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Mar 30
Kenvue Q1 2025 Earnings Report
Kenvue reported a decrease in net sales and organic growth during Q1 2025, but saw modest gains in EPS and maintained strong margin performance amid tariff and currency headwinds.
Key Takeaways
Kenvue faced a 3.9% drop in net sales in Q1 2025, primarily due to a 2.7% foreign exchange impact and a 1.2% organic sales decline. Despite these challenges, the company improved its gross profit margin to 58.0%, increased operating income, and achieved higher diluted EPS year-over-year. The adjusted EPS and margins, however, declined slightly. Kenvue updated its FY2025 outlook to reflect tariff and currency pressures.
Net sales declined 3.9% year-over-year to $3.741 billion, with a 1.2% drop in organic sales.
Diluted EPS increased to $0.17 from $0.15 in Q1 2024; adjusted EPS declined to $0.24 from $0.28.
Gross profit margin improved to 58.0%, while adjusted operating income margin fell to 19.8%.
Free cash flow grew to $200 million from $100 million a year earlier.
Kenvue
Kenvue
Kenvue Revenue by Segment
Kenvue Revenue by Geographic Location
Revenue by Segment
Self Care Revenue
CapyFin.comSkin Health and Beauty Revenue
CapyFin.comEssential Health Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comLatin America Revenue
CapyFin.com Forward Guidance
Kenvue expects net sales to increase 1% to 3% for FY2025, with organic sales growth of 2% to 4%, but anticipates margin pressure from tariffs and currency headwinds.
Positive Outlook
- Maintained organic sales growth guidance of 2% to 4%.
- Mitigation plans in place to offset tariff costs.
- Strong brand investments underway.
- Continued focus on supply chain optimization.
- Cash flow generation remains solid.
Challenges Ahead
- Tariff costs are expected to weigh on margins.
- Foreign currency headwinds anticipated at ~1%.
- Adjusted operating income margin expected to decline YoY.
- Adjusted EPS forecast to remain roughly flat.
- No updated GAAP guidance due to forecast complexity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income