Kenvue stock fell 4% post-Morgan Stanley conference call By Investing.com
on monday, Company Kenvue Inc . (NYSE: NYSE: ) had a more than 4% decline in its stock price following the fiery discussion in Morgan Stanley (NYSE:) Global Consumer & Retail Conference held in New York City. The event featured Kenvue CEO Thibaut Mongon and CFO Paul Ruh discussing the company’s progress since going public and its future strategies.
Mongon highlighted the significant transformation Kenvue has made since its separation from Johnson & Johnson (NYSE: ), from a revenue-focused division to an independent company focused on profitable growth. J&J’s divestment is complete, J&J fully divested its stock in May of this year. Kenvue is about 70% through its TSA exit program and expects to complete it by Q2 of next year. The CEO also mentioned the implementation of Kenvue’s ‘new playbook,’ which includes reaching more consumers, demonstrating efficiency, and promoting a work culture.
On the subject of the growth of the category compared to the market share, Mongon pointed out that although some areas such as flu cases are returning to pre-pandemic levels, which affects the negative volume, the company’s brands remain strong, with large gains for shares in certain categories. He also emphasized on the low penetration of consumer health segments, revealing growth opportunities by increasing home penetration and consumer education.
Ruh addressed the balance between volume and prices, noting that the company is moving toward a growth algorithm of two-thirds volume and one-third price. He explained that although the company is relying on prices during high inflation, future growth will be moderate. Ruh also discussed cost savings opportunities, focusing on capital and operational efficiency.
The discussion also included investment in marketing and growing market share. Mongon confirmed that Kenvue is in the investment stage, with ad spending expected to continue to grow through 2025. He stressed the importance of ROI in marketing and the company’s careful tracking of investment performance.
Finally, Ruh explained Kenvue’s capital allocation priorities, including investing in the business, maintaining healthy earnings, transferring, and developing plans to repurchase shares or consider M&A in the future.
This article was created with the support of AI and reviewed by an editor. For more information see our T&C.
