Kenvue Inc. Reports Q1 2025 Financial Results

Kenvue, Inc. ( (KVUE) ) has released its Q1 earnings. Here is a breakdown of the information Kenvue, Inc. presented to its investors.

Kenvue Inc. is the world’s largest pure-play consumer health company by revenue, known for its iconic brands like Aveeno, BAND-AID, and Tylenol, and operates in the consumer health sector with a focus on science-backed products recommended by healthcare professionals. In its first quarter of 2025, Kenvue reported a net sales decrease of 3.9% compared to the previous year, with organic sales declining by 1.2% and a foreign currency headwind of 2.7%. Despite these challenges, the company successfully completed its Transition Services Agreement exits, marking a significant milestone in its separation process.

Key financial metrics for the quarter included a gross profit margin of 58.0%, slightly up from 57.6% the previous year, and an operating income margin of 14.9%, compared to 14.1% in the prior year. However, adjusted operating income margin saw a decline to 19.8% from 22.0%. Diluted earnings per share increased to $0.17 from $0.15, while adjusted diluted earnings per share decreased to $0.24 from $0.28. The company also updated its full-year outlook to account for incremental tariff costs and currency impacts, projecting a net sales increase of 1% to 3% year-over-year.

Kenvue’s strategic focus remains on accelerating profitable growth and optimizing its cost structure. The company is actively working to mitigate the financial impacts of tariffs and foreign exchange fluctuations. Additionally, Kenvue announced a transition in its Chief Financial Officer position, effective May 12, 2025, as part of its ongoing strategic initiatives.

Looking ahead, Kenvue anticipates a challenging environment due to tariff and currency headwinds but remains committed to its growth strategies. The company expects adjusted operating income margins to decline year-over-year, with adjusted diluted earnings per share remaining flat, factoring in the low-single-digit unfavorable impact from foreign currency. Management continues to focus on activating its brands and maintaining agility to drive sustainable growth.