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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 6, 2025
Kenvue Inc.
 (Exact name of registrant as specified in its charter)
Delaware001-4169788-1032011
(State or other jurisdiction
 of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
199 Grandview Road
Skillman, New Jersey
08558
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (908)-874-1200
Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareKVUENew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02     Results of Operations and Financial Condition
 
On February 6, 2025, Kenvue Inc. issued the attached press release (Exhibit 99.1) announcing its financial results for the fiscal full year and fourth quarter ended December 29, 2024.

The information contained under Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and, as a result, such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01    Financial Statements and Exhibits

(d)     Exhibits. 
 
Exhibit NumberExhibit Description
99.1
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
KENVUE INC.
Date: February 6, 2025
By:/s/ Paul Ruh
  Name:
Title:		Paul Ruh
Chief Financial Officer


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Kenvue Reports Full Year and Fourth Quarter 2024 Results

•Q4 Net Sales Decreased 0.1% to $3.7 Billion; Organic Sales1 Grew 1.7%

•Q4 Diluted EPS was $0.15; Adjusted Diluted EPS1 was $0.26

•FY’24 Net Sales Increased 0.1% to $15.5 Billion; Organic Sales1 Grew 1.5%

•FY’24 Gross Profit Margin Improved 200 Basis Points and Our Vue Forward Savings Supported Increased Marketing Investment to Fuel Growth

•FY’24 Diluted EPS was $0.54; Adjusted Diluted EPS1 was $1.14

•Provides Outlook for FY’25




SKILLMAN, N.J. February 6, 2025 – Kenvue Inc. (NYSE: KVUE), today announced financial results for the full year and fiscal fourth quarter ended December 29, 2024.

“We delivered on our 2024 profit commitments despite headwinds that resulted in softer than expected sales growth and we enter 2025 as a more competitive company with stronger foundations,” said Thibaut Mongon, Chief Executive Officer. “We remain focused on leveraging our increased brand investments to accelerate growth and deliver long-term value creation centered around profitable growth, durable cash flow generation, and disciplined capital allocation.”

Fourth Quarter 2024 Financial Results

Net Sales and Organic Sales
Fourth quarter Net sales decreased 0.1%, reflecting Organic sales1 growth of 1.7% and a foreign currency headwind of 1.8%. Organic sales growth was driven by 1.0% value realization (price and mix) and 0.7% volume growth.

Value realization was favorable across each segment and was primarily driven by price actions taken in 2024. Volume growth in both Skin Health and Beauty and Self Care was partially offset by a decline in Essential Health. In Self Care, weak incidences of cold, cough & flu led to a significant
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decline in the pediatric pain franchise. In addition, go-to-market disruption in Asia Pacific impacted the Company’s results, with an outsized impact on Essential Health.

Gross Profit Margin and Operating Income Margin
Fourth quarter Gross profit margin expanded 80 basis points to 56.5% from 55.7% in the prior year period, as Separation-related costs and amortization of intangible assets declined year-over-year. Adjusted gross profit margin1 decreased 80 basis points to 58.7% from 59.5% in the prior year period, which included non-recurring separation related benefits. The year-over-year change in both measures also reflects the impact from net input cost inflation and unfavorable mix, as well as the benefit from productivity gains and value realization.

Fourth quarter Operating income margin was 13.2% vs 12.5% in the prior year period. Fourth quarter Adjusted operating income margin1 was 19.2% vs 21.8% in the prior year period. The year-over-year changes in Operating income margin and Adjusted operating income margin reflect the year-over-year change in Gross profit margin and Adjusted gross profit margin, respectively, as well as an increase in brand investment and the benefit from savings from Our Vue Forward.

Interest Expense, Net and Taxes
Fourth quarter Interest expense, net was $95 million vs $96 million in the prior year period.

The fourth quarter Effective tax rate was 15.3% vs 8.4% in the prior year period. The Adjusted effective tax rate1 was 17.7% vs 15.8% in the prior year period. Both measures were driven by changes to the jurisdictional mix of income and reduced benefits derived from the separation from our former parent company offset by remeasurement of the Company’s deferred taxes and the release of a valuation allowance.

Net Income Per Share (“Earnings Per Share”)
Fourth quarter Diluted earnings per share were $0.15 vs $0.17 in the prior year period and Adjusted diluted earnings per share1 were $0.26 vs $0.31 in the prior year period.

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Full Year 2024 Financial Results

Net Sales and Organic Sales
Full year 2024 Net sales increased 0.1%, reflecting Organic sales growth of 1.5% and foreign currency headwind of 1.4%. Organic sales growth was driven by 2.7% value realization, partially offset by 1.2% volume decline.

Value realization was favorable across each segment and was driven by a combination of carry-over pricing from 2023 and price actions taken in 2024. The volume decline was driven by Skin Health and Beauty and Self Care, which offset slight volume growth in Essential Health.

Gross Profit Margin and Operating Income Margin
Full year 2024 Gross profit margin expanded 200 basis points to 58.0% from 56.0% in the prior year period. Adjusted gross profit margin also expanded 200 basis points to 60.4% from 58.4% in the prior year period. The year-over-year improvement in both measures primarily reflects productivity gains attributable to our global supply chain efficiency initiatives and benefits from value realization.

Full year 2024 Operating income margin was 11.9% vs 16.3% in the prior year period, with the current year figure impacted by non-cash charges related to asset impairments. Full year 2024 Adjusted operating income margin was 21.5% vs 22.4% in the prior year period. The year-over-year change in both measures reflects the impact of higher brand investment, which more than offset the benefit from Gross profit margin expansion and savings from Our Vue Forward.

Interest Expense, Net and Taxes
Full year 2024 Interest expense, net was $378 million vs $250 million in the prior year period.

Full year Effective tax rate was 27.2% vs 24.0% in the prior year period. The Adjusted effective tax rate was 25.5% vs 23.4% in the prior year period. Both measures were driven by changes to the jurisdictional mix of income and reduced benefits derived from the separation from our former parent company offset by remeasurement of the Company’s deferred taxes and the release of a valuation allowance.

Net Income Per Share (“Earnings Per Share”)
Full year 2024 Diluted earnings per share were $0.54 vs $0.90 in the prior year period and Adjusted diluted earnings per share were $1.14 vs $1.29 in the prior year period.

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2025 Outlook
“As Kenvue enters our next chapter, we expect to accelerate performance throughout the year, while navigating the dynamic external environment contemplated within our outlook,” said Paul Ruh, Chief Financial Officer. “We expect to drive further productivity and operational efficiency gains, which will fund our planned increase in brand investments, positioning us to grow adjusted operating margin for the year."

Based on current spot rates, Kenvue initiated the following outlook for Full year 2025. The Company expects:
•Net sales change of -1% to +1% year-over-year, with Organic sales growth of +2% to +4% and a ~3% headwind from foreign currency translation.
•Adjusted operating income margin improvement year-over-year.
•Flat to +2% year-over-year Adjusted diluted earnings per share growth, including a mid-single-digit unfavorable impact from foreign currency.

This outlook does not include any potential impacts from tariffs introduced in 2025.

Kenvue is not able to provide the most directly comparable GAAP measures or reconcile Adjusted operating income margin or Adjusted diluted earnings per share to comparable GAAP measures on a forward-looking basis without unreasonable efforts given the unpredictability of the timing and amounts of discrete items such as foreign exchange, acquisitions, or divestitures.

Webcast Information
As previously announced, Kenvue will host a conference call with investors to discuss its fourth quarter and full year results on Thursday, February 6, 2025 at 8:00 a.m. Eastern Time. The conference call can be accessed by dialing 877-407-8835 from the U.S. or +1 201-689-8779 from international locations. A live webcast of the conference call can also be accessed at investors.kenvue.com, with a replay made available after the live event.

About Kenvue
Kenvue Inc. is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. 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. Learn more at www.kenvue.com.

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1Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with U.S. GAAP. There are limitations to the use of the non-GAAP financial measures presented herein. These non-GAAP financial measures are not prepared in accordance with U.S. GAAP nor do they have any standardized meaning under U.S. GAAP. In addition, other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way the Company calculates such measures. Accordingly, the non-GAAP financial measures may not be comparable to such similarly titled non-GAAP financial measures used by other companies. The Company cautions you not to place undue reliance on these non-GAAP financial measures, but instead to consider them with the most directly comparable U.S. GAAP measure. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation. These non-GAAP financial measures should be considered supplements to, not substitutes for, or superior to, the corresponding financial measures calculated in accordance with U.S. GAAP.

The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry.

Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release and the related prepared materials and webcast.

Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time.

Adjusted EBITDA margin: We define EBITDA as U.S. GAAP Net income adjusted for interest, provision for taxes, and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for restructuring expenses and operating model optimization initiatives, costs incurred in connection with our establishment as a standalone public company (“Separation-related costs”), conversion of stock-based awards, stock-based awards granted to individuals employed by Kenvue
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as of October 2, 2023 (“Founder Shares”), impairment charges, the impact of the deferred transfer of certain assets and liabilities from Johnson & Johnson in certain jurisdictions (the “Deferred Markets”), litigation (income) expense, losses on investments, and tax indemnification releases. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Adjusted effective tax rate: We define Adjusted effective tax rate as U.S. GAAP Effective tax rate adjusted for the tax effects on special item adjustments including amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, impairment charges other than the Dr.Ci:Labo® asset impairment, litigation (income) expense, losses on investments, interest income from a related party note, and tax indemnification releases. We also exclude taxes related to the Deferred Markets, taxes related to the Dr.Ci:Labo® asset impairment charges, certain one-time tax only adjustments which includes the removal of tax effects from the carve-out methodology, and the impact of the interest expense from the debt issuance, which reduced the Company’s capacity to utilize foreign tax credits against U.S. foreign source income. Management believes this non-GAAP measure is useful to investors as it provides a supplemental measure of the Company’s performance over time.

Adjusted gross profit margin: We define Adjusted gross profit margin (also referred to as “Adjusted gross margin”) as U.S. GAAP Gross profit margin adjusted for amortization of intangible assets, Separation-related costs, conversion of stock-based awards, Founder Shares, and operating model optimization initiatives. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Adjusted net income: We define Adjusted net income as U.S. GAAP Net income adjusted for amortization of intangible assets, restructuring expenses and operating model optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, impairment charges, the impact of the Deferred Markets, litigation (income) expense, losses on investments, interest income from a related party note, tax indemnification releases, and their related tax impacts (i.e. special items). Adjusted net income excludes the impact of items that may obscure trends in our underlying performance. Management believes this non-GAAP measure is useful to investors as the Company uses Adjusted net income for strategic decision making, forecasting future results, and evaluating current performance.

Adjusted operating income: We define Adjusted operating income as U.S. GAAP Operating income adjusted for amortization of intangible assets, restructuring expenses and operating model
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optimization initiatives, Separation-related costs, conversion of stock-based awards, Founder Shares, impairment charges, the impact of the Deferred Markets, and litigation (income) expense. Management believes this non-GAAP measure is useful to investors as management uses Adjusted operating income to assess the Company’s financial performance.

Adjusted operating income margin: We define Adjusted operating income margin (also referred to as “Adjusted operating margin”) as Adjusted operating income as a percentage of U.S. GAAP Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.

Free cash flow: We define Free cash flow as U.S. GAAP Net cash flows from operating activities adjusted for Purchases of property, plant, and equipment. Management believes this non-GAAP measure is useful to investors as it provides a view of the Company’s liquidity after deducting capital expenditures, which are considered a necessary component of our ongoing operations.

Organic sales: We define Organic sales as U.S. GAAP Net sales excluding the impact of changes in foreign currency exchange rates and the impact of acquisitions and divestitures. We report changes in Organic sales on a period-over-period basis. We previously referred to this non-GAAP financial metric as “Organic growth”. Management believes reporting period-over-period changes in Organic sales provides investors with additional, supplemental information that is useful in assessing the Company’s results of operations by excluding the impact of certain items that we believe do not directly reflect our underlying operations.

The non-GAAP measures as presented herein have been prepared as if our operations had been conducted independently from Johnson & Johnson prior to May 4, 2023, the date Kenvue’s common stock began trading on the New York Stock Exchange, and therefore they include certain Johnson & Johnson corporate and shared costs allocated to us. Management believes the cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, us during the periods presented, though the allocations may not be indicative of the actual costs that would have been incurred if we had been operating as a standalone company.

Cautions Concerning Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position, and business strategy. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates,” and other words of similar meaning.
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The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; inflation and other economic factors, such as interest rate and currency exchange rate fluctuations; the ability to successfully manage local, regional, or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any expected share repurchases and dividend payments; Kenvue’s ability to maintain satisfactory credit ratings and access capital markets, which could adversely affect its liquidity, capital position, and borrowing costs; competition, including technological advances, new products, and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including Our Vue Forward and other restructuring or cost-saving initiatives; the impact of business combinations and divestitures, including any ongoing or future transactions; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations and other requirements imposed by stakeholders; changes in behavior and spending patterns of consumers; natural disasters, acts of war (including the Russia-Ukraine War and the Israel-Hamas War), or terrorism, catastrophes, or epidemics, pandemics, or other disease outbreaks; financial instability of international economies and legal systems and sovereign risk; the inability to realize the benefits of the separation from Kenvue’s former parent, Johnson & Johnson; and the risk of disruption or unanticipated costs in connection with the separation. A further list and descriptions of these risks, uncertainties, and other factors can be found in Kenvue’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other filings, available at www.kenvue.com or on request from Kenvue. Any forward-looking statement made in this release speaks only as of the date of this release. Kenvue undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or developments or otherwise.



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Contacts
Investor Relations:
Sofya Tsinis
Kenvue_IR@kenvue.com

Media Relations:
Melissa Witt
media@kenvue.com
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Kenvue Inc.
Condensed Consolidated Statement of Operations
(Unaudited; Dollars In Millions, Except Per Share Data; Shares In Millions)

 Fiscal Three Months EndedFiscal Twelve Months Ended
December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Net sales$3,662 $3,666 $15,455 $15,444 
Cost of sales1,592 1,623 6,496 6,801 
Gross profit2,070 2,043 8,959 8,643 
Selling, general and administrative expenses1,525 1,586 6,329 6,141 
Restructuring expenses65 — 185 — 
Impairment charges— — 578 — 
Other operating (income) expense, net(3)(3)26 (10)
Operating income483 460 1,841 2,512 
Other expense, net42 7 48 72 
Interest expense, net95 96 378 250 
Income before taxes346 357 1,415 2,190 
Provision for taxes53 30 385 526 
Net income$293 $327 $1,030 $1,664 
Net income per share
Basic$0.15 $0.17 $0.54 $0.90 
Diluted$0.15 $0.17 $0.54 $0.90 
Weighted-average number of shares outstanding
Basic1,916 1,915 1,915 1,846 
Diluted1,929 1,919 1,923 1,850 


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Non-GAAP Financial Information
Organic Sales Change

The following tables present a reconciliation of the change in Net sales, as reported, to the change in Organic sales for the periods presented:
Fiscal Three Months Ended December 29, 2024 vs December 31, 2023(1)
Reported Net sales changeImpact of foreign currencyOrganic sales change
(Unaudited; Dollars in Millions)AmountPercentAmountAmountPercent
Self Care$32 2.1 %$(12)$44 2.9 %
Skin Health and Beauty10 1.0 (16)26 2.6 
Essential Health(46)(4.1)(38)(8)(0.7)
Total
$(4)(0.1)%$(66)$62 1.7 %

Fiscal Three Months Ended December 29, 2024 vs December 31, 2023(1)
(Unaudited)Reported Net sales changeImpact of foreign currencyOrganic sales change
Price/Mix(2)
Volume
Self Care2.1 %(0.8)%1.2 %1.7 %
Skin Health and Beauty1.0 (1.6)0.5 2.1 
Essential Health(4.1)(3.4)1.2 (1.9)
Total
(0.1)%(1.8)%1.0 %0.7 %

Fiscal Twelve Months Ended December 29, 2024 vs December 31, 2023(1)
Reported Net sales changeImpact of foreign currencyOrganic sales change
(Unaudited; Dollars in Millions)AmountPercentAmountAmountPercent
Self Care$76 1.2 %$(44)$120 1.9 %
Skin Health and Beauty(138)(3.2)(57)(81)(1.9)
Essential Health73 1.6 (118)191 4.1 
Total
$11 0.1 %$(219)$230 1.5 %

Fiscal Twelve Months Ended December 29, 2024 vs December 31, 2023(1)
(Unaudited)Reported Net sales changeImpact of foreign currencyOrganic sales change
Price/Mix(2)
Volume
Self Care1.2 %(0.7)%2.5 %(0.6)%
Skin Health and Beauty(3.2)(1.3)1.6 (3.5)
Essential Health1.6 (2.5)3.9 0.2 
Total
0.1 %(1.4)%2.7 %(1.2)%
(1) Acquisitions and divestitures did not materially impact the reported Net sales change.
(2) Price/Mix reflects value realization.
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Total Segment Net Sales and Adjusted Operating Income
Segment Net sales and Adjusted operating income for the periods presented were as follows:
Net Sales
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited; Dollars in Millions)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Self Care$1,569 $1,537 $6,527 $6,451 
Skin Health and Beauty1,011 1,001 4,240 4,378 
Essential Health1,082 1,128 4,688 4,615 
Total segment net sales$3,662 $3,666 $15,455 $15,444 
Adjusted Operating Income
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited; Dollars in Millions)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Self Care Adjusted operating income$481 $537 $2,173 $2,299 
Skin Health and Beauty Adjusted operating income105 149 607 679 
Essential Health Adjusted operating income248 275 1,162 1,011 
Total(1)
$834 $961 $3,942 $3,989 
Reconciliation to Adjusted operating income (non-GAAP):
Depreciation(2)
91 94 329 305 
General corporate/unallocated expenses56 77 314 296 
Other operating (income) expense, net(3)(3)26 (10)
Other—impact of Deferred Markets(12)(1)(59)(34)
Litigation (expense) income— (5)4 (25)
Adjusted operating income (non-GAAP)
$702 $799 $3,328 $3,457 
Reconciliation to Income before taxes:
Amortization of intangible assets57 80 269 322 
Separation-related costs(3)
65 135 296 468 
Restructuring and operating model optimization initiatives75 29 221 32 
Conversion of stock-based awards5 80 39 55 
Other—impact of Deferred Markets12 1 59 34 
Founder Shares5 9 29 9 
Litigation expense (income)— 5 (4)25 
Impairment charges— — 578 — 
Operating income$483 $460 $1,841 $2,512 
Other expense, net42 7 48 72 
Interest expense, net 95 96 378 250 
Income before taxes$346 $357 $1,415 $2,190 
(1) Effective in the fiscal three months ended September 29, 2024, the Company adjusted the allocation for certain brand marketing expenses within Selling, general, and administrative expenses to align with segment financial results as measured by the Company, including the chief operating decision maker (the “CODM”). Accordingly, the Company has updated its segment disclosures to reflect the updated presentation in all prior periods. Total Adjusted operating income did not change as a result of this update.
(2) Depreciation includes the amortization of integration and development costs capitalized in connection with cloud computing arrangements.
(3) Separation-related costs includes depreciation expense on Separation-related assets for the fiscal three and twelve months ended December 29, 2024.
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The following tables present reconciliations of GAAP to Non-GAAP for the periods presented:
Fiscal Three Months Ended December 29, 2024
(Unaudited; Dollars in Millions)As ReportedAdjustmentsReferenceAs Adjusted
Net sales$3,662— $3,662
Gross profit$2,07081 (a)$2,151
Gross profit margin56.5 %58.7 %
Operating income$483 219 (a)-(c)$702 
Operating income margin13.2 %19.2 %
Net income$293206 (a)-(e)$499
Net income margin8.0 %13.6 %
Interest expense, net$95 
Provision for taxes$53 
Depreciation and amortization$148 
EBITDA (non-GAAP)$589 203 (b)-(d), (f)$792 
EBITDA margin (non-GAAP)16.1 %21.6 %
Detail of Adjustments
Cost of salesSG&A/Restructuring expensesOther operating (income) expense, netOther expense, netProvision for taxesTotal
Amortization of intangible assets$57$—$—$—$—$57
Restructuring expenses—65———65
Operating model optimization initiatives82———10
Separation-related costs (including conversion of stock-based awards and Founder Shares)1659———75
Impact of Deferred Markets—minority interest expense——4——4
Impact of Deferred Markets—provision for taxes——8—(8)—
Losses on investments———41—41
Tax impact on special item adjustments————(46)(46)
Total$81$126$12$41$(54)$206
(a)(b)(c)(d)(e)
Cost of sales less amortization$24 
(f)
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Fiscal Three Months Ended December 31, 2023
(Unaudited; Dollars in Millions)As ReportedAdjustmentsReferenceAs Adjusted
Net sales$3,666 — $3,666
Gross profit$2,043 139 (a)$2,182
Gross profit margin55.7 %59.5%
Operating income$460 339 (a)-(c)$799
Operating income margin12.5 %21.8%
Net income$327 259 (a)-(d)$586
Net income margin8.9 %16.0%
Interest expense, net$96 
Provision for taxes$30 
Depreciation and amortization$174 
EBITDA (non-GAAP)$627 259 (b)-(c), (e)$886
EBITDA margin (non-GAAP)17.1 %24.2%
Detail of Adjustments
Cost of salesSG&A/Restructuring expensesOther operating (income) expense, netProvision for taxesTotal
Amortization of intangible assets$80$—$—$—$80
Operating model optimization initiatives
20 9 — — 29
Separation-related costs (including conversion of stock-based awards and Founder Shares)39 185 — — 224
Impact of Deferred Markets—provision for taxes— — 1 (1)—
Litigation expense— — 5 — 5
Tax impact on special item adjustments— — — (79)(79)
Total$139 $194 $6 $(80)$259 
(a)(b)(c)(d)
Cost of sales less amortization$59 
(e)
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Fiscal Twelve Months Ended December 29, 2024
(Unaudited; Dollars in Millions)As ReportedAdjustmentsReferenceAs Adjusted
Net sales$15,455— $15,455
Gross profit$8,959369 (a)$9,328
Gross profit margin58.0 %60.4 %
Operating income$1,8411,487 (a)-(d)$3,328
Operating income margin11.9 %21.5 %
Net income$1,0301,169 (a)-(f)$2,199
Net income margin6.7 %14.2 %
Interest expense, net$378 
Provision for taxes$385 
Depreciation and amortization$598 
EBITDA (non-GAAP)$2,3911,269 (b)-(e), (g)$3,660
EBITDA margin (non-GAAP)15.5 %23.7 %
Detail of Adjustments
Cost of salesSG&A/Restructuring expensesImpairment chargesOther operating (income) expense, netOther expense, netProvision for taxesTotal
Amortization of intangible assets$269$—$—$—$—$—$269
Restructuring expenses—185————185
Operating model optimization initiatives279————36
Separation-related costs (including conversion of stock-based awards and Founder Shares)73291————364
Impairment charges——578——(151)427
Impact of Deferred Markets—minority interest expense———24——24
Impact of Deferred Markets—provision for taxes———35—(35)—
Litigation income———(4)——(4)
Losses on investments————72—72
Tax indemnification release————(21)—(21)
Tax impact on special item adjustments—————(183)(183)
Total$369$485$578$55$51$(369)$1,169
(a)(b)(c)(d)(e)(f)
Cost of sales less amortization$100 
(g)






15

Fiscal Twelve Months Ended December 31, 2023
(Unaudited; Dollars in Millions)As ReportedAdjustmentsReferenceAs Adjusted
Net sales$15,444 — $15,444
Gross profit$8,643 375 (a)$9,018
Gross profit margin56.0 %58.4%
Operating income$2,512 945 (a)-(c)$3,457
Operating income margin16.3 %22.4%
Net income$1,664 719 (a)-(f)$2,383
Net income margin10.8 %15.4%
Interest expense, net$250 
Provision for taxes$526 
Depreciation and amortization$627 
EBITDA (non-GAAP)$3,067 630 (b)-(d), (g)$3,697
EBITDA margin (non-GAAP)19.9 %23.9%
Detail of Adjustments
Cost of salesSG&A/Restructuring expensesOther operating (income) expense, netOther expense, netInterest expense, netProvision for taxesTotal
Amortization of intangible assets$322$—$—$—$—$—$322
Operating model optimization initiatives
21 11 — — — — 32 
Separation-related costs (including conversion of stock-based awards and Founder Shares)32 500 — — — — 532 
Impact of Deferred Markets—minority interest expense— — 10 — — — 10 
Impact of Deferred Markets—provision for taxes— — 24 — — (24)— 
Litigation expense— — 25 — — — 25 
Losses on investments— — — 7 — — 7 
Interest income from related party note— — — — (33)— (33)
Tax impact on special item adjustments— — — — — (176)(176)
Total$375$511$59$7$(33)$(200)$719
(a)(b)(c)(d)(e)(f)
Cost of sales less amortization$53 
(g)
16

The following tables present reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented:
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Effective tax rate 15.3 %8.4 %27.2 %24.0 %
Adjustments:
Tax-effect on special item adjustments 1.7 7.9 (2.6)(1.0)
Dr.Ci:Labo® Impairment
— — 0.3 — 
Removal of tax benefits from carve out methodology — — — 2.0 
Taxes related to Deferred Markets0.7 0.5 0.7 0.5 
Valuation allowance on foreign tax credits due to interest expense— (0.6)— (2.4)
Other— (0.4)(0.1)0.3 
Adjusted Effective tax rate (non-GAAP)17.7 %15.8 %25.5 %23.4 %

The following table presents a reconciliation of Effective tax rate, as forecasted on a U.S. GAAP basis, to forecasted Adjusted effective tax rate for fiscal year 2025:
Fiscal Year 2025
(Unaudited)Forecast
Effective tax rate 28.0% - 29.0%
Adjustments:
Tax-effect on special item adjustments(3.2)
Taxes related to Deferred Markets0.7
Adjusted Effective tax rate (non-GAAP)25.5% - 26.5%

The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented:
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Diluted earnings per share$0.15 $0.17 $0.54 $0.90 
Adjustments:
Separation-related costs0.03 0.07 0.15 0.25 
Conversion of stock-based awards— 0.04 0.02 0.03 
Restructuring and operating model optimization initiatives 0.04 0.02 0.11 0.02 
Impairment charges— — 0.30 — 
Amortization of intangible assets0.03 0.04 0.14 0.17 
Losses on investments0.02 — 0.04 — 
Interest income from related party note— — — (0.02)
Tax impact on special item adjustments(0.02)(0.04)(0.17)(0.10)
Other0.01 0.01 0.01 0.04 
Adjusted diluted earnings per share (non-GAAP)$0.26 $0.31 $1.14 $1.29 

17

The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented:
Fiscal Twelve Months Ended
(Unaudited; Dollars in Billions)
December 29, 2024December 31, 2023
Net cash flows from operating activities$1.7 $3.2 
Purchases of property, plant, and equipment(0.4)(0.5)
Free cash flow (non-GAAP)
$1.3 $2.7 

Other Supplemental Financial Information
The following table presents the Company’s Net sales by geographic region for the periods presented:
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited; Dollars in Millions)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Net sales by geographic region
North America$1,842 $1,762 $7,579 $7,610 
Europe, Middle East, and Africa863 822 3,559 3,388 
Asia Pacific635 750 2,974 3,107 
Latin America322 332 1,343 1,339 
Total Net sales by geographic region$3,662 $3,666 $15,455 $15,444 

The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses.
Fiscal Three Months EndedFiscal Twelve Months Ended
(Unaudited; Dollars in Millions)December 29, 2024December 31, 2023December 29, 2024December 31, 2023
Research & Development$106 $133 $408 $399 

The following table presents the Company’s Cash and cash equivalents, Total debt, and Net debt balance as of the periods presented:
(Unaudited; Dollars in Billions)December 29, 2024December 31, 2023
Cash and cash equivalents $1.1 $1.4 
Total debt(8.6)(8.3)
Net debt$(7.5)$(6.9)
18
v3.25.0.1
Cover
Feb. 06, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 06, 2025
Entity Registrant Name Kenvue Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-41697
Entity Tax Identification Number 88-1032011
Entity Address, Address Line One 199 Grandview Road
Entity Address, City or Town Skillman
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 08558
City Area Code (908)
Local Phone Number 874-1200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol KVUE
Security Exchange Name NYSE
Entity Central Index Key 0001944048
Amendment Flag false
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