Consumer health company Kenvue Inc. (NYSE:KVUE) reported third-quarter sales of $3.89 billion, down 0.4% year-over-year (up 0.9% organically), slightly below the consensus of $3.93 billion.
Kenvue's some of the iconic brands include Aveeno, BAND-AID Brand, Johnson's, Listerine, Neutrogena, and Tylenol.
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Value realization was driven by a combination of carry-over pricing and price actions taken this year. The volume decline was driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
Adjusted gross profit margin expanded 130 basis points to 60.7% from 59.4% in the prior year, reflecting productivity gains attributable to global supply chain efficiency initiatives and benefits from value realization.
Third quarter adjusted operating income margin was 22.1% vs 23.3% in the prior year.
The self-care segment recorded $1.63 billion in net sales, up 0.7% year over year. The skin health and beauty segment recorded a 4.2% drop in second-quarter net sales to $1.07 billion. Essential Health segment sales increased around 1.6% to $1.20 billion.
"During the third quarter, we continued to drive strong productivity and realize efficiency benefits from Our Vue Forward, which we are reinvesting behind our iconic brands to unleash the full potential of our business and fulfill our commitment to create long-term shareholder value," said Thibaut Mongon, Chief Executive Officer. "This reinvestment is enabling us to continue to drive share gains in Self Care, deliver broad-based growth across the Essential Health categories, and build the right foundation in Skin Health and Beauty, where we are seeing early signs of recovery.
Guidance: Kenvue expects 2024 net sales growth and organic growth toward the low end of its outlook of 1.0%-3.0% and 2.0%-4.0%, respectively.
The consumer health giant reaffirms 2024 adjusted EPS of $1.10-$1.20 versus consensus of $1.14
Price Action: KVUE stock is up 3.44% at $23.28 at the last check on Thursday.
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