Kenvue Inc

Latest Results (20.08.2024):

Net Sales and Organic Growth

Kenvue Inc. reported net sales of $4.0 billion for the second quarter of 2024, reflecting a slight decrease of 0.3% compared to the prior year period. However, the company achieved an organic growth rate of 1.5%, driven by a 2.1% increase in value realization (price and mix) and a 0.6% decline in volume. The volume decline was primarily due to lower sales in Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.

Gross Profit Margin and Operating Income Margin

For the second quarter of 2024, Kenvue Inc. saw its gross profit margin expand by 360 basis points to 59.1%, up from 55.5% in the prior year period. The adjusted gross profit margin also improved, reaching 61.6%, a 410 basis point increase. This improvement was largely due to productivity gains from global supply chain efficiency initiatives and value realization. However, the operating income margin decreased to 3.9% from 17.5% in the prior year, impacted by charges related to asset impairment, brand investment, and restructuring.

Interest Expense and Taxes

During the second quarter of 2024, Kenvue Inc. reported a net interest expense of $92 million. The effective tax rate for the quarter was significantly lower at 10.8%, compared to 32.7% in the prior year period. This reduction was primarily due to the reversal of a deferred tax liability related to the Dr.Ci:Labo® non-cash asset impairment. The adjusted effective tax rate also decreased to 25.7% from 30.8% in the previous year.

Net Income per Share

Kenvue Inc.'s diluted earnings per share for the second quarter of 2024 were $0.03, down from $0.23 in the prior year period. The decline was mainly due to the asset impairment charge. However, the adjusted diluted earnings per share increased slightly to $0.32 from $0.31 in the previous year, as profit growth and normalizing taxes were offset by increased brand investment and a higher weighted average share count.

2024 Outlook

Kenvue Inc. reaffirmed its outlook for the full fiscal year 2024, expecting net sales growth of 1.0%-3.0% and organic growth of 2.0%-4.0%. The company also anticipates adjusted diluted earnings per share to be in the range of $1.10-$1.20. Kenvue remains focused on delivering its financial targets and continues to invest in its global portfolio of iconic brands to drive long-term value creation.