THE WHAT? Kenvue Inc. released its fiscal third-quarter financial results, showing a 3.3% increase in net sales and a 3.6% increase in organic growth, with noticeable declines in volume partially offset by higher pricing. Gross profit margin improved slightly due to cost-cutting and efficiency measures, though this was somewhat mitigated by ongoing cost inflation and negative currency impacts, resulting in a decreased adjusted operating income margin of 23.3%.
THE DETAILS The company has adjusted its fiscal 2023 outlook, narrowing its net sales growth expectations to between 4.0% and 4.5%, with organic growth anticipated to be between 5.5% and 6.0%. This adjustment is attributed to a slower start to the cold, cough, and flu season and increased foreign exchange headwinds, leading to an adjusted diluted earnings per share expectation range of $1.26 to $1.28.
THE WHY? Kenvue continues its shareholder return initiatives, declaring a $0.20 per share cash dividend for the fourth quarter and authorising a share repurchase program for up to 27 million shares, reflecting a more tempered approach to capital management and shareholder returns in light of the current business and economic climate.