Kenvue, the consumer health company, has reported a decrease in full-year 2025 sales, despite a strong final quarter of trading.
Net sales at Johnson & Johnson’s (J&J) spinoff consumer health company fell by 2.1% – 2.2% on an organic basis – for the year ended 28 December 2025.
Earnings for the year were impacted by trade inventory reductions in volumes – the quantity of goods or services produced and sold – from certain Kenvue customers.
The business was also affected by low seasonal incidences, impacting its self-care division.
“We ended 2025 with stronger top- and bottom-line performance in the fourth quarter, which reflected both disciplined execution against our strategic priorities, as well as a more favourable year-ago comparison on sales,” said Kenvue CEO Kirk Perry.
Despite the full-year sales decline, Kenvue reported a bumper fourth quarter of trading with sales rising 3.2% for the three months.
Volumes in the quarter benefited from “lapping the impact of the go-to-market disruption” the company experienced in Asia Pacific in the prior year period, according to Kenvue.
This tailwind was offset primarily by trade inventory reductions by certain customers and low seasonal incidences, particularly in the US.
Q4 2025 gross profit margin was flat year-over-year at 56.5%, while adjusted gross profit margin expanded ten basis points to 58.8% from 58.7% in the prior year period.
The year-over-year change reflects savings from productivity gains in Kenvue’s supply chain optimisation initiatives, which helped offset the impact from inflationary, tariff and transactional foreign exchange headwinds.
Kenvue’s Skin Health and Beauty division, comprising brands such as Neutrogena and Aveeno, experienced sales growth of 2.9% compared with the same period last year.
Perry added: “As we look to 2026, we remain focused on continuing to enhance our performance, while progressing toward completion of our value-creating combination with Kimberly-Clark.”
The full-year trading update follows Kenvue's announcement of its acquisition by Kimberly-Clark in a US$48.7bn deal last year.
The tie-up will see Kenvue’s health and beauty brands, such as Neutrogena, Aveeno, OGX and Listerine, sit under the same umbrella as Kimberly-Clark’s personal care brands.
Kenvue kicked off a strategic review of its business in July amid falling sales and job cuts.
The consumer health company is also doubling down its focus on hair care ranges through new scalp-focused formulas.
New product line launches from both OGX and Neutrogena will focus on scalp health, fuelled by skin care-first formulations harnessing the power of ingredients like peptides.
Related content:
- Exclusive: Kenvue prioritise scalp science as hair portfolio enters new era
- Neutrogena maker Kenvue to be sold to Kimberly-Clark in $48.7 billion deal
- Kenvue names Managing Director for Northern Europe
- Kenvue names new President for Skin Health & Beauty in Asia-Pacific and Latin America
- Kenvue appoints beauty veteran Andrew Stanleick to C-suite