Neutrogena-Maker Kenvue Beats Profit Forecast, Ups Sales Outlook

Vandana Singh

Thu, May 8, 2025, 11:35 AM 3 min read

Consumer wellness company Kenvue Inc. (NYSE:KVUE) connected Thursday reported first-quarter 2025 income of $3.74 billion, beating the consensus of $3.68 billion.

• Sales decreased 3.9% twelvemonth implicit year, reflecting a 1.2% integrated income diminution and a 2.7% overseas currency headwind.

• The integrated income diminution was driven by 0.3% unfavorable worth realization, reflecting planned strategical terms investments, and a 0.9% measurement decline.

Some of Kenvue's astir iconic brands see Aveeno, BAND-AID Brand, Johnson’s, Listerine, Neutrogena, and Tylenol.

Gross nett borderline was 58.0% vs. 57.6% a twelvemonth ago. Adjusted gross nett margin contracted 20 ground points vs. the anterior twelvemonth play to 60%.

Also Read: What Is The Tariff Risk For Procter & Gamble? Analyst Calculates, Trims Outlook

Operating income borderline was 14.9% vs. 14.1%. Adjusted operating income margin was 19.8% vs. 22.0% successful the anterior twelvemonth period.

The self-care conception recorded $1.67 cardinal successful nett sales, astir level twelvemonth implicit year. The tegument wellness and quality conception recorded a 7% driblet successful first-quarter nett income to $977 million. Essential Health conception income decreased astir 4% to $1.09 billion.

“In Q1, our teams executed our plans portion continuing to navigate an evolving macro and user environment,” said Thibaut Mongon, CEO. “We are committed and focused connected activating our brands portion staying agile and flexible to accelerate sustainable, profitable growth.”

Guidance: Kenvue updated its fiscal 2025 outlook to bespeak existent overseas speech rates and the estimated interaction of higher costs owed to tariffs. The institution expects:

• Net income summation of +1% to +3% (-1% to +1% prior) year-over-year, with integrated income maturation of +2% to +4 (unchanged) and a ~1% headwind from overseas currency translation (earlier expected astir 3%).

• Adjusted operating income borderline is expected to diminution twelvemonth implicit year, reflecting the estimated interaction of tariffs. Earlier, the institution expected betterment twelvemonth implicit year.

• Adjusted diluted net per stock are expected to beryllium astir level twelvemonth implicit year, including a low-single-digit antagonistic interaction from overseas currency. In February, Kenvue expected level to +2% year-over-year Adjusted diluted net per stock growth, including a mid-single-digit unfavorable impact from overseas currency.

The institution is moving to trim tariffs’ fiscal interaction done respective mitigation actions.

On Thursday, Kenvue appointed Amit Banati as the company’s CFO, effectual May 12, 2025. Mr. Banati volition succeed Paul Ruh.

In April, Kenvue announced a five-year collaboration with Microsoft to found a beardown instauration for transforming integer operations done precocious Artificial Intelligence (AI) technologies.