By Kenvue, the pharmaceutical company known for producing popular brands such as Tylenol and Benadryl, experienced a slight decrease in fourth-quarter net income. The delayed start of the flu season in 2023 complicated comparisons with the previous year’s earnings.
In the fourth quarter, Kenvue reported earnings of $327 million, or 17 cents a share, compared to $361 million, or 21 cents a share, in the same period last year. Adjusted for certain one-off items, their earnings for the quarter stood at 31 cents a share, surpassing the average Wall Street expectation of 28 cents a share according to FactSet.
However, fourth-quarter sales saw a decline of 2.7%, amounting to $3.7 billion. This fell slightly short of the average analyst target of $3.78 billion as per FactSet’s data.
Industry analysts at UBS had previously warned about the impact of a delayed flu season in 2023 on Kenvue’s business, as well as the challenges faced by their Japanese heritage brands in China.
Providing a glimpse into its future prospects, Kenvue projected adjusted earnings for the year 2024 in the range of $1.10 to $1.20 per share, a decrease from $1.29 per share in 2023. The company also predicted sales growth between 1% and 3% from its 2023 sales of $15.4 billion, equating to a range of $15.55 billion to $15.86 billion. Excluding the impact of foreign exchange, organic sales growth for the year 2024 was estimated to fall between 2% and 4%.
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