(Reuters) – Kenvue forecast full-year profit below analysts’ expectations after missing quarterly sales estimates on Thursday, as the Tylenol maker faces sluggish demand in China and slowing growth for skin and beauty products in the U.S. The company, spun off from Johnson & Johnson in August, missed Street estimates for fourth-quarter sales in both its self-care, as well as skin health and beauty segments.
Kenvue said on Thursday it aimed to grow sales of its brands at 1-3%.
The consumer health company reported fourth-quarter topline of $3.67 billion, missing estimate of $3.78 billion, according to LSEG data.
Kenvue recorded $1.00 billion in quarterly sales in its skin health and beauty segment which has brands like Neutrogena and Clean & Clear. Analysts had expected $1.07 billion.
Quarterly revenue from self-care, its largest segment that houses Benadryl, Tylenol and Pepcid, came in at $1.54 billion. Analysts on average expected the segment to record $1.63 billion in sales.
The company forecast annual adjusted profit of $1.10 to $1.20 per share, compared with analysts estimates of $1.26.
However, fourth-quarter profit of 31 cents per share topped estimates of 28 cents on lower-than-expected taxes.
Kenvue made a provision of $30 million for taxes. An average of five analysts’ estimates had expected $170 million.
(Reporting by Sneha S K and Leroy Leo in Bengaluru; Editing by Sriraj Kalluvila)
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