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Kinfu mentioned Second-quarter revenue and adjusted earnings beat expectations on Thursday Consumer health companyThe first quarterly report since his separation from Johnson & Johnson two months ago.
The company, formerly the consumer health division of J&J, also released an optimistic 2023 sales forecast.
Kenvue’s success has been driven by resilient demand for its wealth of widely known brands like Band-Aid, Tylenol, Listerine, Neutrogena, and Aveeno.
“This quarter was another proof point, showing the strength of our portfolio,” Kenvue CEO Thibaut Mongon said during Thursday’s earnings call.
But J&J still owns a 90% stake in Kenvue, which means it can generally control the direction of the subsidiary’s business for now. J&J will reduce its stake in Kenvue later this year.
J&J reported its second-quarter earnings Thursday, which included Kenvue’s results.
Here’s how Kenvue works results Compared to Wall Street expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: 32 cents adjusted, versus an expected 30 cents
- he won: $4.01 billion versus the expected $3.96 billion
Kenvue stock prices were flat in pre-market trading Thursday. After a strong public market debut in May, the stock has struggled as investors a question How much growth can a company achieve with its popular brands as consumers cut back on spending.
Kenvue stock is down more than 7% since it first went public, dropping its market value to nearly $47.9 billion.
On Thursday, Kenvue also began a quarterly cash dividend of about 20 cents per share for the third quarter, paid to shareholders on Sept. 7.
Unlike the most recent IPOs, Kenvue is actually profitable.
The company reported sales in the second quarter of $4.01 billion, up 5.4% from the same period last year. And according to Kenvue, foreign exchange headwinds pulled sales down about 2.3%.
It reported net income of $430 million, or 23 cents per share, compared to $604 million, or 35 cents per share, a year ago. Excluding some items, the company’s adjusted earnings were 32 cents a share.
Kenvue expects 2023 sales growth of 4.5% to 5.5%. In April, after its initial public offering, Kenvue said it expected annual sales growth through 2025 to be around 3% to 4% globally.
The company’s full-year adjusted earnings forecast ranges from $1.26 to $1.31 per share. Analysts surveyed by Refinitiv had expected $1.23 per share.
The company reported sales growth across its three business divisions in the second quarter.
Kenvue’s self-care unit, which includes products for eye care, cough and cold, and vitamins, generated $1.66 billion in sales for the quarter. That was up 12.2% from last year, helped by increased demand from higher cough, cold, and flu cases.
Skin health and beauty products accounted for $1.15 billion in sales, which jumped 1.9% from a year ago. Among these products are shampoos, conditioners, hair loss treatments, and skin care.
The core health division’s items, including baby products, mouthwashes, dentifrices, health protection and wound care, saw net sales of $1.20 billion, up 0.5% from the same period last year.
The Kenvue IPO still leaves J&J liable for thousands of claims that baby talcum powder and other talcum products caused cancer.
These products fall under the company’s consumer health business, now Kenvue, but the spin-off will only assume liabilities related to those originating outside the United States and Canada, according to it. Subscription deposit from january.
There are only a “small number” of lawsuits outside the US and Canada that “we don’t consider material at this point,” Mongon said at Deutsche Bank’s global consumer conference last month.
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