Kenvue cut the higher end of its annual profit forecast, as the Benadryl maker saw weakness in demand for its cold and flu medicines and an increased impact from a stronger dollar.
The consumer health company said its third-quarter net sales were hurt by a slow start to the flu season and soft demand for its products in China.
Quarterly Revenue
However, its quarterly revenue of $3.92 billion (€3.71 billion) came in slightly above analysts' estimates of $3.91 billion, as per LSEG data.
Kenvue, the spun-off unit of Johnson & Johnson, said it expects full-year organic sales growth between 5.5% and 6%, compared with its prior forecast of 5.5% to 6.5% growth.
The forecast cut comes in contrast to peer Haleon, which in August had raised its annual forecast for organic revenue growth, betting on resilient demand for its household brands like Sensodyne toothpaste and Panadol tablets.
Kenvue now expects full-year adjusted profit between $1.26 and $1.28 per share, compared with its previous forecast of $1.26 to $1.31 per share.
Third-Quarter Highlights
Revenue from its self-care unit, which includes household names like Tylenol medicine and anti-allergic Zyrtec, came in at $1.61 billion, compared with $1.52 billion reported last year.
On an adjusted basis, Kenvue reported a profit of $0.31 per share for the third quarter, in line with analysts' estimates.
The company said its board has also authorised a share buyback programme to repurchase up to 27 million shares of its outstanding common stock.
Thibaut Mongon, chief executive officer and director said, “We continued to execute on our commitment to delivering sustainable and profitable growth this quarter.
“Our operating results and strong cash generation underscore the strength of our leadership position in consumer health, and reflect the strong foundation of the company we are building with durable advantage over the long-term.”
News by Reuters, additional reporting by ESM.
