Kenvue Inc has reported a strong set of maiden results following its spin-out from Johnson & Johnson (NYSE:JNJ) earlier this year.
The consumer health company, whose brands include Aveeno, BAND-AID, Johnson’s, Listerine, Neutrogena and Tylenol, reported a 5.4% increase in net sales for the three months to June 30, 2023. Excluding foreign currency fluctuations, it said organic growth was up 7.7%.
The company attributed the gains to increased demand across its Pain Care and Cough, Cold and Flu product categories resulting from higher cold and flu incidences, as well as share gains in sun care fueled by innovation and improved supply.
Adjusted earnings per share (EPS) came in at $0.32 and it declared a maiden dividend of $0.20 for the third quarter.
“Our second quarter results mark a strong debut for Kenvue, reflecting the strength of our portfolio of iconic brands, the agility of our operating model and the strong execution of our 22,000 team members while navigating a dynamic environment,” CEO Thibaut Mongon said in a statement.
“We are proud to have recently completed our initial public offering, and we look forward to continuing to drive sustained value creation and to helping people around the world to realize the extraordinary power of everyday care.”
The company has guided for full-year 2023 net sales to be 4.5% to 5.5% up from 2022, with adjusted EPS in a range of $1.26 to $1.31, above the $1.23 pencilled in by analysts, according to Refinitiv data.
Earlier, J&J reported 2Q earnings that beat expectations and raised its full-year guidance.
Kenvue’s shares were down 4% at $24.02 shortly before midday in New York. J&J’s shares had risen 6% to $168.12.
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