Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including 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 improve 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 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]

[Major Announcements](index=1&type=section&id=Major%20Announcements) Kenvue's Board is implementing actions to unlock shareholder value, including a CEO transition and a strategic review, while reporting preliminary Q2 2025 results [Overview of Key Actions](index=1&type=section&id=Overview%20of%20Key%20Actions) Kenvue's Board is implementing actions to unlock shareholder value, including a CEO transition, a strategic review, and reporting preliminary Q2 2025 financial results - Kenvue's Board is implementing actions to unlock shareholder value and reach its full potential[2](index=2&type=chunk) - Key actions include a CEO transition, an ongoing comprehensive review of strategic alternatives, and reporting select preliminary Second Quarter 2025 financial results[2](index=2&type=chunk)[6](index=6&type=chunk) [Leadership Transition](index=1&type=section&id=Leadership%20Transition) Kenvue's Board appointed Kirk Perry as Interim CEO, effective immediately, following Thibaut Mongon's departure, and initiated a search for a permanent CEO [Interim CEO Appointment](index=1&type=section&id=Interim%20CEO%20Appointment) Kirk Perry, a Kenvue director, has been appointed Interim CEO, effective immediately, as Thibaut Mongon departs; a search for a new CEO is underway - Mr. Kirk Perry, a current Kenvue director and seasoned consumer products and brand strategist, has been appointed Interim Chief Executive Officer, effective immediately[4](index=4&type=chunk)[6](index=6&type=chunk) - Mr. Thibaut Mongon has departed the Company and stepped down from the Kenvue Board[4](index=4&type=chunk) - Heidrick & Struggles is assisting in the search for the Company's next Chief Executive Officer[4](index=4&type=chunk) [Strategic Review](index=2&type=section&id=Strategic%20Review) Kenvue's Board initiated a comprehensive strategic review to optimize its brand portfolio, improve execution, and accelerate profitable growth [Purpose and Scope of Strategic Review](index=2&type=section&id=Purpose%20and%20Scope%20of%20Strategic%20Review) Kenvue's Board initiated a comprehensive strategic review to optimize its brand portfolio, improve execution, and enhance operating performance - The Board initiated a comprehensive review of strategic alternatives and established a Strategic Review Committee to oversee the process[7](index=7&type=chunk) - The strategic review will consider optimizing the Company's brand portfolio, improving execution, and enhancing operating performance to accelerate profitable growth and unlock value[7](index=7&type=chunk) [Advisors for Strategic Review](index=2&type=section&id=Advisors%20for%20Strategic%20Review) Centerview Partners and McKinsey & Company are advising Kenvue's Board on the strategic review, with updates planned for shareholders - Centerview Partners and McKinsey & Company are advising the Board and the Strategic Review Committee[8](index=8&type=chunk) - The Company plans to update shareholders as the strategic review progresses[8](index=8&type=chunk) [Preliminary Second Quarter 2025 Financial Results](index=2&type=section&id=Preliminary%20Second%20Quarter%202025%20Financial%20Results) Kenvue reported preliminary Q2 2025 financial results, showing declines in net and organic sales, with diluted EPS between $0.21 and $0.22 [Key Preliminary Financial Metrics](index=2&type=section&id=Key%20Preliminary%20Financial%20Metrics) Kenvue reported preliminary Q2 2025 results, including a (4.0)% net sales change and diluted EPS of $0.21 to $0.22, with full results due August 7, 2025 Select Preliminary Second Quarter 2025 Financial Results | Metric | Fiscal Three Months Ended June 29, 2025 | | :--- | :--- | | Net sales change | (4.0)% | | Organic sales change | (4.2)% | | Diluted earnings per share | $0.21 to $0.22 | | Adjusted diluted earnings per share | $0.28 to $0.29 | - The Company will report its full second quarter 2025 financial results on August 7, 2025, and will revise its full year 2025 outlook at that time[10](index=10&type=chunk) [Reconciliation of Net Sales to Organic Sales](index=5&type=section&id=Reconciliation%20of%20Net%20Sales%20to%20Organic%20Sales) Preliminary net sales declined by (4.0)%, while organic sales decreased by (4.2)% for Q2 2025, after accounting for currency and M&A impacts Reconciliation of Preliminary Net Sales to Organic Sales (Fiscal Three Months Ended June 29, 2025 vs June 30, 2024) | Metric | Reported Net Sales Change | Impact of Foreign Currency | Impact of Acquisitions and Divestitures | Total Organic Sales Change | | :--- | :--- | :--- | :--- | :--- | | Total | (4.0)% | 0.3% | (0.1)% | (4.2)% | [Reconciliation of Net Income to Adjusted Net Income](index=5&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Preliminary Net Income for the fiscal three months ended June 29, 2025, was in the range of $396 million to $428 million, with Adjusted Net Income between $536 million and $568 million Reconciliation of Preliminary Net Income to Adjusted Net Income (Fiscal Three Months Ended June 29, 2025) | Metric | Amount (Millions) | | :--- | :--- | | Net Income | $396 — $428 | | Adjustments: | | | Amortization of intangible assets | 64 | | Restructuring expenses and operating model optimization initiatives | 68 | | Separation-related costs | 24 | | Tax impact on special item adjustments | (28) | | Other | 12 | | **Adjusted net income (non-GAAP)** | **$536 — $568** | [Reconciliation of Diluted EPS to Adjusted Diluted EPS](index=5&type=section&id=Reconciliation%20of%20Diluted%20EPS%20to%20Adjusted%20Diluted%20EPS) Preliminary Diluted EPS for the fiscal three months ended June 29, 2025, was $0.21 to $0.22, while Adjusted Diluted EPS was $0.28 to $0.29 after specific adjustments Reconciliation of Preliminary Diluted EPS to Adjusted Diluted EPS (Fiscal Three Months Ended June 29, 2025) | Metric | Amount | | :--- | :--- | | Diluted earnings per share | $0.21 — $0.22 | | Adjustments: | | | Amortization of intangible assets | 0.03 | | Restructuring expenses and operating model optimization initiatives | 0.04 | | Separation-related costs | 0.01 | | Tax impact on special item adjustments | (0.01) | | **Adjusted diluted earnings per share (non-GAAP)** | **$0.28 — $0.29** | [Company Information](index=2&type=section&id=Company%20Information) This section provides the biography of Interim CEO Kirk Perry and an overview of Kenvue as the world's largest pure-play consumer health company [Biography of Interim CEO Kirk Perry](index=2&type=section&id=Biography%20of%20Interim%20CEO%20Kirk%20Perry) Kirk Perry, Interim CEO, joined Kenvue's Board in December 2024, bringing over 30 years of experience in consumer-packaged goods and technology - Kirk Perry joined Kenvue's Board of Directors in December 2024[12](index=12&type=chunk) - He has over 30 years of experience in global consumer-packaged goods, technology, and business transformation[12](index=12&type=chunk) - Prior roles include President and CEO of Circana (and IRI), President, Global Client and Agency Solutions at Google, and various leadership positions at Procter & Gamble[12](index=12&type=chunk) [About Kenvue](index=2&type=section&id=About%20Kenvue) Kenvue is the world's largest pure-play consumer health company, featuring iconic, science-backed brands like Aveeno® and Tylenol® - Kenvue is the world's largest pure-play consumer health company by revenue[13](index=13&type=chunk) - Its iconic brands include Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena® and Tylenol®, which are science-backed and recommended by healthcare professionals[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Kenvue uses non-GAAP financial measures to provide a clearer understanding of operating performance and facilitate comparisons, despite their limitations [Explanation and Use](index=3&type=section&id=Explanation%20and%20Use) Kenvue uses non-GAAP financial measures to supplement U.S. GAAP results, offering investors a clearer view of operating performance and comparisons - The Company uses non-GAAP financial measures to supplement U.S. GAAP, acknowledging their limitations and lack of standardization[14](index=14&type=chunk) - These measures are considered relevant and useful for investors to view performance similarly to management and to compare results with other companies[15](index=15&type=chunk) [Definition of Adjusted Diluted Earnings Per Share](index=3&type=section&id=Definition%20of%20Adjusted%20Diluted%20Earnings%20Per%20Share) Adjusted diluted EPS is Adjusted net income divided by diluted shares outstanding, serving as a supplemental measure of company performance - Adjusted diluted earnings per share is defined as Adjusted net income divided by the weighted average number of diluted shares outstanding[16](index=16&type=chunk) - Management views this as a useful supplemental measure of the Company's performance over time[16](index=16&type=chunk) [Definition of Adjusted Net Income](index=3&type=section&id=Definition%20of%20Adjusted%20Net%20Income) Adjusted net income is U.S. GAAP Net income adjusted for specific items like amortization and restructuring to clarify underlying performance trends - Adjusted net income is U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses, operating model optimization initiatives, separation-related costs, and other adjustments, along with their related tax impacts[17](index=17&type=chunk) - This measure excludes the impact of items that may obscure trends in underlying performance and is used for strategic decision making, forecasting, and evaluating current performance[17](index=17&type=chunk) [Definition of Organic Sales](index=3&type=section&id=Definition%20of%20Organic%20Sales) Organic sales are U.S. GAAP Net sales excluding foreign currency and M&A impacts, providing insight into core operational changes - Organic sales are defined as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures[18](index=18&type=chunk) - This measure provides supplemental information useful in assessing the Company's results of operations by excluding items that do not directly reflect underlying operations[18](index=18&type=chunk) [Legal and Financial Disclosures](index=4&type=section&id=Legal%20and%20Financial%20Disclosures) This section provides cautions regarding forward-looking statements and advises that all presented financial data is preliminary and subject to change [Cautions Concerning Forward-Looking Statements](index=4&type=section&id=Cautions%20Concerning%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially - The press release contains forward-looking statements subject to risks and uncertainties, and actual results could differ materially[19](index=19&type=chunk) - Risks include inability to execute business strategy, inflation, economic factors, competition, challenges in R&D, and the outcome of the strategic review process[19](index=19&type=chunk) - The Company undertakes no obligation to publicly update or revise any forward-looking statements[19](index=19&type=chunk) [Financial Disclosure Advisory](index=4&type=section&id=Financial%20Disclosure%20Advisory) All financial data presented is preliminary and subject to change upon completion of normal quarter-end accounting procedures and adjustments - All financial data in this press release is preliminary and represents the most current information available to management[20](index=20&type=chunk) - These estimates are not a comprehensive statement of financial results and actual results may differ upon completion of normal quarter-end accounting procedures[20](index=20&type=chunk) [Additional Information](index=5&type=section&id=Additional%20Information) This section provides contact information for Kenvue's Investor Relations and Media Relations departments for inquiries [Investor and Media Contacts](index=5&type=section&id=Investor%20and%20Media%20Contacts) Contact information for Kenvue's Investor Relations, handled by Sofya Tsinis, and Media Relations, handled by Melissa Witt, is provided for inquiries - Investor Relations contact: Sofya Tsinis (Kenvue_IR@kenvue.com)[22](index=22&type=chunk) - Media Relations contact: Melissa Witt (media@kenvue.com)[22](index=22&type=chunk)

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].