returns, contrasting with the cash-generating store brand business.

Finance: draft 13-week cash view by Friday.

Perrigo Company plc (PRGO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Perrigo Company plc's operational expenses as of late 2025. This structure is heavily influenced by manufacturing scale, ongoing efficiency programs, and necessary innovation spending.

The cost of goods sold (COGS) remains a major component, reflecting the scale of manufacturing and supply chain complexity in the consumer self-care space. For the fiscal quarter ending June 2025, the reported Cost of Sales was $666.2 million. This is reflected in the reported gross margin for the second quarter of 2025, which stood at 26.2%, with an adjusted gross margin of 28.2%. To be fair, the company is also managing potential external cost shocks; Perrigo estimated a gross increase to global COGS in 2025, beginning in the fourth quarter, of approximately $10 million to $20 million, with a full-year impact around $50 million to $60 million, potentially due to pharmaceutical tariffs.

A significant part of the current cost management focus is Project Energize, an efficiency program launched in the first quarter of 2024. This initiative is designed to reset the SG&A operating expense base and drive organizational agility. As of the second quarter of 2025, Project Energize had achieved gross annual savings of approximately $159 million since its inception, with $27 million reinvested. The program is expected to deliver total annualized pre-tax savings in the range of $140 million to $170 million by the end of 2026, with $40 million to $60 million of those savings expected to be reinvested. The associated restructuring and related charges are estimated to total between $140 million to $160 million through 2026, which includes $20 million to $40 million earmarked for capability enhancement investments.

Investment in Research and development (R&D) is necessary to fuel consumer-led innovation and maintain brand relevance. You can see the impact on operating expenses; for instance, in the second quarter of 2025, lower R&D investments provided a partial offset to the decrease in Adjusted Operating Income, alongside lower advertising and promotional (A&P) spend and Project Energize benefits. This shows a balancing act between cost discipline and necessary spending on future growth drivers like Opill® and other brand activations.

Finally, the balance sheet reflects substantial financial obligations that impact financing costs. Perrigo Company plc reported total debt of $3.65 billion as of June 28, 2025. This debt level results in an interest coverage ratio of 2.5x, with total debt at $3.65B against total assets of $10.08B. Lower interest expense from reduced debt was a positive driver for Adjusted EPS in the second quarter of 2025.

Here's a quick look at some key financial metrics impacting the cost base as of the end of Q2 2025:

The ongoing commitment to Project Energize savings, alongside the management of COGS pressures and strategic R&D allocation, defines the near-term cost structure for Perrigo Company plc. Finance: draft 13-week cash view by Friday.

Perrigo Company plc (PRGO) - Canvas Business Model: Revenue Streams

Perrigo Company plc generates its revenue primarily through the sale of its Consumer Self-Care products across two main operating segments. The financial performance for the third quarter of fiscal year 2025 provides a clear snapshot of the current revenue contribution by geography.

For the third quarter of 2025, total reported net sales for Perrigo Company plc were $1,043.3 million. Year-to-date net sales through the first nine months of 2025 reached $3,143.5 million.

The segment breakdown for the third quarter of 2025 net sales is as follows:

The composition of the revenue mix leans heavily on private label offerings, though specific 2025 segment sales figures for private label versus branded are not explicitly broken out in the latest reports, a June 2025 presentation indicated the following revenue split:

Within the national/High-Grow brands category, specific products show significant momentum. For instance, the Mederma® brand (referred to as the Moderna Brand in one source) saw its net sales increase by over 35%. Conversely, the impact of the Opill® launch stocking benefit in the prior year resulted in a -0.5% drag on year-to-date 2025 organic net sales.

Perrigo Company plc has updated its expectations for the full fiscal year 2025, factoring in industry dynamics and consumption trends. The projection for the full-year 2025 net sales growth is set between -2.5% to -3.0%.

The Infant Formula business, which is currently undergoing a strategic review, was expected to generate approximately $360 million in net sales for the full year 2025, representing less than 10% of the Company's total annual net sales.

The company is focused on driving growth through its key brands, with management aiming for $100-$200 million in incremental revenue from high-growth brands by 2027.