Q2 2024 Kenvue Inc Earnings Call Transcript
Key Points
- Kenvue Inc (KVUE) achieved year-over-year organic growth of 1.5% on top of 7.7% organic growth last year.
- Adjusted gross profit margin increased by 410 basis points to 61.6%.
- The company is on track to deliver its financial goals for 2024, including an expected 150 basis points of adjusted gross profit margin expansion.
- Significant progress in productivity and cost reduction efforts, providing strategic flexibility.
- Increased investment in brands by approximately 20% compared to last year, focusing on high-yield strategies.
- Skin health and beauty segment saw a 2.4% decline in organic growth year-over-year.
- Volume was down 0.6% year-over-year, with low single-digit volume declines in both self-care and skin health and beauty segments.
- The company incurred a non-cash after-tax charge of $337 million due to impairment of assets related to the Dr.Ci:Labo business.
- Retail destocking in the US impacted the first half of the year.
- The company expects lower gross margins in the back half of the year due to annual plant maintenance and lower commodity inflation benefits.
Hello, and welcome to the Kenvue second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Giannakouros, Interim Head of Investor Relations for Kenvue.
Good morning, everyone, and welcome to Kenvue's second quarter 2024 earnings conference call. I'm pleased to be joined today by Thibaut Mongon, Kenvue's Chief Executive Officer; and Paul Ruh, our Chief Financial Officer.
Before we get started, I'd like to remind you that today's call includes forward-looking statements regarding, among other things, our operating and financial performance, market opportunities and growth. These statements represent our current beliefs or expectations about future events and are subject to various risks, uncertainties, and assumptions that could cause our actual results to differ materially.
For information regarding these risks and uncertainties, please refer to our earnings materials related to this
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