Kenvue Inc. (KVUE): restructuring charge — Kenvue Q1 net sales +1.1% to $3.9B, EPS $0.15; announces restructuring with ~4% workforce cut

Kenvue Inc.

2024-Q1 EPS reported $0.15 revenue$3,894,000,000

Net sales $3.9B (+1.1% YoY); organic growth 1.9%; diluted EPS $0.15 (adj. $0.28).
Gross margin improved to 57.6% (adj. 60.2%), up 240 bps; operating margin fell to 14.1% on $68M impairment and restructuring costs.
Board approved restructuring: ~4% workforce reduction, $350M annual savings by FY2026, total pre-tax charges ~$550M over 2024-2025.
FY2024 outlook reaffirmed: net sales growth 1-3%, organic 2-4%, adj. EPS $1.10-$1.20, interest expense ~$400M.

item 2.02 item 2.05 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Kenvue Inc. announced a restructuring with charges of approximately $550 million (net global workforce reduction of approximately 4%).

Type: restructuring
Charge: approximately $550 million
Headcount: net global workforce reduction of approximately 4%

Exact text from the filing

On May 6, 2024, the Company’s Board of Directors approved a multi-year initiative to build on the Company’s strengths and optimize its cost structure by rebalancing resources to better position the Company for future growth. The initiative is expected to result in a net global workforce reduction of approximately 4% and will result in annualized pre-tax gross cost savings of approximately $350 million upon full realization. The Company expects to fully realize these cost savings beginning in fiscal year 2026. The initiative is expected to result in pre-tax restructuring expenses and other charges totaling approximately $275 million in each of fiscal year 2024 and fiscal year 2025, for a total of approximately $550 million, consisting of IT and project-related costs (approximately 50%), employee-related costs (approximately 40%), and other implementation costs (approximately 10%).

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6 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

Kenvue Inc. filing history →

Source: SEC EDGAR

accession 0001944048-24-000096

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