Aug 6 (Reuters) - Kenvue ( KVUE ) beat Wall Street
estimates for second-quarter profit and revenue on Tuesday,
helped primarily by better-than-expected sales in its essential
health products unit that sells brands including Band-Aid,
Listerine and Carefree.
Investor expectations from the consumer health company,
which Johnson & Johnson ( JNJ ) spun off last year, have been
low due to weak uptake for its self-care and skin health
products. Its essential health business, however, has been a
bright spot.
The essential health unit recorded $1.26 billion in revenue
for the second quarter, up nearly 5% from a year earlier and
above analysts' average estimate of $1.24 billion, according to
LSEG data.
Essential health's adjusted operating income jumped nearly
44% to $359 million, while other segments declined.
Kenvue's ( KVUE ) skin health business, which sells brands such as
Neutrogena and Clean & Clear, was the worst performer, recording
a nearly 4% decline in sales to $1.10 billion, compared with
LSEG estimate of $1.16 billion.
Sales from self-care - its largest segment that houses
Benadryl and Tylenol - slipped 1.6% to $1.64 billion. Analysts,
on average, had expected $1.60 billion.
Kenvue ( KVUE ) has been focusing on improving sales of its skin
health products through increased marketing spend and in-store
presence, among other measures.
It raised the marketing spend for this year to up to $400
million from $300 million previously. It's the second time it
lifted the forecast, after a 15% jump in February.
The New Jersey-based company posted total second-quarter
revenue of $4 billion, above LSEG estimates of $3.94 billion.
On an adjusted basis, Kenvue ( KVUE ) posted a profit of 32 cents per
share, beating analysts' estimates by 4 cents.
The company maintained its adjusted profit forecast for the
year at between $1.10 and $1.20 per share.
(Reporting by Sneha S K and Leroy Leo in Bengaluru; Editing by
Shinjini Ganguli)