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Sep 29, 2024

Kenvue Q3 2024 Earnings Report

Kenvue's Q3 2024 earnings were reported, revealing a slight decrease in net sales but growth in organic sales, driven by value realization. Increased marketing investment, fueled by gross profit margin expansion and savings, impacted EPS, while the company reaffirms its adjusted EPS outlook for 2024.

Key Takeaways

Kenvue reported a slight decrease in net sales of 0.4% to $3.9 billion, but organic growth increased by 0.9%. The company's diluted EPS was $0.20, and adjusted diluted EPS was $0.28. They are reaffirming their outlook for Adjusted diluted earnings per share in the range of $1.10-$1.20.

Net sales decreased 0.4% to $3.9 billion; organic growth was 0.9%.

Gross profit margin expanded, and savings fueled increased marketing investment.

Diluted EPS was $0.20; adjusted diluted EPS was $0.28.

The company expects Net sales growth and Organic growth toward the low end of its outlook of 1.0%-3.0% and 2.0%-4.0%, respectively.

Total Revenue
$3.9B
Previous year: $3.92B
-0.4%
EPS
$0.28
Previous year: $0.31
-9.7%
Organic Revenue Growth
0.9%
Previous year: 3.6%
-75.0%
Organic Price/Mix Growth
2.5%
Previous year: 7.1%
-64.8%
Organic Volume Growth
-1.6%
Previous year: -3.5%
-54.3%
Gross Profit
$2.28B
Previous year: $2.25B
+1.4%
Cash and Equivalents
$1.1B
Previous year: $1.1B
+0.0%
Free Cash Flow
$700M
Previous year: $560M
+25.0%
Total Assets
$26.9B
Previous year: $27.1B
-0.6%

Kenvue

Kenvue

Kenvue Revenue by Segment

Kenvue Revenue by Geographic Location

Forward Guidance

For 2024, assuming an approximately 1% currency headwind, the Company expects Net sales growth and Organic growth toward the low end of its outlook of 1.0%-3.0% and 2.0%-4.0%, respectively. The Company reaffirms its outlook for Adjusted diluted earnings per share in the range of $1.10-$1.20, which continues to reflect strong productivity and efficiency gains that are funding sustained incremental investment in brand activation.

Positive Outlook

  • Strong productivity
  • Efficiency gains
  • Sustained incremental investment in brand activation.
  • Adjusted diluted earnings per share in the range of $1.10-$1.20
  • Savings from Our Vue Forward

Challenges Ahead

  • Approximately 1% currency headwind
  • Net sales growth toward the low end of its outlook of 1.0%-3.0%
  • Organic growth toward the low end of its outlook of 2.0%-4.0%
  • Increased brand investment
  • Increased tax rate

Revenue & Expenses

Visualization of income flow from segment revenue to net income