Kenvue Q2 2023 Earnings Report
Key Takeaways
Kenvue's second quarter results showed a 5.4% increase in net sales to $4.0 billion, with organic growth of 7.7%. The company reported EPS of $0.23 and adjusted EPS of $0.32. Kenvue also initiated a quarterly cash dividend.
Net sales increased by 5.4% to $4.0 billion compared to the prior year period.
Organic growth increased by 7.7%, driven by value realization and increased demand in Pain Care and Cough, Cold and Flu categories.
Reported EPS was $0.23, and adjusted EPS was $0.32.
The Board of Directors declared a $0.20 cash dividend for the third quarter.
Kenvue
Kenvue
Kenvue Revenue by Segment
Kenvue Revenue by Geographic Location
Forward Guidance
Kenvue expects fiscal 2023 reported Net sales growth to be in the range of 4.5 to 5.5 percent and Organic growth in the range of 5.5 to 6.5 percent. Adjusted earnings per share to be in the range of $1.26 - $1.31.
Positive Outlook
- Net sales growth to be in the range of 4.5 to 5.5 percent.
- Organic growth in the range of 5.5 to 6.5 percent.
- Adjusted interest expense, net is expected to be approximately $300 million.
- Adjusted effective tax rate between 24.5% - 25.5%.
- Adjusted earnings per share to be in the range of $1.26 - $1.31.
Challenges Ahead
- Foreign exchange is expected to be a headwind of approximately one percentage point to reported Net sales growth.
- Reported Interest expense, net to be approximately $270 million.
- The reported effective tax rate to be between 34.5% - 35.5%.
- Unpredictability of the timing and amounts of discrete items such as acquisitions, divestitures or the impact of stock-based compensation transferring from Johnson & Johnson upon separation, which could significantly impact GAAP results.
- High cold and flu incidence rates which benefited the Self Care portfolio through the first half of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income