Use of this site constitutes your consent to application of such laws and regulations and to our Privacy Policy. Your use of the information on this site is subject to our Terms of Service in the Legal Notice. You should view the Media section in order to receive the most current information made available by Kenvue. The one risk that concerns me the most is that investors still face potential liability related to talc-based products the company sold.
That means less risk-taking and perhaps more conservatism, which caters to the preferences of dividend investors rather than to those looking for an aggressive growth stock. Although Kenvue is technically a separate company, Johnson & Johnson will still play a big role in its operations; the healthcare company will own a 90% stake in the business. Kenvue’s debut also marks the largest restructuring in J&J’s 135-year history. J&J announced the split in late 2021 as a bid to streamline operations and refocus on its pharmaceutical and medical device divisions. With empathy, we unearth extraordinary breakthroughs in everyday care, and with courage and conviction, we bring them to life. We boldly pursue more innovative ways of working, pioneer solutions that improve lives, and create products that create categories — then improve them again and again.
That’s why our iconic brands have helped generations take care of themselves and their loved ones for more than 135 years. We’re driven to win for those we serve, and when we care fiercely for them and one another, we can deliver the best possible care. Together, we create an inclusive place where we can bring our whole selves.
Johnson & Johnson’s consumer health business Kenvue priced its IPO at $22 per share Wednesday, toward the high end of its stated range, in an upsized deal that would bring in about $3.8 billion. Use of this site constitutes your consent to application of such laws and regulations. Your use of the information on this site is subject to our Terms of Service in the Legal python developer job description Notice. You should view the Media section in order to receive the most current information made available by Kenvue. Formerly the Consumer Healthcare division of Johnson & Johnson,[2] Kenvue is the proprietor of well-known brands such as Aveeno,[3] Band-Aid,[4] Benadryl, Zyrtec,[5] Johnson’s,[6] Listerine,[7] Mylanta, Neutrogena,[3] Tylenol,[7] and Visine.
- Kenvue has already been involved in seven talc lawsuits (at least) since the start of last month, according to Reuters.
- J&J will generally be able to control matters that shareholders vote on, such as the election of directors to Kenvue’s board, the filing said.
- Today, Kenvue is the world’s largest pure-play consumer health company by revenue, with annual sales of ~$15 billion in 2022.
- That’s not necessarily a negative, as it will mean plenty of incentive for the company to be run prudently because Johnson & Johnson will still have a lot of skin in the game.
Ten of Kenvue’s brands had approximately $400 million or more in sales last year. Annual sales growth through 2025 is projected to be about 3% to 4% globally, according to the filing. Kenvue is profitable and expects modest growth over the next few years, the company said in the filing. Until then, Kenvue will qualify as a “controlled company” under the corporate governance rules of the NYSE, the filing said. That will allow Kenvue to avoid certain listing standards, including a requirement that the company’s board be composed of a majority of independent directors. J&J plans to distribute the remaining shares of common stock to its shareholders later this year.
In May 2023, Kenvue made our debut as a public company on the New York Stock Exchange, trading under the KVUE ticker symbol. Today, Kenvue is the world’s largest pure-play consumer health company by revenue, with annual sales of ~$15 billion in 2022. This site is governed solely by applicable U.S. laws and governmental regulations.
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Paul Ruh, J&J’s chief financial officer of consumer health and a former PepsiCo executive, will serve as CFO, and Meredith Stevens, J&J’s worldwide vice president of the company’s consumer health supply chain department, will serve as COO. Our self-care brands offer new ways for consumers to take the power of their health into their own hands with over-the-counter medicines and naturally inspired solutions. One thing investors will like about the stock is that Kenvue stated in its prospectus that it expects to pay a quarterly cash dividend of $0.20 per share later this year.
It isn’t an attractive option for growth investors, and while the dividend could be relatively high out of the gate, the risk the company faces with respect to talc liabilities negates those positives for me. Investors who are interested in owning the stock may want to see how the company does in its first few quarters before buying shares of the business to see how it performs, as there’s certainly no rush to buy it now. In its prospectus, Kenvue says it holds “leadership positions” in the consumer health market, owning top brands in pain management (Tylenol), facial care (Neutrogena), mouthwash (Listerine), and many other categories. The benefit for investors is that the business has some brand power, which in turn could give it pricing power and make it a potentially resilient company to invest in amid inflation. Strong diversification is one of the things investors can expect to get from owning the healthcare stock.
Kenvue to participate in the Morgan Stanley Global Consumer & Retail Conference on December 6, 2023
Johnson & Johnson’s sheer size makes it a safe stock to buy despite the legal challenges. Kenvue, however, doesn’t enjoy that same luxury — its cash and cash equivalents as of the end of 2022 total $1.2 billion. Plus, there are many more lawsuits that could arise in the future, so that’s a big unknown to be hanging over the business right from the start. Skin health and beauty products accounted for $4.4 billion in net sales last year, or 29% of overall revenue. Among those products are shampoos, conditioners, hair loss treatments and skin care.
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With AllergyCast®, your patients can track and record their symptoms and print their results to share with you during future visits. Smoking cessation app that puts personalized power in the hands of your patients to help smokers quit for good. Get stock recommendations, portfolio guidance, and more from The https://www.day-trading.info/5-year-treasury-note-rate-constant-maturity/ Motley Fool’s premium services. But Kenvue said in the filing that “such indemnity may not be sufficient” to protect the new company against the full amount of liabilities. But Kenvue will assume only talc-related liabilities that arise outside the U.S. and Canada, according to its IPO filing from January.
Johnson & Johnson (JNJ -0.33%) officially spun off its consumer health business this month, creating the largest U.S. initial public offering since 2021. Kenvue (KVUE -0.53%) began trading as a stand-alone business and gives healthcare investors a new stock to potentially add to https://www.topforexnews.org/investing/we-can-help-you-plan-invest-and-manage-your/ their portfolios. It now controls the production and sale of top products like Band-Aid, Tylenol, and Neutrogena, and it will offer a dividend, just as its parent company does. Kenvue has some strong brands in its portfolio, decent financials, and even plans to pay a dividend.
Overall, Kenvue said 2022 sales were “well balanced” across the company’s three business divisions. “Johnson & Johnson will continue to control the direction of our business, and the concentrated ownership of our common stock may prevent you and other shareholders from influencing significant decisions,” Kenvue said in the filing. J&J will control 91.9% of Kenvue after the IPO — or 90.8% if underwriters exercise their options to purchase additional shares, according to the prospectus filing. Proceeds from the offering and any profits from related debt-financing transactions will go to J&J, but Kenvue will retain $1.17 billion in cash and cash equivalents. Our work impacts consumers and colleagues, communities and generations, in daily rituals and in the moments that matter most.
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The company will have total debt of $8.9 billion, according to the filing. Kenvue noted that its global footprint is “well balanced geographically,” with roughly half of 2022 net sales coming from outside North America. J&J will generally be able to control matters that shareholders vote on, such as the election of directors to Kenvue’s board, the filing said. Shares will begin trading Thursday on New York Stock Exchange under the ticker “KVUE.”