Kenvue Inc. shares climbed after the maker of Band-Aid and Listerine topped Wall Street’s first-quarter sales and profit targets and announced staff reductions.
The company, formerly the Consumer Healthcare Division that was spun off from Johnson & Johnson last year, earned 28 cents per share, 3 cents better than analyst forecasts. Sales of $3.9 billion also surpassed projections. Kenvue’s board of directors declared a dividend of 20 cents per share, payable May 22 to shareholders of record at the close of business May 8.
The Skillman, New Jersey- based company also announced plans May 7 to reduce its global workforce by 4%, which would amount to about 880 of its 22,000 employees.
In its Q1 2024 f inancial report, Kenvue predicted full year 2024 reported net sales growth to be in the range of 1% to 3%. “ Foreign exchange is expected to be a headwind of approximately one percentage point to reported net sales growth.”
Kenvue “continues to expect full year 2024 Organic growth in the range of 2% to 4%.”
The company “continues to expect full year 2024 adjusted diluted earnings per share to be in the r ange of $1.10 to $1.20.”
Also for full year 2024, Kenvue continues to expect “an effective tax rate between 26.5% to 27.5%, and an adjusted effective tax rate between 25.5% to 26.5%.”
Its companies also include Motrin, Tylenol, Neutrogena, Nicorette, Zyrtec, Aveeno, Benadryl, Bengay, Rogaine, Imodium and Lubriderm.
Like its rivals Pfizer and Merck, Johnson & Johnson spun off its consumer products division in an effort to become nimbler.