Kenvue: Fourth Quarter and Full Year 2023 Financial Results

Kenvue has reported its fourth quarter and full year 2023 financial results. 

 

Full year net sales increased 3.3% versus a 0.7% decrease in the prior year period. 

 

Organic growth increased 5.0% versus a 3.8% increase in the prior year. Increases in net sales and organic growth were comprised of 7.7% value realization (defined as price including mix), and 2.7% volume declines. Volume performance includes the impacts of non-recurring product discontinuations, including portfolio rationalization initiatives in 2022 and the suspension of personal care products in Russia. Excluding these non-recurring items, volume was down slightly versus the prior year.

 

Fourth quarter net sales decreased 2.7% versus a 0.9% increase in the prior year period. Organic growth declined 2.4% versus a 6.2% increase in the prior year. Net sales and organic growth were comprised of 5.8% value realization and 8.2% volume declines. Approximately three points of volume performance are mainly due to “softer than anticipated” performance in the US skin health and beauty business and continued softness in China.

 

“2023 was a transformational year for Kenvue as we began delivering on our long-term value creation algorithm centered around profitable growth, durable cash flow generation and disciplined capital allocation,” said Thibaut Mongon, CEO. “We enter 2024 with clear strategic priorities as an independent Kenvue, including strengthened plans in our US skin health and beauty business. Looking ahead we’re focused on reaching more consumers, reinventing our ways of working to invest more in our brands, and fostering a culture that rewards performance and impact in our organization.”

 

Kenvue expects full year 2024 reported net sales growth to be in the range of 1.0% to 3.0%. Foreign exchange is expected to be a headwind of approximately one percentage point to reported Net sales growth. The company said it expects full year 2024 organic growth in the range of 2.0% to 4.0% with organic growth sequentially improving as the year progresses as prior year comparisons ease and the impact of 2024 strategic priorities take hold.

Lab Rap: Kenvue’s Global Vice President, R&D Skin Health & Beauty Fabiana Gargaro