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Brands are benefiting from more impactful marketing activation campaigns, supported by more competitive levels of investment.
May 8, 2025
By: Lianna Albrizio
Associate Editor
Organic sales declined 1.2% year-over-year for Kenvue in Q1 2025.
Given the dynamic external environment, including the gross impact of current tariffs, company officials expect adjusted operating margin to contract slightly for the full year and adjusted diluted EPS for 2025 to be about flat versus last year.
While staying agile amidst dynamic market conditions, officials say brands are benefiting from more innovation and impactful marketing activation campaigns, supported by more competitive levels of investment. Consumption for Q1 outpaced organic sales versus prior-year across all three segments.
In self-care, organic sales grew 0.3%. Nearly 80% of the self-care brands expanded or maintained market share during the quarter.
In skin health & beauty, organic sales declined 4.8% year-over-year, due to headwinds from strategic investments and loss of rotations in the club channel in the US, destocking in China, and a soft sun season in Latin America.
Organic sales in EMEA grew for the 12th consecutive quarter. Consumption outpaced organic sales as strategic price and break-through marketing investments start to take hold.
For Neutrogena, brand positioning efforts and high-profile social media campaigns helped maintain its top share position in America in both value and volume for the second consecutive quarter. Neutrogena’s household penetration with Gen Z consumers also grew 30 basis points.
In essential health, organic sales were flat.
Consumption was positive with most of its premium platforms. For example, in the US, its Listerine Total Care and Clinical Solutions lines grew double digits, and Listerine is now the fastest growing brand in dollars and units on Amazon.
Aveeno Baby in the US grew double digits in the first quarter and is the fastest growing brand in the category. Reaffirmed full year organic sales growth outlook for 2025 in the 2-4% range, with accelerating top-line performance expected in the back half of the year as the company realizes compounding benefits from structural changes implemented across the business.
Alongside Q1 2025 earnings reporting, the company also announced plans for a chief financial officer transition. Kenvue appointed Amit Banati to the role, effective May 12. Bringing 30 years of global consumer products company finance and operations experience to Kenvue, Banati will be responsible for overseeing the company’s finance and strategy functions, supporting initiatives aimed at accelerating profitable growth, and delivering value to shareholders.
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