Kenvue beat Wall Street estimates for second-quarter profit and revenue on Tuesday.
The maker of brands such as Listerine and Carefree was helped primarily by better-than-expected sales in its essential health products unit.
Shares of the company rose 4.7% to $19.05 in premarket trading.
Investor expectations from the consumer health company – which Johnson & Johnson spun off last year – have been low due to weak uptake for its self-care and skin health products.
Its essential health business, however, has been performing well.
The essential health unit recorded $1.26 billion in revenue for the second quarter, up nearly 5% from a year earlier.
This was also above analysts’ average estimate of $1.24 billion, according to data from the London Stock Exchange Group (LSEG).
Essential health’s adjusted operating income jumped nearly 44% to $359 million, while other segments declined.
Kenvue’s skin health business – which sells brands such as Neutrogena and Clean & Clear – was the worst performer.
The business recorded a nearly 4% decline in sales to $1.10 billion, compared with LSEG estimates of $1.16 billion.
Sales from self-care – its largest segment which sells brands such as Benadryl and Tylenol – slipped 1.6% to $1.64 billion.
Analysts, on average, had expected $1.60 billion.
Kenvue has been focusing on improving sales of its skin health products through increased marketing spend and in-store presence, among other measures.
It raised the marketing spend for this year to up to $400 million from $300 million previously.
It’s the second time the company has lifted the forecast, after a 15% jump in February.
The New Jersey-based company posted total second-quarter revenue of $4 billion, above LSEG estimates of $3.94 billion.
On an adjusted basis, Kenvue posted a profit of 32 cents per share, beating analysts’ estimates by 4 cents.
The company maintained its adjusted profit forecast for the year at between $1.10 and $1.20 per share.
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