Kenvue Inc. Reports Q1 2025 Financial Results with $322M Net Income and Revenue Decline

Kenvue Inc. reported its financial results for the fiscal quarter ending March 30, 2025, revealing a net income of $322 million, an increase of 8.8% from $296 million in the same period last year. The company's revenue for the quarter was $3.741 billion, down 3.9% from $3.894 billion in the prior year, primarily due to unfavorable foreign currency exchange rates and volume-related declines in certain product categories. The gross profit margin improved to 58.0%, up from 57.6% a year earlier, attributed to supply chain optimization initiatives despite facing challenges in volume leverage.

In terms of operational changes, Kenvue's restructuring efforts under the "Our Vue Forward" initiative have led to increased restructuring expenses, which rose to $60 million from $41 million year-over-year. The company is undergoing a multi-year restructuring plan aimed at enhancing organizational efficiencies and optimizing its cost structure, with expected total pre-tax charges of approximately $550 million. The initiative is anticipated to yield annualized gross cost savings of around $350 million starting in fiscal year 2026.

Kenvue's business segments showed varied performance. The Self Care segment generated $1.667 billion in sales, a slight decline of 1.8%, while the Skin Health and Beauty segment saw a more significant drop of 7.3%, with sales totaling $977 million. The Essential Health segment remained stable at $1.097 billion. The company noted that the decline in the Skin Health and Beauty segment was primarily due to competitive pressures and strategic pricing investments in the U.S. market.

The company continues to expand its operational footprint, having relocated its global and North America headquarters to a new facility in Summit, New Jersey, which began operations in March 2025. This move is part of a broader strategy to consolidate operations and enhance efficiency. Kenvue also reported a decrease in cash and cash equivalents to $1.057 billion, down from $1.070 billion at the end of the previous fiscal year, while total debt increased slightly to $8.738 billion.

Looking ahead, Kenvue anticipates ongoing challenges from macroeconomic factors, including potential tariff impacts estimated at $150 million for fiscal year 2025. The company remains focused on leveraging its digital strategy and consumer insights to drive growth and navigate the evolving market landscape. Kenvue's management expressed confidence in the company's ability to generate positive cash flows and meet its financial obligations, supported by its strong brand portfolio and operational initiatives.