is a consumer health company. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. Self Care product categories include pain care; cough cold allergy; and"other self care." The Skin Health and Beauty segment's product categories include face and body care and hair, sun and others. The Essential Health segment's product categories include oral care, baby care and other essential health.
Kenvue has struggled with its organic growth in a way that it seems to have not expected. The company missed its post spin FY23 guidance for organic growth by 75 basis points, even after previously lowering their guidance by 25 basis points. Kenvue expects a 3.3% compound annual growth rate compared to a 4% median for peers. This is not a huge difference, but an issue that can easily be identified and rectified. Self Care delivered a strong year of 8.
Kenvue seems to already be making strides towards this business model, as they increased FY24 advertising spend to 11.1% of sales compared to 8.7% for FY23. This budget increase reflects a shift toward a"marketing first" approach, particularly through social media, as evidenced by their recent Neutrogena Collagen Bank product launch. First, the company introduced the product on TikTok prior to in-store distribution.