Tylenol maker Kenvue beats quarterly profit estimates, to cut 4% jobs

Since its spinoff from Johnson & Johnson in Could final 12 months, Kenvue has targeted on its 15 precedence manufacturers to spice up progress and stated in February it might enhance its promoting spending by 15%, or about $300 million, through the 12 months.

The corporate stated on Tuesday it targets pre-tax gross financial savings of about $350 million yearly by 2026 via the cost-cutting program, however will incur $275 million every in restructuring bills in 2024 and 2025.

Kenvue posted an adjusted revenue of 28 cents per share for the primary quarter, beating analysts’ estimates of 26 cents.

The self-care phase – which incorporates cough and chilly medication corresponding to Tylenol and Benadryl – recorded $1.70 billion in web gross sales, up 3.5% year-on-year and above the typical analyst estimate of $1.56 billion, in accordance with LSEG knowledge.

Kenvue’s pores and skin well being and sweetness phase, consisting of manufacturers together with Neutrogena and Clear & Clear, recorded a 5% drop in first-quarter gross sales to $1.05 billion, however largely according to estimates.

The corporate has pushed to enhance the presence of its pores and skin well being merchandise on retailer cabinets within the U.S. because it seems to be to reverse sluggish gross sales over the previous couple of quarters.

The important well being phase, housing manufacturers corresponding to Listerine, Band-Help and Stayfree, recorded $1.14 billion in gross sales, up 3.7%, however beneath analysts’ estimate of $1.17 billion.

The New Jersey-based firm posted first-quarter income of $3.89 billion, beating estimates of $3.79 billion.

The corporate maintained its annual revenue forecast vary of between $1.10 to $1.20 per share.

By Sneha S Ok and Leroy Leo

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J&J Lowers Annual Profit Outlook After Kenvue Separation

The corporate secured $13.2 billion in money from the providing of Kenvue debt and the sale of its shares.