Kenvue surpasses Q1 estimates with strong self-care demand

USA – Kenvue exceeded quarterly profit and revenue expectations, driven by strong demand for its self-care products, including cough-and-cold brands like Tylenol and Benadryl.

Despite weaker performance in its skin-health and beauty segment, shares rose nearly 5% in premarket trading.

The consumer health company, which spun off from Johnson & Johnson in 2023, reported first-quarter sales of US $3.74 billion, surpassing analyst estimates of US $3.68 billion.

However, it anticipates annual profit will remain flat due to rising costs from U.S. import tariffs imposed during President Trump’s administration.

Previously, Kenvue projected a modest 2% growth in adjusted profit for 2025, compared to the $1.14 per share it earned last year.

Kenvue continues to face pressure from activist investors to improve the performance of its struggling skin-health and beauty unit, which includes brands like Neutrogena and Aveeno.

Sales in this segment fell by 7.3%, totaling US $977 million, below analysts’ expectations of US $1.09 billion.

On the other hand, sales in the self-care segment, the company’s largest by revenue, reached US $1.67 billion, exceeding the US $1.61 billion forecast.

On an adjusted basis, Kenvue earned 24 cents per share, slightly ahead of the anticipated 23 cents.

In a separate announcement, Kenvue revealed that Kellanova’s Amit Banati will replace Paul Ruh as the company’s Chief Financial Officer, effective May 12. Banati was previously the finance chief at Kellanova.