Kenvue Sales Rise as Volume Growth Returns
Adjusted earnings rose 7% to $0.31 a share despite pressure from tariffs and inflation.
Kenvue Inc. (KVUE), the consumer-health company, reported higher second-quarter sales as organic growth accelerated for a third consecutive quarter and volume turned positive.
Net sales rose 3.0% from a year earlier to $3.955 billion, easing from 4.5% growth in the first quarter. Organic sales increased 1.6%, up from 0.7% in the prior quarter, while a smaller foreign-currency benefit tempered the reported growth rate.
The sales mix shifted toward volume. Volume increased 0.7% after falling 0.3% in the first quarter, while favorable price and mix contributed 0.9%. Diluted earnings rose 9% to $0.24 a share, and net income increased 9% to $456 million.
Skin Health and Beauty led the advance, with net sales rising 5.1% and organic sales increasing 3.7%. Its adjusted operating income climbed 25% to $186 million. Self Care returned to 0.6% organic growth after two quarterly declines, though its adjusted operating income fell 3% to $512 million.
Essential Health posted 1.1% organic growth as a 1.9% volume increase, led by Wound Care and Baby Care, outweighed unfavorable price and mix and weaker Oral Care. The segment’s adjusted operating income declined 10% to $315 million.
Margins narrowed as inflation, tariffs, transactional currency effects and increased brand support outweighed some supply-chain productivity and restructuring savings. Adjusted operating margin fell to 22.1% from 24.0% in the first quarter and contracted 60 basis points from a year earlier.
First-half operating cash flow increased to $1.2 billion from $1.0 billion, helping lift free cash flow to $1.0 billion. Kenvue also recorded $16 million of second-quarter costs tied to its pending Kimberly-Clark transaction and FDA-approved Tylenol with Naproxen is expected to reach major U.S. retailers soon with three years of exclusivity.