Good morning, and good afternoon, everyone. Welcome to Perrigo's first quarter 2026 earnings conference call.

A copy of the release we issued this morning and the accompanying presentation for today's discussion are available within the Investors section of the perrigo.com website. Joining today's call are Perrigo's President and CEO Patrick Lockwood-Taylor, and CFO Eduardo Bezerra.

As a reminder, beginning this quarter, we are reporting segments aligned with our new commercial operating model. We have recast historical results under the new structure for comparability as provided in our 8-K filing, and this change had no impact on our consolidated financials or cash flows.

Along with our new reporting segments, we have changed our main profitability measure to adjusted operating income. 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. Finally, Patrick's discussion will address only non-GAAP financial measures.

Now to the agenda. We have several topics to cover today.

First, Patrick will walk through the progress we are making with our 3S plan and how first quarter results compare to our expectations. He will then provide a market overview and explain how our growth initiatives are expected to drive improved results, after which, Eduardo will cover first quarter segment results, balance sheet and capital allocation, and close with further details of our 2026 outlook.

With that, I'll turn it over to Patrick.

Thanks, Eric. Good morning, good afternoon, and thank you for joining today's call.

We are making steady progress in building a more focused, disciplined, and consistent Perrigo. Challenging market environments impacted first quarter results.

However, our 3S plan to stabilize, streamline, and strengthen the company is helping us navigate these conditions and positioning the company for long-term growth. The strategy is working, as clearly demonstrated by our market share gains, even in what we have highlighted as a transition year.

Given these factors, we are reaffirming our 2026 outlook. Consistent with our prior commentary, results are expected to be weighted to the second half, supported by clear, quantifiable factors, including stabilizing category consumption, the lapping of prior year manufacturing volume headwinds, benefits from cost-saving initiatives, and delivery of our growth drivers.

With those takeaways as a backdrop, I'll walk through how the 3S plan is driving positive change. Our stabilization efforts have turned share losses in U.S.

store brand OTC into a 100 basis point improvement in volume share during the quarter, 6 of 7 categories gaining share. To further dimensionalize our performance, we have gained 270 basis points of U.S.

store brand OTC volume share in the first quarter alone. Key brands in Europe also improved, gaining 20 basis points of value share in a challenging consumption environment.

We've also stabilized results in infant formula, with improved service levels and supply reliability. To streamline our business, we completed the divestiture of the dermacosmetics business in April, an important milestone in further simplifying our operations and enabling debt reduction.

Strategic reviews of our infant formula and oral care business are ongoing. Efficiencies are an important part of our streamline pillar, and our operational enhancement program generated more than $7 million of cost savings in the quarter, and is on track for approximately $60 million to $80 million in savings for the year, with an additional $20 million to $40 million expected in 2027.

To strengthen our business, we implemented a new category-led operating model and enhanced our commercial and category leadership, adding experienced talent with the capabilities and perspectives required for the next phase of Perrigo's evolution. These changes reflect a fundamental shift in how we operate.

Our new structure aligns our decision-making, investment priorities, and performance goals, enabling us to better leverage one of our most important competitive advantages, our scale. With more than 250 molecules, our deep retailer partnerships, a robust supply chain, and our extensive regulatory capability, Perrigo is well-positioned to be a leader in this category.

Our new structure focuses our investments on fewer, bigger brands to target faster-growing categories where we have the greatest right to win. These changes are working, as demonstrated by our strong market share performance.

However, many of the benefits from these initiatives are not yet fully realized, and are being somewhat obscured by the headwinds that we expect to ease in the second half of the year. Among those headwinds are softer cough and cold incidence and retailer inventory destocking, whose impacts, along with the 26 cent EPS headwind related to the carryover of prior year manufacturing volume headwinds, weighed on first quarter results.

As indicated last quarter, prior year manufacturing volume headwinds are expected to result in an unfavorable all-in EPS impact of approximately 60 cents in 2026. Again, we believe those headwinds are largely transitory, resulting in 2026 itself being a transition year.

As conditions evolve, consistent with our 3S plan, we are focused on driving improvement in the areas within our control, streamlining our cost base while strengthening our top-line growth. With that in mind, let's turn to the assumptions underlying our view of 2026 as a transition year, which largely played out as expected in the first quarter.

Coming into the year, we anticipated market softness to carry over into the first half, followed by sequential improvement in the second half. In the first quarter, reduced cough and cold incidence and the impact of macroeconomic pressures, particularly in Europe, led to lower-than-expected consumption levels.

We estimate soft cough and cold incidence was approximately a 3.5% headwind to core sales. In response to lower consumption, retailers in the U.S.

and Europe reduced inventory levels, hampering sales further, resulting in an additional 3 points of core sales headwind. However, we, in line with other industry commentary, continue to expect sequential improvement in demand, led by stabilizing seasonal incidence of cough and cold.

We also expect retailer inventory levels to positively adjust over time in line with improved consumption. Our second assumption was our ability to build off our strong market share gains in 2025.

We delivered on that expectation, with solid market share performance in both store brand and branded products. Third, we expected to grow net sales through 4 key revenue building blocks: consumer-centric innovation, targeted geographic expansion, continued distribution gains, and amplified demand generation.

We've made progress across each of these areas in the first quarter, reaffirming our confidence in second half improvement. Turning to our financial results, the first quarter reflects category softness, partially offset by progress and our execution of the 3S plan.

Core net sales declined 8.3%, driven primarily by softer category consumption in the self-care segment due to reduced cough and cold incidence and retailer inventory destocking. These impacts accounted for nearly two-thirds of the net sales decline.

These impacts were partially offset by share-driven gains in the specialty care segment, particularly in the women's health category. All-in net sales declined 7.2 points, reflecting similar pressures, partially offset by improved infant formula performance.

Adjusted core EPS of 40 cents was impacted by prior year manufacturing volume headwinds and lower net sales volumes, primarily within our self-care segment. Adjusted EPS results outperformed our expectations, benefiting from the net recognition of recovery of a portion of previously paid tariffs, a lower effective tax rate, and benefits from our operational enhancement program.

All-in adjusted EPS for the quarter is 43 cents. Turning to the market environment, conditions remained challenging in the first quarter, as expected.

In the U.S., the OTC market declined 4.1 points in value, 2.1 points in volume, largely consistent with fourth quarter levels. European markets turned more negative, declining 3.7% in value and 4.4% in volume.

Trends in both the U.S. and Europe were driven primarily by softer consumption demand in the cough, cold, and pain categories within self-care segments.

That weakness appears transitory, driven largely by challenging year-over-year comparisons and lower-than-normal illness levels, as well as macroeconomic pressures, particularly in Europe. We expect the categories to stabilize throughout the year as comparisons ease and more typical seasonal incidence patterns return in the second half of 2026.

To mitigate category pressures, we are focusing on areas within our control. As I noted earlier, in the U.S., Perrigo grew volume share in 6 of 7 OTC categories, and our store brand portfolio extended its streak to 12 consecutive periods of share improvement.

Our priority brands gained value share in Europe, driven by strong performance from EllaOne, up 200 basis points, Jungle Formula, up 140 basis points, and Physiomer, up 50 basis points. Other areas of strength include Mederma, Cold-Sore, and ella, which increased 180 and 40 basis points respectively.

Importantly, as we enter the summer period, momentum is building across our seasonal brands in several key European markets. Compeed is strengthening into peak season with impressive share gains and sell-out trends, supported by earlier activation and excellent in-store execution.

For example, in Italy, Compeed achieved market share growth of 550 basis points to 35%, while in France it is growing well ahead of the category, with Compeed up 160 basis points and our share approaching 36%. This was led by focused investment, improved activation, and stronger retailer execution.

This strong performance gives us confidence in our ability to drive growth as demand builds through the summer. As category demand normalizes, we expect the increasing earnings power enabled by this brand strength to become increasingly visible.

As we've discussed, we are driving share gains by scaling our core capabilities consistently across the portfolio. Nicotine replacement therapy is an excellent illustration of our approach to 360-degree innovation.

Our process now develops claims, formulations, and regulatory platforms once at the category level, then deploys them holistically across national brands and store brands, across formats, geographies, and price points. Importantly, this innovation expands the addressable market beyond traditional quitters to include vapers and dual users, allowing us to scale faster and unlock incremental demand without adding complexity.

Store brand demand generation is another scalable differentiator for Perrigo. We are the only large-scale store brand supplier bringing national brand demand generation capabilities to retailers, allowing us to partner with retailers and elevate conversations beyond just the procurement price.

Retailers are drawn to this program because it builds awareness for their business, it reinforces the perception of quality and equivalence, drives household penetration, and improved retailer profits. More and more retailers are asking us to expand these programs across even more OTC categories.

Demand generation is highly impactful for Perrigo. When we combine it with strong retail execution, we improve competitive takeaway and share gains.

These gains can be meaningful, with a 1 point increase in U.S. store brand household penetration representing incremental sales of more than $100 million of store brand OTC at retail.

Targeted geographic expansion allows us to extend our existing successful initiatives into new areas. By selectively expanding priority brands into new markets, we can drive incremental growth with lower risk, achieve faster payback, and higher returns.

As a reminder, this is a long growth runway for Perrigo, as today we only serve approximately 5% of global households. Together, these capabilities form a repeatable and scalable growth model.

360-degree innovation expands our opportunity set. Store brand demand generation converts that opportunity into sustained consumption.

Targeted geographic expansion amplifies the impact, allowing us to scale performance across categories and regions. This is translating into early, but significant, in-market gains.

This really is the outcome of what we have been working towards over the past 3 years: a Perrigo sustainable growth model, based upon a more focused portfolio that better leverages our core strengths, better leverages our unique asset base, underpinned by a much more effective commercial operating model. In summary, results in the first quarter reflect a very challenging market, but also demonstrates the effectiveness of our strategy.

As we move forward, we are focused on building a more focused, disciplined, and consistent business. By executing on our 3S plan, we expect to mitigate current category challenges and drive long-term growth.

We are reaffirming our full year 2026 guidance, which we expect to be weighted to the second half. That phasing is supported by clear, quantifiable factors already underway.

Our strategy is working. We are seeing market share gains.

We've achieved a more focused portfolio. We have a more effective and scalable commercial model.

I recognize that quarter 1 revenue and adjusted EPS are being driven by external factors that will need to be carefully managed. I'll now turn the call to Eduardo to walk through the financials in more detail.

Thank you, Patrick. Appreciate everyone joining us today.

Before turning to the details of our first quarter financial performance, I want to provide an update on goodwill impairment. As we discussed last quarter, the reallocation of goodwill following our moves to the new reporting units was expected to result in an additional non-cash impairment in the first quarter of 2026.

As expected, we recorded a non-cash goodwill impairment charge of $331 million, based on our goodwill impairment test as of January 1st, 2026, which utilized the same underlying aggregate fair value of the business as the 2025 year-end goodwill test. This charge does not impact cash flows, liquidity, or the ability to execute on our strategy.

From this point on, my comments will focus on adjusted non-GAAP results unless otherwise noted. As Eric said, beginning this quarter, we're reporting segments aligned with our new commercial operating model.

Our new reporting segments include Self-Care, Specialty Care, and Infant Formula. Turning to our results, starting with the top line.

Core net sales declined 8.3% year-over-year, driven by softer consumption, primarily in cough and cold, and retailer inventory destocking in the Self-Care segment. Higher Specialty Care net sales partially offset that weakness, driven by performance in our Women's Health category.

On an organic basis, core net sales declined 11%. All-in net sales declined 7.2%, reflecting the same factors impacting core results, in addition to modest contributions from Infant Formula and dermacosmetics business.

Currency translation benefited both core and all-in net sales in the quarter. Looking at adjusted operating income by segment, Self-Care was the largest driver of decline, due to lower net sales volumes, the carryover impact of prior year manufacturing volume headwinds, and unfavorable mix.

These factors were partially offset by the net recognition of recovery of a portion of previously paid tariffs and favorable currency translation. Specialty Care benefited from the lapping of prior year Opill investments, as well as favorable foreign currency, which more than offset the carryover impact of prior year manufacturing volume headwinds.

All-in adjusted operating income was primarily driven by the same factors as core, along with an $18 million impact from Infant Formula due to the carryover of prior year manufacturing volume headwinds. These impacts were partially offset by operating income growth in all other segments.

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 160 basis points to 39.2%, primarily due to lower sales volumes, manufacturing volume headwinds, and mix.

These pressures were partially offset by the net recognition of tariff recovery and favorable foreign exchange. All-in adjusted gross margin declined 340 basis points to 37.6%, due to the same factors impacting core gross margin, in addition to the manufacturing volume headwinds in Infant Formula we just mentioned.

Core adjusted operating margin decreased 110 basis points to 12.8%, reflecting gross margin flow-through, partially mitigated by lower advertising and promotion spend, benefits from the operational enhancement program we announced in Q4, and favorable currency. All-in adjusted operating margin decreased 240 basis points to 11.6%, due to the same factors as core operating margin, in addition to the impact from Infant Formula.

First quarter core adjusted earnings per share was 40 cents, coming in above of our expectations, primarily due to the net recognition of recovery of a portion of previously paid tariffs and a lower effective tax rate. All-in adjusted diluted earnings per share declined 17 cents to 43 cents, due to the impact of lower sales volumes and the carryover impact of prior year manufacturing volumes in U.S.

OTC and Infant Formula. Turning to cash flow, first quarter 2026 cash from operating activities decreased $49 million to an outflow of $114 million, due to lower earnings and higher working capital, in line with our previous expectations.

As a reminder, the first quarter is typically our highest cash usage period amongst the year. Capital expenditures totaled $14 million, and we returned $40 million to shareholders through dividends.

Turning to the balance sheet, cash and cash equivalents were $357 million, and total debt was $3.6 billion. During the quarter, we amended our $1 billion revolving credit facility, extending the maturity to 2031.

Borrowings under the revolver were used to repay our $421 million Term Loan A, extending our maturity profile with no significant maturities until 2029. We expect to continue to actively manage and optimize our maturity debt profile going forward.

After quarter end, we completed the sale of our dermacosmetics business for upfront cash proceeds of approximately €306 million, which we expect to use to support debt reduction. We remain focused on our disciplined capital allocation, balancing growth investments, deleveraging, and shareholder returns.

Looking ahead, although category dynamics were softer than expected in the first quarter, our guidance incorporates a wide range of outcomes and gives us comfort in reaffirming our 2026 outlook. We're closely monitoring retailer inventory changes, particularly the destocking activity observed in the first quarter, which we believe is largely related to the current consumption environment.

As consumption levels improve, we expect inventory trends to stabilize. We're also actively managing the inflationary pressures related to the geopolitical developments in the Middle East and their impact on consumers and our cost base.

To mitigate the estimated incremental in-year impact of $10 million on our cost base, we have implemented sourcing and cost management initiatives, and we will also evaluate pricing actions. As Patrick noted, we continue to expect results to be weighted to the second half of the year, with approximately 30% to 35% of core adjusted earnings per share in the first half, and 65% to 70% in the second half of 2026.

This phasing is supported by clear, quantifiable drivers, the majority of which are concentrated in the back half. The single largest sales growth contributor in 2026 is expected to be consumer-centric innovation.

Approximately 60% of the benefit from innovation is expected in the second half, including the expansion of our Compeed portfolio and the introduction of new Infant Formula offerings. Several of our other 2026 drivers, including distribution gains, amplified by demand generation activity with top retailers, targeted geographic expansion, and benefits from our operational enhancement program, are all expected to be back-half weighted.

In addition, we anticipate lower interest expense in the second half as we apply the dermacosmetics proceeds towards debt reduction. In conjunction with those drivers, 2 of the most meaningful first half headwinds, the carryover impact of prior year manufacturing volume headwinds and a softer cough and cold season, are transitory, and expected to lap in the second half.

As indicated last quarter, prior year manufacturing volume headwinds are expected to result in an unfavorable all-in earnings per share impact of approximately 60 cents EPS in 2026. We experienced roughly 26 cents of that impact in the first quarter.

In summary, our outlook is based on clear drivers supporting our second half expectations, many of which are already underway, while acknowledging the dynamic macro environment. As Patrick outlined, the 3S plan is driving tangible improvements, and we're confident that we are positioning Perrigo to generate sustained growth of shareholder value over time.

With that, I will turn the call back to Eric.

Thank you, operator. We're now ready for questions.

Hi, this is Ethan on for Chris Schott. Thanks for taking our questions.

Just to start off, and you touched on this during the call, but as we think about the operating margin recovery for the core kind of non-infant formula business in the back half of this year and into 2027, can you help level set how much of this is driven by working through higher cost inventory in the near term versus how much will require OTC volumes to rebound and normalize? Then my second question is just any updates you can offer on the infant formula strategic review, and kind of latest thoughts on timing more broadly?

Thank you.

Hi, this is Eduardo here. Thank you for your question.

As we highlighted, our operating margin the first quarter, then as we've provided our guidance, the first half of the year would be significantly impacted by the carryover volume variance that impact in this first half. Also, the second half, we expect to see significant uptake on the market, right?

In terms of the recovery of consumption, that we're watching very closely, given some of the dynamics going on. We expect margin improvements because of the different activities we have.

Innovation, continued distribution gains that we have there, also amplified demand generation, as well as the opportunistic geographic expansion, and also the ramp-up of the operational enhancement program that will benefit our OpEx and operating margin. Overall, as we look into how we're going to see between the first half and the second half, we're going to see a very meaningful improvement on operating margin expansion because of these different factors.

To your second question on the infant formula, right? Just give a little bit of perspective, right?

The business, as we saw today, we had a relatively good performance in the quarter, with net sales growing about 2%, driven by higher contract manufacturing, and also, store brand and branded formula were a little bit impacted by prior year comparisons, right? From a market standpoint, we're seeing consumption to being store brands is slightly improving versus what we had before.

The first thing to your specific question is, we keep in track of the business, and remember we anticipated that margins would be significantly impacted by the carryover of manufacturing variances. From the overall strategic review that we're carrying and that we started, the review continues.

We're working with our advisors to assess all available options that we talked before between optimizing our network, and to that purpose, we've recently announced a rationalization of our capacity in one of our facilities that will help streamline the business and reduce our costs. Also we're looking to the other options in terms of partnership and divestments.

There is nothing more to share at this stage, and we continue with that, and we expect to provide further updates as we progress through the year.

Nope, that's it. Thank you so much.

Thank you.

Hi, good morning. Thanks for taking my questions.

It's nice to see the volume share gains in the store brand in the U.S. I guess maybe if you could give some color on what's driving that share gain, what are you doing differently with retailers than you were doing before?

Then also, I think maybe you said it was across most categories, but if you could talk about which categories you're seeing those gains across the portfolio. Thanks.

Hi, Susan. This is Patrick.

What's driving those share gains? We're winning more contracts.

As in 2025, I think it was about $100 million of net contract wins. Some of those are rolling out now.

We're taking a greater share of store brand contract volume. That's number 1.

Number 2 is not only do we want a greater share, we want to grow store brand share of the overall category. This basically is where we start to drive equivalence and the value proposition with end consumers, frankly using brand building marketing capability that we apply to our national brands.

That grows consumer awareness, and it grows household penetration of store brand. There's 2 critical things: you want a greater share of store brand and you want store brand to have greater share of the marketplace.

That provides a double win for us. That's really what's going.

I think I understood your question of which categories are growing, we compete in 7 OTC categories, and I think in the presentation deck we actually outlined which are growing, and I think so we're growing share in all of them with the exception of skin, where there was some temporary supply disruption, but it's a very small business for us. The rest, which are the major categories, we're growing our share of store brand.

Allergy is up 180 basis points, pain 110, digestive health is up 30 basis points, and probably the stand-out performance is in nicotine replacement therapy, and I heard this referred to by a competitor, where we're actually seeing a 540 points volume share growth this calendar year-to-date. It's broad-based, and it's substantial.

Great. That sounds good.

Then maybe if you could talk about how you're planning for cold/cough in the back half of the year. I guess should we expect that to finally return to growth, particularly as we kind of lap some easier compares from last year calendar year, or are you, kind of thinking about it being more flattish?

Then I guess final question, just are you thinking about any pricing for the back half of the year, particularly as we're seeing maybe some more inflationary pressures now? Thanks.

Thank you. On cough/cold, I've been trying to predict cough/cold seasons for a quarter of a century, and I get it wrong as many times as I get it right.

This was an abnormally weak cough/cold season, both in the U.S. and many countries throughout Europe, and therefore in totality.

The rational forecast is always to take an average season. If we take an average season for '26-'27, that's going to be materially stronger than the season we've just been through.

I think that's an entirely logical outlook and forecast. The second part of your question was—

Just on pricing, I guess, yeah.

Pricing. First thing, the inflationary pressures that we've seen from the Middle East have been very moderate for us, and we would just manage those through sort of normal operations.

We are starting to look at pricing depending on what happens with other commodity prices, etc. Yes, I would say we're in active consideration of that, both in the international, our branded business, and our store branded business across both regions, yes.

I think the important thing as well, just to add to that point, Susan, is in times of inflation, etc., what we're going to be watching closely is the potential for pickup on store brand consumption, right? It's something that has been erratic over the past years, right, mainly because of the still strong, let's say, household wallet.

Only the low-income consumers have been suffering the most, and usually they are the ones that tend to have a direct correlation with store brand. If that starts to impact further, the trade-down could accelerate, and that's an opportunity, if that takes place, we're ready to take advantage of that.

Great. Thanks so much.

Good luck the rest of the year.

Thank you, Susan.

Thank you.

Hey, good morning, guys. Thanks for the question.

Maybe just zooming out a little bit and just returning back to the macro picture as it pertains to consumer health, I know you called out some expectations for the second half to be better, just hoping you can add more context on exactly what's driving that. I think we're seeing across branded and store brand consumption be a little softer than anticipated for longer than we would have thought.

Kind of just want to double-click on what's embedded in your expectations for the second half to be better, and is it maybe better visibility into the contract wins, or the destocking easing? Just kind of unpacking that a little bit I think would be helpful.

Thank you.

Thanks, Keith. Remember as we highlighted during our guidance, right, incorporate a wide range of outcomes there.

As you're looking to that piece, there are 4 key areas that we are driving a lot of consumption opportunities. From the innovation side, right, we mentioned a little bit about Compeed portfolio, as well as on the infant formula side bringing new offerings, including one focused a lot on the key competitor in the market right now with an organic formulation, continued distribution gains, we continue to focus a lot on that in the marketplace with further competitive takeaway, and also the demand generation, right?

Remember we talked last year some of the examples like we did on the life hacks and cough and cold and allergy. We're seeing more and more retailers wanted to amplify that across their portfolio.

We believe that's going to be a good opportunity to attract more consumers into our specific categories on store brand, as well as the geographical expansion on our priority brands, right? Again, we acknowledge the recent developments, right?

We acknowledge some retailer destocking that took place in the first quarter. We believe that is mainly related to the soft cough and cold, they wanted to be more pragmatic on managing their cash in that sense, and adjusted their inventory levels, but that's something we need to track closely.

The other thing as well is to what extent the Middle East geopolitical situation could further evolve into inflation, and how could that impact consumption in second half. We still believe there'll be a recovery because of the comparison last year was a significant decline, but we're watching that closely.

I don't know, Patrick, anything you wanted to add as well?

I think that's right. Fundamentally, there's not been a big shift in in incidence across categories.

Household penetration is quite stable, apart from one for us, one small segment in an area of pain, that consumers are moving to alternate forms in pain, from solid pill to creams, etc. No radical change in incidence or household penetration.

Plus, as we explained, the effects last year started to be seen in quarter 2, we're very soon lapping the beginning of that category contraction, and therefore, just as a function of the math, it just stabilizes itself. There hasn't been a dramatic extraction of value that we can see that's going to continue into, the remainder of the year.

Again, though, the critical point, this is always going to be quite an unpredictable range range this year. We constructed guidance with a broad range of outcomes.

You've seen what our sales guidance is for the year, and you heard last quarter how much of our demand generation activity and cost-saving activity is weighted into the second half. That that helps insulate our outlook.

At the moment, we're we're confidently reaffirming our '26 guidance.

Got it. Thank you.

I'll pass it on.

Good morning. I was wondering if you can speak to the consumers' purchasing behavior in-store versus online for national brand versus store label products in the self-care categories.

Do you think there's a notable difference with your largest customers? Are they doing a good job of highlighting store label alternatives in their searches?

Because when I look at the largest retailers, there's quite a big difference between them when I search for Advil versus ibuprofen, for example.

Good question. Some of our highest shares in store brand tend to be on e-commerce, interestingly.

I think, collectively, we can do a better job on store brand representation on e-commerce with some of our big traditional retailers in terms of landing pages, as you've just said, but also on some of the advertising. As they're bioequivalent and they can be of much better value at a time when more and more consumers are seeking value.

I think that execution can be stronger. I think with traditional e-commerce players doing it better, we enjoy higher shares, actually seeing more and more competitive takeaway within that channel as well.

Daniel, just to give you an important example, in Women's Health and Opill, right, in Q1, e-commerce grew almost 30%. That's an area where it's going very very well.

We're seeing a very good uptake, while the sales on Opill were double-digit growth of plus 12%. You see how e-commerce is taking a very important piece of that growth.

Great. Thank you.

Then can you share what the board's thoughts are on the dividend currently?

Sorry, could you repeat that?

The board's thoughts on the dividend— Policy.

Oh, yeah. As we talked the last quarter, we continue with our capital allocation plans, right, continue to invest into our base business, as well as focusing a lot on debt reduction, as well and in keeping our shareholders return, right?

We're going to keep that same focus going forward. The board will continue to assess that on a quarterly basis, what's our position to make sure we optimize our capital allocation, and that today they decided to keep that, and we're going to continue to have those discussions for the remaining of the year.

Thank you.

Thank you very much, and again, thank you everyone for joining us. To close, I want to put this quarter into clear perspective.

The work we've done over the past several years is driving meaningful change at Perrigo. We are a more focused, disciplined, and consistent business, and that stronger foundation is enabling us to manage through a challenging environment more effectively than we could have done in the past.

We are delivering on our promises. We completed the dermacosmetics divestiture and applying those proceeds towards debt reduction.

We are executing our cost-saving program in line with to slightly ahead of expectations. We are simplifying our portfolio.

We're strengthening our operations, including continued progress in infant formula. At the same time, we are delivering material share gains, reinforcing that our commercial strategy is working.

This was not a perfect quarter. Softer cough and cold demand, inventory destocking, and European consumption pressures weighed on results.

Importantly, our improved operating capabilities enabled us to mitigate those pressures and capitalize on opportunities where they emerged, as demonstrated by the fact that both EPS and our share gains were ahead of our expectation. As we've moved into the second quarter, we're also encouraged by the continued momentum in market share and in-market execution that we're seeing across the portfolio.

That progress gives us growing confidence as we move through the year, and reinforces our conviction in our 2026 outlook and long-term trajectory. We remain focused on disciplined execution, controlling what we can, and building enduring value over time.

Thank you very much for your continued interest and support.