Kenvue lifts nine-month free cash flow to 1.6 billion dollars
Kenvue increased quarterly sales and profit, while its first nine months generated more cash from operations and required less capital spending. Free cash flow rose from 1.0 billion dollars to 1.6 billion dollars. Growth in personal treatment products contrasted with an organic sales decline in skin health and beauty.
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Nine-month cash flow rises
Kenvue, the consumer health products company, released its third-quarter financial results. Adjusted earnings exceeded the market estimate tracked by Zacks. The results cover the fiscal quarter ended September 27.[1], [2]
In the first nine months, operations generated 1.9 billion dollars in cash, compared with 1.3 billion dollars a year earlier. Capital expenditure fell from 0.4 billion dollars to 0.3 billion dollars. Free cash flow consequently reached 1.6 billion dollars, up from 1.0 billion dollars. Management attributed the operating cash improvement to higher net income and lower working capital usage.[1]
Treatment products grow as skin care softens
Quarterly sales rose from 3.764 billion dollars to 3.886 billion dollars, a gain of 3.2 percent. Organic growth excluding currency effects was 2.9 percent. Volume contributed 1.6 percent and price and mix 1.3 percent, while currency added 0.3 percent to reported growth.[1]
Self Care sales increased 5.9 percent, with organic growth of 5.4 percent. Within that division, volume added 3.4 percent and price and mix 2.0 percent. Skin Health and Beauty sales edged up 0.1 percent, although organic sales fell 0.5 percent as volume declined 1.7 percent. Essential Health organic sales increased 2.5 percent.[1]
Margins improve and total debt falls
Operating income increased from 629 million dollars to 706 million dollars, and operating margin rose from 16.7 percent to 18.2 percent. Net income reached 430 million dollars, compared with 398 million dollars. Earnings per share increased from 0.21 dollars to 0.22 dollars; adjusted earnings rose from 0.28 dollars to 0.29 dollars per share.[1]
Kenvue said productivity and supply chain savings supported margins, alongside US tariff refunds, while inflation and transaction-related currency effects created pressure. Higher brand support spending offset part of restructuring savings. Quarter-end cash was 1.0 billion dollars and total debt 8.2 billion dollars, compared with 1.1 billion dollars and 8.5 billion dollars at the preceding fiscal year end.[1]
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