Perrigo Company plc (PRGO) Q2 2026 Earnings Report, Transcript and Summary

Good morning, ladies and gentlemen, and welcome to the Perrigo Q2 2026 Financial Results Conference Call. [Operator Instructions] This call is being recorded on Wednesday, August 5, 2026. I would now like to turn the conference over to Eric Jacobson, VO (sic) [ VP ] Global Investor Relations. Please go ahead, sir.

Good morning and good afternoon, everyone. Welcome to Perrigo's Second Quarter 2026 Earnings Conference Call. A copy of the release we issued today and the accompanying presentation are available within the Investors section of the perrigo.com website. Joining today's call are Perrigo's Interim President and CEO, Albert Manzone; and CFO, Eduardo Bezerra. During this presentation, participants will make certain forward-looking statements. Please refer to the slides for information regarding these statements, which are subject to important risks and uncertainties. We will reference adjusted financial measures that are non-GAAP in nature. See the appendix to the earnings presentation for additional details and reconciliations of all non-GAAP to GAAP financial measures presented. Now to the agenda. First, Albert will discuss the leadership transition and his priorities. He will then review our progress against the Three-S plan, provide a market overview and discuss our second quarter performance. Albert will close with an update on the key priorities expected to support improved execution and long-term value creation. Eduardo will then provide a financial review and discuss our 2026 outlook. With that, I'll turn it over to Albert.

Thanks, Eric. Good morning, good afternoon, and thank you for joining today's call. I'd like to start by stating that it is an honor and an enormous responsibility to serve as Perrigo's Interim President and CEO. I want to assure our customers, our investors and my fellow Perrigo colleagues that I am 100% committed to our mission of being a world leader in affordable consumer self-care. We have important work ahead of us, and I am moving quickly to advance our key priorities. I have served on Perrigo's Board since 2022, and I have spent more than three decades leading and transforming consumer businesses at critical inflection points, including in OTC Healthcare. I know this company, and I have a clear view of what it takes to create value here. I spent my first month on the road, listening. Three things stand out. First, our customers. They value what Perrigo brings to the market, and they want to do more business with us. We have a great deal to offer and a clear right to win. Second, our investors. I have heard from them directly. The confidence of the investment community must be re-earned, and I take this personally. Third, our team. This is an experienced team with the capabilities needed to achieve our goals. During the quarter, we also strengthened the Board with two accomplished new directors, Salman Amin and Omer Gajial, whose consumer, operational and strategic experience will help guide our value creation agenda. My message today is simple. The Board, the management team and I are confident in Perrigo's future. Let me start with who we are. We are the leader in store brand OTC in the U.S. and our portfolio of OTC brands in Europe includes several that lead their respective categories. Our sales are roughly half store brand and half branded, although that mix is geographically concentrated. In the U.S., we're almost entirely store brand. And in Europe, we're almost entirely branded. This combination is unique within our industry. Through our category-led operating model and One Perrigo approach, we serve consumers across brands, store brands, categories and price points, which is increasingly important as consumers focus more on value. In the second quarter, those capabilities translated into market share gains across our portfolio, even as the categories we compete in remain challenged. Results in the U.S. were particularly strong as we grew dollar, unit and volume consumption. Category trends improved as the quarter progressed, and that momentum is carrying into the third quarter. We're also reaffirming our full year 2026 outlook weighted towards the second half and supported by clear tangible drivers. We remain mindful of an uncertain consumer and economic environment, but we are executing on what we control, gaining share, streamlining the portfolio and reducing debt. Our progress runs through the Three-S plan: Stabilize, streamline and strengthen. On Stabilize, we have improved the consistency of our operations, our service levels and our execution across key categories. Since 2023, U.S. service levels are up 1,600 basis points to 91% and international service levels are up 1,000 basis points to 95%. Better service has strengthened customer relationship and directly supported our share gains. On Streamline, we have simplified the portfolio, strengthened the balance sheet and taken costs out. Since 2024, divestitures have generated approximately $600 million in upfront proceeds, mainly applied to debt reduction, including this quarter's sale of Dermacosmetics for $359 million. Our operational enhancement program is on track to deliver $80 million to $100 million of savings by 2027. We are also advancing the strategic reviews of Infant Formula and Oral Care, examining whether to optimize, partner or divest each. Our approach is disciplined. Any outcome must enhance shareholder value and sharpen the focus of the portfolio. In the meantime, we have improved the Infant Formula business through capacity rationalization, greater efficiency and innovation. Those actions have improved stability, increased visibility and strengthened the business regardless of the outcome of those reviews. On Strengthen, we have built the capabilities that drive future growth, a new category-led operating model, a substantially larger innovation pipeline, deeper retailer partnerships and stronger demand generation. The value of our innovation pipeline has more than tripled since 2024 with over 55% of projects now leveraging shared platforms. That makes our investment more efficient and more scalable, driving share gains across U.S. store brand OTC and key European brands. Taken together, the Three-S plan has created a more focused company and a foundation for growth. While we have more work ahead of us, the momentum in the business is encouraging and the path is clear. A quick word on the market. Consumption is still below historical averages, but it is improving. U.S. value and volume trends improved sequentially through the quarter, and Europe improved as well. The improvement has continued into the third quarter. U.S. OTC volumes in the categories where we compete turned positive in the 4 weeks ended July 19. Softness has been concentrated in seasonal categories within the self-care segment, including cough, cold, pain and allergy, reflecting lower seasonal incidence and tough year-over-year comparisons. We view this softness as temporary, and it does not change our view of long-term demand. We expect category trends to keep improving as comparisons ease through the year. Our purpose is to expand access to quality, affordable self-care and that purpose has never been more relevant than it is today with consumers focused on value. That alignment plus better execution and a differentiated model is producing measurable share gains. In the U.S., the categories we compete in declined 1.1% in volume, yet we grew our store brand OTC volumes across health care and Specialty Care by a combined 1.5%, taking 50 basis points of market share. In Europe, category value declined 0.6%, while our key brands grew 3.3%, again, taking 50 basis points of market share. Those share gains are the output of our growth building blocks and a few examples show the model in action. Opill continues to build in its second year with rising velocities across major retailers, strong repeat rates and consumers trading up to larger packs. This is proof that focused innovation paired with targeted demand generation can grow a category. Compeed accelerated through the quarter on earlier seasonal activation and better in-store execution across Europe, delivering share gains and record retail sales. It shows what brand investment plus commercial execution can do. And our store brand allergy business kept gaining share on the back of innovation, distribution wins and demand generation that is lifting household penetration. The common thread is a more integrated, more scalable engine, one category-led model, one innovation pipeline deployed across categories, markets and price points. Turning briefly to the numbers before Eduardo takes you through the detail. Core net sales declined 3.1% year-over-year and all-in net sales declined 3.2%, driven by continued category softness against a strong prior year, a slow start to summer categories and retailer de-stocking. Within all-in, Infant Formula grew 23%, more than offset by the Dermacosmetics divestiture. Core adjusted EPS was $0.46 and all-in adjusted EPS was $0.50. Earnings came ahead of our expectation, driven largely by onetime cost benefits, which is why we're maintaining not raising our outlook. The indicators we care most about, market share, execution, cost savings, debt reduction and portfolio actions all move in the right direction. We called 2026 a transition year with softer reported results in the first half, masking real operational progress, that is how it has played out. We continue to gain share, which is a clear sign our strategy is working and that we will benefit when demand normalizes. And our growth building blocks, innovation, demand generation and distribution are building toward a sequentially stronger second half. Let me close with where we're going because that is what will define Perrigo. First, we will sustain market share growth by expanding access to quality, affordable self-care products. In the U.S., our goal is not only to gain share within store brand OTC but to grow the category. Store brands are under-penetrated, and we're uniquely positioned to expand the category by partnering with our retail customers to bring more consumers quality self-care at a better value. In Europe, we have strong brands like Compeed and Jungle Formula that lead their categories. We're investing behind those winners and focusing our resources where we have the strongest opportunities to win. This approach allows us to be nimble and competitive in the areas where we choose to play. Second, we will continue to simplify and strengthen our portfolio to sharpen focus, discipline and consistency. The actions we have taken over the past several years, including portfolio transformation and ongoing strategic reviews are helping create a more focused and consistent consumer health-care company. Third, we will strengthen the balance sheet and continue de-leveraging, which gives us the flexibility to invest and to create value. Our plan is built to drive improvement in key metrics, including better sales growth, stronger margins and lower leverage. To ensure our capital allocation framework remains aligned with our strategy and market opportunities, we regularly review the most effective uses of capital across growth investments, debt reduction and shareholder returns, including assessing the dividend on a quarterly basis. But let me be clear. Our priority is to deliver our '26 commitments while positioning Perrigo for sustainable long-term growth. Underlying all of this are two things I will focus on: strategy and execution. Perrigo is becoming a more focused consumer self-care company, and I am confident we are building real durable shareholder value. With that, I'll turn it over to Eduardo to walk through the financial results in more detail.

Thank you, Albert. I appreciate everyone joining us today. Other than for references to net sales, my comments will focus on adjusted non-GAAP results unless otherwise noted. Turning to our results, starting with the top line. Core net sales declined 3.1% year-over-year, while Core organic net sales declined 3.5%. Results were impacted by approximately 1.2% due to continued softness in category consumption compared to the strong prior year period, particularly in cough, cold and certain summer seasonal categories. We also continue to see retailer inventory reductions, most notably in Europe, which impacted sales by approximately 1.8%. While these dynamics pressured reported results, category trends improved as the quarter progressed, supporting our confidence in the underlying trajectory of the business. Within Self-Care, performance was impacted by continued category softness and a slower start to the summer season. This softness was most pronounced in Europe, where delayed allergy and sun seasons pressured demand across seasonal categories. Despite these headwinds, we continue to gain market share across key categories, supported by innovation and distribution gains, including strong performance in our store brand allergy business driven by distribution wins in the U.S. Specialty Care net sales declined modestly. Strong growth in women's health was driven by continued momentum from Opill and ellaOne, supported by strong consumer engagement, encouraging repeat purchase trends and ongoing health care professional outreach and expanded distribution in Europe. Skin Health results were impacted by a slower start to key summer seasonal categories, lower sales of store brand Minoxidil and a difficult prior year comparison in Mederma due to the timing of inventory restocking. Encouragingly, trends improved throughout the quarter with leading brands such as Compeed accelerating as seasonal demand strengthened in Europe. On an all-in basis, net sales declined 3.2% driven by the same category dynamics in addition to the impact of the Dermacosmetics divestiture. This decline was partially offset by the strong performance in Infant Formula, which grew 23% year-over-year, driven by timing of contract sales and growth in store brand formula. Currency translation provided a modest benefit to both Core and all-in net sales during the quarter. Now to adjusted operating income. Looking first at Self-Care, all-in operating income declined $15 million or 16.2%, driven primarily by lower net sales volumes, planned under-absorption stemming from lower prior year sales volumes in U.S. OTC and unfavorable mix. We also saw pressure from continued retailer inventory reductions in Europe and a slower start to the summer season, which weighed on several higher-margin seasonal categories. These headwinds were partially offset by benefits from our operational enhancement program. Specialty Care operating income decreased $18 million or around 28%, driven primarily by lower profitability in Skin Health, reflecting a slower start to key summer seasonal categories, retailer inventory reductions and lower contract manufacturing sales of store brand Minoxidil. The segment's performance also reflected higher advertising and promotional investment to support second half growth initiatives, including a refreshed Opill marketing campaign as well as the impact of planned under-absorption stemming from lower prior year sales volumes. In Infant Formula, operating income improved by approximately $60 million year-over-year as actions to rationalize capacity, improve efficiency and stabilize the business continued to gain traction. In addition, the business benefited from lapping isolated production variability in the prior year period that had resulted in elevated product scrap and pressured profitability. These factors more than offset planned under-absorption stemming from lower prior year sales volumes. Within All Other, operating income was consistent with the prior year, driven by the net recognition of a recovery of a portion of previously paid tariffs in addition to improved profitability in Oral Care. These factors offset the impact of the Dermacosmetics divestiture. Corporate operating expenses declined year-over-year, driven by operational enhancement program savings and a onetime benefit related to the second quarter CEO transition of $6 million. Turning to margins. Drivers of both Core and all-in margin changes were consistent with the segment results just discussed. Core adjusted gross margin declined 250 basis points to 37%, primarily due to lower sales volumes, planned under-absorption stemming from lower prior year sales volumes and unfavorable mix. All-in adjusted gross margin declined 250 basis points to 35.6% due to the same factors impacting Core gross margin in addition to the impact of divestitures. These factors were partially offset by strong performance in the Infant Formula category. Core adjusted operating margin decreased 160 basis points to 13%, reflecting gross margin flow-through, partially mitigated by benefits from the operational enhancement program and the onetime benefit from the CEO transition. All-in adjusted operating margin decreased 60 basis points to 12.2% due to the same factors as Core operating margin in addition to Infant Formula performance, which more than offset the impact of divestitures. Second quarter Core adjusted earnings per share was $0.46, a $0.12 decline from the prior year period, but above our expectations, primarily due to lower operating expenses in the quarter, driven by the accelerated implementation of our operational enhancement program in addition to a onetime benefit from the CEO transition. All-in adjusted diluted earnings per share declined $0.07 to $0.50 due to the impact of lower sales volumes and the carryover impact of prior year manufacturing volumes, partly offset by the timing of Infant Formula contract business. Turning to cash flow. Second quarter 2026 cash from operating activities was $83 million, in line with our expectations. Capital expenditures totaled $14 million, and we returned $40 million to shareholders through dividends. Turning to balance sheet. Cash and cash equivalents were $400 million and total debt was $3.3 billion. During the quarter, we applied the majority of the $359 million cash proceeds from the Dermacosmetics sale towards debt reduction, significantly reducing the balance withdrawn on our revolving credit facility. We remain focused on disciplined capital allocation, balancing capital expenditures for growth, de-leveraging our balance sheet and shareholder returns. Looking ahead, while first half earnings results were ahead of our expectations, given the dynamic external environment and timing of Infant Formula contract sales, we are taking a measured approach for the balance of the year. As such, we are maintaining our full year outlook for Core and all-in net sales, margin and earnings per share metrics. The underlying assumptions supporting our outlook remain intact, including continued progress on our growth initiatives, benefits from the operational enhancement program and improving category trends as we move through the balance of the year. Based on our year-to-date performance, we are adjusting our estimated full year effective tax rate from approximately 20% to approximately 18%. We're also updating our estimate for diluted shares outstanding in full year 2026 to 139.3 million (sic) [ 139.6 million ] shares. All other guidance assumptions remain unchanged. As Albert noted, we continue to expect results to be weighted toward the second half of the year. Turning now to our sales outlook. As we have highlighted, underlying category trends improved as the second quarter progressed, and our first half net sales performance was broadly consistent with our expectations. As a result, we are maintaining our full year outlook for both Core and all-in net sales. Our expectations for second half sequential performance are supported by three factors: First, the increasing contribution from our growth building blocks, including innovation, distribution gains and demand generation, which are already underway and expected to build momentum as the year progresses; second, continued sequential improvement in category trends, which strengthened through the first half of the year; and third, growth of our base business and the normalization of seasonal trends compared to weaker prior year seasonal performance. Looking at 2026 adjusted earnings per share guidance, we're taking a measured approach for the balance of the year. We remain mindful of continued consumer weakness and macroeconomic pressures, particularly in Europe. Second half sequential earnings improvement is supported by clear, quantifiable drivers, including the revenue building blocks, the partial reduction of under-absorption stemming from lower prior year sales volumes, benefits from our operational enhancement program and lower interest expense from the second quarter debt paydown. Offsetting the sequential benefits in the second half are higher expected advertising and promotion investments to support our demand generation and innovation launches and the normalization of incentive compensation versus the prior year. First half results also included benefits related to the second quarter CEO transition and the recovery of tariffs. As indicated previously, planned under-absorption stemming from lower prior year sales volumes is expected to result in an unfavorable all-in earnings per share impact of approximately $0.60 in 2026. Roughly $0.26 of that impact was recognized in the first quarter and $0.18 was recognized in the second quarter. In summary, our outlook is based on clear drivers supporting our second half expectations, many of which are well underway, while acknowledging the dynamic macro environment. As Albert outlined, the Three-S plan is driving tangible improvements, and we're confident that we are positioning Perrigo to generate sustainable growth of shareholder value. Before I turn the call back to Eric, I want to thank our 8,000 employees for their commitment, focus and resilience in delivering our first half results, and I look forward to continuing our progress for the remainder of the year. Eric?

Thank you, Eduardo. Operator, we're now ready for questions.

[Operator Instructions] Your first question comes from Chris Schott with JPMorgan.

This is Ethan on for Chris. Just starting off, can you provide any updates on the infant formula strategic review, the progress that you're making there and latest thoughts on timing more broadly for further updates?

Chris, this is Albert Manzone, nice to talk to you. Thank you for the question. With regard to our reviews that are going on, they are all proceeding well, and we will update you as soon as we have something to say. We're looking at different options. As I said in my opening remarks, the process is proceeding well, and we will update you as soon as we have information.

Great. And then overall, as you look at the business today and looking ahead to 2027, understanding it's still early, how are you thinking about the different pushes and pulls within the business on earnings as you're seeing them? And maybe as part of that, where do you have more confidence in the business' performance and maybe what remains just more uncertain in your eyes?

Looking, what I can tell you is that we are working on a strategy that is working as we speak. We are gaining share as we reported and as you can see, we're driving operational enhancement. We're staying the course, which is very important as I came in. The strategy is the right one. And as you look at the second half and we look forward, we remain obviously conscious from a consumer demand standpoint, but we are doubling down essentially on our platform approach, be it on the innovation, and I'm very happy to tell you, as I say, that we are growing this one threefold across our platforms. What is important with the platforms is that you are able out of an innovation and a platform to then deliver it both on a store brand as well as a branded across different price points, which if you think about it from a return on investment, that's a much more focused approach and a much smarter approach vis-a-vis who Perrigo is and the unique advantages of Perrigo. We are also working on consumer demand generation and partnering with our retailers. Our service levels are up. As you know, we're very happy with 95% in Europe, 91% in the U.S. and that varies per customer. But essentially, that gives us now the opportunity to sit down, partner with them, both in developing innovation and growing not only share, but also the category in the U.S. and then delivering demand generation, you will see some of that in the second half. So what I will tell you when we look forward is our objective is to have a sound strategy and to out-execute. And that is what we're going to do quarter after quarter.

Great. And then just last question for me is how large of an impact did the reversal of tariffs and any of the other onetime costs have on the quarter?

I will let -- Yes, thank you, Chris. I will let Eduardo answer that question.

Yes. So for Q2, let's say, the benefit that we had related to tariffs was around $10 million. And as I talked in my opening remarks, the benefit on the OpEx related to the CEO transition was about $6 million.

The next question comes from Susan Anderson with Canaccord.

I guess maybe I wanted to follow up just on the private label, the new kind of store brand strategy where you guys are adding more demand generation, more marketing, et cetera, around the brands. I'm curious if that's rolled out yet to other retailers and other categories. I believe allergy was kind of the first one. So just curious if you've seen a similar response from consumers and within other categories.

Yes. Susan, great question. So -- we are doing this across all our categories, yes, that's the answer. But what I'm happy to tell you is that this is absolutely what we're at and doing. And this demand generation is possible with partnering with the retailers because our objective, you can see that we're gaining share. We gained 50 basis points in the U.S. We have, as of the last 4 weeks in July, gained another 60 basis points. So we're happy with that. But our objective is also to grow the category with the retailers. And for that, we need to do exactly the things that you talked about, and we're working to do this across different -- all the categories we are in retailers. And we see a lot of enthusiasm from the retailers and that as you know, when it works with one or two or three, it tends to expand and there is more demand. And so again, our objective is to execute and out-execute on this and on this strategy and looking forward to more quarters like this.

Okay. Great. And then I guess maybe just on the Infant Formula, I guess, how are you thinking about the profitability there as sales kind of recover? Should we expect it to go towards historical profitable levels? Or is it not going to reach that point again? And then I guess, as the business does improve, I know it's still under review, but is there a thought process that potentially you'll just end up keeping it?

Let me -- and I will pass it on to Eduardo, but I would say that doesn't change our strategic reviews on the categories that we have announced. If anything, the good news is that it gives you more optionality, of course. So that's always good. Some of it is driven by timing of shipments. So some of it is driven by store brands. But essentially, no, that doesn't change the strategic review, and I'll let Eduardo comment more on some of the other aspects of your question.

Yes. Susan, so a couple of comments in addition to what Albert said. So remember that we talk about we're going to be looking to optimizing the business, partnerships and potential divestments, right? So in terms of optimization, you saw that in the second quarter, we took some hard, tough decisions on reducing significantly our drying capacity in Vermont. And the good news is we have a very recent audit from the FDA, and there were no observations. So a lot of the stabilization work that we have started years ago showing that we did the right work. Also, we had recently the Secretary of HHS visiting our Wisconsin facility, and he was very impressed with the standard and mentioned this was a state-of-the-art facility for the industry. So I think that those are right choices that we did. There are significant impacts on our performance and our results, but that will pay back on the long term. So from an optimization standpoint, it's really good. On a quality standpoint, our program to have right the first time it's going very well. So you mentioned -- you saw that I mentioned in the call that we have a significant reduction in obsolescence or scrap. That's mainly because as you're doing things right the first time, you have much better absorption and lower throw rates. And so this has not only improved our margin, but also improved the efficiency of how we're managing the business going forward. Also, we had a benefit that was timing-related regarding contract sales that we do not expect that to translate into increase in the full year. But we're seeing a store brand picking up on the non-WIC market, we're seeing some positive share gains of store brand that gives us confidence on that side. And also the important thing is we are seeing very positive early signs of innovation. So we launched an equivalent format to one of the largest imported competitors in the marketplace, and the early signs are very positive.

Okay. Great. And then one last question, if I could add. Just curious any comments around how your inventory is at retailer competitors as well? I think some of your competitors on the branded side have talked about some detoc -- destocking in the OTC space. Just curious if that's impacting your products at all.

Yes. And we did mention this across our opening remarks. We had some of the same impact in Q1 and Q2. That was driven obviously by seasonality that was below the norm. And the good news is as we get into second half, that has subsided. And we are remaining cautious as we said on the consumer side, but we expect a normalization of seasonality on our core, even if we won't return to the levels of 2 years ago, but we are cautiously optimistic in terms of the trends.

And Susan, just to add, we mentioned that out of the around 3% decline in core net sales, right? So 1.8 was related to retailer inventory destocking, most notably in Europe.

The next question comes from Keith Devas with Jefferies.

Maybe I'll just zoom out a bit back to the overall category performance. It sounds like you're noting outside of some of the seasonal segments that category performance is improving. I'd love to just get your context on what you think is driving that. Obviously, your execution is improving, and that's resulting in some share gains. But I think for a long period of time, we've been surprised seeing the category being kind of stagnant. And I think your commentary suggests that it's starting to improve and maybe turn a corner. So any context you can give on just maybe what's driving that, why the consumer is returning, might be helpful for us to think about the trajectory from here.

Good. Hi, Keith. Nice to talk to you. So Ethan, with regard to the category, it has been declining, as you know, some of it has been due to the seasonality, and we had a low cough, cold season. We had also on the allergy side, also there, the seasonality was not great this year. What you start to see in the end of the second quarter and you start to see it in the beginning of Q3, you start to see a recovery of the category. Some of it is due to the fact that we are off of that seasonality. So as we said, we are planning for a more normal seasonality going forward even COVID won't return at the levels of 2 or 3 years ago. The second thing is there is a certain amount of innovation that we're bringing to the market in this second half. There is also -- and so that's on the innovation side. And as I said, we are really working across platforms. So you can expect the platform, which is really not what we have been doing in the past, to continue forward. And for next year, we start to have more than 50% of our innovation coming on platform. Therefore, things that we are going to see across Europe, U.S. store brand, branded and different price points. So that's one. And the second one is that we have strong brands, be it Opill, be it Compeed in Europe or Opill in the U.S. that are really getting stronger. So if I take those two examples, Opill in the U.S. is doing better and better, growing. We have repeat rates, which are above 60%, which we're very happy. It's really across our retailers, and we are going to work the second half to really push that product in terms of consumer demand, and we're very excited about it. If you take Compeed in Europe, today, the same way that you use Kleenex for your nose, you use a Compeed for whatever you need across Europe. We have become #1 in France, #1 in Italy. We were #1 in the U.K., #1 in Spain. So we are really getting strong. We're very excited about the innovation we have launched. It's doing very well. So essentially, we keep focusing on what we do on the execution behind the strategy that's really, for me, very important. It's not only about strategy, but it's also about execution. And I think that's what is going to take us forward. We remain, of course, very mindful of the consumer in the second half in terms of inflation, affordability, et cetera. So we are cautious. But we are focusing on what we can control, and that is working with the retailers to co-innovate and co-promote the brands, working on the innovation, working on demand generation. Those are the things we control. We have the relationship with the retailers, and we have the brands in Europe to do that.

Great. Maybe just a very quick follow-up. I think some competitors across consumer health plus personal care are seeing this dynamic of channel shifting occurring. I'm curious how you see that phenomenon impacting your business and how you guys feel you're positioned as demand starts to shift more towards -- away from in-person brick-and-mortar retail and more towards e-commerce.

This is something that we're seeing also, and I'm very happy to tell you that this is something we're very much -- and this is -- the portfolio we have is a good portfolio for e-commerce first and foremost. So we are very excited about the progress we're making in e-commerce in the U.S., and this is growing very fast. And I would tell you that in Europe, it's moving exactly in the same direction. So we are on it. This is leading for us, and we have a very strong relationship. We have some of those e-commerce big groups that are -- come visited with us, sat down with us, visited our plants, share the best practices. And as you know, when you talk about e-commerce, seeing a human is always a very good sign, and we have seen a lot of humans lately coming to us and co-developing with us. So we're very excited about the opportunity, and we are all over it.

And Keith, just to reinforce the message is, our growth in share is accelerating in e-commerce, much ahead of brick-and-mortar as well.

At this time, there are no further questions. I will now transfer the conference over to Mr. Albert Manzone. Please go ahead, sir.

Thank you, Angeline. And I want to thank everybody for joining the call for your questions, which were very insightful. And what I can tell you is that in my first weeks, I have been focused on listening to our stakeholders and what I have heard has strengthened my confidence in the future of Perrigo. Our customer base is engaged and wants to do more business with us, which represents a meaningful opportunity. Our passionate and capable team, who I want to thank, is committed to our mission of providing affordable self-care to consumers. And we have a clear path to rebuilding trust with investors through consistent execution. Earning that trust will be the result of delivering on our commitments quarter by quarter. My priorities for the remainder of the year are straightforward: sustain our market share gains by executing on our key growth building blocks, deliver our cost savings plan, advance our strategic reviews to further simplify our business and achieve our 2026 financial outlook. I am focused on ensuring Perrigo is positioned to capitalize on our long-term opportunities and create sustainable value for our shareholders. And I'm confident that we're taking the right steps and building momentum across the business. So thank you all for your interest in Perrigo.

Thank you. Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. Please disconnect your lines.