Kenvue Inc. · NYSE:KVUE
Kenvue — Q1 2025 Earnings Presentation
33 slides from Kenvue's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Earnings Results
First Quarter 2025 Earnings Results May 8, 2025
Slide 2: Introduction
Introduction Thibaut Mongon Paul Ruh Sofya Tsinis Chief Executive Officer Chief Financial Officer Vice President of Investor Relations 3
Slide 3: Cautionary note on forward-looking statements
Cautionary note on forward-looking statements This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, p
Slide 4: Q1 2025 Overview
Q1 2025 Overview Delivered Q1 results while navigating dynamic Leveraged Kenvue’s Five Extraordinary Powers environment Q1 consumption outpaced Organic sales 1* across Completed exit of 2,300+ transition services all three segments Maintained Organic sales1 growth outlook for Consolidated U.S. offic
Slide 5: Q1 2025 By the Numbers
Q1 2025 By the Numbers (1.2)% y/y Organic sales1* 60.0% Adjusted gross profit margin1 $0.24 Adjusted diluted earnings per share1 On track to deliver $350M annualized Our Vue Forward savings by 2026 1 Non-GAAP financial meas ure; refer to reconciliations of non-GAAP financial meas ures included in ac
Slide 6: Q1 2025 Portfolio Performance
Q1 2025 Portfolio Performance Q1 2025 Q1 2025 Net Sales Organic Sales1* Takeaways • Consumption outpaced Organic sales1* across all segments due to destocking in Asia Total Kenvue $3.7B (1.2)% and strategic price investments in the U.S. • Driving share gains across the portfolio • Broad-based growth
Slide 7: Self Care
Self Care Driving share gains across the portfolio +0.3% Q1 Organic sales1* • Broad-based growth across Allergy, Digestive Health, and Smoking Cessation, offset decline in Cold, Cough and Flu • Expanding or maintaining market share across ~80% of the business, enhancing global leadership positions 1
Slide 8: Skin Health & Beauty
Skin Health & Beauty Building momentum in consumption, investing for H2 acceleration (4.8)% Q1 Organic sales1* • Strategic price investments and loss of club channel rotations in the U.S., destocking in China, and soft sun season in LATAM impacted sales • Strengthening consumption in the U.S. as str
Slide 9: Driving Stronger Consumption Performance in Q1
Driving Stronger Consumption Performance in Q1 Three priority platforms in U.S. Skin Health & Beauty returned to consumption growth in April Neutrogena Face Aveeno Body OGX Hair 0 L52 WK L26WK L13WK L4W K L52 WK L26WK L13WK L4W K L52 WK L26WK L13WK L4W K Source: Edge POS data through 4/27/25 10
Slide 10: Essential Health
Essential Health Continuing to drive innovation and consumption growth globally Flat Q1 Organic sales1* • Growth in Wound Care offset by declines in Women’s Health and Oral Care • Driving premiumization to gain distribution and increase household penetration • Bringing additional entry-price point o
Slide 11: Chief Financial Officer Transition
Chief Financial Officer Transition Amit Banati 30 years of experience in world’s most recognized global consumer products companies Proven track record of success in both financial and operational roles Successfully delivered profitable growth, executed enterprise-wide business transformations 12
Slide 12: Q1 2025 Financial Performance
Q1 2025 Financial Performance 13
Slide 13: Reported Net Sales & Organic Sales
Reported Net Sales & Organic Sales1* (1.2)% Organic Sales1 Decline in Q1 2025 $3.9B (0.3%) (0.9%) Key Driver (2.7%) $3.7B Consumption outpaced Organic sales1* across all segments due to destocking in Asia and strategic price investments in the U.S. Q1 2024 Value Volume Foreign Q1 2025 Net Sales Real
Slide 14: Self Care
Self Care Driving share gains across the portfolio $1.7B Net Sales Organic Sales1* Reported Value (1.8)% Realization2 Organic Volume Sales1 +0.3% 1 Non-GAAP financial meas ure; refer to reconciliations of non-GAAP financial meas ures included in accompanying s chedules to this pres entation and to t
Slide 15: Skin Health & Beauty
Skin Health & Beauty Building momentum in consumption, investing for H2 acceleration $1.0B Net Sales Organic Sales1* Reported Value (7.3)% Realization2 Organic Volume Sales1 (4.8)% 1 Non-GAAP financial meas ure; refer to reconciliations of non-GAAP financial meas ures included in accompanying s ched
Slide 16: Essential Health
Essential Health $1.1B Net Sales Organic Sales1* Reported Value (3.9)% Realization2 Organic Volume Sales1 Flat 1 Non-GAAP financial meas ure; refer to reconciliations of non-GAAP financial meas ures included in accompanying s chedules to this pres entation and to the earnings releas e available at i
Slide 17: Adjusted Gross Profit and Operating Income Margins
Adjusted Gross Profit and Operating Income Margins1 Q1 2024 Q1 2025 Key Drivers Adjusted Strong productivity and 60.2% -20 bps y/y 60.0% Gross continued supply chain Profit Margin1 efficiencies more than offset by volume deleverage, currency and inflationary headwinds, strategic price investments Ad
Slide 18: Q1 2025 Net Income and Diluted Earnings Per Share
Q1 2025 Net Income and Diluted Earnings Per Share Reported Net Income Adjusted Net Income 1 Diluted Earnings Per Share $547M $0.17 $465M Reported $322M $296M $0.24 Adjusted1 Q1 2024 Q1 2025 Q1 2024 Q1 2025 1 Non-GAAP financial meas ure; refer to reconciliations of non-GAAP financial meas ures includ
Slide 19: 2025 Outlook
2025 Outlook Current Prior Reported Net 1% - 3% • Assumes ~1% currency headwind (1)% - 1% Sales Growth Organic Sales1 2% - 4% 2% - 4% Growth Adjusted Operating Decline y/y • Updated for estimated impact of tariffs as of May 7, 2025 Expand y/y Income Margin1 Interest Expense, Net Flat y/y Flat y/y Ad
Slide 20: Q&A
Q&A Thibaut Mongon Paul Ruh Sofya Tsinis Chief Executive Officer Chief Financial Officer Vice President of Investor Relations 21
Slide 21: Kenvue
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Slide 22: Appendix
Appendix 23
Slide 23: Organic Sales Change (Non-GAAP)
Organic Sales Change (Non-GAAP) Fiscal Three Months Ended March 30, 2025 vs March 31, 2024 Organic sales change Reported Net Impact of foreign Acquisitions and Total Organic (Unaudited) sales change currency divestitures sales change Price/Mix(1) Volume Self Care (1.8) % (2.1) % — % 0.3 % 0.3 % — %
Slide 24: Total Segment Net Sales
Total Segment Net Sales Net Sales Fiscal Three Months Ended (Unaudited; Dollars in Millions) March 30, 2025 March 31, 2024 Self Care $ 1,667 $ 1,698 Skin Health and Beauty 977 1,054 Essential Health 1,097 1,142 Total segment net sales $ 3,741 $ 3,894 25
Slide 25: Total Segment Adjusted Operating Income
Total Segment Adjusted Operating Income Adjusted Operating Income Fiscal Three Months Ended (Unaudited; Dollars in Millions) March 30, 2025 March 31, 2024 Self Care Adjusted operating income $ 566 $ 601 Skin Health and Beauty Adjusted operating income 92 146 Essential Health Adjusted operating incom
Slide 26: Non-GAAP Reconciliations (Q1'2025)
Non-GAAP Reconciliations (Q1’2025) Fiscal Three Months Ended March 30, 2025 As Adjusted (Unaudited; Dollars in Millions) As Reported Adjustments Reference (Non-GAAP) Net sales $ 3,741 — $ 3,741 Gross profit $ 2,168 77 (a) $ 2,245 Gross profit margin 58.0 % 60.0 % Operating income $ 558 183 (a)-(c) $
Slide 27: Non-GAAP Reconciliations (Q1'2024)
Non-GAAP Reconciliations (Q1’2024) Fiscal Three Months Ended March 31, 2024 As Adjusted (Unaudited; Dollars in Millions) As Reported Adjustments Reference (Non-GAAP) Net sales $ 3,894 — $ 3,894 Gross profit $ 2,242 103 (a) $ 2,345 Gross profit margin 57.6 % 60.2 % Operating income $ 550 305 (a)-(d)
Slide 28: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Fiscal Three Months Ended (Unaudited) March 30, 2025 March 31, 2024 Effective tax rate 29.7 % 30.7 % Adjustments: Tax-effect on special item adjustments (2.4) (3.1) Taxes related to Deferred Markets 0.2 0.7 Adjusted Effective tax rate (non-GAAP) 27.5 % 28.3 % 29
Slide 29: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Fiscal Year 2025 (Unaudited) Forecast Effective tax rate 28.5% - 29.5% Adjustments: Tax-effect on special item adjustments (3.2) Taxes related to Deferred Markets 0.2 Adjusted Effective tax rate (non-GAAP) 25.5% - 26.5% 30
Slide 30: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Fiscal Three Months Ended (Unaudited) March 30, 2025 March 31, 2024 Diluted earnings per share $ 0.17 $ 0.15 Adjustments: Separation-related costs 0.02 0.03 Restructuring expenses and operating model optimization initiatives 0.03 0.03 Impairment charges — 0.04 Amo
Slide 31: Research and Development
Research and Development Fiscal Three Months Ended (Unaudited; Dollars in Millions) March 30, 2025 March 31, 2024 Research & Development $ 99 $ 100 32
Slide 32: 2025 Guidance Non-GAAP Reconciliations
2025 Guidance Non-GAAP Reconciliations Kenvue is not able to provide the most directly comparable GAAP measures or reconcile Adjusted diluted earnings per share or Adjusted operating income to comparable GAAP measures on a forward-looking basis without unreasonable efforts given the unpredictability
Slide 33: Kenvue
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