Kenvue Cuts Outlook on Weak Demand as Brand Review Continues
Organic sales are now seen falling by a low-single digit percentage this year, the company said in a statement. It previously expected growth of as much as 4%, while analysts had projected 0.2% expansion. The Tylenol-maker announced organic sales shrank 4.2% last month, more than four times steeper than expected, according to Bloomberg Intelligence analyst Diana Gomes.
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CNBC
9 hours ago
- CNBC
Carlsberg CEO notes changing beer habits amid cost pressures
Spending pressures are dividing beer drinking habits, further clouding the outlook for brewers already battling declining sales volumes. Drinkers are increasingly bypassing once-loved core beer brands and instead opting for premium or economy alternatives, Danish brewer Carlsberg said Thursday, as beermakers confront wider pressures on the drinks sector. "We do see a continued bifurcation in terms of preferences," CEO Aarup-Andersen told CNBC's "Squawk Box Europe" on Thursday. "People look either for the premium brand or the economy brand. So what will get squeezed a little bit in an environment like this is actually the core brands in the middle," he added. Beermakers have been battling several consecutive quarters of declining volume growth, as consumers have pushed back against higher prices and veered toward alternatives. Carlsberg, the world's third-largest brewer, on Thursday became the latest to report lower second-quarter volume growth. Organic volumes dipped 1.7% over the three-month period, including the recent loss of its San Miguel brand, even as demand for its premium and alcohol-free products grew. That comes after Budweiser-maker AB InBev, the world's largest brewer, last month posted a worse-than-feared 1.9% year-on-year decline in second-quarter volumes and Heineken's volumes dipped 0.4% over the period. "The global consumer is having a bit of a spending pause … so the volumes do not flow in the way they did a couple of years ago," Aarup-Andersen noted. AB InBev's CEO Michel Doukeris nevertheless said last month that the company's continued revenue and operating profit growth pointed to the "resilience of the beer category," and Heineken's CEO Dolf van den Brink cited resilience in its geographical footprint. Beermakers have been somewhat sheltered from recent pressures on the drinks industry, particularly a downturn in spirits consumption and ongoing U.S. tariff headwinds. Brewers, which typically rely on local production, are under less pressure to relocate their manufacturing stateside — even as they face higher aluminum levies on beer cans. Still, broader macroeconomic headwinds threaten to hurt drinking habits and wider consumer spending. Carlsberg's CEO said Thursday that the group's core brands — which include its namesake Danish brew as well as Tuborg and Kronenbourg — are being most hit by "a consumer that is holding back." He said he does not expect those economic headwinds to dissipate this year, but nevertheless noted a willingness among consumers to spend selectively on high-end treat products. "It's core beer that's going backwards while our growth categories are actually showing growth," he said. Meantime, the CEO added that at-home consumption is gaining more ground as ongoing hikes in the price of a pint are making boozing in bars and restaurants less palatable. "What we have been seeing over a number of quarters is that the on-trade, so bars and restaurants, are suffering right now," he said. "It's the off-trade — supermarkets and retail — that's winning at the expense of on-trade. It's not dramatic but it's been a sliding scale."
Yahoo
15 hours ago
- Yahoo
Kenvue attracts share purchase by activist investor Sachem Head
By Svea Herbst-Bayliss NEW YORK (Reuters) -Band-Aid and Tylenol maker Kenvue attracted the attention of another activist investor in the second quarter, with Sachem Head Capital Management reporting that it bought into the stock. Sachem, run by Scott Ferguson, said in a regulatory filing on Thursday that it owned 10.6 million shares in the consumer healthcare company on June 30. According to the filing, Kenvue was the firm's fourth biggest holding at the end of the quarter after Twilio, Talen Energy and Seagate Technology Holdings. Sachem Head declined to comment. The firm is known to quietly push for changes behind the scenes at certain companies, although it mounted a noisy proxy fight at US Foods Holding three years ago. Kenvue, which was spun out of Johnson & Johnson and now has a market value of $40 billion, has faced some of the industry's most prominent activists, including Starboard Value, Third Point and Toms Capital Investment Management, in its two years as a publicly traded company. In July, Kenvue's board fired CEO Thibaut Mongon, laying the path for what investors said they hope and expect will be the eventual sale of the company. Investors have long complained about Kenvue's sluggish share price, which drifted down 1% this year, closing at $21.06 on Thursday. Starboard was among the first to publicly press Kenvue to review how it positions its brands and how they are priced to help boost performance. The hedge fund settled its proxy fight with the company in March when Kenvue agreed to appoint three new directors, including Starboard CEO Jeffrey Smith. Starboard, in a filing on Thursday, said it cut its Kenvue investment by 5.10% to 21 million shares. But Toms Capital Investment Management, which has urged the company to consider strategic alternatives, raised its holding during the second quarter to 16 million shares, from 14.4 million shares at the end of the first quarter. Third Point, run by billionaire investor Daniel Loeb, bought into Kenvue during the first quarter but made no changes in the second quarter, to own 8.5 million shares on June 30. Investment managers are required to tell regulators how much stock they owned in U.S. companies at the end of each quarter in 13F filings. While the filings are backward looking, other investors watch them closely for hints on trends, including suggestions of which companies activist investors might be targeting. Sign in to access your portfolio
Yahoo
a day ago
- Yahoo
Tariffs Take A Bite Out Of Deere Profit, Demand Challenges Hit Core Businesses (UPDATED)
Deere & Company (NYSE:DE) shares tumbled Thursday after the agricultural equipment giant posted mixed third-quarter results and trimmed its full-year profit forecast, highlighting persistent headwinds from declining sales, tariffs, and cautious customer demand. The heavy machinery maker reported earnings per share of $4.75, beating the consensus of $4.67. It reported a 9% decline in quarterly sales to $12.02 billion, beating the consensus of $10.31 billion. Production and precision agriculture sales decreased 16% for the quarter to $4.27 billion as a result of lower shipment volumes and unfavorable price realization. Operating profit slumped 50% to $580 million primarily due to lower shipment volumes / sales agriculture and turf sales decreased 1% to $3.03 billion due to lower shipment volumes, partially offset by favorable currency translation and price realization. Operating profit decreased 2% to $485 million due to higher tariffs, partially offset by reductions in warranty expenses and lower production costs. The decreased production costs were primarily the result of lower material costs. Construction and forestry sales decreased 5% to $3.06 billion due to unfavorable price realization. Operating profit decreased 47% to $237 million primarily due to unfavorable price realization and higher production costs caused by higher tariffs, partially offset by a favorable product mix. 'By proactively managing inventory, we've matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs,' said John May, chairman and CEO of John Deere. 'By continuing to address the high levels of used equipment in the industry, we're building a healthier market for everyone, our customers, our dealers, and our business, even in these challenging times,' May added. View more earnings on DE Deere's financial services reported a net income increasing 34% to $205 million, driven by a lower provision for credit losses. Outlook Deere narrowed its fiscal 2025 net income guidance to between $4.75 billion and $5.25 billion, compared to its previous forecast of $4.75 billion to $5.50 billion, citing that customers remain cautious amid ongoing uncertainty. 'We remain committed to delivering solutions that address our customers' current needs while also laying the groundwork for future growth. For example, the increasing utilization and proven in-field effectiveness of advanced technologies, such as See & Spray and Harvest Settings Automation, are empowering customers to improve their productivity and better navigate industry challenges,' May noted. 'The positive outcomes we're enabling reinforce our confidence in Deere's future despite near-term uncertainty.' For fiscal 2025, Deere expects production and precision agriculture sales to decline between 15% and 20%, with small agriculture and turf revenues to fall by around 10% and construction and forestry sales to decline by 10%-15%. During the earnings conference call, Deere executives reportedly said tariff costs during the third quarter were about $200 million, with the pre-tariff impact forecast for 2025 now approaching $600 million. They also noted more uncertainty in the North American agricultural market and confirmed the company will continue to run factories lean to match demand. When looking at the industry, for fiscal 2025, Deere expects the U.S. and Canada large agriculture equipment sales to decline approximately 30%, while small agriculture and turf equipment sales are projected to decrease around 10%. The company sees U.S. and Canada construction equipment sales to fall by around 10%. Price Action: DE stock is trading lower by 6.49% to $480.22 at last check Thursday. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? DEERE (DE): Free Stock Analysis Report This article Tariffs Take A Bite Out Of Deere Profit, Demand Challenges Hit Core Businesses (UPDATED) originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
