Johnson & Johnson-Spinoff Kenvue Earnings Debut: Q2 Beats Consensus, Issues Upbeat Outlook

Johnson & Johnson's former consumer unit, Kenvue Inc KVUE, reported its first quarterly earnings after being spun off in May.

Q2 sales increased 5.4% Y/Y to $4.01 billion, a Y/Y increase of 5.4%, beating the consensus of $3.96 billion. Foreign currency fluctuations negatively impacted net sales by approximately 2.3%. Organic growth increased by 7.7%

Net sales at Kenvue's self-care business, which houses over-the-counter products or nonprescription medicines, jumped 12.2% due to increased demand from higher cough, cold, and flu cases.

Also Read: Kenvue's Growth Forecast: Exploring The Future Of Johnson & Johnson's Carve-Out.

The adjusted gross profit margin was 57.5% vs. 59.3% in 2022, dragged by a strong dollar and higher costs. Adjusted EBITDA margin was 24.5% vs. 26.8%.

Adjusted earnings per share was $0.32, beating the consensus of $0.30.

J&J, which owns about 90% of Kenvue's outstanding shares, said it intends to "split off" the shares through an exchange offer as the form of its next step in the separation, subject to market conditions.

Dividend: The company also declared a $0.20 cash dividend payable on September 7 with a record date of August 28.

Guidance: The company sees fiscal 2023 reported net sales growth of 4.5%-5.5%, with organic growth of 5.5% - 6.5%. It forecasts FY23 adjusted profit per share of $1.26 - $1.31 compared to the consensus of $1.23.

Price Action: KVUE shares are down 1.36% at $25.34 during the premarket session on the last check Thursday.

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Posted In: EarningsLarge CapNewsGuidanceHealth CareGeneralBriefs
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