On October 26, 2023, Kenvue Inc (KVUE, Financial), the world's largest pure-play consumer health company by revenue, announced its financial results for the fiscal third quarter ended October 1, 2023. The company reported a 3.3% increase in net sales to $3.9 billion, with an organic growth of 3.6%.
Financial Performance
Net sales and organic growth were driven by a 7.1% value realization, partially offset by a 3.5% volume decline. The company attributed the volume decline to portfolio rationalization initiatives in 2022 and market softness in China. Despite these challenges, Kenvue Inc (KVUE, Financial) saw growth in its Self Care segment, with successful brand activation and innovation expanding usage occasions and driving volume growth across all product categories.
On a reported basis, the gross profit margin was 57.5% compared to 56.1% in the prior year period. The adjusted gross profit margin was 59.4% compared to 58.6% in the prior year period. The company's adjusted operating income margin was 23.3% compared to 24.5% in the prior year period.
Net Income and Earnings Per Share
Net income for the quarter was $438 million, down from $586 million in the same period last year. The reported diluted earnings per share was $0.23, while the adjusted diluted earnings per share was $0.31.
2023 Outlook
For fiscal 2023, Kenvue Inc (KVUE, Financial) expects adjusted diluted earnings per share to be in the range of $1.26 to $1.28. The company also tightened its net sales outlook, expecting fiscal 2023 reported net sales growth to be in the range of 4.0% to 4.5% and organic growth to be in the range of 5.5% to 6.0%.
Dividends and Share Repurchase Program
Kenvue Inc (KVUE, Financial) declared a quarterly cash dividend of $0.20 per share. The company's Board of Directors also authorized a share repurchase program, under which Kenvue is authorized to repurchase up to 27 million shares of its outstanding common stock in open market or privately negotiated transactions.
Despite the challenges faced, Kenvue Inc (KVUE, Financial) continues to demonstrate its commitment to delivering sustainable and profitable growth. The company's strong cash generation and leadership position in consumer health underline the robust foundation that it is building for long-term advantage.
Explore the complete 8-K earnings release (here) from Kenvue Inc for further details.
