Kenvue reports 0.1% net sales decline in Q4 FY24 despite strong pricing strategy

USA – Kenvue, an American consumer health company focusing on providing personal care and health and wellness products,  has announced its financial results for the whole year and fiscal fourth quarter, which ended December 29, 2024.

The report shows a 0.1% net sales decrease.

According to Kenvue, the favorable value realization across all segments was achieved through a combination of pricing carried over from 2023 and new pricing actions taken in 2024.

However, the overall volume declined due to decreases in the skin health, beauty, and self-care segments, which offset the slight volume growth observed in Essential Health.

Thibaut Mongon, CEO of Kenvue, said, “We delivered on our 2024 profit commitments despite headwinds that resulted in softer than expected sales growth, and we enter 2025 as a more competitive company with stronger foundations.” 

“We remain focused on leveraging our increased brand investments to accelerate growth and deliver long-term value creation centered around profitable growth, durable cash flow generation, and disciplined capital allocation.”

Q4 FY24

Net sales declined by 0.1%, reflecting Organic sales1 growth of 1.7%  offset by the impact of foreign currency fluctuations..

The gross profit margin increased by 80 basis points, rising to 56.5% from 55.7% in the same period last year.

This expansion was driven by decreased separation-related costs and the amortization of intangible assets year-over-year.

Net interest expense was USD 95 million, compared to USD 96 million in the same period last year.

FY24 

Net sales increased by 0.1%, reflecting 1.5% organic sales growth.

However, a 1.4% negative impact from foreign currency fluctuations offset this.

Kenvue’s gross profit margin expanded by 200 basis points, reaching 58.0%, up from 56.0% in the prior year. 

This improvement is primarily attributed to productivity gains from global supply chain efficiency initiatives and benefits from value realization.

Net interest expense amounted to USD 378 million, compared to USD 250 million in the prior year.

Paul Ruh, Kenvue’s Chief Financial Officer, stated, “As Kenvue enters its next chapter, we expect to accelerate performance throughout the year while navigating the dynamic external environment contemplated in our outlook.”

“We expect to drive further productivity and operational efficiency gains, which will fund our planned increase in brand investments, positioning us to grow adjusted operating margin for the year.”

Net sales are projected to vary between a decrease of 1% and an increase of 1% year-over-year. 

Kenvue anticipates adjusted diluted earnings per share growth to be in the range of flat to +2% year-over-year.

The company expects an improvement in its adjusted operating income margin on a year-over-year basis.

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