Kenvue’s consumer health products delivered surprisingly strong first-quarter results, pushing past Wall Street’s predictions thanks to robust sales of household names like Tylenol and Benadryl. The company, which separated from healthcare giant Johnson & Johnson last year, saw its shares climb nearly 3% in early trading after the announcement.
The maker of everyday health essentials reported adjusted earnings of 67 cents per share, comfortably exceeding analysts’ expectations of 62 cents. Total revenue reached $4.01 billion, surpassing forecasts of $3.97 billion according to LSEG data.
“Consumers continue to rely on our trusted brands despite economic pressures,” said Thibaut Mongon, Kenvue’s Chief Executive Officer, during Thursday’s earnings call. “Our self-care division performed particularly well as seasonal illness trends normalized after last year’s unusually intense cold and flu season.”
The company’s self-care segment, which includes pain relievers Tylenol and Motrin alongside allergy treatments like Benadryl and Zyrtec, saw sales increase by 5.4% to $1.48 billion. This growth occurred despite tough comparisons to last year’s heightened demand during the severe respiratory illness season.
Kenvue’s essential health division, featuring brands like Listerine mouthwash and Band-Aid bandages, reported a 4.9% sales increase to $1.34 billion. Meanwhile, the skin health and beauty segment, which includes Neutrogena and Aveeno products, grew 3.5% to $1.19 billion.
The New Jersey-based company has successfully maintained consumer loyalty despite inflation pressures that have led many shoppers to seek cheaper alternatives for everyday products. Market research shows that established brands with strong consumer trust often retain customers even during economic uncertainty.
“We’re seeing particular strength in our pain management and allergy relief categories, where efficacy and reliability trump price sensitivity,” noted Paul Ruh, Kenvue’s Chief Financial Officer. “Consumers are willing to pay for products they know will work.”
The earnings report also highlighted Kenvue’s international expansion efforts, with notable growth in emerging markets. The company reported double-digit percentage growth in Brazil and India, where rising middle-class populations are increasingly seeking trusted health and personal care products.
Kenvue reaffirmed its full-year 2024 forecast, projecting adjusted profit between $1.10 and $1.20 per share and organic sales growth of 2% to 4%. This steady outlook comes despite ongoing economic challenges and intensifying competition in the consumer health sector.
Industry analysts note that Kenvue’s strong brand portfolio positions it well against both established competitors and private-label alternatives. The company’s strategic focus on innovation and digital marketing has helped maintain market share across key categories.
“Their performance shows the resilience of consumer health as a category,” said Sarah Johnson, retail analyst at Market Strategy Partners. “Even when households cut back elsewhere, they tend to stick with trusted health products.”
Since splitting from Johnson & Johnson in May 2023, Kenvue has worked to establish its independent identity while leveraging its heritage brands. The separation allowed the company to focus exclusively on consumer health while its former parent concentrates on pharmaceuticals and medical devices.
The positive earnings report comes as a welcome development for Kenvue, which faced some challenges during its first months as an independent entity. Supply chain pressures and increased marketing expenses had previously weighed on margins, but the company appears to be managing these issues effectively.
Looking ahead, Kenvue executives emphasized their commitment to product innovation and expanded distribution channels. The company plans to increase investment in e-commerce capabilities while continuing to support traditional retail partners.
For investors, the earnings
