Acquisitions and new products boosted Perrigo Company (Nasdaq:PRGO; TASE:PRGO) to 23.2% revenue growth for its second fiscal quarter of 2011, and prompted the company to raise its guidance for its 2011 fiscal year.
Perrigo raised its earning per share guidance to $3.75-$3.90 from $3.60-$3.75, above the analysts' consensus of $3.69 per share. The new guidance reflects a net profit of $350.1-364.1 million, compared with its net profit of $262.6 million in fiscal year 2010.
Second quarter revenue rose 23% to $717.5 million from $582 million for the corresponding fiscal quarter of 2010, and beating the analysts' consensus $709 million. Perrigo attributed the growth to its acquisitions of The infant formula company PBM Holdings, Inc.and Orion Laboratories Pty Ltd., as well as $63 million in new product sales.
GAAP-based net profit rose to $89.8 million ($0.96 per share) for the second quarter from $52.8 million for the corresponding quarter, and non-GAAP net profit rose to $98.4 million ($1.05 per share) from $67.5 million. The company beat the analysts earnings per share consensus of $0.95.
Although Perrigo reported growth in all its business segments, growth was slowest in its core business of consumer healthcare products. Consumer healthcare net sales rose 3% to $430 million for the second quarter from $417 million for the corresponding quarter. Orion contributed $7 million to the sales.
Perrigo's March 2010 acquisition of PBM for $808 million boosted nutritional segment sales 119% to $133 million for the second quarter from $61 million for the corresponding quarter. Prescription drug sales rose 72% to $98 million from $57 million, thanks to new generic drug launches. Active pharmaceutical ingredients (API) sales rose 14.3%.
Sales by Perrigo's Israel Pharmaceutical and Diagnostic Products operating segment rose to $16 million for the second quarter from $12 million for the corresponding quarter, and the segment slashed its operating loss 99% to $8,000, from $800,000.
Cash flow from operations was $129 million for the second quarter.
Perrigo chairman and CEO Joseph Papa said, "Our consumer healthcare segment performed well and is enjoying strong demand for its products; however, despite improving sequentially, we continued to experience throughput pressures in manufacturing. We will continue to improve during each coming quarter and expect to have those issues behind us by the end of our fiscal year."
Last week, Perrigo announced the acquisition of Minneapolis-based specialty pharmaceuticals company Paddock Laboratories Inc. for $540 million.
Perrigo's share price fell 1.3% at the opening on Nasdaq to NIS 71.77, giving a market cap of $6.71 billion, after falling 0.6% on the TASE, before the financial report was published, to NIS 262.30.
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2011
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