NYSE$KVUE

Kenvue Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Kenvue reported healthy third quarter results, with net sales increasing and organic growth driven by self-care segment.

Kenvue reported a 3.3% increase in net sales to $3.9 billion and a 3.6% increase in organic growth for the third quarter of 2023. The company's performance was driven by strength in the Self Care segment, while facing challenges from portfolio rationalization and market softness in China. The company has tightened its full year outlook due to foreign exchange headwinds and a slow start to the cough, cold, and flu season.

  • Net sales increased by 3.3% to $3.9 billion, with organic growth of 3.6%.
  • Reported diluted EPS was $0.23, and adjusted diluted EPS was $0.31.
  • Gross profit margin was 57.5%, and adjusted gross profit margin was 59.4%.
  • The Board of Directors declared a $0.20 cash dividend per share payable in the fourth quarter and authorized a share repurchase program.

Headline financials

Total Revenue

$3.82B

Previous: $3.79B+0.7%
EPS (adj)

$0.31

Previous: $0.34-9.2%
Organic Sales Growth

3.6%

No prior period
Organic Volume Growth

-3.5%

No prior period
Organic Price/Mix Growth

7.1%

No prior period
Capital Expenditures

-$246M

No prior period
Free Cash Flow

$192M

No prior period
Net Income

$438M

Previous: $586M-25.3%
Operating Income

$710M

Previous: $805M-11.8%
Gross Profit

$2.25B

Previous: $2.13B+5.9%
Cash & Equivalents

$1.06B

No prior period
Total Assets

$27.1B

No prior period
Stock-Based Comp

$2M

No prior period

Revenue & EPS history

Kenvue · Revenue · Quarterly

$3.82B

Q3 2023+0.7%vs Q3 2022
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Kenvue · $3.92B total across 3 segments · Q3 2023

  • Self Care
    $1.61B+6.4%
  • Essential Health
    $1.18B+3.0%
  • Skin Health & Beauty
    $1.12B-0.4%

Forward guidance

Kenvue tightened its net sales outlook expecting fiscal 2023 reported Net sales growth to be in the range of 4.0% to 4.5% and Organic growth to be in the range of 5.5% to 6.0%.Kenvue expects fiscal 2023 Adjusted diluted earnings per share to be in the range of $1.26 to $1.28.

Tailwinds

  • Expecting fiscal 2023 reported Net sales growth to be in the range of 4.0% to 4.5%.
  • Expecting Organic growth to be in the range of 5.5% to 6.0%.
  • Adjusted interest expense, net to be approximately $300 million.
  • Kenvue expects reported Effective tax rate to be between 25.5% to 26.5%.
  • Adjusted diluted earnings per share to be in the range of $1.26 to $1.28.

Headwinds

  • Foreign exchange is now expected to be a headwind to reported Net sales growth of approximately one to two percentage points.
  • Reflecting a softer than anticipated start to the cough, cold and flu season.
  • Increased foreign exchange headwinds vs prior outlook.
  • full year 2023 diluted weighted average share count of 1.852 billion.
  • Kenvue is not able to provide GAAP measures or reconcile certain non-GAAP financial measures, other than Adjusted interest expense, net, to comparable GAAP measures on a forward-looking basis without unreasonable efforts given the unpredictability of the timing and amounts of discrete items such as acquisitions or divestitures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+2.0%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+2.8%

Avg return

30 days after

57%

8 / 14 earnings

Positive

+15.7%

Q3 2025

Best reaction

-7.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%-1.2%+0.2%
Q4 2025+0.9%+2.9%-5.5%
Q3 2025+15.7%+17.5%+18.1%
Q2 2025+1.5%+2.1%-13.2%
Q1 2025+4.3%+2.4%-6.0%
Q4 2024-4.5%+0.8%+12.9%
Q3 2024+5.2%+5.1%+1.5%
Q2 2024+13.4%+15.6%+23.7%
Q1 2024+7.2%+7.7%-2.4%
Q4 2022-0.2%+3.1%+12.9%
Q4 2023-5.8%-6.2%-2.4%
Q3 2023-7.7%-5.7%+2.6%
Q2 2023-4.0%+0.5%-8.5%
Q1 2023-0.5%-0.8%+4.5%
Q3 2022
Q2 2022
Q1 2022
Q4 2021

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