Feb 6 (Reuters) - Consumer health company Kenvue ( KVUE )
forecast 2025 adjusted profit below Wall Street
estimates on Thursday, hit by a stronger dollar and weak demand
for its cough and cold products that include Tylenol and
Benadryl.
The company, which was spun off from Johnson & Johnson ( JNJ )
in 2023, has been under pressure from activist Starboard
Value to improve performance, especially at its skin and beauty
products division.
The activist hedge fund on Wednesday nominated four
directors, including its chief investment officer, to Kenvue's ( KVUE )
board.
In response to the weakness in the unit, the company has
increased investments on marketing and advertising, which also
include a push to engage more Gen Z consumers through social
media marketing.
"We expect to accelerate performance throughout the year,
while navigating the dynamic external environment contemplated
within our outlook," Kenvue CFO Paul Ruh said in a statement.
The company forecast flat to 2% growth in 2025 per share
adjusted profit, compared with $1.14 it earned in 2024. Analysts
expect earnings to grow 5.6% this year, or to $1.21 per share,
according to estimates compiled by LSEG.
The outlook does not include any potential impact from
tariffs introduced in 2025 by the Trump administration, the
company said.
Kenvue ( KVUE ) expects organic sales to grow between 2% and 4% in
2025.
In the fourth quarter ended Dec. 29, the company earned 26
cents per share on an adjusted basis, meeting estimates. Its
sales of $3.66 billion slightly missed estimates of $3.77
billion, hit by low incidences of cold, cough and flu.
Sales in the self-care segment, which sells cough and cold
products, rose 2.1% to $1.57 billion, compared with analysts'
estimates of $1.62 billion.
Its skin health and beauty products, which include brands
such as Neutrogena and Aveeno, brought in sales of $1.01
billion, in-line with estimates.
(Reporting by Sneha S K and Manas Mishra; Editing by Shinjini
Ganguli)