Kenvue Fights to Shield Brands Like Listerine and Tylenol Amid £112m Tariff Shock

American consumer healthcare company Kenvue is implementing new ways to circumvent a potential tariff-related impact of £112.71 million ($150 million) on their business following the recent results of its Q1 2025.

The company, which recently became an independent shoot-off from pharmaceutical giant Johnson & Johnson in 2023, face challenges on how it can stay afloat amidst rising costs to production of its products such as Band-Aid, Tylenol, and Listerine, amongst others.

Brace for Price Increases

As a result of these tariffs implemented by US President Donald Trump, Kenvue customers are expected to be prepared for price hikes as companies that sell directly to consumers grapple with rising costs.

CEO Thibaut Mongon said that Kenvue plans to collaborate with its retail partners on selective price adjustments designed to 'preserve the long-term health of our brands' while 'minimising the impact on our consumers.'

The company aims to counterbalance the tariff-related costs—primarily from imports from China—through alternative sourcing strategies, pricing measures, and revenue growth. However, Kenvue acknowledged that it will not be able to fully offset the financial impact this year.

What's In Kenvue's Q1 2025 Results?

Kenvue reported stronger-than-expected Q1 2025 results despite facing challenges from tariffs and currency pressures. Revenue came in at £2.81 billion ($3.74 billion), a 3.9% year-over-year decline but ahead of estimates, while adjusted earnings per share (EPS) reached £0.18 ($0.24), beating forecasts. Net income rose to £242.03 million ($322 million) from £222.49 million ($296 million) a year ago.

Organic sales slipped 1.2%, hurt by a 2.7% negative foreign exchange impact. The adjusted gross margin fell slightly to 60%, and the operating margin dropped 19.8% from 22% last year.

By segment, Self-Care delivered £1.26 billion ($1.67 billion) in sales, fueled by strong demand for Tylenol and Benadryl, while Skin Health & Beauty fell short, declining 7.3% to £734.37 million ($977 million).

Looking ahead, Kenvue raised its 2025 net sales growth forecast to 1–3% and maintained its organic sales outlook at 2–4%. Adjusted EPS, however, is expected to remain flat due to tariffs and foreign exchange pressures.

A Shift in CFO Leadership

Kenvue also announced the appointment of Amit Banati as its new chief financial officer, effective May 12. Banati will succeed Paul Ruh, who will remain temporarily to ensure a smooth transition.

Banati brings over 30 years of experience in finance and operations within the consumer products industry. He has held leadership roles at Kellanova (formerly Kellogg Company), Kraft Foods, Cadbury Schweppes, and Procter & Gamble. At Kellanova, he served as vice chairman and CFO, overseeing financial operations and leading strategic initiatives, including mergers and acquisitions.

Kenvue CEO Thibaut Mongon expressed confidence in Banati's ability to drive the company's growth and deliver shareholder value, stating, 'Amit is a world-class executive with a proven track record across both financial and operational roles.'

Paul Ruh, who played a pivotal role in establishing Kenvue as an independent entity following its spin-off from Johnson & Johnson in 2023, will join Mattel Inc. as CFO, replacing Anthony DiSilvestro, who is retiring.

Transforming Digital Operations

The company has also entered a five-year strategic partnership with Microsoft to overhaul its digital operations using advanced AI technologies. Announced in April this year, the collaboration will leverage Microsoft Azure's capabilities—including predictive analytics, digital twins, intelligent agents, and generative AI—to accelerate product development, enhance clinical research, and personalise consumer experiences.

Kenvue aims to optimise its go-to-market strategies and improve inventory management through algorithmic selling and intelligent automation. The company is also piloting tools like Microsoft 365 Copilot and Copilot Studio to enhance supply chain efficiency and content creation.

Bernardo Tavares, Kenvue's Chief Technology & Data Officer, emphasised that this partnership will help the company "accelerate product development, optimise decisions, and create seamless, personalised consumer experiences," all while maintaining consumer privacy and trust.

Bernardo Tavares, Kenvue's Chief Technology & Data Officer, emphasised that this partnership will help the company 'accelerate product development, optimise decisions, and create seamless, personalised consumer experiences,' all while maintaining consumer privacy and trust.

For Innovation and Efficiency

By strengthening its leadership team with the appointment of seasoned CFO Amit Banati, expanding its digital capabilities through the Microsoft partnership, and maintaining a sharp focus on innovation and operational efficiency, Kenvue is building resilience across its business.

These efforts are expected to drive cost efficiencies, enhance supply chain agility, and boost revenue growth, all of which can help offset the financial pressures from tariffs. Ultimately, this multifaceted approach reinforces Kenvue's ability to protect margins, deliver value to shareholders, and maintain strong consumer relationships in a volatile economic environment.