Kenvue Inc Reports Third Quarter 2024 Financial Results

Kenvue Inc. Reports Third Quarter 2024 Financial Results

Kenvue Inc. (NYSE: KVUE) announced its financial results for the fiscal third quarter ended September 29, 2024, showing noteworthy shifts in its financial performance and strategic priorities.

Key Financial Metrics

In summary, Kenvue experienced a 0.4% decrease in net sales to $3.9 billion, primarily due to a decline in volume and the negative impact of foreign currency exchange rates. Despite this, the company managed to achieve a slight organic sales growth of 0.9%. The dilutive effects of increased marketing and brand investment pressured EPS, resulting in diluted earnings per share of $0.20, a decline from the prior year's $0.23.

Key Developments and Operational Highlights

• Gross Profit Margin Expansion: Kenvue achieved a 100 basis point increase in gross profit margin to 58.5%.
• Marketing Investments: The company increased marketing spend, investing in its iconic brands.
• Productivity Gains: The continuation of the 'Our Vue Forward' initiative enhanced global supply chain efficiencies.

Comments from the Company’s Officers

CEO Thibaut Mongon emphasized the strategic reinvestment in brand equity as a catalyst for growth. He highlighted that Kenvue is advancing its strategy through increased efficiency and agility within its consumer health operations. Mongon noted gains in the Self Care category and broad-based growth in Essential Health, with early signs of recovery in Skin Health and Beauty.

Forward Guidance

Kenvue projects that its net sales growth for 2024 will be at the lower end of its initial outlook of 1.0%-3.0%, with organic growth expected in the 2.0%-4.0% range, considering a 1% currency headwind. The company reaffirmed its outlook for adjusted diluted EPS between $1.10 and $1.20.

Stock Price Movement

Following the release of the earnings report, Kenvue's stock price experienced a decline of 3.14%.

Overall, Kenvue showed resilience through strategic reinvestment and operational efficiencies even as it faced headwinds in revenue growth and profitability. The company remains optimistic about its long-term shareholder value creation through focused brand investment and operational agility.

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