Kenvue Reports First Quarter 2024 Results
Q1’24: Net Sales Increased 1.1% to
Q1’24: Diluted Earnings per Share of
Reaffirms Fiscal Year 2024 Outlook
“We entered 2024 with clear strategic priorities to reach more consumers, reinvent our ways of working to invest more behind our brands, and to foster a culture that rewards performance and impact,” said
First Quarter 2024 Financial Results
First quarter Net sales increased 1.1% on top of a 7.3% increase in the prior year period. Organic growth1 was 1.9% on top of 11.2% Organic growth in the prior year period. Increases in Net sales and Organic growth were primarily driven by sustained momentum in Self Care on strong consumer demand and growth in
Net sales and Organic growth were comprised of +5.0% value realization and (3.1%) volume.
Approximately two points of the volume contraction was attributed to the expected lapping of one-time retailer inventory re-builds in the first quarter of 2023 and impacts of retailer inventory reduction in the first quarter of 2024, which the Company expects to continue through the second quarter of 2024.
Gross Profit Margin and Operating Income Margin
First quarter Gross profit margin was 57.6% vs 55.2% in the prior year period. Adjusted gross profit margin1 was 60.2% vs 57.3% in the prior year period. Gross profit margin expansion of 240 basis points and Adjusted gross profit margin expansion of 290 basis points were primarily driven by value realization, continued global supply chain efficiency initiatives, and easing net input cost inflation.
First quarter Operating income margin was 14.1% vs 16.6% in the prior year period. Operating income margin decrease vs the prior year period was primarily driven by a
First quarter Adjusted operating income margin1 was 22.0% vs 21.3% in the prior year period as robust Adjusted gross profit margin expansion was partially offset by increased brand investment and the absorption of public company costs that were not incurred in the prior year period.
Interest expense, net and Taxes
First quarter Interest expense, net was
The first quarter Effective tax rate was 30.7% vs 23.0% in the prior year period. The Adjusted effective tax rate1 was 28.3% vs 20.4% in the prior year period. The increase in reported Effective tax rate and Adjusted effective tax rate was primarily the result of jurisdictional mix of earnings, prior year release of tax reserves due to statute of limitations expiring and negative impacts of stock-based compensation in the current period. In addition, the reported Effective tax rate was further increased by a reduction in foreign tax credit benefits when compared to the prior period.
Net income per share (“Earnings per share”)
First quarter Diluted earnings per share was
Our
In 2023, Kenvue entered into a transition service agreement (“TSA”) with Johnson & Johnson to provide certain services to the Company for varying durations. As part of the Company’s continued transformation to a fit-for-purpose consumer company focused on growth, in Q1 2024, management began to enact strategic initiatives intended to enhance organizational efficiencies and better position Kenvue for future growth (“Our Vue Forward”). To further these strategic initiatives, the Company’s Board of Directors approved an initiative on
“As we exit services under the
2024 Outlook
Based on current spot rates, Kenvue reaffirmed its outlook for 2024 as follows:
Net sales and Organic growth
Kenvue expects full year 2024 reported Net sales growth to be in the range of 1.0% to 3.0%. Foreign exchange is expected to be a headwind of approximately one percentage point to reported Net sales growth. The Company continues to expect full year 2024 Organic growth in the range of 2.0% to 4.0%.
Adjusted operating income margin and Adjusted diluted earnings per share
Kenvue continues to expect full year 2024 Adjusted operating income margin to be slightly below 2023 as strong gross margin progression is offset by the impact of absorbing a full year of public company costs and approximately 50 basis points of foreign currency headwinds.
Kenvue continues to expect full year 2024 Adjusted diluted earnings per share to be in the range of
This range assumes a full year 2024 diluted weighted average share count of 1.92 billion.
Reported Interest expense, net
For full year 2024, Kenvue continues to expect reported Interest expense, net to be approximately
Reported and Adjusted effective tax rate
For full year 2024, Kenvue continues to expect an Effective tax rate between 26.5% to 27.5%, and an Adjusted effective tax rate between 25.5% to 26.5%.
Kenvue is not able to provide the most directly comparable GAAP measures or reconcile Adjusted diluted earnings per share, Adjusted operating income margin, or Organic growth to comparable GAAP measures on a forward-looking basis without unreasonable efforts given the unpredictability of the timing and amounts of discrete items such as foreign exchange, acquisitions, or divestitures.
Webcast Information
As previously announced, Kenvue will host a conference call with investors to discuss its first quarter results at
About Kenvue
Kenvue is the world’s largest pure-play consumer health company by revenue. Built on more than a century of heritage, our iconic brands, including Aveeno®, BAND-AID® Brand, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, are science-backed and recommended by healthcare professionals around the world. At Kenvue, we believe in the extraordinary power of everyday care and our teams work every day to put that power in consumers’ hands and earn a place in their hearts and homes. Learn more at www.kenvue.com.
1 Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to supplement the financial measures prepared in accordance with
The Company believes the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. The Company believes these measures help improve investors’ ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies. In addition, the Company believes these measures are also among the primary measures used externally by the Company’s investors, analysts, and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in our industry.
Below are definitions and the reconciliation to the most closely related GAAP measures for the non-GAAP measures used in this press release and the related prepared materials and webcast.
Adjusted diluted earnings per share: We define Adjusted diluted earnings per share as Adjusted net income divided by the weighted average number of diluted shares outstanding. Management views this non-GAAP measure as useful to investors as it provides a supplemental measure of the Company’s performance over time.
Adjusted EBITDA margin: We define the non-GAAP measure EBITDA as
Adjusted effective tax rate: We define Adjusted effective tax rate as
Adjusted gross profit margin: We define Adjusted gross profit margin as
Adjusted net income: We define Adjusted net income as
Adjusted operating income: We define Adjusted operating income as
Adjusted operating income margin: We define Adjusted operating income margin as Adjusted operating income as a percentage of Net sales. Management believes this non-GAAP measure is useful to investors as it provides a supplemental perspective to the Company’s operating efficiency over time.
Free cash flow: We define Free cash flow as
Organic growth: We define Organic growth as the period-over-period change in
The non-GAAP measures as presented herein have been prepared as if our operations had been conducted independently from Johnson & Johnson prior to
2The Company’s estimates of the costs of the initiative and the expected benefits are preliminary estimates and are subject to a number of assumptions, including local law requirements in various jurisdictions. Actual charges may differ, possibly materially, from the estimates provided above.
Cautions Concerning Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements about management’s expectations of Kenvue’s future operating and financial performance, product development, market position and business strategy. Forward-looking statements may be identified by the use of words such as “plans,” “expects,” “will,” “anticipates,” “estimates” and other words of similar meaning. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Kenvue and its affiliates. Risks and uncertainties include, but are not limited to: the inability to execute on Kenvue’s business development strategy; economic factors, such as interest rate and currency exchange rate fluctuations; the ability to successfully manage local, regional or global economic volatility, including reduced market growth rates, and to generate sufficient income and cash flow to allow Kenvue to effect any expected share repurchases and dividend payments; Kenvue’s ability to access capital markets and maintain satisfactory credit ratings, which could adversely affect its liquidity, capital position and borrowing costs; competition, including technological advances, new products and intellectual property attained by competitors; challenges inherent in new product research and development; uncertainty of commercial success for new and existing products and digital capabilities; challenges to intellectual property protections including counterfeiting; the ability of Kenvue to successfully execute strategic plans, including Our
|
||||||
|
Fiscal Three Months Ended |
|||||
|
|
|
|
|||
Net sales |
$ |
3,894 |
|
$ |
3,852 |
|
Cost of sales |
|
1,652 |
|
|
1,727 |
|
Gross profit |
|
2,242 |
|
|
2,125 |
|
Selling, general and administrative expenses |
|
1,573 |
|
|
1,502 |
|
Restructuring expenses |
|
41 |
|
|
— |
|
Other operating expense (income), net |
|
78 |
|
|
(17 |
) |
Operating income |
|
550 |
|
|
640 |
|
Other expense, net |
|
28 |
|
|
30 |
|
Interest expense, net |
|
95 |
|
|
1 |
|
Income before taxes |
|
427 |
|
|
609 |
|
Provision for taxes |
|
131 |
|
|
140 |
|
Net income |
$ |
296 |
|
$ |
469 |
|
|
|
|
|
|||
Net income per share |
|
|
|
|||
Basic |
$ |
0.15 |
|
$ |
0.27 |
|
Diluted |
$ |
0.15 |
|
$ |
0.27 |
|
Weighted average number of shares outstanding |
|
|
|
|||
Basic |
|
1,915 |
|
|
1,716 |
|
Diluted |
|
1,920 |
|
|
1,716 |
|
Non-GAAP Financial Information
Organic Growth
The following tables present a reconciliation of the change in Net sales, as reported, to Organic growth for the periods presented:
|
Fiscal Three Months Ended |
||||||||||||||||
|
Reported Net sales change |
|
Impact of foreign
|
|
Organic growth(2) |
||||||||||||
(Unaudited; Dollars in Millions) |
Amount |
|
Percent |
|
Amount |
|
Amount |
|
Percent |
||||||||
Self Care |
$ |
58 |
|
|
3.5 |
% |
|
$ |
(11 |
) |
|
$ |
69 |
|
|
4.2 |
% |
|
|
(57 |
) |
|
(5.1 |
) |
|
|
(7 |
) |
|
|
(50 |
) |
|
(4.5 |
) |
|
|
41 |
|
|
3.7 |
|
|
|
(13 |
) |
|
|
54 |
|
|
4.9 |
|
Total |
$ |
42 |
|
|
1.1 |
% |
|
$ |
(31 |
) |
|
$ |
73 |
|
|
1.9 |
% |
|
Fiscal Three Months Ended |
||||||||||
(Unaudited) |
Reported Net sales
|
|
Impact of foreign
|
|
Organic growth(2) |
||||||
|
|
Price/Mix(3) |
|
Volume |
|||||||
Self Care |
3.5 |
% |
|
(0.7 |
)% |
|
5.6 |
% |
|
(1.4 |
)% |
|
(5.1 |
) |
|
(0.6 |
) |
|
2.4 |
|
|
(6.9 |
) |
|
3.7 |
|
|
(1.2 |
) |
|
6.8 |
|
|
(1.9 |
) |
Total |
1.1 |
% |
|
(0.8 |
)% |
|
5.0 |
% |
|
(3.1 |
)% |
|
Fiscal Three Months Ended |
|||||||||||||||
|
Reported Net sales change |
|
Impact of foreign
|
|
Organic growth(2) |
|||||||||||
(Unaudited; Dollars in Millions) |
Amount |
|
Percent |
|
Amount |
|
Amount |
|
Percent |
|||||||
Self Care |
$ |
175 |
|
|
11.9 |
% |
|
$ |
(50 |
) |
|
$ |
225 |
|
15.3 |
% |
|
|
99 |
|
|
9.8 |
|
|
|
(34 |
) |
|
|
133 |
|
13.2 |
|
|
|
(12 |
) |
|
(1.1 |
) |
|
|
(57 |
) |
|
|
45 |
|
4.0 |
|
Total |
$ |
262 |
|
|
7.3 |
% |
|
$ |
(141 |
) |
|
$ |
403 |
|
11.2 |
% |
|
Fiscal Three Months Ended |
||||||||||
(Unaudited) |
Reported Net sales
|
|
Impact of foreign
|
|
Organic growth(2) |
||||||
|
|
Price/Mix(3) |
|
Volume |
|||||||
Self Care |
11.9 |
% |
|
(3.4 |
)% |
|
8.2 |
% |
|
7.1 |
% |
|
9.8 |
|
|
(3.4 |
) |
|
8.9 |
|
|
4.3 |
|
|
(1.1 |
) |
|
(5.1 |
) |
|
9.4 |
|
|
(5.4 |
) |
Total |
7.3 |
% |
|
(3.9 |
)% |
|
8.7 |
% |
|
2.5 |
% |
(1) |
Acquisitions and divestitures did not materially impact the reported Net sales change. |
|
(2) |
Non-GAAP financial measure. Excludes the impact of foreign currency exchange and the impact of Acquisitions and divestitures. |
|
(3) |
Price/Mix reflects value realization. |
|
Organic Growth by Segment
Self Care:
- Organic growth of 4.2% was comprised of 5.6% value realization partially offset by (1.4)% volume. Winning in-store presence and prominence, category leading consumer and healthcare professional engagement, and science backed innovation drove broad-based strength across the portfolio.
-
Organic growth decreased (4.5)%, comprised of 2.4% value realization offset by (6.9)% volume. In line with the Company’s expectations, underperformance in commercial
U.S. in-store execution, more than offset strength across theSkin Health and Beauty outside theU.S.
-
Organic growth of 4.9% was comprised of 6.8% value realization, partially offset by (1.9)% volume. Strength in
Essential Health was led by global growth inOral Care as continued momentum in healthcare professional endorsements and innovation fueled growth.
Total Segment
Segment Net sales and Adjusted operating income for the periods presented were as follows:
|
|
|
||||||
|
|
Fiscal Three Months Ended |
||||||
(Unaudited; Dollars in Millions) |
|
|
|
|||||
Self Care |
|
$ |
1,698 |
|
|
$ |
1,640 |
|
|
|
|
1,054 |
|
|
|
1,111 |
|
|
|
|
1,142 |
|
|
|
1,101 |
|
Total segment net sales |
|
$ |
3,894 |
|
|
$ |
3,852 |
|
|
|
|
|
|
||||
|
|
Adjusted Operating Income |
||||||
|
|
Fiscal Three Months Ended |
||||||
(Unaudited; Dollars in Millions) |
|
|
|
|||||
Self Care Adjusted operating income |
|
$ |
606 |
|
|
$ |
582 |
|
|
|
|
149 |
|
|
|
150 |
|
Essential Health Adjusted operating income |
|
|
256 |
|
|
|
210 |
|
Total |
|
$ |
1,011 |
|
|
$ |
942 |
|
Depreciation |
|
|
(75 |
) |
|
|
(71 |
) |
General corporate/unallocated expenses |
|
|
(87 |
) |
|
|
(69 |
) |
Other operating (expense) income, net |
|
|
(78 |
) |
|
|
17 |
|
Other—impact of Deferred Markets(1) |
|
|
16 |
|
|
|
— |
|
Fixed asset impairment |
|
|
68 |
|
|
|
— |
|
Adjusted operating income (non-GAAP) |
|
$ |
855 |
|
|
$ |
819 |
|
Reconciliation to Income before taxes: |
|
|
|
|
||||
Amortization |
|
|
74 |
|
|
|
81 |
|
Separation-related costs(2) |
|
|
67 |
|
|
|
98 |
|
Restructuring and operating model optimization initiatives |
|
|
50 |
|
|
|
— |
|
Fixed asset impairment |
|
|
68 |
|
|
|
— |
|
Conversion of stock-based awards |
|
|
22 |
|
|
|
— |
|
Other—impact of Deferred Markets(1) |
|
|
16 |
|
|
|
— |
|
Founder Shares |
|
|
8 |
|
|
|
— |
|
Operating income |
|
$ |
550 |
|
|
$ |
640 |
|
Other expense, net |
|
|
28 |
|
|
|
30 |
|
Interest expense, net |
|
|
95 |
|
|
|
1 |
|
Income before taxes |
|
$ |
427 |
|
|
$ |
609 |
|
(1) Includes the provision for taxes and minority interest expense related to Deferred Markets recognized within Other operating expense (income), net, which are payable to Johnson & Johnson through interim agreements until these Deferred Markets can be transferred to the Company. Deferred Markets are local businesses in certain non- |
||||||||
The following tables present reconciliations of GAAP to Non-GAAP for the periods presented:
|
|
Fiscal Three Months Ended |
|||||||||||||||||||
(Unaudited; Dollars in Millions) |
|
As Reported |
|
|
|
Adjustments |
|
Reference |
|
|
|
As Adjusted |
|||||||||
Net sales |
|
$ |
3,894 |
|
|
|
|
|
— |
|
|
|
|
|
$ |
3,894 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
|
$ |
2,242 |
|
|
|
|
|
103 |
|
(a) |
|
|
|
$ |
2,345 |
|
||||
Gross profit margin |
|
|
57.6 |
% |
|
|
|
|
|
|
|
|
|
|
60.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
$ |
550 |
|
|
|
|
|
305 |
|
(a)-(c) |
|
|
|
$ |
855 |
|
||||
Operating income margin |
|
|
14.1 |
% |
|
|
|
|
|
|
|
|
|
|
22.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income |
|
$ |
296 |
|
|
|
|
|
251 |
|
(a)-(e) |
|
|
|
$ |
547 |
|
||||
Net income margin |
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
14.0 |
% |
|||||
Interest expense, net |
|
$ |
95 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for taxes |
|
$ |
131 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
$ |
149 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
EBITDA (non-GAAP) |
|
$ |
671 |
|
|
|
|
|
262 |
|
(b)-(d), (f) |
|
|
|
$ |
933 |
|
||||
EBITDA margin |
|
|
17.2 |
% |
|
|
|
|
|
|
|
|
|
|
24.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Detail of Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Cost of sales |
|
SG&A/Restructuring
|
|
Other operating
|
|
Other
|
|
Provision for
|
|
Total |
|||||||||
Amortization |
|
$ |
74 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
74 |
|
Restructuring and operating model optimization initiatives |
|
|
6 |
|
|
|
44 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
50 |
|
Separation-related costs (including conversion of stock-based awards and Founder Shares) |
|
|
23 |
|
|
|
74 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
97 |
|
Fixed asset impairment |
|
|
— |
|
|
|
— |
|
|
68 |
|
|
— |
|
|
— |
|
|
|
68 |
|
Impact of Deferred Markets—minority interest expense |
|
|
— |
|
|
|
— |
|
|
7 |
|
|
— |
|
|
— |
|
|
|
7 |
|
Impact of Deferred Markets—provision for taxes |
|
|
— |
|
|
|
— |
|
|
9 |
|
|
— |
|
|
(9 |
) |
|
|
— |
|
Losses on investments |
|
|
— |
|
|
|
— |
|
|
— |
|
|
31 |
|
|
— |
|
|
|
31 |
|
Tax impact on special item adjustments |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(76 |
) |
|
|
(76 |
) |
Total |
|
$ |
103 |
|
|
$ |
118 |
|
$ |
84 |
|
$ |
31 |
|
$ |
(85 |
) |
|
$ |
251 |
|
|
|
(a) |
|
(b) |
|
(c) |
|
(d) |
|
(e) |
|
|
|||||||||
Cost of sales less amortization |
|
$ |
29 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
(f) |
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Three Months Ended |
|||||||||||||||||||
(Unaudited; Dollars in Millions) |
|
As Reported |
|
|
|
Adjustments |
|
Reference |
|
|
|
As Adjusted |
|||||||||
Net sales |
|
$ |
3,852 |
|
|
|
|
|
— |
|
|
|
|
|
$ |
3,852 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
|
$ |
2,125 |
|
|
|
|
|
81 |
|
(a) |
|
|
|
$ |
2,206 |
|
||||
Gross profit margin |
|
|
55.2 |
% |
|
|
|
|
|
|
|
|
|
|
57.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
$ |
640 |
|
|
|
|
|
179 |
|
(a)-(c) |
|
|
|
$ |
819 |
|
||||
Operating income margin |
|
|
16.6 |
% |
|
|
|
|
|
|
|
|
|
|
21.3 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income |
|
$ |
469 |
|
|
|
|
|
164 |
|
(a)-(e) |
|
|
|
$ |
633 |
|
||||
Net income margin |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
16.4 |
% |
|||||
Interest expense, net |
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for taxes |
|
$ |
140 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Depreciation and amortization |
|
$ |
152 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
EBITDA (non-GAAP) |
|
$ |
762 |
|
|
|
|
|
105 |
|
(b)-(d) |
|
|
|
$ |
867 |
|
||||
EBITDA margin |
|
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
|
22.5 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Detail of Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Cost of sales |
|
SG&A/Restructuring
|
|
Other operating
|
|
Other
|
|
Provision
|
|
Total |
|||||||||
Amortization |
|
$ |
81 |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
81 |
|
Separation-related costs |
|
|
— |
|
|
|
98 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
98 |
|
Losses on investments |
|
|
— |
|
|
|
— |
|
|
— |
|
|
7 |
|
|
— |
|
|
|
7 |
|
Tax impact on special item adjustments |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(22 |
) |
|
|
(22 |
) |
Total |
|
$ |
81 |
|
|
$ |
98 |
|
$ |
— |
|
$ |
7 |
|
$ |
(22 |
) |
|
$ |
164 |
|
|
|
(a) |
|
(b) |
|
(c) |
|
(d) |
|
(e) |
|
|
|||||||||
The following tables present reconciliations of the Effective tax rate, as reported, to Adjusted effective tax rate for the periods presented:
|
|
Fiscal Three Months Ended |
||||
(Unaudited) |
|
|
|
|
||
Effective tax rate |
|
30.7 |
% |
|
23.0 |
% |
Adjustments: |
|
|
|
|
||
Tax-effect on special item adjustments |
|
(3.1 |
) |
|
1.1 |
|
Removal of tax benefits from carve out methodology |
|
— |
|
|
5.4 |
|
Taxes related to Deferred Markets |
|
0.7 |
|
|
— |
|
Valuation allowance on foreign tax credits due to interest expense |
|
— |
|
|
(9.1 |
) |
Adjusted Effective tax rate (non-GAAP) |
|
28.3 |
% |
|
20.4 |
% |
The following table presents a reconciliation of Effective tax rate, as forecasted on a
|
|
Fiscal Year 2024 |
(Unaudited) |
|
Forecast |
Effective tax rate |
|
26.5% - 27.5% |
Adjustments: |
|
|
Tax-effect on special item adjustments |
|
(1.7) |
Taxes related to Deferred Markets |
|
0.7 |
Adjusted Effective tax rate (non-GAAP) |
|
25.5% - 26.5% |
The following table presents a reconciliation of Diluted earnings per share, as reported, to Adjusted diluted earnings per share for the periods presented:
|
|
Fiscal Three Months Ended |
||||||
(Unaudited) |
|
|
|
|
||||
Diluted earnings per share |
|
$ |
0.15 |
|
|
$ |
0.27 |
|
Adjustments: |
|
|
|
|
||||
Separation-related costs |
|
|
0.03 |
|
|
|
0.06 |
|
Restructuring and operating model optimization initiatives |
|
|
0.03 |
|
|
|
— |
|
Fixed asset impairment |
|
|
0.04 |
|
|
|
— |
|
Amortization |
|
|
0.04 |
|
|
|
0.05 |
|
Losses on investments |
|
|
0.02 |
|
|
|
— |
|
Tax impact on special item adjustments |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
Other |
|
|
0.01 |
|
|
|
— |
|
Adjusted diluted earnings per share (non-GAAP) |
|
$ |
0.28 |
|
|
$ |
0.37 |
|
The following table presents a reconciliation of Net cash flows from operating activities, as reported, and Purchases of property, plant, and equipment, as reported, to Free cash flow for the periods presented:
|
|
Fiscal Three Months Ended |
||||||
(Unaudited; Dollars in Billions) |
|
|
|
|
||||
Net cash flows from operating activities |
|
$ |
0.3 |
|
|
$ |
0.8 |
|
Purchases of property, plant, and equipment |
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Free cash flow (non-GAAP) |
|
$ |
0.1 |
|
|
$ |
0.7 |
|
Other Supplemental Financial Information
The following table presents the Company’s Net sales by
|
Fiscal Three Months Ended |
||||
(Unaudited; Dollars in Millions) |
|
|
|||
Net sales by geographic region |
|
|
|
||
|
$ |
1,873 |
|
$ |
1,941 |
|
|
905 |
|
|
838 |
|
|
766 |
|
|
768 |
|
|
350 |
|
|
305 |
Total Net sales by geographic region |
$ |
3,894 |
|
$ |
3,852 |
The following table presents the Company’s Research and development expenses for the periods presented. Research and development expenses are included within Selling, general, and administrative expenses.
|
Fiscal Three Months Ended |
||||
(Unaudited; Dollars in Millions) |
|
|
|||
Research & Development |
|
$ |
100 |
$ |
89 |
The following table presents the Company’s Cash and cash equivalents, Total debt and Net debt balance as of the periods presented:
(Unaudited; Dollars in Billions) |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1.2 |
|
|
$ |
1.4 |
|
Total debt |
|
|
(8.6 |
) |
|
|
(8.3 |
) |
Net debt |
|
$ |
(7.4 |
) |
|
$ |
(6.9 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507637168/en/
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