Perrigo Company PLC (PRGO) 2023 Q1 法說會逐字稿

Good morning, and welcome to the Perrigo First Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Brad Joseph, Vice President of Investor Relations and Corporate Communications.

早上好，歡迎來到 Perrigo 2023 年第一季度財務業績電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給投資者關係和企業傳播副總裁 Brad Joseph。

Please go ahead.

請繼續。

Thank you, Anthony. Good morning, everyone, and welcome to Perrigo's First Quarter 2023 Earnings Conference Call. I hope you all had a chance to review our releases issued this morning. A copy of the earnings release and presentation for today's discussion are available within the Investors section of the perrigo.com website.

謝謝你，安東尼。大家早上好，歡迎來到 Perrigo 2023 年第一季度收益電話會議。我希望你們都有機會回顧我們今天早上發布的新聞稿。 perrigo.com 網站的投資者部分提供了今天討論的收益發布和演示文稿的副本。

Joining today's call are President and CEO, Murray Kessler; and CFO, Eduardo Bezerra. I'd like to remind everyone that during this call, participants will make certain forward-looking statements. Please refer to the important information for shareholders and investors and safe harbor language regarding these statements in our press release issued earlier this morning.

參加今天電話會議的有總裁兼首席執行官 Murray Kessler；和首席財務官 Eduardo Bezerra。我想提醒大家，在這次電話會議中，與會者將做出某些前瞻性陳述。請參閱我們今天上午早些時候發布的新聞稿中有關股東和投資者的重要信息以及有關這些聲明的安全港語言。

A few quick items before we start. First, unless stated, all financial results discussed and presented are on a continuing operations basis. They do not include any contributions from the divested Rx business, which was accounted for as discontinued operations prior to its sale.

在我們開始之前有一些快速的項目。首先，除非另有說明，所有討論和呈現的財務結果均以持續經營為基礎。它們不包括剝離的 Rx 業務的任何貢獻，該業務在出售前被視為已終止的業務。

Second, organic growth excludes acquisitions, divestitures and currency in both comparable periods. All comments related to constant currency removed the impact of currency translation versus the prior year by applying the exchange rates used in the comparable measurement in the prior year's financial statements.

其次，有機增長不包括兩個可比時期的收購、資產剝離和貨幣。所有與固定貨幣相關的評論都通過應用上一年財務報表中可比計量中使用的匯率消除了貨幣換算與上一年的影響。

And third, Murray's discussion will focus solely on non-GAAP results, except as otherwise expressly noted, see the appendix for additional details and for reconciliations of all non-GAAP financial measures presented. And lastly, I want to share my deep appreciation for Murray during his tenure at Perrigo and a warm felt congratulations on his retirement. Murray, your mentorship and leadership have been invaluable, and you have set this company on a path for a long-term success. On behalf of shareholders, thank you.

第三，Murray 的討論將僅關注非 GAAP 結果，除非另有明確說明，請參閱附錄了解更多詳細信息以及所有非 GAAP 財務措施的對賬。最後，我想表達我對穆雷在 Perrigo 任職期間的深深感激，並熱烈祝賀他退休。 Murray，你的指導和領導能力非常寶貴，你讓這家公司走上了長期成功的道路。我代表股東，謝謝。

Now for the last time, it is my pleasure to turn the call over to Murray.

現在，我很高興最後一次將電話轉給默里。

Thank you, Brad, and thank you, everyone, for joining us this morning. Many of you likely attended the virtual Investor Day we hosted at the end of February, where we provided details of the next phase of our strategy, what we are calling, optimize and accelerate. This was my second Investor Day since joining Perrigo, and I believe this was a critically important event for our company. My team shared specifics on how we expect to generate a significant amount of value for shareholders, and the feedback we've received has been overwhelmingly positive.

謝謝布拉德，也謝謝大家今天早上加入我們。你們中的許多人可能參加了我們在 2 月底舉辦的虛擬投資者日，我們在會上提供了我們戰略下一階段的詳細信息，即我們所說的、優化和加速的內容。這是我加入 Perrigo 後的第二個投資者日，我相信這對我們公司來說是至關重要的活動。我的團隊分享了我們期望如何為股東創造大量價值的具體細節，我們收到的反饋非常積極。

Now after 4 years of transforming Perrigo into a consumer self-care company, the management team has focused squarely on operational execution and consistent delivery of results. To that end, we've made meaningful progress on many of the initiatives discussed at Investor Day during the first quarter of '23. We're on track with the integration for the HRA and Gateway, Good Start brand acquisitions and are already realizing significant benefits from both.

現在，在將 Perrigo 轉變為消費者自我保健公司 4 年之後，管理團隊將重點完全放在運營執行和一致的結果交付上。為此，我們在 23 年第一季度投資者日討論的許多舉措上取得了有意義的進展。我們正在進行 HRA 和 Gateway 的整合，Good Start 品牌收購，並且已經從兩者中獲得了顯著的收益。

We are progressing faster than I expected on supply chain reinvention and have seen some exciting results in the early stages, more on this in just a moment. And I'm proud to say that Perrigo's Women's Health team has started its presentation to the FDA Advisory Committee today for a potential first-in-class Rx to OTC switch of the Opill oral contraceptive.

我們在供應鏈重塑方面的進展速度比我預期的要快，並且在早期階段已經看到了一些令人興奮的結果，稍後會詳細介紹這一點。我很自豪地說，Perrigo 的女性健康團隊今天開始向 FDA 諮詢委員會介紹 Opill 口服避孕藥的潛在一流 Rx 到 OTC 轉換。

Underpinning the progress across our strategic initiatives are strong financial results and business fundamentals. To echo comments from my general managers at our quarterly business reviews, after 2 years of unprecedented volatility, we are seeing our business become more consistent and predictable again. That predictability manifested itself in the first quarter where Perrigo achieved double-digit growth on top and bottom line, meaningful gross margin expansion driven by both the base business and acquisitions, and retained to grow market share as the global consumer demand and fundamentals remain strong.

支撐我們戰略計劃取得進展的是強勁的財務業績和業務基礎。為了回應我的總經理在我們的季度業務回顧中的評論，在經歷了 2 年前所未有的波動之後，我們看到我們的業務再次變得更加一致和可預測。這種可預測性在第一季度表現出來，Perrigo 在第一季度實現了兩位數的收入和利潤增長，在基礎業務和收購的推動下實現了有意義的毛利率增長，並隨著全球消費者需求和基本面保持強勁而繼續擴大市場份額。

We also announced within the last 2 weeks, the successful elimination of the largest remaining tax overhang on the company by resolving the entire April 2019 Athena tax assessment of $843 million. No payment was required, and this assessment is now completely dismissed. We also just settled the interest rate tax assessment with the IRS and have now cleared the debt and dramatically reduced uncertainty in the Perrigo investment.

我們還在過去兩週內宣布，通過解決 2019 年 4 月 Athena 的整個 8.43 億美元稅收評估，成功消除了公司最大的剩餘稅收積壓。無需付款，此評估現已完全駁回。我們還剛剛與美國國稅局解決了利率稅評估，現在已經清償債務並大大降低了 Perrigo 投資的不確定性。

As I just touched on, benefits from recent acquisitions are not only turbocharging our financial results but are also creating greater leverage across the Perrigo portfolio. In HRA, we're delivering on our revised higher synergy targets. We remain on track with the HRA distributor conversion into Perrigo's direct sales model, which will deliver significant ongoing cost savings once complete.

正如我剛才提到的，最近的收購帶來的好處不僅提升了我們的財務業績，而且還在 Perrigo 投資組合中創造了更大的影響力。在 HRA 中，我們正在實現修訂後的更高協同目標。我們將繼續推進 HRA 分銷商向 Perrigo 直銷模式的轉變，一旦完成，這將帶來顯著的持續成本節約。

As I discussed on previous conference calls, there's an approximate $32 million onetime impact to operating income in 2023 associated with returning inventory from distributors. Of this annual estimate, $12 million top line and $0.05 in EPS impacted the first quarter as expected. Importantly, we're realizing greater leverage on our legacy CSCI business as our sales force is now able to combine strong pan-European brands, such as Compeed and ellaOne with the Perrigo's existing more regional European brand portfolio.

正如我在之前的電話會議上所討論的那樣，與分銷商退回庫存相關的 2023 年營業收入將產生大約 3200 萬美元的一次性影響。在這一年度估計中，1200 萬美元的收入和 0.05 美元的每股收益如預期對第一季度產生了影響。重要的是，由於我們的銷售團隊現在能夠將 Compeed 和 ellaOne 等強大的泛歐品牌與 Perrigo 現有的更具區域性的歐洲品牌組合相結合，我們正在實現對我們傳統 CSCI 業務的更大影響。

The integration of the Gateway infant formula facility and the Good Start brand also are on track. We are progressing on insourcing transition services currently provided by Nestle. And despite a voluntary recall in the quarter, we're continuing to leverage increased capacity from this facility to provide much needed supply of value-based infant formulas.

Gateway 嬰兒配方奶粉設施和 Good Start 品牌的整合也在按計劃進行。我們正在推進目前由雀巢提供的內包過渡服務。儘管本季度發生了自願召回事件，但我們仍在繼續利用該設施增加的產能來提供急需的基於價值的嬰兒配方奶粉。

More on infant formula in a few minutes. Within our supply chain reinvention initiative, we are on track to remove complexity from our operations through our winning portfolio strategy, which will result in the optimization or standardization of nearly 1,000 SKUs by the beginning of 2024. We had positive conversations with customers at last week National Association of Chain Drug Stores, NACDS conference and look forward to partnering with them to increase customer service levels through increased operating efficiencies that will free up much needed capacity in the Perrigo manufacturing system.

幾分鐘後可了解更多有關嬰兒配方奶粉的信息。在我們的供應鏈重塑計劃中，我們有望通過成功的投資組合戰略消除運營的複雜性，這將導致到 2024 年初優化或標準化近 1,000 個 SKU。上週我們與客戶進行了積極的對話全國連鎖藥店協會，NACDS 會議，並期待與他們合作，通過提高運營效率來提高客戶服務水平，這將釋放 Perrigo 製造系統中急需的產能。

We also completed the pilot program using a system called (inaudible), which will be an integral part of our enhanced Perrigo Work System. (inaudible) is a cost-effective software solution to provide real-time overall equipment effectiveness, OEE. It provides management and monitoring information at the line operating level. We've highlighted the system on 3 manufacturing lines across the globe in Q1.

我們還使用名為（聽不清）的系統完成了試點計劃，該系統將成為我們增強型 Perrigo 工作系統的組成部分。 （聽不清）是一種具有成本效益的軟件解決方案，可提供實時整體設備效率 OEE。它提供生產線操作級別的管理和監控信息。第一季度，我們在全球 3 條生產線上重點介紹了該系統。

All 3 achieved increased productivity above our expectations at a lower-than-expected cost. These are truly exciting results, and we have begun the process of rolling RedZone out across all our global manufacturing sites. As I mentioned earlier, the FDA Advisory Committee meeting begins today to discuss the potential switch of Opill. This is an important day for all women and people in the U.S., and it optinomizes our commitment to the women's health space.

這 3 家公司都以低於預期的成本實現了高於我們預期的生產率提高。這些都是真正令人興奮的結果，我們已經開始在我們所有的全球製造基地推廣 RedZone。正如我之前提到的，FDA 諮詢委員會會議今天開始討論 Opill 的潛在轉換。這對美國所有女性和人民來說都是重要的一天，它優化了我們對女性健康領域的承諾。

The FDA's approval of Opill OTC would increase access to safe and effective birth control, while allowing women to take control of their contraceptive needs on their terms. While the FDA will be scrutinizing this application, there are over 35 independent organizations voicing support of Opill. In the year 2023, women should have ready access to oral contraception. As a reminder, the FDA advisory panel vote is nonbinding, we expect the agency to render a decision on approval later this year.

FDA 批准 Opill OTC 將增加獲得安全有效的節育措施的機會，同時允許女性根據自己的條件控制自己的避孕需求。雖然 FDA 將審查該申請，但有超過 35 個獨立組織表示支持 Opill。到 2023 年，女性應該可以隨時獲得口服避孕藥。提醒一下，FDA 顧問小組的投票不具約束力，我們預計該機構將在今年晚些時候做出批准決定。

Looking at our Q1 financial results. We had a tremendous quarter as constant currency net sales grew 13%. Organic net sales grew 6.4% despite unfavorable impacts of 2.7 and 1.3 percentage points from 2 voluntary recalls and portfolio optimization initiatives in CSCA, respectively. Pricing in the quarter was 5.5% and importantly, volume grew 1%. Gross margin improved by 400 basis points with nearly half driven by the legacy Perrigo business, and the other half attributed to higher-margin acquisitions.

看看我們第一季度的財務業績。由於不變貨幣淨銷售額增長了 13%，我們有一個巨大的季度。儘管 CSCA 的 2 次自願召回和產品組合優化舉措分別產生了 2.7 和 1.3 個百分點的不利影響，但有機淨銷售額增長了 6.4%。本季度的定價為 5.5%，重要的是，銷量增長了 1%。毛利率提高了 400 個基點，其中近一半是由傳統的 Perrigo 業務推動的，另一半則歸因於利潤率更高的收購。

Year-over-year adjusted diluted EPS grew an impressive 36% or plus 47% on a constant currency basis. Success in the quarter was broad-based. While global consumer demand remains solid, European consumption is robust and is at a 4-year high, driven in part by a very strong cough/cold season.

按固定匯率計算，調整後的攤薄後每股收益同比增長 36% 或 47%，令人印象深刻。本季度的成功基礎廣泛。雖然全球消費需求依然強勁，但歐洲消費強勁且處於 4 年來的最高水平，部分原因是非常強勁的咳嗽/感冒季節。

Our Compeed brand continues to see strong demand and share gains with consumer takeaway up 19% versus a year ago in the quarter. Other areas such as anti-parasites and insect repellents are gaining market share in growing categories and were positive drivers of CSCI growth. In the U.S., our oral care business is continuing to recover from the logistics and supply chain dynamics experienced last year as sales and consumption trends are very positive. Oral care consumption grew a robust 20% in the quarter, and Perrigo recaptured the #2 share position in the categories we compete in. And in U.S. OTC, we gained share in higher-margin Digestive Health and NRT categories, driven by new products and distribution gains.

我們的 Compeed 品牌繼續看到強勁的需求和份額增長，本季度消費者外賣比去年同期增長 19%。其他領域，如抗寄生蟲和驅蟲劑，在不斷增長的品類中獲得了市場份額，並且是 CSCI 增長的積極推動力。在美國，我們的口腔護理業務繼續從去年經歷的物流和供應鏈動態中復蘇，因為銷售和消費趨勢非常積極。口腔護理消費在本季度強勁增長 20%，Perrigo 在我們競爭的類別中重新奪回了第二大份額。在美國 OTC，我們在新產品和分配收益。

Of note, U.S. OTC organic growth in the quarter was up 7.3% versus a year ago and U.S. OTC gross margin was 30%, up 415 basis points. Looking at our top line in a bit more detail. We achieved strong growth in both segments and nearly every product category. Many of our investors are U.S.-based, so they gravitate toward the U.S. business with CSI, which is nearly 40% of revenues is really hitting its stride. The business grew 24% constant currency in the quarter 11% organically. The strong EU consumption I just noted was due to high incidences of cough, cold and flu, strong brands, share gains, the stickiness of our strategic price increases and the greater leverage from the HRA pan-European brands. The CSCI business has really come together beautifully.

值得注意的是，本季度美國場外交易有機增長率同比增長 7.3%，美國場外交易毛利率為 30%，上漲 415 個基點。更詳細地看一下我們的頂線。我們在這兩個細分市場和幾乎每個產品類別都實現了強勁增長。我們的許多投資者都在美國，因此他們被 CSI 吸引到美國業務，近 40% 的收入確實取得了長足的進步。該業務在本季度有機增長 24%，固定匯率為 11%。我剛才提到的強勁歐盟消費是由於咳嗽、感冒和流感的高發、強大的品牌、份額增長、我們戰略性價格上漲的粘性以及 HRA 泛歐品牌的更大影響力。 CSCI 業務確實完美地結合在一起。

We also once again experienced solid consumer demand in the U.S., especially when you adjust for purposely discontinued low-margin product from our SKU rationalization program and from divestitures. Our OTC business grew 9% in the quarter in total, including a 200 basis point unfavorable impact from SKU rationalization. It's worth noting shipments to customers were greater than consumption during Q1 in the U.S. as customers replenished inventories, that were reduced below normal levels as they exited 2022, and that's something we see often in the fourth quarter, and it's not unusual.

我們在美國也再次經歷了強勁的消費者需求，尤其是當您從我們的 SKU 合理化計劃和資產剝離中針對故意停產的低利潤產品進行調整時。我們的場外交易業務在本季度總計增長了 9%，其中包括 SKU 合理化帶來的 200 個基點的不利影響。值得注意的是，由於客戶補充庫存，美國第一季度對客戶的出貨量大於消費量，到 2022 年結束時，庫存量已降至正常水平以下，這是我們在第四季度經常看到的情況，這並不罕見。

Other notable category movement in the quarter included women's health which benefited from the addition of ellaOne and other brands from the acquisition of HRA. Skin care, which benefited from the addition of the Compeed and Mederma brands and increased manufacturing capacity for our minoxidil hair regrowth products in the U.S. and oral care, which I just discussed.

本季度其他值得注意的品類變化包括女性健康，這得益於 ellaOne 和收購 HRA 後的其他品牌的加入。皮膚護理，受益於 Compeed 和 Mederma 品牌的加入，以及我們在美國的米諾地爾生髮產品和口腔護理的生產能力提高，我剛剛討論過。

Let's spend a minute on our CSCA nutrition business. Net sales grew 10% in the quarter, driven by strong growth in the contract infant formula business and an additional $36 million in sales from the Good Start acquisition. As a reminder, this growth is compared against a very strong year ago period that benefited from the infant formula shortage, the $36 million sales benefited from the Good Start acquisition includes an unfavorable impact of $9 million due to the voluntary recall of certain loss of the Good Start infant formula.

讓我們花點時間了解一下我們的 CSCA 營養業務。本季度淨銷售額增長 10%，這主要得益於合同嬰兒配方奶粉業務的強勁增長以及收購 Good Start 帶來的額外 3600 萬美元的銷售額。提醒一下，這一增長與一年前受益於嬰兒配方奶粉短缺的非常強勁的時期相比，Good Start 收購帶來的 3600 萬美元銷售額包括由於自願召回某些損失的 900 萬美元的不利影響好開始嬰兒配方奶粉。

Let me go into a little more detail here. In March 2023, FDA released a national strategy and issued a letter to members of the infant formula industry to assist in improving the microbiological safety of powdered infant formula. This letter has a significant impact on our manufacturing and cost to produce infant formula. Of course, Perrigo supports FDA and its mission to ensure food safety and promote nutrition for babies.

讓我在這裡更詳細一點。 2023年3月，FDA發布國家戰略，致嬰幼兒配方奶粉行業成員致信，協助提高嬰幼兒配方奶粉的微生物安全性。這封信對我們生產嬰兒配方奶粉的製造和成本有重大影響。當然，Perrigo 支持 FDA 及其確保食品安全和促進嬰兒營養的使命。

So in response to FDA's new strategy and evolving regulatory expectations, we are, one, making significant investments to further modernize our infant formula (inaudible); and two, modifying and evaluating further adjustments to our manufacturing processes and procedures including refinements to sanitation procedures, quality hold times and more. As I said, these actions will negatively impact supply and significantly raise the cost of producing infant formula.

因此，為了響應 FDA 的新戰略和不斷變化的監管期望，我們正在，一，進行重大投資以進一步使我們的嬰兒配方奶粉現代化（聽不清）；第二，修改和評估對我們的製造流程和程序的進一步調整，包括改進衛生程序、質量保持時間等。正如我所說，這些行動將對供應產生負面影響，並顯著提高嬰兒配方奶粉的生產成本。

The substantial cost of these new regulatory requirements will be offset with a price increase. But even after the price increase, we anticipate that Perrigo store brand products will deliver consumers an approximate 40% savings per ounce as compared to the national brands.

這些新監管要求的大量成本將被價格上漲所抵消。但即使在價格上漲之後，我們預計與全國品牌相比，Perrigo 商店品牌產品每盎司將為消費者節省約 40%。

Let me pull this all together. I can't say enough how much Perrigo has transformed over the past few years and how excited I am about our future. Our fundamentals are strong and getting stronger as we continue to win market share, our strategic acquisitions are having a big accretive impact, our gross margin is expanding, and we continue to optimize our operations and accelerate our strategic investments to drive outsized growth over the next 3 years.

讓我把這一切放在一起。我無法形容 Perrigo 在過去幾年裡發生了多大的變化，我對我們的未來有多麼興奮。隨著我們繼續贏得市場份額，我們的基本面強勁且越來越強，我們的戰略收購產生了巨大的增長影響，我們的毛利率正在擴大，我們將繼續優化我們的運營並加速我們的戰略投資以推動未來的超額增長3年。

With that, I'll turn the call over to our CFO, to discuss financials in more detail, and I'll come back at the end to wrap up before Q&A. Eduardo?

有了這個，我會把電話轉給我們的首席財務官，更詳細地討論財務問題，最後我會回來在問答之前結束。愛德華多？

Thank you, Murray, and good morning, everyone. For this morning's call, I will provide some color on our Q1 financial results, walk through the drivers of our gross margin expansion, highlight our cash flow and balance sheet metrics and then wrap up with our 2023 guidance.

謝謝你，默里，大家早上好。在今天上午的電話會議上，我將提供一些有關我們第一季度財務業績的顏色，介紹我們毛利率增長的驅動因素，強調我們的現金流和資產負債表指標，然後總結我們的 2023 年指引。

Starting with our GAAP to non-GAAP summary. The company reported a GAAP loss of $1 million for the first quarter or a loss of $0.01 per diluted share. Adjusted net income was $61 million and adjusted diluted earnings per share was $0.45 per share versus $0.33 per share in the prior year quarter. A few adjustments to the quarter pretax non-GAAP P&L totaling $71 million were amortization expenses of $66 million, acquisition and integration-related expenses of $4 million, mainly related to the HRA and Gateway facility and restructuring charges of $3 million, primarily related to our supply chain reinvention program.

從我們的 GAAP 到非 GAAP 摘要開始。該公司報告第一季度 GAAP 虧損 100 萬美元或每股攤薄虧損 0.01 美元。調整後的淨收入為 6100 萬美元，調整後的稀釋後每股收益為每股 0.45 美元，而去年同期為每股 0.33 美元。對總計 7100 萬美元的季度稅前非 GAAP 損益的一些調整是攤銷費用 6600 萬美元，收購和整合相關費用 400 萬美元，主要與 HRA 和 Gateway 設施有關，重組費用 300 萬美元，主要與我們的供應鏈重塑計劃。

Full details can be found in the non-GAAP reconciliation table attached to this morning's press release. From this point forward, all dollar numbers, basis points and margin percentages will be on an adjusted basis unless stated otherwise.

完整的細節可以在今天上午的新聞稿所附的非 GAAP 調節表中找到。從現在開始，除非另有說明，否則所有美元數字、基點和保證金百分比都將經過調整。

Since Murray already provided the details for our top line results, I will begin my comments at consolidated gross profit, which grew $84 million or 23.3% in the quarter, with our gross profit margins expanding 400 basis points versus the previous year quarter. Growth was driven by acquisitions, strategic pricing actions and favorable volume mix, which were partially offset by inflation, two voluntary recalls, impact from the HRA distribution transition and the unfavorable impact of currency translation.

由於 Murray 已經提供了我們最高業績的詳細信息，我將從綜合毛利潤開始我的評論，該季度綜合毛利潤增長了 8400 萬美元或 23.3%，我們的毛利率比上一季度擴大了 400 個基點。增長是由收購、戰略定價行動和有利的銷量組合推動的，但部分被通貨膨脹、兩次自願召回、HRA 分銷過渡的影響和貨幣換算的不利影響所抵消。

Operating income increased $33 million or 38%, driven by favorable gross profit flow-through, which was partially offset by higher operating expenses due to the inclusion of HRA and the Gateway facility net of divested businesses. Interest and other expenses increased $15 million due to last year's debt refinancing associated with the HRA acquisition, which both closed in Q2.

營業收入增加 3300 萬美元或 38%，這得益於有利的毛利流轉，這部分被更高的營業費用所抵消，原因是將 HRA 和 Gateway 設施扣除剝離業務後的淨額。由於去年與 HRA 收購相關的債務再融資，利息和其他費用增加了 1500 萬美元，這兩項收購均在第二季度結束。

We also saw benefit in our income tax rate of 300 basis points versus previous year due to changes in jurisdictional mix of earnings. Looking at the bottom line, these factors translated into an adjusted EPS of $0.45 in the first quarter, an impressive 36% increase compared to last year or 47% improvement on a constant currency basis.

由於轄區收益組合的變化，我們還看到了 300 個基點的所得稅稅率比上一年有所提高。從底線來看，這些因素轉化為第一季度調整後每股收益 0.45 美元，與去年同期相比增長 36%，按固定匯率計算增長 47%，令人印象深刻。

Looking at Slide 16. First quarter gross margin improvement of 400 basis points was driven by both business segments. This was achieved through an (inaudible) between the legacy Perrigo business and the HRA and Gateway acquisition. Within CSCA, gross margin in our OTC business grew an impressive 450 basis points, driven by favorable mix on existing products, benefits from new products and acquisitions and strategic pricing actions that offset inflation.

查看幻燈片 16。第一季度毛利率提高 400 個基點是由兩個業務部門推動的。這是通過遺留 Perrigo 業務與 HRA 和 Gateway 收購之間的（聽不清）實現的。在 CSCA 內部，我們場外交易業務的毛利率增長了令人印象深刻的 450 個基點，這得益於現有產品的有利組合、新產品和收購帶來的好處以及抵消通貨膨脹的戰略定價行動。

As Murray mentioned earlier, our U.S. Oral Care business is rebounding from the supply chain and logistics dynamics experienced last year and accomplished a 360 basis point increase in gross margin driven by strategic pricing actions, improved service levels and favorable customer mix. These factors led to a 310 basis point expansion in CSCA gross profit margin, including an unfavorable impact of 150 basis points from 2 voluntary recalls in the quarter.

正如 Murray 之前提到的，我們的美國口腔護理業務正在從去年經歷的供應鍊和物流動態中反彈，並在戰略定價行動、改進的服務水平和有利的客戶組合的推動下實現了 360 個基點的毛利率增長。這些因素導致 CSCA 毛利率擴大 310 個基點，其中包括本季度 2 次自願召回的 150 個基點的不利影響。

The SKI gross margin expansion of 470 basis points versus prior year was driven by contributions from the HRA acquisition and strategic price increases, which more than offset the impact of inflation in the quarter. The gross margin expansion, including an unfavorable 90 basis points impact from the HRA distribution transition.

SKI 的毛利率較上年同期增長 470 個基點，這是由於 HRA 收購和戰略價格上漲的推動，這大大抵消了本季度通貨膨脹的影響。毛利率擴張，包括 HRA 分配過渡帶來的不利影響 90 個基點。

Bringing this together for growth of Perrigo, gross margin expanded 400 basis points versus last year, including a combined 130 basis point headwind from the 2 voluntary recalls and the impact of the HRA distribution transition. We also achieved operating margin expansion across both segments in the quarter. Perrigo operating margin expanded 200 basis points compared to the prior year as gross profit flow through due to the factors I just discussed were partially offset by higher operating expenses, mainly related to the acquisitions of HRA and the Gateway facility and advertising and promotion investments in our core brands.

綜合考慮 Perrigo 的增長，毛利率比去年增長了 400 個基點，其中包括 2 次自願召回和 HRA 分銷過渡的影響帶來的總計 130 個基點的逆風。我們還在本季度實現了兩個部門的營業利潤率增長。 Perrigo 的營業利潤率比上一年增加了 200 個基點，因為我剛才討論的因素導致的毛利流被更高的營業費用部分抵消，主要與收購 HRA 和 Gateway 設施以及我們在我們的廣告和促銷投資有關核心品牌。

Now moving on to the cash flow. Cash on hand was $553 million at the end of the first quarter, down from $601 million at the end of the fourth quarter last year. We haven't been impacted by recent financial institution stability in the U.S. and Europe, and we are proactively taking actions to diversify our cash flow management amongst low-risk financial institutions. We will continue to monitor these developments closely. Operating cash flow for the quarter was $19 million, a conversion of 32%, in line with our phasing for the year, which we expect to be similar to last year.

現在轉向現金流。第一季度末手頭現金為 5.53 億美元，低於去年第四季度末的 6.01 億美元。我們沒有受到近期美國和歐洲金融機構穩定性的影響，我們正在積極採取行動，在低風險金融機構中分散我們的現金流管理。我們將繼續密切關注這些事態發展。本季度的運營現金流為 1900 萬美元，轉換率為 32%，符合我們今年的階段性計劃，我們預計今年的情況與去年相似。

As a reminder, we typically experience the heavy cash outflows in the first quarter, driven primarily by annual employee incentives. In the quarter, operating cash flow included outflows of $10 million from acquisition-related and restructuring expenses. We also invested $23 million in capital expenditures and returned $36 million to our shareholders through dividends in the first quarter. Looking ahead, we are still projecting 100% operating cash flow conversion to adjusted net income for the full year.

提醒一下，我們通常會在第一季度經歷大量現金流出，這主要是受年度員工激勵措施的推動。本季度，經營現金流包括收購相關費用和重組費用流出的 1000 萬美元。我們還在第一季度的資本支出中投入了 2300 萬美元，並通過股息向股東返還了 3600 萬美元。展望未來，我們仍預計全年將 100% 的經營現金流轉換為調整後的淨收入。

Also, our net leverage over the trailing 12 months was 5.3x adjusted EBITDA, down from 5.5x at the end of 2020. Totally continued strong momentum in our business through Q1, we are reaffirming our 2023 guidance, which includes, as Murray discussed, higher costs coming in our CSCA infant formula business with pricing actions to offset these costs.

此外，我們過去 12 個月的淨槓桿率為調整後 EBITDA 的 5.3 倍，低於 2020 年底的 5.5 倍。我們的業務在第一季度總體上保持強勁勢頭，我們重申我們的 2023 年指導方針，其中包括，正如 Murray 所討論的那樣，我們的 CSCA 嬰兒配方奶粉業務成本增加，定價行動可以抵消這些成本。

Additionally, timing has shifted slightly in distribution transitions from HRA to Perrigo, and we now expect the unfavorable impact from HRA sales returns in Q2 and Q3 to be similar to the $0.05 impact -- EPS impacting Q1 and minimal in Q4. This is good news as it means our transition from distributor to direct sales is going faster than originally planned and does not change the total estimated earnings per share impact of $0.16 to $0.18 only the time. And we continue to provide updates each quarter on the progress we are making with these transitions.

此外，從 HRA 到 Perrigo 的分銷過渡時間略有改變，我們現在預計第二季度和第三季度 HRA 銷售回報的不利影響類似於 0.05 美元的影響——每股收益影響第一季度，第四季度影響最小。這是個好消息，因為這意味著我們從分銷商到直銷的過渡比原計劃要快，而且不會改變每股 0.16 美元的總估計收益影響到 0.18 美元。我們將繼續每個季度提供有關我們在這些過渡方面取得的進展的更新。

Summing this up, we now expect our second half EPS weighting to be slightly higher than discussed at our February Investor Day. As a reminder, we annualized the Latin America and ScarAway divestitures at the end of Q1, and we will anniversary the HRA acquisition during the second quarter.

綜上所述，我們現在預計下半年每股收益權重將略高於 2 月份投資者日討論的權重。提醒一下，我們在第一季度末對拉丁美洲和 ScarAway 資產剝離進行了年度化，我們將在第二季度紀念 HRA 收購。

Since joining the company last year, I have been repeatedly impressed by our team's ability to adapt and overcome in the face of numerous challenges. From record inflation to logistics and supply chain issues, our team continues to navigate in a dynamic environment. This quarter is no different. On top of a solid financial performance, we also eliminated almost all of the remaining tax overhangs on the company. Nearly $1 billion with only a minor cash impact to the company. These overhangs drew my attention when I first joined Perrigo, and I'm now extremely pleased to say that these are behind us.

自去年加入公司以來，我們團隊在面對重重挑戰時的應變能力和克服困難的能力一再讓我印象深刻。從創紀錄的通貨膨脹到物流和供應鏈問題，我們的團隊繼續在動態環境中前行。本季度也不例外。除了穩健的財務業績外，我們還消除了公司幾乎所有剩餘的稅收積壓。近 10 億美元，對公司的現金影響很小。當我第一次加入 Perrigo 時，這些突出問題引起了我的注意，現在我非常高興地說這些都已經過去了。

I look forward to carrying this momentum forward through the rest of the year as we continue to make progress towards delivering on our strategic initiatives, strengthening our business and delivering substantial growth in a dynamic environment.

我期待在今年餘下的時間裡繼續保持這一勢頭，因為我們將繼續在實施戰略舉措、加強業務和在充滿活力的環境中實現大幅增長方面取得進展。

Before I turn the call over, on behalf of the entire operating committee, I would just like to say that it has been a pleasure working with you, Murray. The transformation that you have led during our tenure here has truly set Perrigo on a path for success, and we could not be more excited to drive our strategy forward. We wish you all the best in your retirement, and thank you for your tremendous efforts over the past 5 years.

在我轉交電話之前，我代表整個運營委員會，只想說很高興與你合作，默里。您在我們任職期間領導的轉型真正讓 Perrigo 走上了成功之路，我們對推動我們的戰略向前發展感到無比興奮。我們祝愿您退休後一切順利，感謝您在過去 5 年中付出的巨大努力。

Now back to you, Murray, for your closing remarks.

穆雷，現在回到你的閉幕詞。

Thank you, Eduardo. That's really kind. A few comments on my retirement announcement before we move on to Q&A. As you know, I joined Perrigo almost 5 years ago to lead the transformation of the company from a health care company to a consumer self-care company. Leading that transformation has been one of the most exciting assignments of my career. From 14 M&A transactions to recontinue the company's portfolio, the near complete elimination of the company's $4 billion action legal overhangs to the strategic path put in place to create value for the future, I am proud of what my team and the Board support has accomplished.

謝謝你，愛德華多。那真是太好了。在我們進行問答之前，對我的退休公告發表一些評論。如您所知，我大約 5 年前加入 Perrigo，領導公司從一家醫療保健公司轉型為一家消費者自我保健公司。領導這種轉變是我職業生涯中最激動人心的任務之一。從 14 筆併購交易到重新延續公司的投資組合，幾乎完全消除了公司 40 億美元的訴訟法律懸而未決的問題，再到製定了為未來創造價值的戰略路徑，我為我的團隊和董事會的支持所取得的成就感到自豪。

The fact that this all happened in the face of a global pandemic, global supply chain disruption, the Russian invasion of Ukraine and the highest input cost inflation in decades makes the transformation that much sweeter. All the pieces are now in place. Perrigo is growing its top line robustly. We've added over $1.5 billion in revenues to our consumer businesses since the beginning of the transformation.

事實上，這一切都發生在全球大流行、全球供應鏈中斷、俄羅斯入侵烏克蘭和幾十年來最高的投入成本通脹的情況下，這使得轉型變得更加甜蜜。所有的部分現在都到位了。 Perrigo 的收入增長強勁。自轉型開始以來，我們已經為我們的消費者業務增加了超過 15 億美元的收入。

Perrigo is growing and expanding its margins and is set up to continue to do that going forward and it's growing its bottom line. In the first quarter, I think we were right at the top or nearly at the top of our consumer peer group. It has a strong plan in place to produce leverage and the company has a clear strategic path for sustained long-term growth.

Perrigo 正在增長和擴大其利潤率，並準備繼續這樣做，並且它正在增加其利潤。在第一季度，我認為我們在同行消費者群體中處於領先地位或接近領先地位。它有一個強有力的計劃來產生影響力，並且公司有一個明確的戰略路徑來實現持續的長期增長。

Now is the right time for someone else to take the reigns of Perrigo and relentlessly drive the execution of our strategic plan for years to come. I truly believe that we collectively have set up Perrigo for a bright future and to create tremendous value for investors.

現在正是讓其他人接管 Perrigo 並堅持不懈地推動我們未來幾年戰略計劃執行的最佳時機。我真的相信，我們共同建立了 Perrigo，以創造光明的未來並為投資者創造巨大的價值。

Remember, despite strong results, Perrigo continues to trade at almost a 50% discount versus its peer group. And that's why even though I'll be retiring and I will sell a portion of my Perrigo Holdings to diversify, I intend to remain a large individual shareholder of Perrigo and will continue to be very tied to the success of the company.

請記住，儘管業績強勁，但 Perrigo 的交易價格仍比其同行低近 50%。這就是為什麼即使我將退休並且我將出售我的部分 Perrigo Holdings 以實現多元化，我仍打算繼續作為 Perrigo 的大個人股東並將繼續與公司的成功息息相關。

I've set the target retirement date of the end of July, and I'm working with the Board on identifying a successor and ensuring a smooth transition. Lastly and most importantly, I'd like to thank the Perrigo employees who have supported me through the transformation. You are truly amazing, and it's been an honor to lead you.

我已將目標退休日期定在 7 月底，我正在與董事會合作確定繼任者並確保順利交接。最後也是最重要的，我要感謝在轉型過程中支持我的 Perrigo 員工。你真的很棒，能領導你是我的榮幸。

And with that, operator, we'll now take questions.

有了這個，接線員，我們現在開始提問。

(Operator Instructions) Our first question will come from Susan Anderson with Canaccord Genuity.

（操作員說明）我們的第一個問題將來自 Canaccord Genuity 的 Susan Anderson。

Congratulations on your retirement. You've done a great job setting the company up for future success. Yes. So maybe just I wanted to drill down a little bit first on the gross margin, the 400 basis points. I think you said 130 bps from the recalls with the HRA distributor. I guess, how much of that was the infant formula? And then also, if you could maybe just give a little bit more color on the rest of the drivers there between pricing, mix, maybe currency, et cetera?

祝賀你退休。您為公司未來的成功奠定了良好的基礎。是的。所以也許我只是想先深入了解一下毛利率，即 400 個基點。我想你說的是 HRA 分銷商召回的 130 個基點。我猜，其中有多少是嬰兒配方奶粉？然後，您是否可以在定價、組合、貨幣等等之間給其他驅動因素多一點顏色？

Okay. why don't I take, Eduardo, the first part, which I just want to sort of talk relative to the gross margin across the businesses and then you can break up the individual drivers. So yes, the gross margin from last year to this year was on CSCA, 310 gross margin points. So I think if you look at it, the important parts are -- excuse me, it was up more than 310. OTC was up 450, so it went from 25% last year to a 30% gross margin.

好的。 Eduardo，我為什麼不接受第一部分，我只想談談與整個企業的毛利率相關的問題，然後你可以分解各個驅動程序。所以是的，從去年到今年的毛利率是在 CSCA 上，310 個毛利率點。所以我認為，如果你看一下，重要的部分是——對不起，它上漲了 310 多美元。OTC 上漲了 450 美元，所以毛利率從去年的 25% 上升到 30%。

Oral care went from 25.3% to 28.9%, up 360, but Nutrition had a significant decline and it had even a bigger decline from the fourth quarter to the first quarter, and that was related to the recall. I mean, you had a big hit on that. CSCI actually had a 480 basis point increase. So every part of our business expanded significantly from a growth margin standpoint, and it's progressing just as we expected, but you had hits and Eduardo can quantify these on purposefully with the HRA, not recall -- moving from distributor to our own sales force and then you had 2 recalls that hit $17 million or roughly $0.10 of the business was so strong. It covered it.

口腔護理從25.3%上升到28.9%，上升了360%，但是Nutrition有明顯下降，而且從第四季度到第一季度下降幅度更大，這與召回有關。我的意思是，你在這方面受到了很大的打擊。中證國際實際上上漲了 480 個基點。因此，從利潤率的角度來看，我們業務的每個部分都在顯著擴展，並且正如我們預期的那樣取得進展，但是你有成功，Eduardo 可以有目的地用 HRA 量化這些，而不是召回——從分銷商轉移到我們自己的銷售隊伍，然後你有 2 次召回達到 1700 萬美元或大約 0.10 美元的業務非常強勁。它覆蓋了它。

But I want to be very clear, our margin programs are working beautifully. They're not pricing driven or some in recovery, but they are all the kind of things that you want that will continue to expand and grow over time, especially as we have our highest margin businesses are growing the fastest in the company. Now Eduardo will get to your specifics on the drivers. Go ahead Eduardo.

但我想非常清楚，我們的保證金計劃運作良好。它們不是定價驅動的，也不是一些處於復蘇中的，但它們都是你想要的，會隨著時間的推移繼續擴大和增長，尤其是當我們擁有最高利潤率的業務在公司中增長最快時。現在 Eduardo 將向您詳細介紹驅動程序。繼續愛德華多。

Yes. So talking specifically there, Susan. So between the Good Start impact as compared to last year, we had about 50 basis points there. And also on the inventory transition on HRA about 40 basis points. And we also had around 40 basis points related to the OTC recall that we announced there. And so on the flip side, pricing had a positive impact of about 300 basis points and volume and mix about 160 basis points positively. And those combined more than offset the impact we had on inflation and input cost that was about 230 basis points.

是的。蘇珊，所以具體來說。因此，與去年相比，良好開端的影響大約有 50 個基點。還有關於 HRA 的庫存轉換大約 40 個基點。我們還有大約 40 個基點與我們在那裡宣布的 OTC 召回有關。因此，另一方面，定價產生了約 300 個基點和成交量的積極影響，並產生了約 160 個基點的積極影響。這些加起來抵消了我們對通貨膨脹和投入成本的影響，約為 230 個基點。

Okay. Great. That was really helpful. And then on the infant formula business, I guess, do you expect there to be a sales impact, it sounds like the rest of the year or two with the changes from the FDA? And then also, how much will this pressure be on sales and margin and how long will it take you to get back in stock. And just in terms of raising prices, do you guys have an idea of what that will be and the timing? And then I guess pricing does increase across the category. I would assume this is actually helpful to your private label business, correct?

好的。偉大的。這真的很有幫助。然後在嬰兒配方奶粉業務上，我想，您是否預計會對銷售產生影響，這聽起來像 FDA 的變化會在一兩年的剩餘時間裡發生？然後，這種壓力對銷售和利潤的影響有多大，你需要多長時間才能恢復庫存。就提價而言，你們知道會是什麼和時間嗎？然後我想整個類別的定價確實會增加。我認為這實際上對您的自有品牌業務有幫助，對嗎？

Yes. Those were a lot of questions. So let me make sure I cover up, I don't get to every piece of it, just to ask it again. But let's just go back here a little bit. I think it's really important to say that this letter was sort of a shock to the system. It's very well intended. I'm not sure whoever wrote it fully understands the impact of manufacturing and output for the industry, especially during a period of time when there are shortages. But I want to be very clear that the Perrigo quality control system did not break down during the first quarter. If it had been 3 weeks earlier, prior to this letter coming out, there would have been no recall. So the quality control measures that were in place of how much product to throw away, et cetera, if you get any variation that has been in place for decades, there would not have been a recall. Okay?

是的。這些是很多問題。所以讓我確保我掩蓋了，我沒有得到它的每一部分，只是為了再問一遍。但是讓我們稍微回到這裡。我認為非常重要的一點是，這封信對系統造成了某種衝擊。這是非常好的意圖。我不確定寫這篇文章的人是否完全理解製造業和產出對行業的影響，尤其是在短缺時期。但我想非常清楚，Perrigo 質量控制系統在第一季度沒有崩潰。如果早 3 週，在這封信發出之前，就不會召回。因此，質量控制措施取代了多少產品要扔掉等等，如果你發現幾十年來一直存在的任何變化，就不會召回。好的？

The FDA given what happened last year and pressure from Congress and others have tried to raise safety up to another level, very admirable, but it has an impact, and that's what you're talking about now. So we -- full plant sanitizations and shutdowns, there'll be more of them, it will have a negative input on product, but all of that including the sales will be offset by the pricing, okay?

鑑於去年發生的事情以及來自國會和其他方面的壓力，FDA 試圖將安全提升到另一個水平，非常令人欽佩，但它產生了影響，這就是你現在所說的。所以我們——全面的工廠消毒和關閉，會有更多這樣的事情發生，這會對產品產生負面影響，但包括銷售在內的所有這些都將被定價所抵消，好嗎？

So what you lose in a little bit of volume, you're going to gain an additional pricing in cost, and then we still see it as making our original plan on the infant formula business, it will just be a little bit more back loaded. Pricing here, we don't -- we're not pricing relative to the competition. We're pricing to offset this higher cost and lower productivity. And -- but it just so happens that after the pricing that is necessary to do that will be about 25% on our price value business, store brand business will be about 25% cheaper on an absolute unit. We give away couple more ounces on a cost per ounce basis, we'll actually be at a 40% discount after the pricing.

所以你在數量上損失了一點點，你將獲得額外的成本定價，然後我們仍然認為這是我們對嬰兒配方奶粉業務的最初計劃，它只會增加一點點.在這裡定價，我們不——我們不是相對於競爭對手定價。我們的定價是為了抵消這種更高的成本和更低的生產率。而且——但碰巧的是，在我們的價格價值業務所需的定價將降低約 25% 之後，商店品牌業務的絕對單位將便宜約 25%。我們以每盎司成本為基礎贈送更多盎司，實際上我們將在定價後享受 40% 的折扣。

Customers hate price increases. I just spent 5 days of NACDS, our biggest conference. They all understood this. They understood that there was a change and that we have to be able to produce and make a margin, and they understood that we weren't expanding margins on this. We were just literally addressing this regulatory change. So I think it will be very well supported. Nobody likes pricing when you're a value competitor. But in this case, it's absolutely necessary and we'll sell that through. I'm not worried about that. So yes, I think I've answered all of your questions.

客戶討厭漲價。我剛剛在我們最大的會議 NACDS 上度過了 5 天。他們都明白這一點。他們明白髮生了變化，我們必須能夠生產並賺取利潤，他們也明白我們並沒有因此而擴大利潤。我們只是在字面上解決這一監管變化。所以我認為它會得到很好的支持。當您是價值競爭者時，沒有人喜歡定價。但在這種情況下，這是絕對必要的，我們會把它賣掉。我不擔心那個。所以是的，我想我已經回答了你所有的問題。

Yes. That's great. And then just really quick on your inventory levels and then also at retail. I guess are there certain categories you had more of and how has your ability then to get back in stock quickly?

是的。那太棒了。然後在你的庫存水平上非常快，然後在零售方面也是如此。我想您是否擁有更多的某些類別以及您如何快速恢復庫存的能力？

Depends on the category. We're making progress, but I've heard of -- and I heard at NACDS too, I've heard of a lot of categories out there where they're fully back in inventory or even inventories could be a little high. That's not the case for us yet. We're -- we shipped a little bit more than was consumed during the first quarter, but we're still 1 week or 1.5 weeks on average of low in inventories out at the retail level. And that's before we begin to build our own safety stock.

取決於類別。我們正在取得進展，但我聽說過——我也在 NACDS 聽說過，我聽說過很多類別的庫存完全恢復，甚至庫存可能有點高。對我們來說還不是這樣。我們 - 我們的出貨量比第一季度的消耗量多一點，但我們仍然有 1 週或 1.5 週的平均零售水平低庫存。那是在我們開始建立自己的安全庫存之前。

So listen, it's really right now for the company and our productivity is doing beautifully in the manufacturing facilities. We are running at record levels, we have 2 issues in terms of getting our inventories back cough/cold. And that's because, again, last year, we had an elevated cost call season right through the summer, which is supposed to be our down season where we build inventories. We're running again at record levels, especially on liquids and pediatric liquids was an area of concern over the past 4 or 5 months.

所以聽著，現在對公司來說真的是正確的，我們的生產率在製造設施中表現出色。我們正以創紀錄的水平運行，我們在恢復庫存方面有兩個問題咳嗽/感冒。那是因為，去年，我們在整個夏季都有一個高成本電話季節，這應該是我們建立庫存的淡季。我們再次以創紀錄的水平運行，尤其是液體和兒科液體是過去 4 或 5 個月的關注領域。

Based on the way the illness trackers are going and trending, we should be back in business with safety stocks for the full cough and cold season next year. The other business, as I said, is nutrition and on a nutrition basis, there's going to be some working through this new regulatory guidance. It is with additional full plant sanitizations and longer quality holds in order to comply. It will take some time before we can get inventories back.

根據疾病追踪器的運行方式和趨勢，我們應該會在明年的整個咳嗽和感冒季節恢復安全庫存。正如我所說，另一項業務是營養，在營養的基礎上，將通過這項新的監管指南開展一些工作。為了符合要求，它需要額外的全面植物消毒和更長的質量保持時間。我們需要一些時間才能收回庫存。

So it's hat's been a challenge for the last 18 months, it's probably been now extended. I can't put a time on it, but I don't see an end in sight yet when we are fully back in a safety stock position on Nutrition. But the good news is we did buy the other facilities. So we have a lot more product to work with. And we are making those investments. We're not backing off those investments. And within another year, we should have an additional 7 million pounds of capacity. So -- and on the rest of the business, we're back up to service levels. And service levels are not a concern in Europe. We're in the '90s in the U.S. Other than nutrition in cough/cold, I think we're back in the most recent weeks back into the '90s again too. So everything is going in the right direction.

所以這在過去 18 個月裡一直是一個挑戰，現在可能已經延長了。我不能確定時間，但當我們完全回到營養安全庫存時，我還沒有看到結束的跡象。但好消息是我們確實購買了其他設施。所以我們有更多的產品可以使用。我們正在進行這些投資。我們不會放棄這些投資。再過一年，我們應該有額外的 700 萬磅產能。所以——在其他業務上，我們恢復了服務水平。在歐洲，服務水平不是問題。我們在美國處於 90 年代。除了咳嗽/感冒的營養，我認為我們在最近幾週又回到了 90 年代。所以一切都在朝著正確的方向發展。

Okay. Great. And if I could just ask one more on the week's AdCom on Opill. Curious, just any thoughts you could give around that on how they're going to think about this? And then also, if it is approved, your thoughts around just the market opportunity in the U.S., is this going to basically add to the market? Or will it take some of that share? And then any color you could give on the time line to launch and impact to the P&L?

好的。偉大的。如果我能再問一個關於本週 AdCom on Opill 的問題。很好奇，關於他們將如何考慮這個問題，你有什麼想法嗎？然後，如果它獲得批准，你對美國市場機會的看法，這是否會基本上增加市場？或者它會佔用一部分份額嗎？然後你可以在時間線上給出任何顏色來啟動和影響 P&L？

Well, I think I read it in your note, but it is not -- and I think everybody knows it at Investor Day, it's not in our current modeling. It's not in our any of the guidance we've given over the next few years because it's -- you're talking birth control, and this is a big change having -- so it's only upside, and I think we've been giving a year 1 estimate of roughly $100 million in revenues. And by the time the FDA got into a position, I think next 2 or 3 months or for them to make a decision once they review all the data and what the advisory panel has to say about it, you're talking in the very end of the year, beginning of next year. I don't think we have a set date yet. It depends how the FDA when they come to their decisions and any implications of those.

好吧，我想我在你的筆記中讀到了它，但它不是——我想每個人在投資者日都知道它，它不在我們目前的模型中。這不在我們未來幾年給出的任何指導中，因為它是——你說的是節育，這是一個很大的變化——所以它只是有利的，我認為我們一直在給予第一年的收入估計約為 1 億美元。當 FDA 進入一個位置時，我認為接下來的 2 或 3 個月，或者讓他們在審查所有數據以及顧問小組對此有何評論後做出決定，你說的是最後今年年初，明年年初。我認為我們還沒有確定日期。這取決於 FDA 做出決定的方式以及這些決定的影響。

But like philosophically, though, this is a product that has been on the market since the 1960s. There is rims and rims and rims of safety data on this. And when taken in a whole, we believe the FDA should approve this application, period. There's a lot of pushback in there, which is their job and that's what they're supposed to do. And we have many extroverts who will be testifying. And we'll see how it comes out. Ultimately, we believe this will get approved. And hopefully, it gets approved this time through. But again, it's not in our numbers this year, next year. It's all upside. But this is a big idea for the company, and we're really excited about women's health.

但是，從哲學上講，這是一種自 1960 年代以來一直投放市場的產品。這上面有輪輞和輪輞和輪輞的安全數據。總體而言，我們認為 FDA 應該批准該申請。那裡有很多阻力，這是他們的工作，也是他們應該做的。我們有許多性格外向的人將作證。我們將看看結果如何。最終，我們相信這將獲得批准。希望這次能獲得批准。但同樣，它不在我們今年和明年的數字中。這一切都是好的。但這對公司來說是一個偉大的想法，我們對女性健康感到非常興奮。

Our next question will come from Fred Short with JPMorgan.

我們的下一個問題將來自摩根大通的 Fred Short。

This is Ethan Brown on for [Chris] Short. I guess, first off, you already talked about this a bit. But on the Nutrition segment, just how do you think about sales growth for the rest of the year as we move past the infant formula shortages, the disruption this quarter and then with the FDA update as well?

這是 [Chris] Short 的 Ethan Brown。我想，首先，你已經談過這個了。但在營養領域，隨著嬰兒配方奶粉短缺、本季度中斷以及 FDA 更新，您如何看待今年剩餘時間的銷售增長？

Okay. Well, let's start with -- remember, last year, the way our business slowed, we stripped our safety stock last March and April. A little bit of February, but March and April were huge spikes. And then after that, once we had no safety sauce, and we actually had challenges as the year progressed on our base business, keeping up and running what was -- we have on our Vermont facility, older equipment, it really pushed that and we struggled in the back half of the year.

好的。好吧，讓我們開始——記住，去年，我們的業務放緩，我們在去年三月和四月削減了安全庫存。有點二月，但三月和四月是巨大的尖峰。然後在那之後，一旦我們沒有安全保障，隨著這一年我們基礎業務的進展，我們實際上遇到了挑戰，保持和運行我們在佛蒙特州的設施，舊設備，它真的推動了這一點，我們下半年苦苦掙扎。

So I think it just is going to be a bit lumpy, but I think this will be a growth year. And it's not like we're going to be getting back a ton. When we went into buying Nestle, we had estimates of tens of millions of pounds of unmet demand. Even on the Nestle facility in here, it's not a demand question. It's a question of how much can we make and how much can we make under the new regulatory guidance and the dollar. So I don't have the forecast in front of me right now. Brad, can give you those numbers later.

所以我認為它會有點起伏不定，但我認為這將是增長的一年。而且這不像我們會得到很多回報。當我們開始收購雀巢時，我們估計有數千萬英鎊的需求未得到滿足。即使在這裡的雀巢工廠，這也不是需求問題。這是一個我們能賺多少以及在新的監管指導和美元下我們能賺多少的問題。所以現在我面前沒有預測。布拉德，稍後可以給你這些數字。

But we are not backing off plan. But from a flow standpoint, the pricing a little bit sort of the middle of the year, the back half will get bumped up because of it. It was depressed in the back half of last year. So there are not some big growth rates from, we'll call it, May, June, July onward until the end of the year in infant formula, which is driving our nutrition numbers.

但我們並沒有放棄計劃。但從流量的角度來看，定價有點像年中，下半年會因此而上漲。去年下半年很蕭條。因此，從 5 月、6 月、7 月到年底，嬰兒配方奶粉的增長率並不高，這推動了我們的營養數據。

That's great. And then on pricing outside of the nutritional segment, do 1Q results reflect most of the planned pricing actions or can we think about some further price opportunities as we move through the year?

那太棒了。然後在營養品部分以外的定價方面，第一季度的結果是否反映了大部分計劃的定價行動，或者我們是否可以在年內考慮一些進一步的定價機會？

Well, it's a 2-part answer, right? It is -- the second is -- first is that it took us almost to midyear. We were a touch -- when you look at the traditional CPG companies on national brands in the U.S. and I'm only talking the U.S. here, our international business is similar to any branded company. But in the U.S., you have to negotiate with customers on store brands. And we lagged in the beginning because most of our price increases didn't go into the midyear.

好吧，這是一個由兩部分組成的答案，對嗎？這是——第二個是——首先是我們幾乎到了年中。我們很感動——當你看看美國傳統 CPG 公司的民族品牌時，我在這裡只說美國，我們的國際業務與任何品牌公司相似。但在美國，你必須與顧客就商店品牌進行談判。我們一開始就落後了，因為我們的大部分價格上漲都沒有進入年中。

So you're going to still get a pretty strong benefit, I would suspect, in the second quarter of this year on most of ours. And then you'll start to lap some of those. The great news is we have learned through this whole crisis when we need to, to price for cost, we can get that done. So I'm not going to answer your question right now. You pay me as CEO to -- I have a toolbox, and sometimes I go to pricing and sometimes I go to cost and sometimes I go to new products and innovation.

因此，我懷疑，在今年第二季度，我們大多數人仍將獲得相當大的收益。然後你就會開始練習其中的一些。好消息是，我們在整個危機中了解到，當我們需要按成本定價時，我們可以做到這一點。所以我現在不打算回答你的問題。你付錢讓我擔任首席執行官——我有一個工具箱，有時我去定價，有時我去成本，有時我去新產品和創新。

And sometimes I go to M&A and sometimes I go to supply chain reinvention and sometimes I go to capital structure, but we'll continue to look at which opportunities make the most sense to deliver on the guidance. I truly believe that Perrigo sitting at where it is in terms of its metrics at a 50% discount on valuation is all about credibility right now and delivering on the numbers. So we'll use any lever we have to, to try to consistently perform and deliver the promises we made for the year. And then I think everybody is going to benefit from that, including me and my lovely retirement.

有時我去併購，有時我去供應鏈重塑，有時我去資本結構，但我們將繼續研究哪些機會最適合提供指導。我真的相信 Perrigo 在其指標方面以 50% 的估值折扣坐在現在的位置完全是關於信譽和交付數字。因此，我們將使用我們必須使用的任何槓桿，努力始終如一地履行和兌現我們今年做出的承諾。然後我認為每個人都會從中受益，包括我和我可愛的退休生活。

And then maybe one last one for me. Can you just talk about the trends you're seeing on the private label versus national brands, given the current macroeconomic environment and anything notable to keep in mind there?

然後也許是我的最後一個。考慮到當前的宏觀經濟環境，您能否談談您在自有品牌和國家品牌上看到的趨勢，以及有什麼值得注意的地方？

Yes. Eduardo, perhaps feel free to jump in here. But what I see is our volumes growing and their volumes declining. You don't see the dollar swing of down trading as much because they're more aggressive on pricing. I don't want to price if I don't have to. That's our competitive advantage. We want to have a good discount versus the national brand and with good gross margins and then grow market share over the long haul as partnership with our customers. So you see clearly, most national brands, et cetera, have priced more aggressively than us. But on the other hand, we used to be in a situation where we were having making price concessions. Now we've gotten first to stabilization and now our ability to price for growth when necessary. As a result of all of that, we are gaining market share in volume. Meaning consumers are down traded.

是的。 Eduardo，也許可以隨意加入。但我看到的是我們的銷量在增長，而他們的銷量在下降。你看不到下跌交易的美元波動，因為它們在定價上更加激進。如果沒有必要，我不想定價。這是我們的競爭優勢。我們希望與民族品牌相比有很好的折扣，並有良好的毛利率，然後通過與客戶的合作長期擴大市場份額。所以你看得很清楚，大多數民族品牌等等，定價都比我們高。但另一方面，我們曾經處於價格讓步的情況。現在我們首先實現了穩定，現在我們有能力在必要時為增長定價。由於所有這些，我們在數量上獲得了市場份額。這意味著消費者被降價交易。

Our next question will come from Daniel Biolsi with Hedgeye.

我們的下一個問題將來自 Daniel Biolsi 和 Hedgeye。

Murray, on your well-earned retirement, I take it, you're also retiring from the Board?

Murray，關於你應得的退休，我認為，你也將從董事會退休？

Correct. That automatically happens, yes.

正確的。那會自動發生，是的。

Okay. And then I was wondering if you could quantify the product shortage impact on the CSCA Upper Respiratory segment, like what that was? And if it was lost sales or you consider it just delayed?

好的。然後我想知道您是否可以量化產品短缺對 CSCA 上呼吸道部分的影響，比如那是什麼？如果它失去了銷售，或者你認為它只是延遲了？

No, they're lost sales. Right now, we were at -- Brad, if you have a number list. I just saw this. We had a forecast of, I think, about $25 million for the first quarter, we shipped about 25% more than that, but we had orders that we could have doubled that again. So I don't want to be too specific, but it could have been $25 million or $30 million additional in cough/cold and I'm being really back of the envelope here. But the point is we had elevated levels and as much as we could have made, we could have shipped. Now people buy it for the cough/cold season. So they had to buy something.

不，他們失去了銷售。現在，我們在-- Brad，如果你有一個號碼列表。我剛看到這個。我認為，我們對第一季度的預測約為 2500 萬美元，我們的出貨量比這多出約 25%，但我們收到的訂單可能會再次翻倍。所以我不想說得太具體，但咳嗽/感冒可能會額外增加 2500 萬美元或 3000 萬美元，我在這裡真的很保守。但關鍵是我們的水平提高了，我們本可以做到的，我們本可以發貨的。現在人們在咳嗽/感冒季節購買它。所以他們不得不買東西。

So again, our cough/cold numbers were up, and our production in the factories was up significantly. They did a brilliant job, but there was still more demand than even that. And that's why I'm so excited. We haven't really talked about it this morning. But that's why I'm so excited about the supply chain reinvention and what I talked about on the call of the simplification of over 1,000 and standardization of over 1,000 SKUs because what that does in combination with Redzone is it increases capacity because it wasn't -- we can continue to grow and build market share, but we're mindful of our return on invested capital. And we don't want to be just adding equipment and lowering prices than getting no return for that.

因此，我們的咳嗽/感冒人數再次上升，我們工廠的產量顯著增加。他們做得很出色，但需求仍然比這更多。這就是我如此興奮的原因。今天早上我們還沒有真正談論過它。但這就是為什麼我對供應鏈重塑以及我在簡化 1,000 多個 SKU 和標準化 1,000 多個 SKU 的電話會議上所說的內容感到如此興奮，因為它與 Redzone 相結合的作用是增加容量，因為它不是——我們可以繼續發展並建立市場份額，但我們會注意我們的投資回報率。我們不想只是增加設備和降低價格而不是沒有回報。

So this is sort of an elegant solution to be able to where we see a path 25% to 50% more capacity in our cough/cold business through this supply chain reinvents and standardization and simplification of less line changeovers and better operational effectiveness or lower throw away and all those good things that are part of this program. And I'm excited to say in those 3 test lines we did in the first quarter, we got that increase in operational effect on this. So that's what we're pushing for. So -- do we get it back? We can get it back next cough/cold season when we play it out. It shows the potential is there, but it's not like it got pushed forward.

因此，這是一種優雅的解決方案，通過供應鏈的重塑、標準化和簡化，減少生產線轉換，提高運營效率或降低投擲率，我們能夠將咳嗽/感冒業務的產能提高 25% 到 50%離開以及所有這些屬於該計劃的好東西。我很高興地說，在第一季度我們進行的那 3 條測試線中，我們的運營效果有所提高。這就是我們要推動的。那麼——我們能把它拿回來嗎？我們可以在下一個咳嗽/感冒季節進行比賽時取回它。它表明潛力是存在的，但它並沒有被推進。

Right. And then just following up on that, what are your initial conversations been with your customers about reducing some of the SKUs? Has it been what you'd expected? Or have there been some pushback?

正確的。然後就此跟進，您與客戶就減少某些 SKU 進行的初步對話是什麼？是否如你所料？還是有一些阻力？

No, no, it's better than expected. But we're going for the low-hanging fruit first. And if you've listened to Eduardo speak on this, the low-hanging fruit is the part that is not consumer-facing. So in the complexity between customers, it will be a more difficult decision when you're talking about what consumers actually see in terms of the number of pills in the bottle or the size of the bottle, et cetera.

不不不，比想像中的還要好。但我們首先要獲得唾手可得的果實。如果您聽過 Eduardo 就此發表的演講，就會發現唾手可得的果實是不面向消費者的部分。因此，在客戶之間的複雜性中，當你談論消費者實際看到的瓶子中的藥丸數量或瓶子的大小等方面時，這將是一個更困難的決定。

But 80% of the complexity we have now, believe it or not, is not consumer-facing. So it is one customer whose label is an eighth of an inch bigger than another one, but you have to -- and it's not even perceivable to the eye, but we have to stop the line and do a major changeover for the new label size or it could be a slightly different bottle size, where what really matters is corrugated. You've got the outer corrugated, the thickness of it, the dimensions of it might be a 0.25 inch, 1/8 inch, 0.5 inch. Inside, it could be packed in 3 shrink wrap together, 6 shrink wrap together, 9 shrink wrap together, 12 shrink wrap together, where the national brands only get 2 variations. And over time, Perrigo being a specialist, a complexity and customizations, builds all this complexity into its system working with customers, but sort of no one realized how much complexity it added.

但不管你信不信，我們現在擁有的 80% 的複雜性都不是面向消費者的。因此，有一個客戶的標籤比另一個客戶的標籤大了八分之一英寸，但你必須——而且肉眼甚至無法察覺，但我們必須停止生產線並對新標籤尺寸進行重大調整或者它可能是一個稍微不同的瓶子尺寸，真正重要的是波紋。你有外部波紋，它的厚度，它的尺寸可能是 0.25 英寸、1/8 英寸、0.5 英寸。內部可以用3層收縮膜、6層收縮膜、9層收縮膜、12層收縮膜包裝，國內品牌只有2種。隨著時間的推移，Perrigo 作為專家、複雜性和定制化，將所有這些複雜性構建到其與客戶合作的系統中，但幾乎沒有人意識到它增加了多少複雜性。

So again, I gave this example at Investor Day, but because of that complexity, we can't use automatic case factors. And it's the year 2023, that's not -- and everybody agrees they can get to like a standardized outer carton and at least that I've been in front of and same thing with label size and all of that, and they're like wow, we didn't even know we were different on those kinds of things.

因此，我再次在投資者日舉了這個例子，但由於這種複雜性，我們不能使用自動案例因素。而現在是 2023 年，那不是——每個人都同意他們可以開始喜歡標準化的外紙箱，至少我已經在前面看到過，標籤尺寸和所有這些都是一樣的，他們就像哇，我們甚至不知道我們在這些事情上是不同的。

So that first 1,000 SKUs is easier. It will be years -- we'll be doing this for the next 2 or 3 years, then we will go back and say, "Listen, everybody ought to be in 225 count acetaminophen, not somebody at 200, somebody at 250, we can still shrink wrap together and do bigger sizes, but we need to standardize as much as possible. And because we are a branded company, whether it's store brand or national brand, at the heart of when we get to the consumer facing is a massive consumer study that we did that will guide us in what consumers want when they go to the shelf, which is, frankly, not to have to get out a calculator and do math. They want to look at and see the products, know it's comparable to the national brand, that it will work as well, be just to say and cost less.

這樣前 1,000 個 SKU 就更容易了。這將是數年——我們將在接下來的 2 或 3 年內這樣做，然後我們會回過頭來說，“聽著，每個人都應該服用 225 計數的對乙酰氨基酚，而不是 200 的人，250 的人，我們仍然可以收縮包裝並做更大的尺寸，但我們需要盡可能標準化。而且因為我們是一家品牌公司，無論是商店品牌還是國家品牌，當我們面對消費者時，核心是一個巨大的我們所做的消費者研究將指導我們了解消費者上架時想要什麼，坦率地說，就是不必拿出計算器做數學運算。他們想看看產品，知道它具有可比性對於民族品牌來說，它也能正常工作，只是說成本更低。

That's all we have time for and marks the conclusion of our question-and-answer session. I would like to turn the conference back over to Murray Kessler, President and CEO, for any closing remarks.

這就是我們的全部時間，標誌著我們的問答環節結束。我想將會議轉回給總裁兼首席執行官 Murray Kessler，聽取任何閉幕詞。

Yes. Just once again, thank you for your interest in Perrigo. Thank you for support and investing in the business and believing in me, whether it was here at Perrigo or Lorillard or UST, it's been a heck of a run, and I hope to see as many of you as I can before I actually say my final goodbyes, but I've worked hard for you, and I can tell you that everybody at Perrigo will continue to work hard for you and make your trust in us pay off then over the medium, short, long term, all of it. So thank you again for your interest in Perrigo.

是的。再次感謝您對 Perrigo 的關注。感謝您對業務的支持和投資，以及對我的信任，無論是在 Perrigo、Lorillard 還是 UST，這都是一段非常棒的旅程，我希望在我真正說出我的看法之前盡可能多地見到你們最後再見，但我為你努力工作，我可以告訴你，Perrigo 的每個人都會繼續為你努力工作，讓你對我們的信任在中期、短期、長期等所有方面都得到回報。再次感謝您對 Perrigo 的關注。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。