Kenvue expects flat profit as $150 million tariff hit looms
HighlightsKenvue forecasts flat annual profit due to a projected $150 million impact from President Donald Trump's trade tariffs on U.S. imports. The company's skin health unit reported a 7.3 per cent decline in first-quarter sales, falling short of analysts' expectations, while overall quarterly revenue of $3.74 billion exceeded estimates. Kenvue announced the appointment of Amit Banati as the new Chief Financial Officer, effective May 12, replacing Paul Ruh.
Kenvue
on Thursday forecast that its annual profit would be flat year-over-year as the
consumer health firm
anticipates a $150 million impact from President Donald Trump's trade
tariffs
implemented on U.S. imports thus far.
Customers are bracing for price increases as consumer-facing companies try to navigate higher costs brought on by the tariffs
Kenvue will work with retail partners on targeted pricing actions in a way that will "preserve the long-term health of our brands" and "minimize the impact for our consumers",
CEO Thibaut Mongon
said in a call with analysts.
The company expects its efforts to secure alternate sourcing, pricing actions and revenue growth to mitigate the tariff hit, mostly from China, but said it would not be able to absorb the full impact this year.
Shares of New Jersey-based Kenvue rose 6 per cent in morning trading.
Kenvue, spun off from Johnson & Johnson in 2023, has been under pressure from activist investors to boost performance, particularly in its struggling skin-health and beauty unit, which includes brands such as Neutrogena and Aveeno.
The company has been spending more on social media campaigns and other marketing efforts to get its skin and beauty products across to more Gen Z consumers, a critical demographic where it has lagged.
Separately, Kenvue said on Thursday that its CFO, Paul Ruh, would be replaced by
Kellanova
's Amit Banati, effective May 12. Banati most recently served as the finance chief of Kellanova.
The company had previously forecast adjusted profit to range between flat to a 2 per cent growth in 2025. It had earned $1.14 per share in the previous year.
First-quarter sales at its
skin health unit
fell 7.3 per cent to $977 million, below analysts' estimate of $1.09 billion.
Kenvue earned a profit of 24 cents per share for the reported quarter, compared with an expectation of 23 cents per share.
Quarterly revenue of $3.74 billion topped an estimate of $3.68 billion.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
36 minutes ago
- Time of India
Kaynes Semicon, L&T arm to acquire Fujitsu General's power modules business
Kaynes Semicon and L&T Semiconductor Technologies (LTSCT) are acquiring Japanese Fujitsu General 's power modules business for Rs 118.34 crore. Fujitsu will transfer the business to Larsen & Toubro's fabless chip company and related production facilities to Kaynes, which will in turn manufacture these products for LTSCT, the companies said. The transaction is expected to close on June 23, pending regulatory clearance under Japan's Foreign Exchange and Foreign Trade Act. 'The new OSAT facility being setup in Sanand, Gujarat, is launching its operations with a focus on the global power device packaging market,' Raghu Panicker, chief executive of Kaynes Semicon, told ET. Mysuru-based Kaynes is one of the production contractors for LTSCT. The LTSCT specialises in semiconductor product development, manufacturing, and sales. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country. Live Events The deal is part of Fujitsu's strategy to streamline operations within its tech solution business and reinforce its overall business foundation. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Panicker said the deal is supported by two major initiatives: a multi-million-dollar, high-volume service agreement with its customer Alpha and Omega Semiconductor (AOS) and the acquisition of three power packaging lines from Fujitsu Electronics Ltd Japan. 'The partnership with AOS will cover core power devices like IGBTs, power modules and MOSFETs with volumes projected to reach nearly 670 million units annually, while the Fujitsu technology provides immediate capability for high-reliability automotive and industrial-grade power modules, adding a production capacity of approximately 0.6 million units per month,' he said. These moves position the company as a significant new player in the power electronics supply chain , Panicker said. By combining a foundational, high-volume customer with advanced packaging technology and immediate production capacity, the company is poised to meet the surging global demand for power semiconductors driven by the electric vehicles , renewable energy , and industrial automation sectors, he said. This establishes a vital new capability in India's domestic semiconductor ecosystem and addresses the global need for a more resilient and diverse manufacturing footprint for power devices. L&T has invested more than $300 million to create LTSCT. Fujitsu General, in a regulatory filing on Monday, announced the divestiture of its power module business operated by its consolidated subsidiary, Fujitsu General Electronics (FGEL). This transaction is expected to result in the recording of an extraordinary gain of approximately 2 billion yen (about $13.8 million) from the business transfer in the April-June 2025 quarter, it said. Reasons for the Divestiture FGEL's tech solutions division is involved in the development, manufacturing, and sale of electronic devices, as well as the manufacturing of information and communication equipment. The divestiture of the power module business is part of a broader portfolio transformation within the electronic device business, aimed at strengthening the Fujitsu General Group's business foundation, it said.
Time of India
an hour ago
- Time of India
Diamond trader cheated of Rs 2.7cr by cousin
Surat: Mahidharpura-based diamond trader Parin Doshi (46) lodged a complaint against his cousin Shreyul Shah for cheating him of Rs 2.7 crore. The investigation has been handed over to the Economic Offences Cell of the crime Branch. Tired of too many ads? go ad free now According to the complaint, Doshi, originally from Banaskantha and engaged in diamond trade for 13 years, owns Arihant Enterprise and Arihant Exim. In 2023, his cousin Shreyul proposed starting a polki diamond business, assuring that he would handle all operations while Doshi would only need to invest. The duo agreed to a 50-50 profit-sharing model, though no formal agreement was signed. Relying on familial trust, Doshi invested in the venture. However, between Sept 2023 and Oct 2024, Shah allegedly neither shared profits nor returned the diamonds. Doshi later reviewed records and found Shah owed him Rs 2.7 crore in either money or goods. Some records also bore fake signatures, he alleged. When confronted, Shah threatened to die by suicide to falsely implicate Doshi in a police case.
Time of India
an hour ago
- Time of India
Provisional merit list for pharmacy intake out
Ahmedabad: The registration process for first-year degree and diploma pharmacy programmes in Gujarat concluded on May 30. With all board results declared, the admissions committee released the provisional merit list on Monday, and began the mock round of choice-filling process. This round will continue till June final merit list and mock round results will be declared on June 17. Admissions will take place for 146 institutions offering 11,684 seats (6,897 govt and 4,847 management quota). Students are advised to fill in maximum choices and not share their login credentials. For this academic year, 15,819 students registered for degree and diploma pharmacy admissions. Of these, 14,604 — 6,582 males and 8,022 females — are on the merit list based on GujCET and board merits. As per current norms, 95% of seats in govt and grant-in-aid institutions, and 50% of seats in self-financed institutions are filled through GujCET. An additional 5% of govt seats will be filled using JEE/NEET scores. The top-ranked student in the GujCET-based merit list is Dhyey Sheth, with a merit score of 99.97. The merit list includes 13,067 candidates from Gujarat board, 1,373 from CBSE, 76 from ICSE and 88 from others. Of these, 2,228 are from general category, 2,879 from EWS, 91 from SC, 4,372 from SEBC, and 1,134 from ST categories.
