Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on your innovation plans for 2025, especially given the current macroeconomic environment and consumer pressures? A: Thibaut Mongon, CEO: We have a strong plan for innovation and brand activation throughout 2025, with an expected acceleration in the back half of the year. Our brands are well-positioned to respond to consumer needs for efficacy and trust. We are tweaking our plans to ensure we offer the right value equation and are present where shoppers are. We are not planning significant changes to our plans despite the external environment, as innovation remains crucial to bringing new consumers into our categories.
Q: Could you provide more insight into the expected organic growth for the second quarter and your confidence in the back half of the year? A: Thibaut Mongon, CEO: We anticipate a muted first half, with growth acceleration in the second half. The second quarter will continue to face headwinds from destocking in Asia and strategic price investments in the US. However, we are confident in our back-half growth due to strong commercial plans, more innovation, and increased marketing investments. We expect pricing to be a net positive for the full year, and our teams are executing at a higher level.
Q: How are you balancing promotional activity with marketing investment in the skin health and beauty segment, and what are your expectations for shelf space gains? A: Thibaut Mongon, CEO: We plan to invest more in our brands this year, including skin health and beauty, while maintaining a focus on ROI. We are encouraged by positive consumption trends and expect to continue investing responsibly. We are also working on improving gross margins through supply chain efficiencies, although these are currently masked by price and trade investments.
Q: Can you discuss the impact of tariffs on your business and the mitigation efforts you are implementing? A: Paul Ruh, CFO: We estimate a gross impact of $150 million from tariffs for 2025. We are implementing productivity initiatives, alternate sourcing, and optimizing our supply chain to mitigate this impact. While we aim to absorb as much as possible this year, the situation remains fluid, and we will continue to work on these efforts into 2026.
Q: What are your expectations for Amit Banati as the new CFO, and does this signal any potential corporate actions for Kenvue? A: Thibaut Mongon, CEO: Amit Banati brings 30 years of global experience in CPG, with a proven track record in driving profitable growth. He will oversee finance and strategy functions, focusing on revenue growth, resource allocation, and improving agility. This appointment is about leveraging his expertise to accelerate our profitable growth agenda and deliver shareholder value, rather than signaling any specific corporate actions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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