Kenvue Inc. · NYSE:KVUE
Kenvue — Q4 2024 Earnings Presentation
38 slides from Kenvue's earnings presentation, Feb 6, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Results
Fourth Quarter and Full Year 2024 Earnings Results February 6, 2025 1
Slide 2: Introduction
Introduction Thibaut Mongon Paul Ruh Sofya Tsinis Chief Executive Officer Chief Financial Officer Vice President of Investor Relations 2
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: FY 2024 By the Numbers
FY 2024 By the Numbers +1.5% y/y Organic sales1 growth 60.4% Adjusted gross profit margin1, +200bps vs. PY +~20% brand activation investment vs. PY On track to deliver $350M of annualized Our Vue Forward savings by 2026 $1.14 Adjusted diluted earnings per share1, within guidance range 1 Non-GAAP fin
Slide 5: Reach More Consumers
Reach More Consumers 2024 Progress • Strengthened presence and Self Care strengthened leadership positions and prominence in store and online gained share across categories • Launched impactful innovation Essential Health grew mid-single digits and delivered FY volume growth in NA, EMEA, and LATAM •
Slide 6: Free Up Resources to Invest in Our Brands
Free Up Resources to Invest in Our Brands 2024 Progress Continued gross margin Successful execution of Increased and more expansion through strong Our Vue Forward in Year 1; impactful brand investment productivity enhancements on track for $350M in annualized savings by 2026 6
Slide 7: Foster New Culture of Performance and Impact
Foster New Culture of Performance and Impact 2024 Progress Introduced new performance Added new talent to elevate Enhanced our and incentive model directly capabilities and expertise Operating Model tied to business outcomes 7
Slide 8: Q4 2024 Portfolio Performance
Q4 2024 Portfolio Performance Q4 2024 Q4 2024 Net sales Organic sales1* Takeaways • December delivery impacted by Pediatric Pain and temporary Total Kenvue $3.7B +1.7% go-to-market disruption in APAC • Strong growth outside of double-digit decline in Pediatric Pain Self Care $1.6B +2.9% • Broad-base
Slide 9: Self Care
Self Care Continued share gains +2.9% Key Highlights Q4 Organic sales1* • Strong growth outside of double-digit decline in Pediatric Pain • Broad-based share gains 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules to this present
Slide 10: Essential Health
Essential Health Continuing to drive innovation, with Q4 results disrupted by APAC (0.7)% Key Highlights Q4 Organic sales1* • Temporary go-to-market disruption in APAC • Healthy mid-single-digit growth rate and third consecutive quarter of innovation-led volume growth, outside of APAC 1 Non-GAAP fin
Slide 11: Skin Health & Beauty
Skin Health & Beauty Strong results in EMEA and LATAM, improvements in U.S. +2.6% Key Highlights Q4 Organic sales1* • Volume-led double-digit growth in EMEA and LATAM • Seeing improvements in U.S. focus areas 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures inclu
Slide 12: Considerations for 2025
Considerations for 2025 Next chapter centered on accelerating profitable growth +2-4% Benefits from 2024 Structural Changes Strong Segment Growth Plans Phasing Reflects Discrete Impacts in H1 Expected 2025 Organic sales1 growth • More effective • Plan to launch 40% • Destocking in Self Care • Weight
Slide 13: Q4 & FY 2024 Financial Results
Q4 & FY 2024 Financial Results 13
Slide 14: Q4 and FY 2024 Reported Net & Organic Sales Growth
Q4 and FY 2024 Reported Net & Organic Sales1 Growth Q4 +1.7% Organic Sales1 in Q4 2024 Key Drivers 2024 $3.7B 1.0% 0.7% $3.7B December delivery impacted by Pediatric Pain and go-to- market disruption in APAC (1.8%) Value realization2 across all segments Q4 2023 Value Volume Foreign Q4 2024 Net Sales
Slide 15: Self Care
Self Care Continued share gains $1.6B Q4 2024 Net Sales Organic Sales1 Q4 FY Q4 FY Reported +2.1% +1.2% Value +1.2% +2.5% Realization2 Organic Sales1 Volume +2.9% +1.9% +1.7% (0.6)% 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedul
Slide 16: Skin Health & Beauty
Skin Health & Beauty Strong results in EMEA and LATAM, improvements in U.S. $1.0B Q4 2024 Net Sales Organic Sales1 Q4 FY Q4 FY Reported +1.0% (3.2)% Value +0.5% +1.6% Realization2 Organic Sales1 Volume +2.6% (1.9)% +2.1% (3.5)% 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP finan
Slide 17: Essential Health
Essential Health Continuing to drive innovation, with Q4 results disrupted by APAC $1.1B Q4 2024 Net Sales Organic Sales1 Q4 FY Q4 FY Reported (4.1)% +1.6% Value +1.2% +3.9% Realization2 Organic Sales1 Volume (0.7)% +4.1% (1.9)% +0.2% 1 Non-GAAP financial measure; refer to reconciliations of non-GAA
Slide 18: Q4 & FY Adjusted Gross Profit and Operating Income Margin
Q4 & FY Adjusted Gross Profit1 and Operating Income Margin1 Q4 2024 Full Year 2024 Key Drivers Adjusted Adjusted Gross 60.4% Gross Margin1 % benefiting -80 bps y/y +200 bps y/y Profit 59.5% from productivity Margin1 58.7% gains, supply chain 58.4% management FY Adjusted Operating Income Margin1 % in
Slide 19: Q4 & FY 2024 Net Income and Diluted Earnings Per Share
Q4 & FY 2024 Net Income and Diluted Earnings Per Share Q4 Reported Net Income, in millions Adjusted Net Income1, in millions Earnings per Share $586 $327 $293 $499 Reported Diluted $0.15 Adjusted Diluted1 $0.26 Q4 2023 Q4 2024 Q4 2023 Q4 2024 FY Reported Net Income, in millions Adjusted Net Income1,
Slide 20: 2025 Guidance
2025 Guidance Full Year 2025 Reported Net (1)% - 1% • Includes 3% currency headwind Sales Growth Organic 2% - 4% • Q1 LSD decline given lingering late-2024 headwinds and value investments Sales1 Growth Adjusted • Efficiency and productivity gains offsetting inflation, currency, and funding Expand y/
Slide 21: Q&A
Q&A 21
Slide 22: Kenvue
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Slide 23: Appendix
Appendix 23
Slide 24: Organic Sales Change (Q4)
Organic Sales Change Fiscal Three Months Ended December 29, 2024 vs December 31, 2023(1) Reported Net sales change Impact of foreign currency Organic sales change (Unaudited; Dollars in Millions) Amount Percent Amount Amount Percent Self Care $ 32 2.1 % $ (12) $ 44 2.9 % Skin Health and Beauty 10 1.
Slide 25: Organic Sales Change (FY)
Organic Sales Change Fiscal Twelve Months Ended December 29, 2024 vs December 31, 2023(1) Reported Net sales change Impact of foreign currency Organic sales change (Unaudited; Dollars in Millions) Amount Percent Amount Amount Percent Self Care $ 76 1.2 % $ (44) $ 120 1.9 % Skin Health and Beauty (13
Slide 26: Total Segment Net Sales
Total Segment Net Sales Net Sales Net Sales Fiscal Three Months Ended Fiscal Twelve Months Ended (Unaudited; Dollars in Millions) December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Self Care 1,569 1,537 6,527 6,451 Skin Health and Beauty 1,011 1,001 4,240 4,378 Essential Health
Slide 27: Total Segment Adjusted Operating Income
Total Segment Adjusted Operating Income Adjusted Operating Income Adjusted Operating Income Fiscal Three Months Ended Fiscal Twelve Months Ended (Unaudited; Dollars in Millions) December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Self Care Adjusted operating income 481 537 2,173
Slide 28: Non-GAAP Reconciliations (Q4 2024)
Non-GAAP Reconciliations (Q4 2024) Fiscal Three Months Ended December 29, 2024 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 3,662 — $ 3,662 Gross profit $ 2,070 81 (a) $ 2,151 Gross profit margin 56.5 % 58.7 % Operating income $ 483 219 (a)-(c) $ 702 Ope
Slide 29: Non-GAAP Reconciliations (Q4 2023)
Non-GAAP Reconciliations (Q4 2023) Fiscal Three Months Ended December 31, 2023 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 3,666 — $ 3,666 Gross profit $ 2,043 139 (a) $ 2,182 Gross profit margin 55.7 % 59.5 % Operating income $ 460 339 (a)-(c) $ 799 Op
Slide 30: Non-GAAP Reconciliations (FY 2024)
Non-GAAP Reconciliations (FY 2024) Fiscal Twelve Months Ended December 29, 2024 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 15,455 — $ 15,455 Gross profit $ 8,959 369 (a) $ 9,328 Gross profit margin 58.0 % 60.4 % Operating income $ 1,841 1,487 (a)-(d) $
Slide 31: Non-GAAP Reconciliations (FY 2023)
Non-GAAP Reconciliations (FY 2023) Fiscal Twelve Months Ended December 31, 2023 (Unaudited; Dollars in Millions) As Reported Adjustments Reference As Adjusted Net sales $ 15,444 — $ 15,444 Gross profit $ 8,643 375 (a) $ 9,018 Gross profit margin 56.0 % 58.4 % Operating income $ 2,512 945 (a)-(c) $ 3
Slide 32: Adjusted Effective Tax Rate
Adjusted Effective Tax Rate Fiscal Three Months Ended Fiscal Twelve Months Ended (Unaudited) December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Effective tax rate 15.3 % 8.4 % 27.2 % 24.0 % Adjustments: Tax-effect on special item adjustments 1.7 7.9 (2.6) (1.0) Dr.Ci:Labo® Impai
Slide 33: Adjusted Effective Tax Rate (FY 2025)
Adjusted Effective Tax Rate Fiscal Year 2025 (Unaudited) Forecast Effective tax rate 28.0% - 29.0% Adjustments: Tax-effect on special item adjustments (3.2) Taxes related to Deferred Markets 0.7 Other — Adjusted Effective tax rate (non-GAAP) 25.5% - 26.5% 33
Slide 34: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share Fiscal Three Months Ended Fiscal Twelve Months Ended December 29, December 31, December 29, December 31, (Unaudited) 2024 2023 2024 2023 Diluted earnings per share $ 0.15 $ 0.17 $ 0.54 $ 0.90 Adjustments: Separation-related costs 0.03 0.07 0.15 0.25 Conversion of
Slide 35: Free Cash Flow
Free Cash Flow Fiscal Twelve Months Ended (Unaudited; Dollars in Billions) December 29, 2024 December 31, 2023 Net cash flows from operating activities $ 1.7 $ 3.2 Purchases of property, plant, and equipment (0.4) (0.5) Free cash flow (non-GAAP) $ 1.3 $ 2.7 35
Slide 36: 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 37: Research and Development
Research and Development Fiscal Three Months Ended Fiscal Twelve Months Ended (Unaudited; Dollars in Millions) December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 Research & Development $ 106 $ 133 $ 408 $ 399 37
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