J&J Independent Consumer Health Company Kenvue Files for US IPO
- Chaileedo Press
- Jan 6, 2023
- 2 min read
As an independent spin-off consumer health company, Kenvue positioned its benchmark companies as L'Oreal and P&G.
Founded in 1886, Johnson & Johnson is one of the world's most integrated and widely distributed healthcare companies, with businesses in three main areas: medical devices, pharmaceuticals and consumer products. As early as November 2021, Johnson & Johnson revealed that it was going to restructure its three major businesses in a spin-off.
On September 29, 2022, Johnson & Johnson announced on its website that it would officially separate its consumer health products division into an independent company to be listed under the new name Kenvue, while the name Johnson & Johnson would be reserved for its prescription drug and medical device businesses. The spin-off is expected to be completed by 2023, when Kenvue will operate independently as a consumer health company, according to the company.
For the nine months ended Oct. 2, Kenvue had net sales of $$1.7 billion while its sales of more than $11 billion, compared with revenue of $11 billion and profit of $1.6 billion in the same period last year, according to the prospectus.
According to the prospectus, Kenvue is the world's largest pure-play consumer health company by revenue, with net sales of $15.1 billion in 2021. Its brands include Tylenol, Neutrogena, Listerine, Johnson's, Band-Aid, Aveeno, Zyrtec and Nicorette.
By category, the Self Care segment accounted for 38% of its total revenue, including over-the-counter and health care products, with 16 brands in total. Skin Health and Beauty segment accounted for 30% of its total revenue, with net sales achieving $4.541 billion in 2021, including 16 brands such as Neutrogena, Aveeno, Dr.Ci:Labo, and Dabao. Essential Health accounted for 32% of its total revenue, with net sales achieved $4.87 billion in 2021, including 12 brands including Listerine, Band-Aid and baby care brand Vivvi & Bloom.
By region, more than half of Kenvue's net sales in 2021 came from outside North America, with North America's net sales reaching $7.284 billion, or 48%. Asia Pacific net sales were $3.276 billion, or 22%. Kenvue also plans to further expand product availability in its core geographic markets, such as China, with its existing retail customers.
After raising a record $339 billion in 2021, total fundraising for U.S. exchange-listed stocks fell to $24 billion last year, the worst year since the financial crisis in 2009, according to Bloomberg data. Kenvue has the potential to be one of the biggest IPOs of the year, and if successful, could signal that the market is rebounding from the lingering effects of volatility, inflation, COVID-19 and the war in Russia and Ukraine.
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