Kenvue announced financial results for the fiscal third quarter which ended September 29, 2024.
Net sales in Q3 reached $3,899 million, a decrease of 0.4%, reflecting an organic growth of 0.9% and a foreign currency headwind of 1.3%. The volume decline was driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
Thibaut Mongon, Chief Executive Officer, said,
“During the third quarter, we continued to drive strong productivity and realize efficiency benefits from Our Vue Forward, which we are reinvesting behind our iconic brands to unleash the full potential of our business and fulfill our commitment to create long-term shareholder value. This reinvestment is enabling us to continue to drive share gains in Self Care, deliver broad-based growth across the Essential Health categories, and build the right foundation in Skin Health and Beauty, where we are seeing early signs of recovery.”
Self Care net sales reached $1,625 million, Skin Health and Beauty reached $1,072 million, and Essential Health net sales were $1,202 million.
The third quarter gross profit margin expanded 100 basis points to 58.5% from 57.5% in the prior year period. Adjusted gross profit margin expanded 130 basis points to 60.7% from 59.4% in the prior year period.
The year-over-year improvement in both measures primarily reflects productivity gains attributable to our global supply chain efficiency initiatives and benefits from value realization.
Q3 diluted earnings per share were $0.20 vs. $0.23 in the prior year period, and the adjusted diluted earnings per share1 were $0.28 vs. $0.31 in the prior year period.
For 2024, assuming an approximately 1% currency headwind, Kenvue 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.
Kenvue reaffirmed its outlook for adjusted diluted earnings per share in the range of $1.10-$1.20.
Net sales in Q3 reached $3,899 million, a decrease of 0.4%, reflecting an organic growth of 0.9% and a foreign currency headwind of 1.3%. The volume decline was driven primarily by Skin Health and Beauty and Self Care, partially offset by growth in Essential Health.
Thibaut Mongon, Chief Executive Officer, said,
“During the third quarter, we continued to drive strong productivity and realize efficiency benefits from Our Vue Forward, which we are reinvesting behind our iconic brands to unleash the full potential of our business and fulfill our commitment to create long-term shareholder value. This reinvestment is enabling us to continue to drive share gains in Self Care, deliver broad-based growth across the Essential Health categories, and build the right foundation in Skin Health and Beauty, where we are seeing early signs of recovery.”
Self Care net sales reached $1,625 million, Skin Health and Beauty reached $1,072 million, and Essential Health net sales were $1,202 million.
The third quarter gross profit margin expanded 100 basis points to 58.5% from 57.5% in the prior year period. Adjusted gross profit margin expanded 130 basis points to 60.7% from 59.4% in the prior year period.
The year-over-year improvement in both measures primarily reflects productivity gains attributable to our global supply chain efficiency initiatives and benefits from value realization.
Q3 diluted earnings per share were $0.20 vs. $0.23 in the prior year period, and the adjusted diluted earnings per share1 were $0.28 vs. $0.31 in the prior year period.
For 2024, assuming an approximately 1% currency headwind, Kenvue 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.
Kenvue reaffirmed its outlook for adjusted diluted earnings per share in the range of $1.10-$1.20.
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