About KenvueKenvue is the world’s largest pure-play consumer health company by revenue. At Kenvue, we believe in the extraordinary power of everyday care and our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Kenvue Inc., a subsidiary formed from Johnson hycm review & Johnson’s consumer health division, generates revenue primarily through a diverse portfolio of consumer healthcare products.
That means less risk-taking and perhaps more conservatism, which caters to the preferences of dividend investors rather than to those looking for an aggressive growth stock. Kenvue’s purpose, Realize the Extraordinary Power of Everyday Care, will guide the company’s actions and long-term aspirations, from strategy to talent philosophy, and more. Our work impacts consumers and colleagues, communities and generations, in daily rituals and in the moments that matter most.
I’m sure it comes as no surprise that I am super excited for Kenvue Cares Week in May! We piloted it last year as a week-long moment of team-based volunteerism for Kenvuers to come together across the world and create positive impact within the communities that we live and work in. As the Senior Manager of Global Social Impact, I lead volunteerism for the organization. We all know that volunteering is such a powerful experience, but when you’re doing it alongside colleagues, friends and teammates, it builds a bond. Always ahead of the curve, HCG is spearheading the charge to turn scientific potential into real-world impact. As well as earned media, the company plans to double down on its many owned channels, tapping into each individual brand’s social reach.
Product Line Is Impressive
- The breakdown of ownership categories is significant as institutional investors typically hold a major portion of the equity.
- The communications and public affairs staffers working on J&J’s consumer health portfolio transferred over to Kenvue’s corporate affairs division when it became a standalone brand.
- Kenvue and its affiliates undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or developments or otherwise.
One thing investors will like about the stock is that Kenvue stated in its prospectus that it expects to pay a quarterly cash dividend of $0.20 per share later this year. Assuming that is the case and the company pays every quarter, that would result in a yield of around 3.1% based on a share price of $26, which would be higher than the S&P 500 average of 1.7%. Kenvue has opportunities to expand into emerging markets, invest in digital transformation, and develop sustainable product lines to meet growing consumer demand. The name had to complement the in-market product brand names by living on packaging and standing for a compelling and unifying idea. Last year we went to South Africa and Zimbabwe for our honeymoon, and I took my husband to India for his first time to meet my grandmother.
- This strong, distinctive color works in harmony with the multicolored palette of the company’s portfolio of well-known brands.
- In its first quarter, which ended April 2, Kenvue is estimated to have brought in sales of $3.85 billion and net income of roughly $330 million.
- The danger is that even a handful of claims could potentially yield devastating results for Kenvue, as its assets and revenue stream won’t nearly be the size of Johnson & Johnson’s.
- According to market analysis, nearly 40% of Kenvue’s sales were derived from e-commerce channels in 2023.
Kenvue faces threats from intense competition, regulatory challenges, and economic instability, which can impact consumer spending on health and wellness products. “We believe that daily self-care rituals add up over time and have a profound cumulative impact on your wellbeing. And our work is to put that power into the hands of consumers around the world,” Mongon adds. For example, the creation of BAND-AID® Brand HYDRO SEAL™ acne blemish patches was born out of viral social media skincare trends. The development of this product demonstrates how Kenvue boldly pursues innovative ways to work, creating solutions that can genuinely improve people’s lives.
Our Healthy Lives Mission — our environmental, social and governance strategy — strives to nurture healthy people, enrich a healthy planet and maintain healthy practice. Within our three Healthy Lives Mission pillars, we are focused on nine priority topics and have set goals and commitments to hold us accountable and help drive the positive impact we aim to create. The company’s major products include several J&J brands, including Tylenol, Listerine, Neutrogena, and Nicorette.
Johnson & Johnson will have a big stake in the business
Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. Full details of the results are available in a separate press release issued this morning by Johnson & Johnson.
Maintain healthy practice
The overall financial health of Kenvue is also evidenced by its operating income, which stood at approximately $3.3 billion for the fiscal year 2022, translating to an operating margin of 25%. This reflects effective cost controls and strong product demand in a competitive market. Kenvue also focuses on innovation plus500 review and product development, launching new products that cater to emerging consumer needs.
Kenvue ribbon-cutting marks official opening of new global headquarters in Summit, New Jersey
In 2022, Kenvue reported a reduction in greenhouse gas emissions by 20% as part of its commitment to environmental responsibility. As of October 2023, Kenvue has initiated several initiatives to enhance sustainability and reduce environmental impact. The company has committed to reducing its carbon footprint by 50% by 2030, focusing on sustainable packaging solutions and responsible sourcing practices. As of September 2023, Kenvue continued to see positive momentum in its stock performance, with shares trading around $25.30, marking a year-to-date increase of over 15%.
Kenvue is profitable and expects modest growth over the next few years, the company said in the filing. Kenvue’s debut also marks the largest restructuring in J&J’s 135-year history. J&J announced the split in late 2021 as a bid to streamline operations and refocus on its pharmaceutical and medical device divisions. The spinoff, the biggest IPO since EV maker Rivian went public in November 2021, alone may not completely turn around the moribund IPO market, which plummeted in 2022. Our leadership reflects our consumers and brings to Kenvue a broad range of perspectives. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
This scenario implies Kenvue grows NOPAT by 7% compounded annually through 2029. For reference, Kenvue’s NOPAT has actually fallen 5% compounded annually since 2020. This scenario also implies Kenvue grows revenue at the industry growth rate, i.e. 7%, which is much higher than the 2% compound annual revenue growth rate Kenvue has achieved since 2020. As a provider of some of the largest consumer health products in the world, Kenvue generated nearly $15 billion in revenue in 2022 and $2.3 billion in net operating profit after tax (NOPAT). In 2022, NOPAT was up 8% year-over-year (YoY) while revenue was down 1%, per Figure 1. Paul Ruh, J&J’s chief financial officer of consumer health and a former PepsiCo executive, will serve as CFO, and Meredith Stevens, J&J’s worldwide vice president of the company’s consumer health supply chain department, will serve as COO.
Neutrogena, for example, boasts nearly 1 million followers on Instagram alone. On IPO day, staffers were encouraged to change their company to Kenvue on LinkedIn, post about listing day and “turn the social media platform green” using pre-made banners matching Kenvue’s color scheme, Lorenson said. Kenvue, which also holds popular brands such as Benadryl, Motrin and Neutrogena, completed its initial public offering in early May, raising $3.8 billion and marking the biggest U.S. listing since Rivian in November 2021. Overall, Kenvue said 2022 sales were „well balanced” across the company’s three business divisions. Annual sales growth through 2025 is projected to be about 3% to 4% globally, according to the filing.
At the core of consumers’ daily lives
As part of its initial public offering (IPO), Kenvue raised approximately $3.8 billion, significantly bolstering its financial standing. The initial stock price was set at $22 per share, and as of the latest trading session, it has fluctuated around $26 to $30, marking a healthy debut in the market. Among institutional investors, notable holders include Vanguard Group, which holds approximately 8% of the total shares, and BlackRock, with around 7%. Other significant institutional investors comprise Fidelity Investments, State Street Corporation, and T. Their collective harami candle influence plays a vital role in the governance and strategic decisions of the company.
Although Kenvue is technically a separate company, Johnson & Johnson will still play a big role in its operations; the healthcare company will own a 90% stake in the business. Kenvue’s strengths include strong brand equity, a diverse product portfolio, innovative R&D capabilities, and a global reach. Kenvue was officially announced in September 2022, poising this world leader in consumer health for exciting growth as it forges ahead in its planned next chapter as a standalone company. Use of this site constitutes your consent to application of such laws and regulations and to our Privacy Policy. Your use of the information on this site is subject to the terms of our Legal Notice. We’re driven to win for those we serve, and when we care fiercely for them and one another, we can deliver the best possible care.
Understanding Kenvue’s ownership landscape is essential for investors as it affects both the voting dynamics and strategic planning of the company. The diverse mix of shareholders provides a balance between institutional influence and individual stakeholder interests, creating a complex yet dynamic ownership structure. As of the latest filings, the largest shareholders of Kenvue Inc. include both institutional and individual investors. The breakdown of ownership categories is significant as institutional investors typically hold a major portion of the equity. That’s not necessarily a negative, as it will mean plenty of incentive for the company to be run prudently because Johnson & Johnson will still have a lot of skin in the game.
When I use my reverse discounted cash flow (DCF) model to analyze the future cash flow expectations baked into KVUE, I find that shares, even at the midpoint, require optimistic assumptions about margins and growth, and look fully valued. Kenvue’s chief people officer, chief corporate affairs officer, chief technology and data officer, chief scientific officer and group presidents for different regions around the world are also from J&J. Skin health and beauty products accounted for $4.4 billion in net sales last year, or 29% of overall revenue.
As Kenvue continues to leverage its strong brand portfolio and focus on consumer health trends, the company’s financial performance is likely to remain robust, driven by innovation, strategic marketing, and expanding e-commerce presence. As of the end of 2023, Kenvue’s product portfolio includes well-known brands such as Tylenol, Band-Aid, and Neutrogena, each aligning with their mission to provide reliable and accessible health and personal care products. Kenvue’s dedication to research and development underscores its mission, with a reported investment of approximately $1.5 billion in R&D for the fiscal year 2023. Kenvue has some strong brands in its portfolio, decent financials, and even plans to pay a dividend. It isn’t an attractive option for growth investors, and while the dividend could be relatively high out of the gate, the risk the company faces with respect to talc liabilities negates those positives for me.