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Oct 01, 2023
Kenvue Q3 2023 Earnings Report
Kenvue reported healthy third quarter results, with net sales increasing and organic growth driven by self-care segment.
Key Takeaways
Kenvue reported a 3.3% increase in net sales to $3.9 billion and a 3.6% increase in organic growth for the third quarter of 2023. The company's performance was driven by strength in the Self Care segment, while facing challenges from portfolio rationalization and market softness in China. The company has tightened its full year outlook due to foreign exchange headwinds and a slow start to the cough, cold, and flu season.
Net sales increased by 3.3% to $3.9 billion, with organic growth of 3.6%.
Reported diluted EPS was $0.23, and adjusted diluted EPS was $0.31.
Gross profit margin was 57.5%, and adjusted gross profit margin was 59.4%.
The Board of Directors declared a $0.20 cash dividend per share payable in the fourth quarter and authorized a share repurchase program.
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 tightened its net sales outlook expecting fiscal 2023 reported Net sales growth to be in the range of 4.0% to 4.5% and Organic growth to be in the range of 5.5% to 6.0%.Kenvue expects fiscal 2023 Adjusted diluted earnings per share to be in the range of $1.26 to $1.28.
Positive Outlook
- Expecting fiscal 2023 reported Net sales growth to be in the range of 4.0% to 4.5%.
- Expecting Organic growth to be in the range of 5.5% to 6.0%.
- Adjusted interest expense, net to be approximately $300 million.
- Kenvue expects reported Effective tax rate to be between 25.5% to 26.5%.
- Adjusted diluted earnings per share to be in the range of $1.26 to $1.28.
Challenges Ahead
- Foreign exchange is now expected to be a headwind to reported Net sales growth of approximately one to two percentage points.
- Reflecting a softer than anticipated start to the cough, cold and flu season.
- Increased foreign exchange headwinds vs prior outlook.
- full year 2023 diluted weighted average share count of 1.852 billion.
- Kenvue is not able to provide GAAP measures or reconcile certain non-GAAP financial measures, other than Adjusted interest expense, net, to comparable GAAP measures on a forward-looking basis without unreasonable efforts given the unpredictability of the timing and amounts of discrete items such as acquisitions or divestitures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income