Pershing Square Activist Presentation Deck
Allergan Management has Admitted that SG&A is
"Very High" but has not Made Meaningful Progress
Solving the Problem
David Pyott, Allergan Chairman and CEO; Q3 2010 Earnings Call:
"Maybe a last comment on SG&A, we've said for some
time now, we expect this to gradually trend down into
the mid-30s. As a company, we've historically been
very high."
David Pyott, Allergan Chairman and CEO; Q4 2011 Earnings Call:
"Well, clearly, we've stated over the years that
gradually, the SG&A rates will come down into the
mid-30s.
David Pyott, Allergan Chairman and CEO; Q4 2013 Earnings Call:
"Going back to SG&A leverage, we've always stated
that our target in the midterm is the mid-30s, so I'd
reiterate that. And clearly, this is not by cutting. It just
means the rate of increase for SG&A is lower than the
rate of sales growth."
Source Company filings.
76
SG&A Ratio
2010: 40%
2011: 40%
2013: 39%View entire presentation