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Kenvue beat quarterly profit and revenue estimates on Thursday as better-than-expected demand for cough-and-cold brands like Tylenol and Benadryl offset weaker sales in its skin-health and beauty segment, sending shares up nearly 5 percent in premarket trade.
However, the consumer health firm said it expects annual profit to remain flat year on year, anticipating higher costs from President Trump‘s tariffs on US imports.
The company had previously forecast adjusted profit to range between flat to a growth of 2 percent in 2025. It had earned $1.14 per share in the previous year.
Kenvue, spun off from Johnson & Johnson in 2023, has faced pressure from activist investors to boost performance, particularly at its struggling skin-health and beauty unit, which includes brands like Neutrogena and Aveeno.
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First-quarter sales at that segment fell 7.3 percent to $977 million, compared with analysts’ estimates of $1.09 billion.
Sales at self-care - its largest segment by revenue — came in at $1.67 billion. Analysts were expecting that segment to post $1.61 billion in sales.
On an adjusted basis, the company earned a profit of 24 cents per share for the reported quarter, compared with analysts’ average estimate of 23 cents per share, according to data compiled by LSEG.
Kenvue reached an agreement with activist investor Starboard Value earlier this year and added the firm’s founder and chief executive, Jeffrey Smith, to its board.
Separately, the company said on Thursday Kellanova’s Amit Banati will replace Paul Ruh as its chief financial officer, effective May 12.
Banati most recently served as the finance chief of Kellanova.
Quarterly revenue of $3.74 billion compared with estimates of $3.68 billion.
By Mariam Sunny; Edited by Nivedita Bhattacharjee and Pooja Desai
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Learn more:
Kenvue Settles Proxy Fight With Activist Starboard
The company appointed three new directors to its board, including Starboard Value CEO Jeffrey Smith, as part of an agreement to resolve a months-long dispute over the company’s performance in the skincare and beauty segment.
