Feb 17 (Reuters) - Tylenol-maker Kenvue on Tuesday beat Wall Street estimates for fourth-quarter results and announced a global workforce reduction, as it proceeds toward a planned takeover by Kimberly-Clark.
Kenvue said its board has approved a plan to optimize its operating model, resulting in a net reduction of its global workforce by about 3.5%. The company had about 22,000 employees as of last year.
Kleenex-maker Kimberly-Clark in early November proposed buying Kenvue for more than $40 billion
to create a global consumer health company with brands like Band-Aid and Huggies diapers.
The merger is expected to close in the second half of 2026.
The company's quarterly results highlight a turnaround for the company, on strength in its self-care and essential health segments.
"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 favorable year-ago comparison on sales," said CEO Kirk Perry.
Kenvue's largest segment, self-care — home to brands such as Tylenol and Benadryl — reported a 1.5% increase in net sales to $1.59 billion, beating estimates of $1.52 billion, according to data compiled by LSEG.
The company said consumption and share performance trends for Tylenol improved in December.
Its essential health unit, which houses brands such as Listerine and Band-Aid, brought in net sales of $1.15 billion in the quarter, a 6.1% rise year-over-year. This compares to the analysts' average estimate of $1.12 billion.
The company's fourth-quarter net sales rose 3.2% to $3.78 billion, above analysts' consensus of $3.68 billion.
The Band-Aid maker posted a quarterly adjusted profit of 27 cents per share, while analysts estimated 22 cents per share.
The planned job cuts are expected to result in pre-tax restructuring expenses and other charges totaling about $250 million in 2026, Kenvue said.
(Reporting by Gnaneshwar Rajan and Sneha S K in Bengaluru; Editing by Alan Barona)
