Kenvue Inc Reports Fiscal Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-06
Kenvue Inc. Reports Fiscal Second Quarter 2024 Financial Results
Kenvue Inc. (NYSE:KVUE) announced its financial results for the fiscal second quarter ended June 30, 2024. Below is a detailed summary of the key financial and operational performances.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $4.0B | Decreased 0.3% | $3.94B | |
| Diluted EPS | $0.03 | $0.23 | $0.27 | |
| Adjusted Diluted EPS | $0.32 | $0.31 |
The company’s total revenue reported a slight year-over-year decrease of 0.3%, though it exceeded the consensus estimate of $3.94 billion. The diluted EPS fell significantly to $0.03 from $0.23 in the prior-year period, impacted primarily by a non-cash asset impairment charge. However, the adjusted diluted EPS slightly improved to $0.32 compared to $0.31 in Q2 2023.
Segment Performance
| Segment | Q2 2024 Revenue ($B) | Notes |
|---|---|---|
| Skin Health and Beauty | Volume decline impacted revenue | |
| Self Care | Volume decline | |
| Essential Health | Offset volume decline in other segments |
The Skin Health and Beauty and Self Care segments experienced slight volume declines, which were offset by growth in the Essential Health segment. The revenue performances across these segments align with the previous guidance provided by the company regarding ongoing initiatives and market trends.
Executive Comments
Thibaut Mongon, Chief Executive Officer of Kenvue, commented, "We are on track to deliver the financial targets we set for 2024. While we are in the early days, our work to transform Kenvue into a bolder, more agile organization focused on profitable growth is producing results. With the progress we have made in the first half of the year to increase productivity and free up resources, we are accelerating investment behind our global portfolio of iconic brands to reach more consumers and deliver on our long-term value creation algorithm."
Dividends or Share Repurchase Programs
The earnings release did not mention any new announcements regarding dividends or share repurchase programs.
Forward Guidance
For FY24, Kenvue reaffirmed its outlook, projecting net sales growth of 1.0%-3.0% (2.0%-4.0% organic growth) and adjusted diluted earnings per share in the range of $1.10-$1.20. The company stated it is unable to provide directly comparable GAAP measures or reconcile adjusted diluted earnings per share or organic growth to comparable GAAP measures due to the unpredictability of certain discrete items.
Stock Price Movement
Following the announcement of the earnings results, Kenvue's stock price saw a rise of 3.4%.
In summary, Kenvue Inc. has managed to slightly exceed revenue expectations while contending with volume declines in specific segments and non-cash impairment charges. The reaffirmed guidance indicates confidence in achieving FY24 targets despite market challenges.
For more details, visit Kenvue’s investor website or access the webcast replay of the earnings call available post-event.
