Group 1 - Kenvue Inc has experienced a leadership change, with CEO Thibaut Mongon being fired and Kirk Perry appointed as interim CEO, marking the second executive shakeup this year [1] - The company replaced its CFO Paul Ruh with Amit Banati in May, indicating ongoing restructuring efforts [1] - Kenvue has warned that tariffs could negatively impact its financial performance by up to $150 million [1] Group 2 - Kenvue's stock has risen by 1.4% to $21.64, aiming for a fourth consecutive win, a streak not seen since late April [2] - The stock price increase has brought shares above the year-to-date breakeven mark, with shares now facing the 100-day moving average [2] - Options trading activity has surged, with 17,000 calls and 4,507 puts exchanged, double the average intraday rate, particularly focusing on November 23 and 24 calls [2] Group 3 - Options traders have shown a bullish sentiment towards Kenvue, with a 50-day call/put volume ratio of 37.42, ranking in the 95th percentile of annual readings [3] - Short-term traders also exhibit a call-bias, as indicated by the Schaeffer's put/call open interest ratio (SOIR) of 0.19, which stands in the 2nd percentile of readings from the past year [3]

Core Insights - Kenvue's CEO Thibaut Mongon is leaving the company as it continues its business restructuring efforts [1] - Kirk Perry has been appointed as the interim CEO following Mongon's departure [1] - Kenvue's stock price rose by 6.5% in pre-market trading after the announcement, although the stock has remained flat for the year [1] Company Developments - Kenvue, which was spun off from Johnson & Johnson, has faced pressure from activist investors to change its corporate structure and operations since its IPO in May 2023 [1] - The company appointed Jeffrey Smith, CEO of activist hedge fund Starboard Value, to its board earlier this year to avoid a proxy battle [1] - TOMS Capital Investment Management has also accumulated shares and urged the company to consider a full sale or asset divestiture [1] Strategic Evaluation - The board, led by Chairman Larry Merlo, is conducting a strategic review and considering various potential options, including simplifying the company's business portfolio and operational model [2] - Kenvue reported a 4% decline in net sales for the second quarter, which was worse than analysts' average expectation of a 1.4% decline [2] - Mongon's departure is not attributed to any specific cause, and he will receive severance compensation [2]

July 14, 2025 Kenvue Inc. (NYSE: KVUE) today announced that its Board of Directors is implementing a set of actions to enable the Company to unlock shareholder value and reach its full potential. The Board has made a Chief Executive Officer transition and is advancing an ongoing comprehensive review of strategic alternatives. Exhibit 99.1 PRESS RELEASE SUMMIT, N.J. Kenvue Announces CEO Transition and Actions to Unlock Shareholder Value "Kenvue has world-class brands in attractive categories and a strong glo ...

Core Viewpoint - A wave of brand sell-offs is sweeping through the beauty industry, driven by major companies facing performance pressures and a need to restructure their brand portfolios [2][3][6]. Group 1: Brand Sell-Offs - Coty is reportedly exploring the sale of several brands, including Gucci and Burberry, amidst market speculation [2]. - Kenvue, a spinoff from Johnson & Johnson, is also rumored to be considering the sale of its skin health and beauty division, with an estimated transaction value exceeding $500 million (approximately 3.59 billion RMB) [2]. - Natura & Co has been linked to ongoing rumors about selling Avon since last year, highlighting a broader trend of divestitures among beauty giants [2][3]. Group 2: Market Reactions - Despite the sell-off rumors, Coty's stock surged by 13% in a single day, reaching a three-month high, indicating a positive market reaction to the restructuring news [3]. - The performance pressures faced by these companies are evident, with Coty's mass beauty segment reporting a 9% decline in net revenue to $470 million (approximately 3.4 billion RMB) in Q3 of fiscal 2025 [8]. Group 3: Industry Trends - The beauty industry is experiencing a significant contraction, with Kenvue's skin health and beauty division reporting a 7.3% year-over-year sales decline in Q1 2025, the largest drop among its business segments [6]. - The Chinese market is reshaping the competitive landscape, with domestic brands capturing a growing market share, accounting for 55.2% of total sales in 2024, up 2.9 percentage points year-over-year [11][24]. Group 4: Strategic Shifts - Major beauty companies are shifting from aggressive acquisition strategies to a focus on efficiency and value, as evidenced by their divestiture of underperforming brands [19][21]. - The trend reflects a broader industry consensus that emphasizes streamlining brand portfolios and concentrating on core assets to enhance competitiveness [19][26]. Group 5: Future Outlook - The ongoing sell-off trend is expected to continue as companies adapt to the compressed industry cycle and intensifying competition [26]. - The future of the beauty industry will likely revolve around establishing competitive advantages in areas such as cutting-edge biotechnology, unique ingredients, and robust consumer data operations [26].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Kenvue is the largest pure-play consumer health company, having been spun off from Johnson & Johnson in 2023 [1] - The company is associated with well-known brands such as Tylenol, Neutrogena, Listerine, BANDAID, and Aveeno [1] - Kenvue is viewed as a steady dividend-oriented stock, indicating a focus on providing consistent returns to shareholders [1]

Kenvue (KVUE) 2025 Conference Summary Company Overview - Kenvue is a leading consumer health care company with approximately $16 billion in net sales across various categories including pain relief, allergy relief, skincare, and oral care, featuring brands like Aveeno, Band Aid, Johnson's, Listerine, Neutrogena, and Tylenol [1][2] Key Points and Arguments Separation and Transformation - Kenvue has successfully completed the separation from Johnson & Johnson, which involved disentangling over 2,300 transitional service agreements (TSAs) [6][7] - The company is focused on transforming from a division of a large company to a standalone entity aimed at profitable growth, with a new operating model to reach more consumers [7][8] - Kenvue has improved its gross margin by 200 basis points last year and is on track to deliver $350 million in gross synergies by 2026 [8][9] Investment in Brands and Culture - The company increased its investment in brands by 20% last year, shifting resources from fixed infrastructure costs to brand investments [9][10] - Approximately one-third of Kenvue's employees are new, indicating a significant cultural shift within the organization [9][10] Market Dynamics and Consumer Behavior - Kenvue is experiencing short-term headwinds due to pricing adjustments in the U.S. and destocking in China, but expects consumption volumes to rise [18][19] - The macroeconomic environment is putting pressure on consumers globally, leading to reduced spending in certain categories [21][30] - Retailers in the U.S. are being more cautious, resulting in destocking that is impacting shipments [22][27] Regional Insights - In EMEA and Latin America, consumer confidence is waning, but Kenvue's iconic brands are well-positioned to capture market share [30][32] - The company has launched access price points in Latin America, which have shown significant share gains [31][32] Future Outlook - Kenvue anticipates a stronger second half of the year, driven by the absence of negatives from the first half, continued execution of commercial plans, and a strong pipeline of innovation [41][42] - The company is focused on maintaining agility in a fluid macro environment while executing its long-term strategies [45][52] Capital Allocation and M&A Strategy - Kenvue is currently in investment mode, focusing on transforming the company and optimizing cash flow, with plans to return cash to shareholders through dividends [71][72] - M&A opportunities are being considered but will be approached with discipline, given the strength of the current portfolio [72] Vision for the Future - Kenvue aims to be the undisputed leader in consumer health by 2030, leveraging its five extraordinary powers to create significant value for shareholders [73] Additional Important Content - The company is actively working on improving its supply chain to minimize tariff impacts and enhance operational efficiencies [50][52] - Kenvue's marketing strategies are evolving, with a focus on breakthrough campaigns and innovative product launches to drive consumer engagement [46][48] - The company acknowledges the importance of adapting to changing consumer preferences, particularly among Gen Z, to maintain relevance in the market [64][66]

Financial Data and Key Metrics Changes - In 2024, the company achieved year-over-year organic sales growth of 1.5% with an adjusted operating income margin of 21.5% and adjusted diluted earnings per share of $1.14 [18] Business Segment Data and Key Metrics Changes - In the healthcare segment, the company expanded its leadership position and gained market share in nearly 80% of the segments, including key brands like Tylenol, Zyrtec, and Nicorette [16] - The essential health segment maintained a healthy mid-single-digit growth rate and delivered volume growth in North America, EMEA, and Latin America [16] - In skin health and beauty, the company grew both volume and value in EMEA and Latin America, despite not meeting expectations in North America and Asia Pacific [16] Market Data and Key Metrics Changes - The company reported significant improvements in consumer engagement and brand presence both in-store and online, contributing to overall growth [16] Company Strategy and Development Direction - The company established three strategic priorities for 2024: reaching more consumers, freeing up resources for competitive investment, and fostering a performance-driven culture [15] - The company aims to leverage superior science, expert recommendations, and consumer insights-led innovation to enhance brand growth in 2025 [18][19] - The company is focused on activating new revenue growth management capabilities to improve pricing and promotional strategies [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic external environment but expressed confidence in realizing compounding benefits from significant work done to date [21] - The company anticipates exciting opportunities ahead to create value for stakeholders and solidify its position as a consumer health leader [21] Other Important Information - The company is executing a two-year initiative to deliver $350 million of annualized cost savings by 2026 [17] - A new Chief Financial Officer, Amit Banati, has joined the company, expected to contribute to its next chapter [21] Q&A Session Summary Question: Why does the company not use GAAP earnings instead of adjusted non-GAAP earnings? - The company believes that presenting non-GAAP measures is relevant and useful for investors, as it allows for a better understanding of operating performance and easier comparison with peers in the industry [24]

Core Insights - The article emphasizes the importance of dividend investing in quality blue-chip stocks, BDCs, and REITs for building a sustainable retirement income [1]. Group 1 - The author is a Navy veteran focused on dividend investing and aims to help lower and middle-class workers build investment portfolios of high-quality, dividend-paying companies [1]. - The investment strategy is centered around a buy-and-hold approach, prioritizing quality over quantity [1]. - The goal is to achieve financial independence through dividends within the next 5-7 years [1].

[Part I—Financial Information](index=6&type=section&id=Part%20I%E2%80%94Financial%20Information) [Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents Kenvue Inc.'s unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, operations, cash flows, and notes Condensed Consolidated Balance Sheets (in Millions) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $5,710 | $5,525 | | **Total Assets** | **$26,257** | **$25,601** | | **Total Current Liabilities** | $6,666 | $5,739 | | **Total Liabilities** | **$16,204** | **$15,933** | | **Total Stockholders' Equity** | **$10,053** | **$9,668** | | **Total Liabilities and Stockholders' Equity** | **$26,257** | **$25,601** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales decreased to **$3,741 million** in Q1 2025, while operating and net income both increased year-over-year Condensed Consolidated Statements of Operations (in Millions, Except Per Share Data) | Account | Three Months Ended Mar 30, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net sales** | $3,741 | $3,894 | | **Gross profit** | $2,168 | $2,242 | | **Operating income** | $558 | $550 | | **Net income** | **$322** | **$296** | | **Diluted EPS** | **$0.17** | **$0.15** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$428 million** in Q1 2025, offsetting cash used in investing and financing Condensed Consolidated Statements of Cash Flows (in Millions) | Cash Flow Activity | Three Months Ended Mar 30, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | $428 | $287 | | **Net cash flows used in investing activities** | $(167) | $(152) | | **Net cash flows used in financing activities** | $(310) | $(326) | | **Net decrease in cash and cash equivalents** | $(13) | $(227) | | **Cash and cash equivalents, end of period** | $1,057 | $1,155 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, business segments, legal proceedings, and the 'Our Vue Forward' restructuring - The company is organized into three reportable business segments: **Self Care, Skin Health and Beauty, and Essential Health**[29](index=29&type=chunk) - Separation-related costs, primarily for IT disentanglement, were **$38 million** in Q1 2025, down from **$67 million** in Q1 2024. These costs are expected to continue through the first half of fiscal 2025[40](index=40&type=chunk)[41](index=41&type=chunk) - The company is involved in numerous legal proceedings, including claims related to **acetaminophen, Zantac, phenylephrine (PE), and benzoyl peroxide (BPO)**. J&J has indemnified Kenvue for **talc-related liabilities** in the U.S. and Canada[103](index=103&type=chunk)[107](index=107&type=chunk)[119](index=119&type=chunk) - The '2024 Multi-Year Restructuring Initiative' is expected to incur approximately **$550 million** in pre-tax charges through 2025 to optimize the cost structure. In Q1 2025, the company incurred **$67 million** in related charges[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, sales performance, the 'Our Vue Forward' restructuring, and liquidity [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Net sales decreased **3.9%** in Q1 2025, while gross profit margin improved and operating and net income increased Q1 2025 vs Q1 2024 Results of Operations (in Millions) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $3,741 | $3,894 | (3.9)% | | Gross profit | $2,168 | $2,242 | (3.3)% | | Operating income | $558 | $550 | 1.5% | | Net income | $322 | $296 | 8.8% | - Organic sales declined **1.2%**, reflecting a **0.9%** volume decrease and a **0.3%** negative impact from price/mix. The decline was primarily driven by competitive pressures in U.S. Skin Health and Beauty and a weak cough/cold season outside the U.S[148](index=148&type=chunk)[149](index=149&type=chunk) - Gross profit margin expanded to **58.0%** from **57.6%**, benefiting from supply chain optimization initiatives, which were partially offset by volume deleverage and unfavorable value realization[150](index=150&type=chunk) - SG&A expenses decreased by **$36 million**, primarily due to savings from the 'Our Vue Forward' initiative and lower separation-related costs[151](index=151&type=chunk) [Segment Results](index=45&type=section&id=Segment%20Results) Self Care organic sales grew, while Skin Health and Beauty and Essential Health saw declines or flat performance, impacting adjusted operating income Q1 2025 Segment Performance vs Q1 2024 (in Millions) | Segment | Net Sales | Net Sales Change | Organic Sales Change | Adjusted Operating Income | Adj. Op. Income Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Self Care | $1,667 | (1.8)% | 0.3% | $566 | (5.8)% | | Skin Health and Beauty | $977 | (7.3)% | (4.8)% | $92 | (37.0)% | | Essential Health | $1,097 | (3.9)% | 0.0% | $239 | (9.5)% | | **Total** | **$3,741** | **(3.9)%** | **(1.2)%** | **$897** | **(11.3)%** | - Self Care organic sales growth of **0.3%** was driven by strength in North America Allergy Care and Pain Care, offset by a weak cough/cold season outside the U.S., particularly in China[167](index=167&type=chunk) - Skin Health and Beauty's **4.8%** organic sales decline was caused by volume decreases (**2.9%**) and unfavorable price/mix (**1.9%**), mainly due to competitive pressures and strategic pricing in the U.S[169](index=169&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains robust liquidity, supported by cash from operations and credit facilities, managing debt and dividends - Primary liquidity sources include **$1.06 billion** in cash, a **$4.0 billion** revolving credit facility (undrawn), and a **$4.0 billion** commercial paper program (**$1.68 billion** outstanding)[179](index=179&type=chunk) - Net cash from operating activities increased to **$428 million** in Q1 2025 from **$287 million** in Q1 2024, driven by favorable working capital changes[173](index=173&type=chunk)[174](index=174&type=chunk) - Key financing activities in Q1 2025 included a **$750 million** repayment of Senior Notes, **$392 million** in dividend payments, and **$63 million** in treasury stock purchases, funded partially by **$868 million** in net proceeds from commercial paper[176](index=176&type=chunk) - The company declared a quarterly dividend of **$0.205** per share, payable in May 2025[184](index=184&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures were reported from those disclosed in the company's Annual Report on Form 10-K - There have been **no material changes** in market risk from those disclosed in the company's most recent Annual Report[194](index=194&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal controls, as a new global ERP system is being implemented in phases - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[195](index=195&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the quarter[196](index=196&type=chunk) - The company is in a **multi-year implementation of a new global ERP system**, which is expected to occur in phases over the next several years[197](index=197&type=chunk) [Part II—Other Information](index=56&type=section&id=Part%20II%E2%80%94Other%20Information) [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference from **Note 13, "Commitments and Contingencies"**, covering key litigation matters like acetaminophen and Zantac - Information regarding legal proceedings is incorporated by reference from **Note 13, "Commitments and Contingencies,"** of the financial statements[199](index=199&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) There have been **no material changes** to the risk factors previously disclosed in its Annual Report on Form 10-K - There have been **no material changes** in risk factors from those disclosed in the company's Annual Report[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; the company repurchased **3.0 million shares** for **$62.8 million** to offset dilution, with **12.8 million shares** remaining Share Repurchases in Q1 2025 (Shares in Thousands) | Period | Total Shares Purchased | Average Price Paid | Shares Remaining in Program | | :--- | :--- | :--- | :--- | | Dec 30, 2024 – Jan 26, 2025 | 3,000 | $20.94 | 12,792 | | Jan 27, 2025 – Mar 30, 2025 | 0 | N/A | 12,792 | | **Total** | **3,000** | **-** | **12,792** | - The Board authorized a share repurchase program for up to **27,000,000 shares** with no expiration date, intended to offset dilution from equity-based awards[202](index=202&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) **No directors or officers adopted or terminated Rule 10b5-1 trading plans** or non-Rule 10b5-1 arrangements during the quarter - **No directors or officers adopted or terminated a Rule 10b5-1 trading plan** during the quarter[204](index=204&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including **CEO and CFO certifications** and various incorporated agreements - The filing includes **CEO and CFO certifications** pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act**[205](index=205&type=chunk)