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Kenvue Beats Q1 Targets As Kimberly-Clark Takeover Advances

Foreign approvals still pending on the $40 billion deal keep investor focus on timing over guidance.

The company logo for Kenvue Inc. Johnson & Johnson's consumer-health business, is displayed on during the company's IPO at the New York Stock Exchange (NYSE) in New York City, U.S., May 4, 2023.  REUTERS/Brendan McDermid/File Photo

Overview

  • Kenvue, which reported results Thursday, posted adjusted earnings of 32 cents a share and $3.91 billion in sales, both above Wall Street estimates.
  • The Skin Health and Beauty unit, home to Neutrogena and Aveeno, led growth with sales up 8.4% to $1.06 billion.
  • Profitability improved as adjusted gross margin rose 80 basis points to 60.8% and operating margin reached 24.0% on supply-chain gains and pricing.
  • Management expects about $250 million in pre-tax restructuring charges this year tied to its transformation plans.
  • The company withheld guidance because it is being bought by Kimberly-Clark for $40 billion, with closing targeted for the second half of 2026 subject to foreign regulatory approvals.