The company (formerly Johnson & Johnson’s consumer health division) also issued an upbeat 2023 sales outlook.
Kenvue’s growth was fueled by strong demand for its many well-known brands such as Band-Aid, Tylenol, Listerine, Neutrogena and Aveeno.
“This quarter is yet another piece of evidence demonstrating the strength of our portfolio,” Kenvue Chief Executive Thibaut Mongon said on Thursday’s earnings call.
But J&J still owns 90% of Kenvue, which means it now has overall control over the direction of the spinoff. Johnson & Johnson will reduce its stake in Kenvue later this year.
Johnson & Johnson reported second-quarter earnings on Thursday, which included results from Kenvue.
Kenvue is like this result Compared with Wall Street expectations, according to a Refinitiv survey of analysts:
- EPS: Adjusted 32 cents vs. 30 cents expected
- income: $4.01 billion vs. $3.96 billion expected
Kenvue shares were flat in premarket trading Thursday. The stock has been struggling in the eyes of investors following a strong public market debut in May. question How much growth the company can achieve with its iconic brands when consumers spend less.
Kenvue’s stock has fallen more than 7 percent since its public market debut, bringing its market value down to about $47.9 billion.
Kenvue also initiated a quarterly cash dividend of about 20 cents per share for the third quarter on Thursday, due to be paid to shareholders on Sept. 7.
Unlike recent IPOs, Kenvue is already profitable.
The company reported second-quarter sales of $4.01 billion, up 5.4% from a year earlier. Kenvue said foreign exchange headwinds contributed to a roughly 2.3 percent decline in sales.
The company reported net income of $430 million, or 23 cents a share, compared with $604 million, or 35 cents a share, a year earlier. Excluding certain items, the company earned 32 cents a share on an adjusted basis.
Kenvue expects sales to grow 4.5% to 5.5% in 2023. After its initial public offering in April, Kenvue said it expects annual global sales growth of about 3% to 4% through 2025.
The company’s full-year adjusted profit forecast is $1.26 to $1.31 per share. Analysts polled by Refinitiv expected earnings of $1.23 a share.
The company reported second-quarter sales growth across three business segments.
Kenvue’s self-care unit, which includes eye care, cough, cold and vitamin products, had sales of $1.66 billion in the quarter. The figure was up 12.2 percent from a year ago due to higher demand due to higher cough, cold and flu cases.
Sales of skin health and beauty products were $1.15 billion, up 1.9% year-over-year. These products include shampoos, conditioners, hair loss treatments and skin care products.
Products in the Essential Health segment, which includes baby products, mouthwashes and rinses, sanitary protection and wound care, had net sales of $1.2 billion, up 0.5 percent from a year ago.
Kenvue’s IPO still leaves Johnson & Johnson liable for thousands of allegations that its talcum-based baby powder and other talc-based products cause cancer.
The products fall under the company’s consumer health business (now Kenvue), but the spinoff will only assume talc-related liabilities incurred outside of the U.S. and Canada. IPO filing from January.
Mongon told the Deutsche Bank Global Consumer Conference last month that there were only a “small number” of lawsuits outside the U.S. and Canada and “we are not considering substantive litigation at this stage.”