Kenvue forecast full-year profit below analysts' expectations after missing quarterly sales estimates, as the Tylenol maker faces sluggish demand in China and slowing growth for skin and beauty products in the US.
The company, spun off from Johnson & Johnson in August, missed Street estimates for fourth-quarter sales in both its self-care, as well as skin health and beauty segments.
Kenvue said it aimed to grow sales of its brands at 1-3%.
The consumer health company reported fourth-quarter topline of $3.67 billion (€3.42 billion), missing estimate of $3.78 billion (€3.51 billion), according to LSEG data.
Health And Beauty
Kenvue recorded $1.00 billion (€0.93 billion) in quarterly sales in its skin health and beauty segment which has brands like Neutrogena and Clean & Clear. Analysts had expected $1.07 billion (€0.99 billion).
Quarterly revenue from self-care, its largest segment that houses Benadryl, Tylenol, and Pepcid, came in at $1.54 billion (€1.43 billion). Analysts on average expected the segment to record $1.63 billion (€1.52 billion) in sales.
The company forecast annual adjusted profit of $1.10 to $1.20 (€1.02 to €1.12) per share, compared with analysts estimates of $1.26 (€1.17).
However, fourth-quarter profit of 31 cents (€0.29) per share topped estimates of 28 cents (€0.26) on lower-than-expected taxes.
Kenvue made a provision of $30 million (€28 million) for taxes. An average of five analysts' estimates had expected $170 million (€158 million).
'A Transformational Year'
“2023 was a transformational year for Kenvue as we began delivering on our long-term value creation algorithm centered around profitable growth, durable cash flow generation and disciplined capital allocation,” said Thibaut Mongon, chief executive officer.
“We enter 2024 with clear strategic priorities as an independent Kenvue, including strengthened plans in our US skin health and beauty business. Looking ahead we’re focused on reaching more consumers, reinventing our ways of working to invest more in our brands, and fostering a culture that rewards performance and impact in our organisation.”
News by Reuters, additional reporting by ESM.
