Kenvue Inc.

Hello and welcome to Kenview second quarter, 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. Who would like to ask a question during this time simply press star 1 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Sophia to send us head of investor relations for can view.

Good morning everyone and welcome to can be second quarter, 2025 earnings conference call. I'd like to extend a special welcome to Kirk Perry interim chief executive officer and I'm at the Nadi chief financial officer as they participate in their first earnings call with us today. Before we get started. I'd like to remind you that today's call includes forward looking statements regarding among other things are operating and financial performance market opportunities and growth. These statements represent our current beliefs expectations or assumptions about future events and are subject to various risks uncertainties and changes that are difficult to predict and could cause our actual results to differ materially For information regarding these risks and uncertainties, please refer to our earnings materials related to this call posted on our website and our filings of the SEC During this call, we will reference certain non gap financial information. The presentation of this non gap financial information is not intended to be considered an isolation or the substitute for financial information presented in accordance with the US gap. These non gap financial measures should be viewed in conjunction with the most directly comparable US gap financial measures and are not presented a substitute for or superior to those most directly comparable US gap financial measures. Those most directly comparable US gap financial measures and a reconciliation of our non gap items to their respective nearest US gap measures. Can be found in this morning's earnings press release and our presentation available in our IR page of Kenviews website .kenview.com with that I'll turn it over to Kirk.

Thank you, Sophia and good morning everyone. We appreciate you joining us today. I'm honored to be speaking with you for the first time as interim CEO. I've had the pleasure of serving on the Kenview board since late last year. It is a privilege to take on this new role. It's such an important time for the company. Our full board is acting with urgency, making changes in leadership, working to Kenview on an accelerated growth trajectory and progressing our comprehensive review of strategic alternatives. I clearly see the opportunity where I can step in and make a difference right away, drawing on my past experiences. If more than 30 years in the global CPG technology and data and analytics industries, I am committed to leveraging my knowledge and expertise to make an impact quickly enabling Kenview to deliver on its tremendous potential. During my 23 years at Procter & Gamble, I competed against many of Kenview's iconic brands and I bring deep consumer, customer and operational experience in our categories. During this time, I spent six years working abroad in South Korea and Japan, gaining important insights into what it takes to win across diverse and dynamic markets outside the US. I was also responsible for running P&G's US operations group, overseeing all the North American marketing and US operations teams, deeply integrating into our customer teams to grow and win with our largest retail partners. I bring a tech-first understanding of the global consumer marketplace from my time at Serkana and Google. As CEO of Serkana, the global tech, data and analytics provider for the consumer retail and media sectors, I led the team that helped global clients successfully navigate the data and AI revolution. At Google, I was president of Global Client Agency Solutions, where we helped the world's largest advertisers and agencies win in the digital first world. My time at these companies shaped how I see the modern playbook for consumer brands, something that has transformed dramatically and rapidly in a data-driven, digitally enabled world and something that CPG companies need to embrace to win with consumers and customers. To win, we need to adopt not only the right tools, but the right mindset across everything we do. The reason I'm so confident in Kenview turnaround is that I've been part of many over the course of my career. Probably the single biggest and most dramatic was turning around the baby care business at P&G during the time I was there, where I had the opportunity to lead the Northeast Asia and then the North America businesses. Over a two-year period, we strengthened the performance of a big business that had been losing share for years by focusing on the fundamentals we executed with excellence and turned it around. There has been important progress made in the business since Kenview was established as a standalone company, with Kenviewers working to transition processes and systems and separate from J&J to create a stronger, tailored business foundation and beginning to achieve efficiencies and cost savings along the way. Of course, with the separation now behind us, we have to find ways to work smarter and be more agile by simplifying work streams and streamlining decision making. The focus is on improving our execution and financial performance in order to deliver reliable and consistent results. I am a firm believer that promises made need to be promises kept. To that end, I'll now turn to some of the key points we want to leave you with today. The Kenview board has taken a set of decisive actions to enable the company to unlock shareholder value and reach its full potential. The board asked me to step into the CEO role on an interim basis following the earlier CFO transition with Amit Banati joining the company. Amit is here with us on his first earnings call today and is now three months into his role. Speaking for the board and the company, we are very pleased to have someone with Amit skills and relevant experiences in this critical role. In addition to these leadership changes, the board has previously initiated a comprehensive review of strategic alternatives and we now have a strategic review committee in place, which I'm a member of, to oversee this ongoing process. We are considering a broad range of potential alternatives, including optimizing the company's brand portfolio. Amit and I are working closely with other members of the board on this process. We're moving with rigor and urgency to deliver the best outcome for our shareholders and we'll update everyone as the review progresses. I also want to be clear that while the board's work proceeds, we are not standing still and we are actively and acutely focused on improving our operational and financial performance. Pennview has an iconic brand portfolio with so much potential. Potential without performance doesn't matter. We need to enable these brands to live up to their full potential faster in a sustainable manner. We will be moving at warp speed to get the business moving in the right direction. In the three weeks since I've been in the interim CEO role, I've been diligently digging into the business to identify what we're doing well and what we need to change to win with consumers and customers and operate with greater impact and agility. While I'm still in my early days and going through deep dives across the entire organization, I wanted to share some initial observations which have informed our immediate priorities. There is a significant amount of complexity across the organization. Whether it comes to SKUs, brands or even countries, we can't be everything to everyone and we need to be more choiceful on where to play and how to win. Even when it comes to innovation, by focusing on fewer, bigger and better ideas, we can execute better and more efficiently. But that said, I do want to acknowledge that in the back half of the year, we have the most robust pipeline of innovation we've had in years. Second, we should be winning share with our brands, period. To make this a reality, we need to transition to a consumer centric mindset. The consumer should always be at the center of everything we do. When you do this well, it shows up everywhere. From iconic brand marketing campaigns to breakthrough innovation that drives category growth to organizing everything you do on systems, processes and structure to delight our boss, the consumer. As an organization, we need to refocus on household penetration, which is key to driving market share. Deep consumer understanding creates incredible consumer insights that deliver points of difference we can leverage to drive big ideas and needle moving innovation. We simply haven't done this well enough. When you deeply understand the consumer, you build insights that are the foundation of everything you do. It leads to brand building that resonates and allows your brand to move from consumers liking it to needing it. Then you build innovation from the insights that delight and reinforce it through marketing. And last but certainly not least, flawless go to market execution is absolutely critical to our success. Whether it comes to category management, revenue growth management, perfect store or how we show up online, in particular with e-commerce. Executing with excellence is mandatory, not optional. It is something we have not done, but absolutely need to do well everywhere. Importantly, none of these are insurmountable challenges. Members of our leadership team and I have already run this playbook before and I'm confident we can do it again. The good news is that over the past few weeks, I've also seen an organization that wants to win. They want us to refocus on fundamentals and make bold choices. By focusing on the following four immediate priorities, I believe we can reach our goals faster. Our first priority is to strengthen leadership and capabilities. We are pleased that Andy Dasgupta, a nearly 30 year global consumer products industry veteran, assumed leadership of our Asia Pacific region in July. With extensive leadership experience in health, nutrition and food and beverage sectors, Andy has held senior level regional and global roles across Europe, the US and Asia Pacific. And today we announced that Mike Wondrash will serve as our new Chief Technology and Data Officer, effective August 25th, bringing nearly 30 years of experience at the intersection of technology, digital and data for global Fortune 100 companies. These appointments complement the many new talents and capabilities we have brought in across the organization to accelerate our marketing, sales, digital and AI capabilities across our markets. Ensuring that we have the right leadership and capabilities in place to improve performance is a critical focus area for me. With these moves, we've appointed four new leaders to Kenview's leadership team over the past three months, which is one third of the team. Second, we'll also take a fresh look at our operating strategy. As I mentioned earlier, our focus will be on making the right choices on where to play and how to win. Unfortunately, what has inhibited our ability to do this well to date is that we have created self induced complexity that we need to fix. A few examples. While we have 115 brands in the company, 41 play a role across one or more regions and account for over three fourths of our sales. We have a long tail of SKUs that make up a significant portion of total SKUs, yet account for approximately 1% of our sales. Finally, we have a robust pipeline of innovation, but far too many initiatives that can be executed efficiently and effectively. We can and we will do better here. Third, improving execution will be the core of everything. My mentor once told me the only strategy our consumers and customers ever see is our execution. And I obsess over three critical moments of truth and execution. It's when consumers hit the zero moment of truth, which is where they become aware of our brands. The first moment of truth is when consumers find us on the shelves or online. And the second moment of truth is when consumers use our product and decide to repurchase it or not. Simply put, we need to win with our biggest brands and our biggest customers in our biggest markets. Because we win here, we win. Our 10 biggest brands in each region account for more than two thirds of our sales and our 10 biggest markets account for more than three quarters of our sales. Lastly, we'll review ways to optimize our structure and operating model. The limits test here is simple. Does the model we have enable us to make decisions as fast as possible and win with consumers and customers? If not, how do we adjust course to be a simpler, more agile, higher impact organization? I'm the big believer that lots of different operating models can work if you are laser focused on enabling the right decisions at the right level with speed and precision. All of these priorities need to work in harmony for us to grow our market share and win in market. So while it's not a complicated formula, we're determined to get it right and energized by the opportunities we have ahead. I'll now turn to an overview of top line results for Q2 before Amit does a deeper dive on the financials. We faced a tough quarter and our top line results were well below expectations. While organic sales declined 4.2%, global consumption grew year over year and outpaced organic sales across each segment. Results in self care were disproportionately impacted by unfavorable seasonal and customer inventory dynamics, which masked strong market share performance for the business. For example, in the US, 83% of our business held or gained share and analogy, despite the soft season, Zyrtec didn't just strengthen its leadership position, but also grew household penetration across both adult and children franchises. In skin health and beauty, while we still have work to do to get back to market share gains and consistent top line growth, we are encouraged by the sequential improvement in consumption in the US. Neutrogena Face, a key platform for the brand, returned to year over year consumption growth in the US during the quarter, with market share trends also improving sequentially. Globally, consumption of our skin health and beauty brands stabilized for the first time in more than a year, fueled by growth in EMEA, Latin America, and Asia Pacific. In essential health, we perform well in Latin America, but face declines in other regions against a strong year ago quarter. We have stepped up our efforts to increase household penetration for Listerine and in Q2 launched our global Wash Your Mouth campaign in the US, which has since been activated across other major markets such as Canada, UK, Germany, and China. From a regional perspective, we are pleased with our performance in EMEA and Latin America. Although Q2 results were impacted by external dynamics, ultimately, we did not execute at the level we should have. In light of Q2 results and current expectations through the end of the year, we have revised guidance for 2025. Now I'll turn it over to Amit for more on our financial results and outlook.