(Reuters) -Kenvue beat quarterly profit and revenue estimates on Thursday as better-than-expected demand for cough-and-cold brands like Tylenol and Benadryl offset weaker sales in its skin-health and beauty segment, sending shares up nearly 5% in premarket trade.
However, the consumer health firm said it expects annual profit to remain flat year-over-year, anticipating higher costs from President Trump’s tariffs on U.S. imports.
The company had previously forecast adjusted profit to range between flat to a growth of 2% in 2025 . It had earned $1.14 per share in the previous year.
Kenvue, spun off from Johnson & Johnson in 2023, has faced pressure from activist investors to boost performance, particularly at its struggling skin-health and beauty unit, which includes brands like Neutrogena and Aveeno.
First-quarter sales at that segment fell 7.3% to $977 million, compared with analysts’ estimates of $1.09 billion.
Sales at self-care – its largest segment by revenue – came in at $1.67 billion. Analysts were expecting that segment to post $1.61 billion in sales.
On an adjusted basis, the company earned a profit of 24 cents per share for the reported quarter, compared with analysts’ average estimate of 23 cents per share, according to data compiled by LSEG.
Kenvue reached an agreement with activist investor Starboard Value earlier this year and added the firm’s founder and chief executive, Jeffrey Smith, to its board.
Separately, the company said on Thursday Kellanova’s Amit Banati will replace Paul Ruh as its Chief Financial Officer, effective May 12.
Banati most recently served as the finance chief of Kellanova.
Quarterly revenue of $3.74 billion compared with estimates of $3.68 billion.
(Reporting by Mariam Sunny in Bengaluru; Editing by Nivedita Bhattacharjee and Pooja Desai)
Brought to you by www.srnnews.com
