Kenvue (KVUE) - 2026 Q2 - Quarterly Results

Major Announcements 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 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] - Key actions include a CEO transition, an ongoing comprehensive review of strategic alternatives, and reporting select preliminary Second Quarter 2025 financial results[2][6] Leadership Transition 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 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][6] - Mr. Thibaut Mongon has departed the Company and stepped down from the Kenvue Board[4] - Heidrick & Struggles is assisting in the search for the Company's next Chief Executive Officer[4] Strategic Review 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 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] - 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] Advisors for Strategic Review 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] - The Company plans to update shareholders as the strategic review progresses[8] Preliminary Second Quarter 2025 Financial Results 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 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] Reconciliation of Net Sales to Organic Sales 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 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 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 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 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] - He has over 30 years of experience in global consumer-packaged goods, technology, and business transformation[12] - 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] About Kenvue 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] - Its iconic brands include Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena® and Tylenol®, which are science-backed and recommended by healthcare professionals[13] Non-GAAP Financial Measures Kenvue uses non-GAAP financial measures to provide a clearer understanding of operating performance and facilitate comparisons, despite their limitations Explanation and Use 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] - These measures are considered relevant and useful for investors to view performance similarly to management and to compare results with other companies[15] Definition of Adjusted Diluted Earnings Per Share 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] - Management views this as a useful supplemental measure of the Company's performance over time[16] Definition of Adjusted Net Income 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] - 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] Definition of Organic Sales 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] - 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] Legal and Financial Disclosures 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 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] - Risks include inability to execute business strategy, inflation, economic factors, competition, challenges in R&D, and the outcome of the strategic review process[19] - The Company undertakes no obligation to publicly update or revise any forward-looking statements[19] Financial Disclosure Advisory 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] - These estimates are not a comprehensive statement of financial results and actual results may differ upon completion of normal quarter-end accounting procedures[20] Additional Information This section provides contact information for Kenvue's Investor Relations and Media Relations departments for inquiries Investor and Media Contacts 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] - Media Relations contact: Melissa Witt (media@kenvue.com)[22]