Perrigo president and CEO Patrick Lockwood-Taylor has resigned from the Ireland-based infant formula group due to “personal misconduct”.
New York-listed Perrigo, which produces non-GMO infant formula, along with health and self-care products, said “certain personal conduct by Mr. Lockwood-Taylor was not consistent with the company’s code of conduct and core values”.
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Lockwood-Taylor’s resignation, which includes his removal from the board, takes effect immediately, Perrigo said in a statement yesterday (8 June).
“The conduct did not involve the company’s business, strategy, operations, financial reporting, or results of operations,” the company added.
Perrigo board member Albert Manzone will take on the president and CEO roles on an interim basis while a search for a permanent replacement commences.
Orlando Ashford, board chair of the Dublin-headquartered business, commented: “Perrigo’s core values are foundational to how we operate, and the board expects all colleagues – especially our senior leaders – to uphold those standards at all times.
“The board acted decisively and has full confidence in Albert, who brings more than 30 years of global leadership experience and a proven track record of transforming businesses at inflection points and creating value as well as deep knowledge of our business, people, and self-care platform.”
Manzone’s executive career history takes in the likes of food and beverage companies PepsiCo and Whole Earth Brands. A board member of Perrigo since 2022, he was most recently the deputy CEO of hospitality group Monte-Carlo Société des Bains de Mer.
On his new role, Manzone said: “My priority as interim CEO is continuity: to keep that strategy on course and to support a talented leadership team as we sustain our momentum on value creation. I look forward to working closely with the Board and the team in the months ahead.”
In its annual report for fiscal 2025, Perrigo revealed a strategic review for infant formula under its ‘nutrition network optimisation’ programme.
“The review will assess a full range of alternatives and is aligned with Perrigo’s ‘Three-S’ (stabilise, streamline, strengthen) plan and reflects our commitment to disciplined capital allocation and supporting improved return on invested capital and total shareholder return,” the company said.
Perrigo added it “continued to assess the roles of infant formula”.
The maker of Advantage and Gentle infant formula reaffirmed its full-year guidance in yesterday’s statement following a previously launched review of that segment of its business.
So-called “all-in” net sales are expected to fall by 1.5% to 5.5% in fiscal 2026, with “core” net sales seen in a range of down 3% to up 1%.
All-in adjusted EPS was guided in a $2-2.30 range, while the core adjusted EPS outlook was held at $2.25 to $2.55.
For its first-quarter results issued in May, Perrigo saw all-in reported sales decline 7.2% to $969m, or down 9.9% on an organic basis.
Sales for infant formula were $90m, increases of 2.1% and 1.9% in reported and organic terms, respectively.
Perrigo said the sales growth in infant formula was driven by its contract business, “partially offset by lower net sales in store brand and branded infant formula due to tougher prior year comparisons, including elevated sales from customer inventory replenishment”.
Group net income for the business as a whole widened to a $398.6m loss in the three months to 28 March, from a $6.4m loss a year earlier.
