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Dec 31, 2023

Kenvue Q4 2023 Earnings Report

Kenvue's Q4 2023 results were announced, with net sales decreasing by (2.7)% and diluted earnings per share at $0.17.

Key Takeaways

Kenvue reported a decrease in net sales by (2.7)% to $3.7 billion with organic growth declining by (2.4)% in Q4 2023. Diluted earnings per share stood at $0.17, while adjusted diluted earnings per share was $0.31.

Net sales decreased by (2.7)% to $3.7 billion with organic growth declining by (2.4)%.

Diluted earnings per share was $0.17; adjusted diluted earnings per share was $0.31.

Gross profit margin increased to 55.7% compared to 54.3% in the prior year period.

Adjusted operating income margin was 21.8% versus 19.9% in the prior year period.

Total Revenue
$3.67B
Previous year: $15.1B
-75.6%
EPS
$0.31
Previous year: $1.21
-74.4%
Organic Revenue Growth
-2.4%
Previous year: 6.2%
-138.7%
Organic Price/Mix Growth
5.8%
Organic Volume Growth
-8.2%
Gross Profit
$2.04B
Previous year: $8.42B
-75.7%
Cash and Equivalents
$1.4B
Previous year: $740M
+89.2%
Free Cash Flow
$2.7B
Previous year: $39M
+6823.1%
Total Assets
$27.9B

Kenvue

Kenvue

Kenvue Revenue by Segment

Forward Guidance

Kenvue expects full year 2024 reported Net sales growth to be in the range of 1.0%to 3.0%.

Positive Outlook

  • Net sales growth to be in the range of 1.0%to 3.0%.
  • Foreign exchange is expected to be a headwind of approximately one percentage point to reported Net sales growth.
  • Organic growth in the range of 2.0% to 4.0% with Organic growth sequentially improving as the year progresses as prior year comparisons ease
  • Impact of 2024 strategic priorities take hold
  • Adjusted diluted earnings per share to be in the range of $1.10 - $1.20.

Challenges Ahead

  • Potential for a continued challenging macro-back drop
  • Possibility for unknowns in seasonal businesses
  • Adjusted operating income margin to be slightly below 2023
  • Impact of absorbing a full year of public company costs
  • 50 basis points of foreign currency headwinds

Revenue & Expenses

Visualization of income flow from segment revenue to net income