Consumer health company Kenvue Inc.
The Johnson & Johnson
Kenvue's some of the iconic brands include Aveeno, BAND-AID Brand, Johnson's, Listerine, Neutrogena, and Tylenol.
Value realization was driven by carry-over pricing and new price actions. The slight volume declines were driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
Adjusted gross profit margin expanded 410 basis points to 61.6% from 57.5% a year ago, primarily reflecting productivity gains attributable to global supply chain efficiency initiatives, including commodity pricing and value realization.
Adjusted operating income margin was 22.8% vs 23.1% a year ago, as margin expansion was more than offset by increased brand investment.
The self-care segment recorded $1.64 billion in net sales, down 1.6% year over year. The skin health and beauty segment recorded a 3.8% drop in second-quarter net sales to $1.10 billion. Essential Health segment sales increased around 4.9% to $1.26 billion.
"We are on track to deliver the financial targets we set for 2024, and 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," said Thibaut Mongon, CEO. "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."
Guidance: Kenvue reaffirms full-year 2024 reported net sales growth of 1.0%-3.0%, with organic growth of 2.0% to 4.0%.
Kenvue expects full-year 2024 adjusted EPS of $1.10-$1.20 versus consensus of $1.14.
Price Action: KVUE stock is up 13.80% at $20.70 at the last check on Tuesday.
