Kenvue reported higher profit and sales in the second quarter, boosted by higher prices and volumes, as the company continues working to turn around its business ahead of its acquisition by Kimberly-Clark.
The maker of over-the-counter health products such as Tylenol and Listerine on Thursday posted a profit of $456 million, or 24 cents a share, for its three months ended June 28. That compares with a profit of $420 million, or 22 cents a share, in last year's comparable quarter.
Stripping out one-time items, earnings were 31 cents a share. Analysts polled by FactSet expected adjusted earnings of 32 cents a share.
Net sales rose 3% to $3.96 billion, just below Wall Street models for $3.97 billion.
Shares fell 7.2%, to $18.26, in premarket trading.
On an organic basis, sales grew 1.6%. The company attributed the increase to higher prices and volume growth.
Chief Executive Kirk Perry said Kenvue continued to drive operational efficiencies and increase strategic investments, despite operating in a dynamic consumer and macroeconomic environment.
"Our transformation is firmly on track," he said. "We remain focused on disciplined execution and continued business improvement while we work toward completing our value-creating combination with Kimberly-Clark."
Kenvue previously disclosed a plan to cut 3.5% of its workforce as part of a broader effort to cut costs ahead of its acquisition by Kimberly-Clark, expected to occur in the fourth quarter of this year.
Kimberly-Clark, which makes Kleenex tissues and Cottonelle toilet paper, agreed to buy Kenvue in November in a more than $40 billion deal. The transaction was approved by shareholders in late January.
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