Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Benchmarking Against Peers – HLN Anchor at Low End,
Already at CL Levels, PG Aspirational
The closest peer to KVUE, in our view, is Haleon (HLN, covered by Celine Pannuti)
given similar category exposures (e.g., pain relief, cold, cough, allergy, oral), financial
metrics (e.g., sales, EBITDA, growth outlook), and geographic exposures (KVUE ~70%
developed markets vs. HLN roughly two-thirds). HLN was also formed as a result of a
carve-out from a larger pharma company (GSK in this case).
There are some differences between the companies. From a financial perspective,
KVUE has a more attractive dividend yield (~3.0% vs. HLN 1.6%) and lower leverage
(2.1x net-debt-to-EBITDA vs. HLN 3.6x). KVUE has exposure to faster growing
categories like Skin Health & Beauty, while HLN has exposure to (typically) faster
growing categories like VMS (notwithstanding post-COVID normalization and
somewhat discretionary nature of products); while overall DM/EM exposure is similar,
KVUE has higher exposure to North America (~50%) vs. HLN (~37%) and lower
exposure to EMEA and LatAm (KVUE ~29% combined vs. HLN ~39%), while APAC
exposure is similar (KVUE 21%, HLN 23%). The most important difference, in our
view, is the stronger brand portfolio of KVUE with seven brands in a number 1 position
globally, while HLN claims a number 1 position in digestive health and therapeutic oral
health (under sensitive franchise for Sensodyne). That said, overall it appears that in the
U.S. at least in categories with direct competitive entries from both KVUE and HLN
that KVUE holds the edge in household penetration (e.g., allergy, cough, cough, and flu,
pain relief) based on Numerator data.
Post-IPO, KVUE(cid:726)s valuation multiple has already migrated close to U.S.-based peer
Colgate-Palmolive (CL, OW-rated), which also has similar financial KPIs.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Table 2: KVUE Key KPIs and Valuation vs. Direct Peer Set
Company Geographic and Segment Mix
Kenvue (KVUE) Haleon (HLN) Colgate-Palmolive (CL)* The Procter & Gamble Company (PG)
Geographic Exposure (Sales)
North America 50% 38% 21% --
US 44% 34% 33% 45%
APAC 21% 23% 16% --
EMEA & LatAM 29% 39% 42%
EMEA 21% -- -- --
LatAM 8% -- -- --
International 56% 66% 67% 54%
Pet -- -- 21% --
Self Care - 40% of sales - Tylenol, Zyrtec, Health Care - 14% of sales - Crest, Oral-B, Vicks,
Pain Relief - 23% of sales - Advil, Panadol, Oral Care - 43% of sales - Colgate, Sorriso,
Nicorette, Motrin, Zarbee's, Orsl, Benadryl, ZzzQuil, Pepto-Bismol, Clearblue, Align,
Voltaren Tom's of Maine, elmex, hello
Rhinocort Metamucil
Skin Health & Beauty - 29% of sales - Personal Care - 19% of sales - Softsoap, Speed
Beauty - 18% of sales - Olay, SK-II, Native, Old
Neutrogena, Aveeno, OGX, Dabao, Lubriderm, Respiratory Health - 15% of sales - Theraflu, Stick, Lady Speed Stick, Irish Spring, Tom's of
Spice, Head & Shoulders, Herbal Essences,
Rogaine, Clean&Clear, Dr.Ci:Labo, Le Petit Otrivin, Flonase Maine, Filorga, eltaMD, Protex, Sanex, Palmolive,
Pantene
Marseillais PCA Skin
Essential Health - 31% of sales - Listerine, Band- Fabric & Home Care - 35% of sales - Tide, Gain,
Oral - 27% of sales - Sensodyne, Paradontax, Home Care - 17% of sales - Palmolive, Suavitel,
Segment & Key Brands Aid, Johnson's, Neosporin, Stayfree, o.b., Bounce, Downy, Ariel, Dawn, Cascade, Febreze,
Polident, Biotene Ajax, Fabuloso
Carefree Swiffer, Mr. Clean
Baby, Feminine, and Family Care - 25% of
VMS - 15% of sales - Centrum, Emergen-C,
Pet - 21% of sales - Hill's Pet Nutrition sales - Pampers, Luvs, Bounty, Charmin, Puffs,
Caltrate
Tampax, Always
Digestive Health & Other - 19% of sales - Tums,
Grooming - 8% of sales - Gillette, Braun, Venus
Preparation H, Eno, Fenistil
Financial & Valuation Metrics
Kenvue (KVUE) Haleon (HLN) Colgate-Palmolive (CL)* The Procter & Gamble Company (PG)
CY22 Net Sales ($B) $15.0 $13.4 $18.0 $80.3
CY23-CY25 Organic Sales CAGR 4.7% 4.8% 4.9% 4.5%
CY22 adjusted EBITDA ($B) $3.6 $3.4 $4.2 $20.1
CY22 adjusted EBITDA Margin 24.1% 25.1% 23.5% 25.0%
CY23-CY25 EBITDA CAGR 6.1% 6.2% 7.0% 8.4%
Net-Debt-to-TTM EBITDA 2.1x 3.6x 1.9x 1.4x
Dividend Yield 3.0% 1.6% 2.7% 2.5%
2023 EV/EBITDA 15.5x 14.0x 15.8x 17.8x
2024 EV/EBITDA 14.7x 13.3x 14.7x 16.7x
2023 P/E 23.8x 18.3x 24.3x 23.9x
2024 P/E 23.1x 16.9x 22.2x 21.9x
Source: Company reports, Bloomberg Finance L.P., J.P. Morgan estimates.; *CL North America ex-Pet but U.S. includes Pet
Beyond HLN, CL, and PG, we also compare KVUE to additional companies with
exposure to the Consumer Health space and also a broader basket of HPC and Beauty
companies given KVUE(cid:726)s presence in the face care, body care, and sun care categories
as well as baby care. KVUE sales growth and margin outlook are largely comparable
across the Consumer Health and HPC & Beauty peers on average (e.g., HPC & Beauty
weighted average 2023-2024E sales CAGR +5.1% with 2023E EBITDA margins
~23.2% and Consumer Health weighted-average 2023-2024E sales CAGR +3.1% with
2023E EBITDA margins ~25.4% vs. KVUE 2023-2024E sales CAGR +4.4% with
2023E EBITDA margins 24.2%).
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Table 3: Comparable Analysis for KVUE
Enterprise
JPM JPM Price (LC) JPM Price Dividend Market Cap Value EV/EBITDA Hist. Fwd EV/EBITDA Avg.
Company Ticker Analyst Rating 5/26/2023 Target Yield (USD mn) (USD mn) 2022 2023E 2024E 1-yr 2-yr 5-yr
Consumer Health
Beiersdorf BEI GR Pannuti N 123.90 112 0.6% 33,471 25,316 17.1x 14.9x 13.8x 14.8x 14.7x 15.1x
Bayer BAYN GR Vosser N 54.32 60 4.4% 57,208 95,239 6.6x 7.2x 6.7x 6.7x 6.9x 7.6x
Haleon HLN LN Pannuti UW 3.30 3 0.7% 37,617 49,816 14.8x 14.0x 13.3x 12.9x 12.9x 12.9x
Reckitt Benckiser Group RKT LN Pannuti OW 64.16 75 2.9% 56,731 66,275 14.0x 13.4x 12.7x 13.2x 13.9x 14.6x
Sanofi SAN FP Vosser OW 99.40 105 3.6% 134,490 141,743 9.0x 9.0x 8.5x 8.6x 9.1x 9.8x
Unilever ULVR LN Pannuti UW 41.69 39 3.6% 129,635 159,456 13.0x 12.8x 12.0x 12.5x 12.5x 13.3x
AVERAGE 12.4x 11.9x 11.2x 11.4x 11.7x 12.2x
WTD. AVERAGE 11.6x 11.3x 10.6x 10.9x 11.1x 11.8x
MEDIAN 13.5x 13.1x 12.3x 12.7x 12.7x 13.1x
HPC & Beauty
Colgate-Palmolive CL Teixeira OW 76.21 87 2.5% 63,221 71,538 16.9x 15.8x 14.7x 15.8x 15.8x 15.5x
Procter & Gamble PG Teixeira OW 145.40 168 2.6% 342,703 389,376 19.1x 17.8x 16.7x 16.9x 17.2x 16.4x
Church & Dwight CHD Teixeira UW 93.97 86 1.2% 22,953 25,616 20.8x 19.4x 18.3x 17.3x 18.1x 18.2x
Kimberly-Clark KMB Teixeira UW 136.30 139 3.5% 45,985 54,237 16.6x 14.4x 13.4x 14.0x 13.8x 12.8x
Clorox CLX Teixeira UW 159.09 158 3.0% 19,667 22,617 24.9x 32.2x 17.2x 18.5x 18.1x 17.4x
Newell Brands NWL Teixeira OW 8.73 14 3.2% 3,615 9,596 7.7x 9.0x 7.9x 9.0x 9.4x 10.3x
Estee Lauder EL Teixeira OW 194.44 224 1.4% 69,495 74,877 23.1x 29.9x 19.7x 21.3x 23.0x 21.5x
e.l.f. ELF Teixeira OW 101.28 102 N/A 5,456 5,596 51.6x 39.5x 34.6x 26.1x 23.2x 19.6x
L'Oreal OR FP Pannuti N 411.00 400 1.5% 236,141 239,811 24.9x 22.8x 21.0x 20.4x 22.6x 21.2x
Olaplex OLPX Teixeira UW 3.29 5 N/A 2,153 2,546 5.9x 9.4x 8.4x 12.4x 18.2x 18.2x
Reynolds Consumer Products REYN Teixeira OW 27.11 31 3.4% 5,693 7,778 14.2x 12.6x 11.6x 12.4x 12.4x 12.2x
Coty COTY Teixeira N 11.03 12 N/A 9,406 14,318 15.2x 14.1x 13.0x 12.4x 13.2x 12.6x
AVERAGE 20.1x 19.7x 16.4x 16.4x 17.1x 16.3x
WTD. AVERAGE 21.0x 20.3x 17.9x 18.0x 18.9x 17.9x
MEDIAN 18.0x 16.8x 15.7x 16.4x 17.6x 16.9x
Kevnue KVUE Teixeira OW 26.30 29.00 3.0% 50,362 58,714 16.3x 15.5x 14.7x -- -- --
JPM JPM Price (LC) JPM Price P/E Hist. Fwd P/E Avg. FCF Yield
Company Ticker Analyst Rating 5/26/2023 Target 2022 2023E 2024E 1-yr 2-yr 5-yr 2022 2023E 2024E
Consumer Health
Beiersdorf BEI GR Pannuti N 123.90 112 33.9x 31.6x 28.7x 28.6x 29.0x 28.8x 0.9% 2.6% 2.7%
Bayer BAYN GR Vosser N 54.32 60 6.8x 7.7x 7.1x 7.1x 7.4x 8.4x 5.8% 7.1% 11.1%
Haleon HLN LN Pannuti UW 3.30 3 17.9x 18.3x 16.9x 16.0x 16.0x 16.0x 5.3% 5.0% 5.7%
Reckitt Benckiser Group RKT LN Pannuti OW 64.16 75 18.8x 18.8x 17.4x 17.7x 18.6x 19.2x 4.4% 5.4% 6.1%
Sanofi SAN FP Vosser OW 99.40 105 12.0x 12.1x 11.2x 11.0x 11.8x 12.6x 6.6% 6.6% 7.6%
Unilever ULVR LN Pannuti UW 41.69 39 16.2x 16.4x 15.2x 17.7x 17.7x 18.7x 5.3% 6.3% 6.7%
AVERAGE 17.6x 17.5x 16.1x 16.4x 16.8x 17.3x 4.7% 5.5% 6.6%
WTD. AVERAGE 15.6x 15.6x 14.4x 15.0x 15.4x 16.2x 5.3% 6.0% 7.1%
HPC & Beauty
Colgate-Palmolive CL Teixeira OW 76.21 87 25.7x 24.3x 22.2x 24.0x 23.8x 23.5x 2.9% 4.0% 4.5%
Procter & Gamble PG Teixeira OW 145.40 168 25.5x 23.9x 21.9x 23.5x 23.9x 23.0x 3.4% 4.5% 4.7%
Church & Dwight CHD Teixeira UW 93.97 86 31.6x 30.2x 27.9x 26.7x 27.7x 27.4x 3.1% 3.0% 3.7%
Kimberly-Clark KMB Teixeira UW 136.30 139 24.2x 21.8x 19.6x 20.9x 20.3x 18.9x 4.0% 4.5% 4.9%
Clorox CLX Teixeira UW 159.09 158 38.3x 30.2x 26.3x 30.4x 28.7x 26.3x 3.7% 3.9% 4.4%
Newell Brands NWL Teixeira OW 8.73 14 5.6x 9.0x 6.8x 10.0x 11.3x 11.4x -16.2% 12.3% 15.9%
Estee Lauder EL Teixeira OW 194.44 224 37.2x 56.6x 32.9x 35.0x 37.5x 35.2x 1.4% 1.7% 3.5%
e.l.f. ELF Teixeira OW 101.28 102 74.5x 53.4x 51.4x 44.2x 40.4x 36.0x 1.4% 1.8% 2.3%
L'Oreal OR FP Pannuti N 411.00 400 36.5x 34.2x 31.3x 31.2x 35.5x 33.6x 2.2% 3.1% 3.3%
Olaplex OLPX Teixeira UW 3.29 5 7.3x 12.9x 10.9x 17.2x 26.1x 26.1x 11.8% 11.6% 10.4%
Reynolds Consumer Products REYN Teixeira OW 27.11 31 21.2x 20.2x 17.6x 18.7x 17.6x 16.9x 1.6% 6.8% 5.6%
Coty COTY Teixeira N 11.03 12 31.5x 20.1x 22.6x 23.2x 28.4x 24.2x 4.8% 3.6% 5.7%
AVERAGE 29.9x 28.1x 24.3x 25.4x 26.8x 25.2x 2.0% 5.1% 5.7%
WTD. AVERAGE 30.3x 29.9x 25.8x 26.8x 28.4x 27.1x 2.8% 3.8% 4.2%
MEDIAN 28.6x 24.1x 22.4x 23.7x 26.9x 25.2x 3.0% 3.9% 4.6%
Kevnue KVUE Teixeira OW 26.30 29.00 22.3x 23.8x 23.1x -- -- -- 4.0% 4.8% 4.9%
Source: Company reports, Bloomberg Finance L.P., and J.P. Morgan estimates.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Price Target Derivation
We see investors gravitating toward EV/EBITDA to inform valuation for KVUE given
that the company(cid:726)s treatment of amortization of definite life intangible assets will make
P/E less comparable to peers based on what the company will report as its adjusted
earnings, although we will also present an EPS including amortization of definite life
intangibles to make the comparison more apples to apples. We also added a discounted
cash flow valuation to where the stock could trade over the medium to longer term as
the company continues to execute against its growth priorities and improves margins.
To determine our target multiples for KVUE we use a blended average based on the
comparable analysis discussed above. Given KVUE(cid:726)s characteristics similar to HLN, we
view it as the most direct comparable company and see investors anchoring valuation
against it for now – as such in our target multiple analysis we assign a one-third
weighting to HLN(cid:726)s multiple. We ascribe a one-third weighting to other Consumer
Health peers and one-third weighting to HPC & Beauty peers (i.e., in total two-thirds
weighting to Consumer Health and one-third to HPC & Beauty). The lower weighting to
higher-multiple HPC & Beauty seems fair to us given generally slower growth/margin
profile vs. Beauty peers historically and less everyday use vs. HPC peers. We then
assign a 70% weighting to EV/EBITDA as the primary valuation metric and 30% to
DCF as a secondary metric. As such, our Dec 2023 price target embeds an EV/EBITDA
multiple of 15.1x, which is 0.4x below the current 2023E multiple for KVUE.
Table 4: EV/EBITDA Multiple for Peer Sets
Target Multiple Blend
EV/EBITDA Weighting Multiple
Haleon 33% 13.9x
Consumer Health ex-Haleon 33% 11.2x
HPC & Beauty 33% 20.2x
Total 100% 15.1x
Source: Bloomberg Finance L.P. and J.P. Morgan.
Our Dec 2023 price target of $29 is based on a blended average of the above multiples
against our 2024 EBITDA estimate and a DCF value of $32 (based on perpetual growth
method). Our target price implies 10% upside from the May 26 close on top of a ~3%
dividend yield.
Table 5: Method 1: EV/EBITDA Derivation
Price Target Methodology on EV/EBITDA Dec-23
CY2024 EBITDA $ mn $3,983
Target Multiple 15.1x
(-) Post IPO Net Debt $ mn $7,820
# of shares 2023E mn 1 ,935
2023 Implied Price Target $27
Upside/Downside 2.4%
Source: J.P. Morgan estimates.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Table 6: Method 3: DCF Derivation
$ m, except per share value
Terminal Value (Perpetual Growth)
CY2033E Unlevered Free Cash Flow $3,687
Long-Term Growth Rate 1.0%
Terminal Value $79,813
Equity Value (Perpetual Growth)
Present Value of Terminal Value $44,541
Present Value of Unlevered Free Cash Flows $25,496
-Net Debt $7,820
Equity Value $62,217
Equity Value per Share $32
Shares Outstanding 1,935
Source: J.P. Morgan estimates.
Table 7: Blended Price Target Implies ~10% Upside from Current Levels
Price Target Methodology Dec-23
Mix of EV/EBITDA 70%
Mix of DCF 30%
Blended $29.00
Upside from last price 10.1%
Source: J.P. Morgan estimates.
For additional context, we offer the assumptions underlying our discounted cash flows
analysis through 2033 and sensitivity tables using both an EBITDA exit multiple and
perpetual growth that points to meaningful upside potential in KVUE shares to the low-
to mid-$30s range. Underlying our DCF analysis, we assume a weighted-average cost of
capital of around 5.7% based on a beta of 0.73, risk-free rate of 3.8%, market risk
premium of 4.8%, a marginal cost of debt of 5.0%, low-single-digit organic top-line
growth through 2033 (decelerating from 4.8% reported in CY2023E to 2% in
CY2033E), with the company expanding margins at an average 25 basis points
thereafter, modest headwind from use of working capital, and capital expenditures of 3-
4% of sales annually.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Table 8: KVUE DCF
$ m
WACC Calculation
Beta 0.73
Risk-free rate 3.8%
Market risk premium 4.8%
Cost of Equity 7.3%
Marginal cost of debt 5.0%
Tax rate 25.6%
After-tax cost of debt 3.7%
Equity weight 55.2%
Debt weight 44.8%
WACC 5.7%
Unlevered Free Cash Flow Analysis 0 1 2 3 4 5 6 7 8 9 10 11
$ m CY2022 CY2023 CY2024 CY2025 CY2026 CY2027 CY2028 CY2029 CY2030 CY2031 CY2032 CY2033
Sales $14,950.0 $15,662.3 $16,289.0 $16,972.8 $17,651.7 $18,307.3 $18,935.0 $19,530.1 $20,088.1 $20,604.7 $21,075.6 $21,497.1
EBIT $2,961.8 $3,163.6 $3,343.9 $3,673.8 $3,864.9 $4,054.2 $4,240.5 $4,422.6 $4,599.2 $4,769.0 $4,930.7 $5,083.0
Tax Rate 22.8% 25.6% 25.7% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5% 25.5%
After-tax EBIT $2,286.0 $2,352.5 $2,485.4 $2,737.6 $2,879.9 $3,021.0 $3,159.9 $3,295.6 $3,427.1 $3,553.7 $3,674.1 $3,787.7
+D&A $644.0 $633.8 $639.5 $634.5 $655.7 $678.8 $703.7 $730.7 $759.4 $789.9 $822.2 $856.1
+CapEx -$374.8 -$416.7 -$482.2 -$504.2 -$529.6 -$576.7 -$624.9 -$673.8 -$718.2 -$762.4 -$806.1 -$849.1
+Net Change in Working Capital -$672.0 $133.5 $99.4 -$3.8 -$88.3 -$91.5 -$94.7 -$97.7 -$100.4 -$103.0 -$105.4 -$107.5
Unlevered Free Cash Flow $1,883.3 $2,703.1 $2,742.0 $2,864.0 $2,917.8 $3,031.6 $3,144.1 $3,254.8 $3,368.0 $3,478.2 $3,584.8 $3,687.2
YOY % 43.5% 1.4% 4.5% 1.9% 3.9% 3.7% 3.5% 3.5% 3.3% 3.1% 2.9%
Present Value of Unlevered Free Cash Flow $1,883.3 $2,617.6 $2,512.9 $2,484.0 $2,394.9 $2,354.8 $2,311.3 $2,264.4 $2,217.5 $2,167.2 $2,113.9 $2,057.7
Assumptions CY2022 CY2023 CY2024 CY2025 CY2026 CY2027 CY2028 CY2029 CY2030 CY2031 CY2032 CY2033
Sales Growth -0.7% 4.8% 4.0% 4.2% 4.0% 3.7% 3.4% 3.1% 2.9% 2.6% 2.3% 2.0%
EBIT Margin 19.8% 20.2% 20.5% 21.6% 21.9% 22.1% 22.4% 22.6% 22.9% 23.1% 23.4% 23.6%
CapEx % of Sales 2.5% 2.7% 3.0% 3.0% 3.0% 3.2% 3.3% 3.5% 3.6% 3.7% 3.8% 4.0%
Change in Net Working Capital % of Sales -4.5% 0.9% 0.6% 0.0% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5% -0.5%
Source: Company reports, Bloomberg Finance L.P, Damodaran Online, and J.P. Morgan estimates.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Table 9: KVUE DCF Sensitivity Based on Terminal EV/EBITDA Multiples
Discount Rate
$31 4.2% 4.7% 5.2% 5.7% 6.2% 6.7% 7.2%
11x $32 $31 $29 $28 $27 $26 $24
Terminal 12x $34 $33 $31 $30 $28 $27 $26
Value 13x $36 $35 $33 $31 $30 $29 $27
EBITDA 14x $38 $36 $35 $33 $32 $30 $29
Multiple
15x $40 $38 $37 $35 $33 $32 $30
16x $42 $40 $38 $37 $35 $33 $32
Source: J.P. Morgan estimates.
Table 10: KVUE DCF Sensitivity Based on Perpetual Growth Rate
Discount Rate
$32 4.2% 4.7% 5.2% 5.7% 6.2% 6.7% 7.2%
0.0% $40 $35 $31 $28 $25 $23 $21
0.5% $44 $38 $34 $30 $27 $24 $22
Long-Term
1.0% $50 $42 $37 $32 $29 $26 $23
Growth
1.5% $58 $48 $41 $35 $31 $27 $25
Rate
2.0% $69 $55 $46 $39 $34 $30 $26
2.5% $87 $66 $53 $44 $37 $32 $28
Source: J.P. Morgan estimates.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Most Recent Point of Sales Trends in the
U.S. (NielsenIQ)
Tracked Channel 4Y CAGR Accelerated Sequentially QTD in the U.S. Based on
NielsenIQ
The most recent tracked channel data (QTD for 5-weeks ending 5/6) shows that
KVUE(cid:726)s dollar takeaway (total company in tracked channel) was up +4.2% driven by
pricing (up +14.5%) while volumes were down -9.0%. This print shows a sequential
deceleration (only on the headline but when normalizing for the pandemic, it accelerated
on a 4-year CAGR) from 12-week period ending 4/1 (bracketing Q123) in which
KVUE(cid:726)s dollar takeaway was up +5.5% (pricing up +11.9% while volume was down -
5.7%). It also decelerated slightly from the 12-week period ending 12/31/22 (bracketing
4Q22) which was up +4.4% (pricing up +11.0% but volume down -5.9%). On a 4Y
CAGR basis, takeaway was up +4.1% for the 12-week period ending 12/31, +1.5% for
the 12-week period ending 4/01 and +2.3% in the 5-week period ending 5/06.
Figure 52: KVUE(cid:726)s $ Takeaway in Tracked Channels Driven by Pricing
Rolling 12W Period Ending 5/06
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ, J.P. Morgan
Below we lay out some of the most recent POS trends in the U.S. and how KVUE
stacks up against peers among HPC companies. In the last 12 weeks, consumer
takeaway has been in the MSDs in the tracked channels measured by NielsenIQ in
the U.S., which places KVUE in the middle of the pack relative to peers, per the
tables below.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 53: Takeaway Growth in Latest 4-Week Period (YOY change sorted by 4 weeks)
YOY % Change in $ Takeaway 4-Yr CAGR
$ Takeaway 1-Wk 4-Wk 12-Wk 52-Wk 1-Wk 4-Wk 12-Wk 52-Wk
HNST 27.8% 24.7% 25.1% 19.8% 22.2% 18.6% 18.7% 17.0%
CHD 6.1% 6.2% 7.8% 6.6% 5.7% 5.7% 5.7% 5.6%
CLX 5.4% 5.2% 7.9% 4.8% 4.4% 4.6% 4.9% 4.3%
PG 6.2% 4.9% 6.4% 6.2% 8.0% 7.1% 6.9% 6.9%
UNLVR 4.1% 4.3% 6.2% 8.6% 5.6% 5.6% 6.0% 5.8%
EPC -1.0% 4.0% 3.1% 4.7% 2.0% 3.0% 2.4% 1.7%
KVUE 2.7% 3.8% 5.4% 1.1% 2.6% 2.3% 1.7% 2.8%
KMB 4.2% 3.0% 3.4% 4.8% 3.3% 2.6% 2.2% 2.5%
REYN 7.8% 2.7% 7.9% 11.2% 8.1% 6.3% 8.1% 7.9%
ENR 1.0% 1.3% 1.9% 6.6% 4.3% 3.8% 4.1% 4.5%
CL 2.4% -0.2% 0.5% 4.8% 0.6% 1.0% 0.7% 2.0%
NWL -24.6% -20.2% -16.8% -11.2% -4.7% -3.7% -3.7% -2.5%
Source: NielsenIQ, J.P. Morgan. UNLVR (Unilever) is covered by Celine Pannuti.
Figure 54: Weekly Growth Rates for HPC Companies (YOY change sorted by latest week)
YOY % Change in Weekly $ Takeaway 4-Yr CAGR
$ Takeaway 04/15/23 04/22/23 04/29/23 05/06/23 04/15/23 04/22/23 04/29/23 05/06/23
HNST 13.4% 38.6% 19.7% 27.8% 13.5% 23.5% 15.6% 22.2%
REYN -0.8% 0.1% 4.1% 7.8% 5.3% 5.6% 6.3% 8.1%
PG -0.8% 11.3% 3.1% 6.2% 5.6% 9.4% 5.6% 8.0%
CHD 2.3% 11.9% 4.8% 6.1% 4.1% 7.6% 5.5% 5.7%
CLX 4.5% 9.5% 1.4% 5.4% 4.2% 5.8% 3.9% 4.4%
KMB -2.4% 9.4% 1.1% 4.2% 1.2% 4.1% 2.0% 3.3%
UNLVR -2.6% 10.4% 6.0% 4.1% 3.8% 7.5% 5.8% 5.6%
KVUE 0.8% 11.2% 1.1% 2.7% 1.6% 3.5% 1.6% 2.6%
CL -5.8% 5.8% -2.9% 2.4% -0.9% 3.1% 1.2% 0.6%
ENR 0.0% 6.1% -1.8% 1.0% 3.5% 4.6% 3.0% 4.3%
EPC 10.6% 14.3% -6.2% -1.0% 3.5% 4.7% 1.8% 2.0%
NWL -27.4% -11.5% -16.9% -24.6% -6.0% -1.1% -3.1% -4.7%
Source: NielsenIQ, J.P. Morgan. UNLVR (Unilever) is covered by Celine Pannuti.
Figure 55: Company $ Takeaway Figure 56: Company Takeaway 2-Year Stack
Y/Y % Change ranked high to low in latest 4-week period Current 4-Week Period Takeaway + YAGO vs. Previous 4-Week + YAGO
4-Wk 12-Wk 52-Wk Current Last Diff.
HNST 24.7% 25.1% 19.8% ENR 4.0% -6.7% 1076
CHD 6.2% 7.8% 6.6% KMB 16.1% 8.1% 797
CLX 5.2% 7.9% 4.8% EPC 12.5% 5.9% 656
PG 4.9% 6.4% 6.2% NWL -27.0% -31.6% 460
UNLVR 4.3% 6.2% 8.6% REYN 17.4% 13.5% 395
EPC 4.0% 3.1% 4.7% CL 5.2% 2.0% 320
KVUE 3.8% 5.4% 1.1% KVUE -1.1% -3.1% 201
KMB 3.0% 3.4% 4.8% CLX 5.7% 4.2% 147
REYN 2.7% 7.9% 11.2% UNLVR 10.5% 9.2% 129
ENR 1.3% 1.9% 6.6% PG 11.9% 11.2% 72
CL -0.2% 0.5% 4.8% CHD 11.5% 11.1% 41
NWL -20.2% -16.8% -11.2% HNST 35.7% 43.4% (771)
Source: NielsenIQ. J.P. Morgan Source: NielsenIQ. J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 57: Y/Y % Change in Units Figure 58: Y/Y % Change in Price per Unit
Y/Y % Change ranked high to low in latest 4-week period Y/Y % Change ranked high to low in latest 4-week period
4-Wk 12-Wk 52-Wk 4-Wk 12-Wk 52-Wk
HNST 15.3% 12.6% 7.7% CL 15.5% 17.3% 14.8%
CHD 1.8% 1.9% -0.7% CLX 15.1% 16.1% 15.9%
PG -2.1% -0.8% -2.4% KVUE 14.5% 13.6% 10.6%
KMB -3.6% -4.5% -2.5% REYN 14.3% 12.6% 15.6%
UNLVR -5.3% -3.9% -4.8% EPC 11.0% 9.5% 9.4%
ENR -6.1% -8.5% -9.1% UNLVR 10.1% 10.5% 14.1%
EPC -6.3% -5.8% -4.3% HNST 8.1% 11.1% 11.3%
CLX -8.7% -7.1% -9.5% ENR 7.9% 11.3% 17.3%
KVUE -9.4% -7.2% -8.6% PG 7.1% 7.2% 8.8%
REYN -10.2% -4.1% -3.8% KMB 6.8% 8.3% 7.5%
CL -13.6% -14.3% -8.8% CHD 4.4% 5.8% 7.4%
NWL -21.7% -18.4% -15.1% NWL 1.8% 1.9% 4.6%
Source: NielsenIQ. J.P. Morgan Source: NielsenIQ. J.P. Morgan
Figure 59: Y/Y % Change in Velocity Figure 60: Y/Y % in Total Distribution Points
Y/Y % Change ranked high to low in latest 4-week period Y/Y % Change ranked high to low in latest 4-week period
4-Wk 12-Wk 52-Wk 4-Wk 12-Wk 52-Wk
KVUE 12.0% 12.1% 13.4% HNST 20.5% 21.2% 13.2%
CLX 10.9% 11.7% 7.3% CHD 1.3% 2.3% 0.2%
ENR 10.8% 13.5% 19.5% REYN 1.2% 1.7% -0.8%
KMB 7.2% 7.5% 6.8% PG 0.8% 1.8% 0.8%
CL 6.0% 6.8% 8.5% EPC 0.6% -1.8% -3.2%
UNLVR 4.9% 6.5% 14.2% UNLVR -0.5% -0.3% -4.9%
CHD 4.8% 5.3% 6.4% KMB -3.9% -3.8% -1.9%
PG 4.0% 4.5% 5.4% CLX -5.2% -3.4% -2.3%
HNST 3.5% 3.2% 5.8% CL -5.8% -5.9% -3.4%
EPC 3.4% 5.0% 8.2% KVUE -7.3% -6.0% -10.9%
REYN 1.5% 6.2% 12.1% ENR -8.6% -10.2% -10.8%
NWL -0.7% 0.1% 4.7% NWL -19.6% -16.9% -15.2%
Source: NielsenIQ. J.P. Morgan Source: NielsenIQ. J.P. Morgan
Figure 61: Y/Y% Change in TDP on Promotion Figure 62: Y/Y% Change in Promotional Efficiency
Y/Y % Change ranked high to low in latest 4-week period Y/Y % Change ranked high to low in latest 4-week period
4-Wk 12-Wk 52-Wk 4-Wk 12-Wk 52-Wk
HNST 3.5% 1.1% 0.0% NWL 6.0% 4.9% -0.2%
ENR 2.7% 1.8% 2.7% KVUE 5.3% 3.9% 0.2%
KVUE 2.1% 1.4% 0.9% HNST 4.3% -1.9% -0.3%
CHD 1.2% 0.7% 2.2% PG 2.9% 1.9% -1.6%
EPC 0.4% -1.1% -2.0% CHD 1.7% 2.0% 2.8%
CLX 0.2% 1.3% -0.3% CLX 1.6% 4.6% 3.0%
PG -0.7% -0.5% -0.9% UNLVR 0.7% -1.5% -0.4%
KMB -0.8% -0.3% -0.3% EPC 0.2% -0.7% -2.1%
UNLVR -1.4% 0.6% 0.3% ENR -0.3% 1.5% 0.0%
CL -1.5% -2.0% -1.3% CL -0.6% -1.6% -4.3%
REYN -3.3% -0.3% -1.7% REYN -1.0% -1.1% 2.6%
NWL -4.4% -0.9% 2.0% KMB -1.1% -2.8% -2.5%
Source: NielsenIQ. J.P. Morgan Source: NielsenIQ. J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Key Brands POS Performance in the U.S.
Below we have added the latest POS trends in the U.S. as per NielsenIQ data for some
of KVUE(cid:726)s iconic brands.
Figure 63: Summary of $ Takeaway in Tracked Channel
$ Takeaway (YOY) 4Y CAGR $ Takeaway (YOY)
12W Ending 5W Ending 12W Ending 5W Ending
12/31/2022 4/1/2023 5/6/2023 12/31/2022 4/1/2023 5/6/2023
KVUE 4.4% 5.5% 4.2% 4.1% 1.5% 2.3%
Listerine -0.3% 7.4% 10.7% 1.4% 0.2% 1.5%
Tylenol 13.7% 14.6% 4.8% 14.7% 8.5% 10.5%
Zyrtec 3.5% 3.3% 6.8% 7.8% 5.2% 4.8%
Benadryl 2.0% 4.5% 7.4% 6.3% 3.9% 4.4%
Aveeno -0.1% -0.9% 1.9% 2.0% 0.2% 0.9%
Neutrogena -0.3% 4.4% 5.8% -2.2% -3.1% -1.8%
Band Aid -0.2% 3.2% 7.2% 4.1% 3.8% 4.8%
Source: NielsenIQ. J.P. Morgan
The latest NielsenIQ data shows that Listerine(cid:726)s dollar takeaway was up +10.7% driven
by pricing, which was up +15.2%, while volume was down -3.9% in the latest five-
week period ending May 6. This is a sequential acceleration from the brand(cid:726)s dollar
takeaway for the 12-week period ending 4/1/23 (bracketing Q123), which was up +7.4%
(pricing up +10.7% while volume was down -2.9%) and also improved from the 12-
week period ending 12/31/22, where the headline takeaway was flat (-0.3%), broken out
into pricing up +8.1% but volume down -7.7%. We note that the uptick may be
attributable to easier comps in the base period, where headline takeaway was down -
7.7% (pricing up +2.3% but volume down -9.8%) in the five-week period ending 5/7/22.
Normalizing for the pandemic, takeaway was up +1.4% for the 12-week period ending
12/31, flat (+0.2%) for the 12-week period ending 4/01, and +1.5% for the five-week
period ending 5/06 on a four-year CAGR basis.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 64: $ Takeaway in Tracked Channels - Listerine
Rolling 12W Period Ending 5/06
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
The most recent tracked channel data shows that Tylenol(cid:726)s dollar takeaway was up
+4.8% driven by pricing (up +12.8%) while volume was down (-7.1%) in the latest 5-
week period ending May 6. This print is a sequential deceleration on the headline (but
accelerated on a four-year CAGR) from the 12-week period ending 4/01, where
Tylenol(cid:726)s takeaway was up +14.6% (pricing +14.4%, volume flat or +0.2%). It also
decelerated from the 12-week period ending 12/31/22 in which the brand(cid:726)s takeaway
was up +13.7% (pricing up +12.8% and volume slightly up +0.9%). As it relates to four-
year CAGR, takeaway was up +14.7% for the 12-week period ending 12/31, +8.5% for
the 12-week period ending 4/01, and +10.5% for the five-week period ending 5/06.
Figure 65: $ Takeaway in Tracked Channels - Tylenol
Rolling 12W Period Ending 5/06
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
-50.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
The latest NielsenIQ data points to Zyrtec(cid:726)s consumption up +6.8% (pricing up +10.2%
while volume down -3.1%) in the latest five-week period ending May 6. This print is an
acceleration from dollar takeaway up +3.3% (pricing up +7.3%, volume down -3.8%) in
the 12-week period ending 4/01, and consumption up +3.5% (pricing up +7.6% but
volume down -3.8%) for the 12-week period ending 12/31/22. However, we note that
45
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
there has been a sequential deceleration on a four-year CAGR basis where Zyrtec(cid:726)s
takeaway was up +7.8% for the 12-week period ending 12/31, +5.2% for the 12-week
period ending 4/01, and +4.8% for the five-week period ending 5/06.
Figure 66: $ Takeaway in Tracked Channels - Zyrtec
Rolling 12W Period Ending 5/06
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
The most recent tracked channel data shows that headline consumption for Benadryl
was up +7.4% (pricing up +16.3% but volume down -7.7%) for the five-week period
ending 5/06, which sequentially accelerated both on a headline and on four-year CAGR
basis. Benadryl(cid:726)s dollar takeaway was up +4.5% (pricing up +12.5%, volume down -
7.1%) for the 12-week period ending 4/1/23 and was up +2.0% (pricing up +11.2% but
volume down -8.3%) for the 12-week period ending 12/31/22. As it relates to four-year
CAGR, takeaway was up +6.3% for the 12-week period ending 12/31, +3.9% for the
12-week period ending 4/01, and +4.4% for the five-week period ending 5/06.
Figure 67: $ Takeaway in Tracked Channels - Benadryl
Rolling 12W Period Ending 5/06
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
As per the most recent data from NielsenIQ, Aveeno(cid:726)s dollar takeaway was slightly up
+1.9%, with pricing (up +18.2%) being the main driver, while volume was down -
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
13.8% in the five-week period ending May 6. This is a sequential acceleration from the
12-week period ending 4/1/23, where headline consumption was slightly down -0.9%
(pricing up +13.9% while volume was down -13.0%). Dollar takeaway was flat (-0.1%),
broken out into pricing up +9.7% but volume down -8.9% in the 12-week period ending
12/31/22. The brand appears to have easier comps in the prior period, when headline
consumption was down -6.7% (flat or +0.3% pricing and -7.0% volume) in the five-
week period ending 5/7/22. On a four-year CAGR basis, takeaway was modestly up
+2.0% for the 12-week period ending 12/31 and was flat (+0.2%) for the 12-week
period ending 4/01, while it was slightly up sequentially by +0.9% for the five-week
period ending 5/06.
Figure 68: $ Takeaway in Tracked Channels - Aveeno
Rolling 12W Period Ending 5/06
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
The latest tracked channel data point to Neutrogena(cid:726)s dollar takeaway improving with
consumption up +5.8% (pricing up +11.2%, volume down -4.9%) in the latest five-week
period ending May 6 and compares to dollar takeaway down -10.0% (pricing +0.5%,
volume -10.5%) in the prior period. As mentioned, this is a sequential acceleration from
the 12-week period ending 4/1/23 where the data shows that dollar takeaway was up
+4.4% (pricing was up +8.6% while volume was down -3.9%), and this too was a
sequential improvement from consumption slightly down (-0.3%, broken out into
pricing up +8.2% but volume down -7.8%) in the 12-week period ending 12/31/22.
Looking at longer term trends, four-year CAGR consumption was down -2.2% in the
12-week period ending 12/31/22 and decelerated to -3.1% in the 12-week period ending
4/01 but was less negative (down -1.8%) in the five-week period ending 5/06.
47
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 69: $ Takeaway in Tracked Channels - Neutrogena
Rolling 12W Period Ending 5/06
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-30.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
The most recent tracked channel data shows that Band Aid(cid:726)s dollar takeaway was up
+7.2%, with pricing (+16.8%) being the main driver, while volume was down -8.3%,
which improved from both consumption up +3.2% (pricing +12.1%, volume -7.9%) for
the 12-week period ending 4/1/23 and flat (-0.2%, pricing up +11.4% but volume down
-10.4%) in the 12-week period ending 12/31/22. The brand(cid:726)s four-year CAGR for
consumption was up +4.1% in the 12-week period ending 12/31/22, +3.8% in the 12-
week period ending 4/01, and +4.8% in the five-week period ending 5/06.
Figure 70: $ Takeaway in Tracked Channels - Band Aid
Rolling 12W Period Ending 5/06
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
1111111111111222222222222233333
2222222222222222222222222222222
/6/3/3/0/8/5/3/1/8/5/3/0/8/5/2/2/9/7/4/2/0/7/4/2/9/7/4/1/1/8/6
1111000322221111000032221111100
/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5/6/7/7/8/9/0/1/2/1/2/3/4/5
0000000000111000000000011100000
Sales Volume Pricing
Source: NielsenIQ. J.P. Morgan
48
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Financial Statements
Income Statement Historical & Estimates
Table 11: KVUE Income Statement
$ million, except per share values
Income Statement 2019 2020 2021 2022 2023E 2024E 2025E
Revenue 14,324 14,467 15,054 14,950 15,662 16,289 16,973
% change 1.0% 4.1% -0.7% 4.8% 4.0% 4.2%
Cost of goods sold 6,633 6,585 6,587 6,610 6,800 7,050 7,246
Amortization of definite life intangible assets 344 415 414 348 324 305 283
Gross profit, adjusted 8,035 8,297 8,881 8,688 9,186 9,544 10,010
as a % of revenue 56.1% 57.4% 59.0% 58.1% 58.7% 58.6% 59.0%
Change as % of revenue (bps) 125 164 (88) 54 (6) 38
Gross profit, adjusted incl.-Amortization of definite life intangible assets 7,691 7,882 8,467 8,340 8,862 9,239 9,727
as a % of revenue 53.7% 54.5% 56.2% 55.8% 56.6% 56.7% 57.3%
Change as % of revenue (bps) 79 176 (46) 80 14 59
Selling, general and administrative expenses 4,760 4,588 5,061 5,000 5,305 5,515 5,659
as a % of revenue 33.2% 31.7% 33.6% 33.4% 33.9% 33.9% 33.3%
Change as % of revenue (bps) (152) 191 (17) 42 (1) (51)
Research & development 391 320 355 375 412 421 434
as a % of revenue 2.7% 2.2% 2.4% 2.5% 2.6% 2.6% 2.6%
Change as % of revenue (bps) (51) 14 15 12 (4) (3)
Stock-based compensation expense (0) (0) (0) (0) 1 (0) 0
Other expense/(income) 149 (55) (28) 3 (19) (40) (40)
Operating Income, adjusted 2,736 3,444 3,493 3,310 3,487 3,648 3,957
as a % of revenue 19.1% 23.8% 23.2% 22.1% 22.3% 22.4% 23.3%
Change as % of revenue (bps) 471 (60) (106) 13 13 91
Operating Income, adjusted incl.-Amortization of definite life intangible assets 2,392 3,029 3,079 2,962 3,164 3,344 3,674
as a % of revenue 16.7% 20.9% 20.5% 19.8% 20.2% 20.5% 21.6%
Change as % of revenue (bps) 0.0% 42385.1% -4798.0% -6439.7% 3872.1% 3297.9% 11168.4%
Interest income 0 0 0 0 46 39 27
Interest expense 0 0 0 0 329 418 395
Other income/(expense) - - - - - - -
Pretax Income, adjusted 2,736 3,444 3,493 3,310 3,204 3,270 3,589
as a % of revenue 19.1% 23.8% 23.2% 22.1% 20.5% 20.1% 21.1%
Pretax Income, adjusted incl.-Amortization of definite life intangible assets 2,392 3,029 3,079 2,962 2,881 2,965 3,307
as a % of revenue 16.7% 20.9% 20.5% 19.8% 18.4% 18.2% 19.5%
Taxes, adjusted 679 741 782 721 800 819 896
Adjusted Tax Rate 24.8% 21.5% 22.4% 21.8% 25.0% 25.0% 25.0%
Taxes, adjusted incl.-Amortization of definite life intangible assets 667 703 731 676 739 761 843
Adjusted Tax Rate incl.-Amortization of definite life intangible assets 27.9% 23.2% 23.7% 22.8% 25.6% 25.7% 25.5%
Net Income adjusted (non-GAAP) 2,057 2,703 2,711 2,589 2,404 2,451 2,693
as a % of revenue 14.4% 18.7% 18.0% 17.3% 15.4% 15.0% 15.9%
Net Income adjusted incl.-Amortization of definite life intangible assets 1,725 2,326 2,349 2,286 2,142 2,204 2,464
as a % of revenue 12.0% 16.1% 15.6% 15.3% 13.7% 13.5% 14.5%
Diluted EPS, adjusted $1.06 $1.40 $1.40 $1.34 $1.24 $1.27 $1.39
% change 31% 0% -5% -7% 2% 10%
Diluted EPS, adjusted incl.-Amortization of definite life intangible assets $0.89 $1.20 $1.21 $1.18 $1.11 $1.14 $1.27
% change 35% 0% -3% -6% 3% 12%
Average Shares Outstanding - Diluted 1,935.1 1,935.1 1,935.1 1,935.1 1,935.1 1,935.1 1,935.1
Adjusted EBITDA 3,101 3,775 3,810 3,606 3,797 3,983 4,308
as a % of revenue 21.6% 26.1% 25.3% 24.1% 24.2% 24.5% 25.4%
Change as % of revenue (bps) 445 (78) (119) 13 21 93
Source: Company reports and J.P. Morgan estimates.
49
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Balance Sheet Historical & Estimates
Table 12: KVUE Balance Sheet
$ million
Balance Sheet 2019 2020 2021 2022 2023E 2024E 2025E
Cash and cash equivalents 7 52.0 6 17.6 7 40.0 1 ,231.4 1 ,014.1 1 ,012.8 9 80.9
Trade receivables, less allowances for credit losses 2 ,158.7 1 ,857.9 2 ,073.7 2 ,121.7 2 ,280.9 2 ,370.3 2 ,471.4
Inventories 1 ,779.3 1 ,685.1 1 ,701.8 2 ,226.3 1 ,957.5 1 ,852.3 1 ,818.7
Prepaid expenses & other current assets 3 35.1 2 75.3 2 54.2 1 70.7 1 78.9 1 87.6 1 93.8
Other current assets 1 17.4 1 61.6 1 54.0 1 23.4 1 23.4 1 23.4 1 23.4
Total Current Assets 5 ,142.5 4 ,597.6 4 ,923.7 5 ,873.7 5 ,554.8 5 ,546.3 5 ,588.2
PP&E, net 2 ,147.2 1 ,956.6 1 ,826.6 1 ,820.2 1 ,926.7 2 ,074.1 2 ,226.6
Intangible assets, net 1 1,490.0 1 1,610.4 1 0,701.2 9 ,853.5 9 ,904.9 1 0,100.3 1 0,567.4
Goodwill 9 ,726.4 1 0,326.1 9 ,810.1 9 ,184.6 9 ,184.6 9 ,184.6 9 ,184.6
Deferred taxes on income 1 82.4 1 93.3 1 88.7 1 43.9 1 43.9 1 43.9 1 43.9
Other assets 5 22.4 4 95.9 4 01.4 4 04.3 4 04.3 4 04.3 4 04.3
Total non-current Assets 2 4,068.4 2 4,582.3 2 2,927.9 2 1,406.4 2 1,564.3 2 1,907.1 2 2,526.7
Total Assets 2 9,210.9 2 9,179.8 2 7,851.6 2 7,280.0 2 7,119.1 2 7,453.4 2 8,115.0
Accounts payable 1 ,408.5 1 ,579.3 1 ,826.5 1 ,829.4 1 ,853.3 1 ,936.9 2 ,000.6
Accrued liabilities 8 02.5 1 ,014.0 1 ,023.6 9 06.3 9 39.6 9 85.3 1 ,017.7
Accrued rebates, returns and promotions 9 30.9 8 74.6 8 34.4 8 62.2 9 00.9 9 36.2 9 76.3
Accrued taxes on income 4 83.1 4 09.7 3 66.4 3 36.1 3 54.8 3 68.7 3 84.5
Other current liabilities - - - - - - -
Total Current Liabilities 3 ,625.1 3 ,877.7 4 ,051.0 3 ,934.0 4 ,048.6 4 ,227.1 4 ,379.1
Long-term debt, net of current maturities - - - - 8 ,512.1 8 ,309.8 8 ,121.7
Employee related obligations 3 03.4 3 45.0 3 02.2 2 13.5 2 13.5 2 13.5 2 13.5
Deferred taxes on income 2 ,467.2 2 ,781.7 2 ,729.0 2 ,462.8 2 ,462.8 2 ,462.8 2 ,462.8
Other long-term liabilities 7 26.7 8 04.7 7 54.0 7 27.0 7 27.0 7 27.0 7 27.0
Total Non-current Liabilities 3 ,497.3 3 ,931.4 3 ,785.2 3 ,403.3 1 1,915.4 1 1,713.0 1 1,525.0
Total Liabilities 7 ,122.4 7 ,809.1 7 ,836.2 7 ,337.2 1 5,964.0 1 5,940.1 1 5,904.1
Total Equity 2 2,088.5 2 1,370.7 2 0,015.4 1 9,942.8 1 1,155.2 1 1,513.3 1 2,210.9
Total Liabilities and Equity 2 9,210.9 2 9,179.8 2 7,851.6 2 7,280.0 2 7,119.1 2 7,453.4 2 8,115.0
Source: Company reports and J.P. Morgan estimates.
50
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Cash Flow Historical & Estimates
Table 13: KVUE Cash Flow Statement
$ million
Cash Flow Statement 2019 2020 2021 2022 2023E 2024E 2025E
Operating Activities
Net income 1 ,724.8 2 ,325.8 2 ,348.8 2 ,286.0 2 ,142.1 2 ,203.8 2 ,463.9
Post-tax amortization 3 32.1 3 77.2 3 62.4 3 02.7 2 80.9 2 64.4 2 45.5
Depreciation 3 65.1 3 31.3 3 17.4 2 96.0 3 10.2 3 34.9 3 51.7
Tax impact on amortization 1 2.1 3 8.0 5 1.1 4 5.3 4 2.7 4 0.2 3 7.3
Stock-based compensation expense 1 02.4 1 15.5 1 41.3 1 37.1 1 41.8 1 46.0 1 50.4
Other operating activities 1 46.0 2 4.0 2 0.3 1 3.0 - - -
Deferred income taxes 1 60.9 1 09.1 ( 159.2) ( 104.9) - - -
Other current and non-current assets 5 1.4 2 9.9 3 0.2 7 5.9 ( 8.1) ( 8.7) ( 6.2)
Accrued liabilities 4 0.6 1 23.0 4 9.8 ( 17.0) 7 2.1 8 1.0 7 2.5
Employee related obligations 3 .4 0 .2 1 3.7 2 .0 - - -
Accrued taxes on income 1 66.1 ( 82.9) ( 26.7) ( 6.8) 1 8.7 1 3.9 1 5.8
Other liabilities 1 15.4 8 5.0 ( 22.7) 4 9.7 - - -
Separation Costs - - - - ( 312.4) ( 222.0) ( 59.5)
Trade receivables 4 0.2 2 64.8 ( 303.1) ( 142.0) ( 159.2) ( 89.3) ( 101.1)
Inventories 1 80.0 1 08.9 ( 76.8) ( 582.0) 2 68.9 1 05.2 3 3.6
Accounts payable 2 .6 1 54.0 3 30.5 5 2.0 2 3.9 8 3.6 6 3.7
Net change in operating working capital 2 22.7 5 27.7 ( 49.4) ( 672.0) 1 33.5 9 9.4 ( 3.8)
Net cash (used in) provided by operating activities 3 ,443.1 4 ,003.7 3 ,077.2 2 ,407.1 2 ,821.4 2 ,953.0 3 ,267.5
Investing Activities
Purchase of property, plant and equipment ( 288.9) ( 229.0) ( 294.9) ( 374.8) ( 416.7) ( 482.2) ( 504.2)
Acquisitions, investments, and proceeds from disposal of assets/businesses/investments ( 1,866.1) 1 45.5 1 23.4 ( 14.9) ( 375.0) ( 500.0) ( 750.0)
Other - - - - - - -
Net cash (used in) provided by investing activities ( 2,155.0) ( 83.4) ( 171.5) ( 389.6) ( 791.7) ( 982.2) ( 1,254.2)
Financing Activities
Proceeds from loans and notes payable - - - 1 4.3 8 ,995.0 - -
Repayments of debt ( 40.2) ( 11.4) ( 7.0) - ( 482.9) ( 202.3) ( 188.0)
Net share issuance - - - - ( 72.0) ( 198.5) ( 238.7)
Dividends paid - - - - ( 774.1) ( 1,571.3) ( 1,618.5)
Net transfer from (to) the parent ( 1,090.6) ( 4,052.1) ( 2,735.7) ( 1,478.8) ( 9,913.0) - -
Other - - - - - - -
Net cash (used in) provided by financing activities ( 1,130.8) ( 4,063.4) ( 2,742.7) ( 1,464.5) ( 2,247.0) ( 1,972.1) ( 2,045.2)
Effect of exchange rate changes ( 10.6) 8 .7 ( 40.6) ( 61.5) - - -
Net (dec)/increase in cash and equivalents 1 46.6 ( 134.4) 1 22.4 4 91.5 ( 217.3) ( 1.4) ( 31.9)
Cash at beginning of period 6 05.4 7 52.0 6 17.6 7 40.0 1 ,231.4 1 ,014.1 1 ,012.8
Cash at end of period 7 52.0 6 17.6 7 40.0 1 ,231.4 1 ,014.1 1 ,012.8 9 80.9
Free Cash Flow 3 ,154.2 3 ,774.8 2 ,782.4 2 ,032.4 2 ,404.7 2 ,470.7 2 ,763.3
FCF Conversion 153% 140% 103% 79% 100% 101% 103%
Source: Company reports and J.P. Morgan estimates.
51
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Strong, Global Management Team
KVUE has a strong, seasoned management team that will benefit from continuity as
many of the c-level executives ushered in the strategic transformation beginning in the
2019 time frame through the IPO. Moreover, the consumer segment largely operated
independently within JNJ historically, and as such, even after the separation, the
organization should be well positioned to continue life as a public company. The
management team has around 18 years of experience in consumer goods and healthcare
on average and is a diverse group including over 58% women and representing nine
different nationalities. Below, we highlight some of the key members of the executive
team.
• Thibaut Mongon, CEO – Mr. Mongon served as Executive Vice President and
Worldwide Chairman, Consumer Health at Johnson & Johnson since 2019 and had
been with the company since 2000. Mr. Mongon joined the Consumer Health
organization in 2014 as Group Chairman Asia-Pacific and prior to that joined the
Pharmaceutical sector in 2012 as Global Commercial Strategy Leader for the
Neuroscience therapeutic division.
• Paul Ruh, CFO – Mr. Ruh joined Johnson & Johnson in 2017 as Chief Financial
Officer, Consumer Health. Prior to Johnson & Johnson, Mr. Ruh held several
financial leadership roles at PepsiCo, including CFO of Latin America, CFO of
PBA, and CFO PepsiCo Foodservice. Prior to PepsiCo, Mr. Ruh held roles at
Procter & Gamble and McKinsey. All together, Mr. Ruh has over 30 years
experience in the consumer goods sector.
• Jan Meurer, Chief Growth Officer – Mr. Meurer joined Johnson & Johnson in
2015 and most recently served as Global Head of Strategy, Consumer Health. Prior
to that, Mr. Meurer held the roles of President, Johnson & Johnson Southeast Asia
and Area Managing Director Central Europe, Consumer Health. Prior to Johnson &
Johnson, Mr. Meurer spent time at Procter & Gamble, PGT Healthcare, and Siemens
Technologies. All together, Mr. Meurer has over 25 years experience building
consumer brands.
• Meredith (Meri) Stevens, Chief Operations Officer – Ms. Stevens joined Johnson
& Johnson in 2015 and most recently served as Worldwide Vice President,
Consumer Health Supply Chain and Deliver. Prior to that, Ms. Stevens led Supply
Chain Strategy and Deployment at Johnson & Johnson. Prior to Johnson & Johnson,
Ms. Stevens held roles at Newell Rubbermaid (Chief Supply Chain Officer) and
Tyco, Bertelsmann, Knoll, and General Electric in operations and procurement
leadership positions. All together, Ms. Stevens has over 30 years of operations
experience.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Global and U.S. Sales and Market Share
Trends
We did a deep dive into the various categories pertinent to KVUE using a few data
sources including Euromonitor, which includes a global perspective; NielsenIQ, mainly
for market share analysis and sales trends within the U.S.; and independent consultant
Numerator data for U.S. household penetration. Below we delve further into our
analysis by the different categories and brands. We also highlight the global note we
collaborated on last year (link).
Considering KVUE(cid:726)s key categories globally, including analgesics, allergy care,
mouthwash, digestive remedies, baby care, body care, sun care, and smoking cessation,
the company has the largest global market share in mouthwash and smoking cessation,
above 30% each, with allergy care and baby care following in the mid to high teens,
digestive remedies, analgesics, and adult mass sun care in HSDs, and mass skin care
(including face care and body care) at about MSD global market share as per data from
Euromonitor. We explore KVUE(cid:726)s global market share in depth under the three
segments below.
Figure 71: Global Market Share by Category
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Baby Care Mouthwash Skin Care Smoking Digestive Sun Care Analgesics Allergy Care
Cessation Remedies
Source: Euromonitor, J.P. Morgan
Looking further into each of these key categories(cid:726) market share performance in crucial
markets including the U.S., UK, China, India, and Brazil gives us a better sense of how
KVUE(cid:726)s market share is doing in these geographies, as per Euromonitor data. Starting
with the mouthwash category, KVUE has a market share of about ~45% in the U.S. and
~40% in the UK, with market share of roughly 30% in both Brazil and China. Although
KVUE has an extremely high market share of over 70% in the Indian market, it is
comparatively a much smaller region in terms of revenues for the company. Overall,
KVUE has a market share of 35.1% globally. For smoking cessation, KVUE has 31.4%
global market share, and we note that KVUE distributes the brand Nicorette only
outside the U.S., where the company has a market share above 40% in both the U.K.
and Brazil, among the regions we are analyzing.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 72: Market Share by Country - Mouthwash Figure 73: Market Share by Country - Smoke Cessation
80.0% 42.0%
70.0% 41.8%
41.6%
60.0%
41.4%
50.0%
41.2%
40.0%
41.0%
30.0%
40.8%
20.0%
40.6%
10.0% 40.4%
0.0% 40.2%
Brazil China India UK USA Brazil UK
Source: Euromonitor, J.P. Morgan Source: Euromonitor, J.P. Morgan
From the regions we are considering, KVUE has the largest market share in the U.S.
(~27%) followed by China at about 15% and the UK with 9% in the allergy category,
whereas globally it is 17.2%. KVUE(cid:726)s baby care category is more prevalent outside the
U.S., especially with its iconic brand, Johnson(cid:726)s. As such, the Euromonitor data
unsurprisingly points to higher market share in emerging markets with India of 32.5%
and Brazil of 23.1%. KVUE has a total market share of 14.4% globally.
Figure 74: Market Share by Country - Allergy Figure 75: Market Share by Country - Baby Care
30.0% 35.0%
25.0% 30.0%
25.0%
20.0%
20.0%
15.0%
15.0%
10.0%
10.0%
5.0% 5.0%
0.0% 0.0%
China UK USA Brazil China India UK USA
Source: Euromonitor, J.P. Morgan Source: Euromonitor, J.P. Morgan
Euromonitor shows that KVUE has higher market share in the U.S. (10%) and the UK
(9.9%) in the digestive remedies category, while the company has a market share of
7.2% in the category globally. For OTC analgesics/pain relief, KVUE has a global
market share of 7.1%, with the largest market share in the U.S. of 20.5% followed by
the UK of 11.3%.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 76: Market Share by Country - Digestive Remedies Figure 77: Market Share by Country - Analgesics
12.0% 25.0%
10.0%
20.0%
8.0%
15.0%
6.0%
10.0%
4.0%
5.0%
2.0%
0.0% 0.0%
Brazil China India UK USA Brazil China UK USA
Source: Euromonitor, J.P. Morgan Source: Euromonitor, J.P. Morgan
Turning to beauty, KVUE has global market share of 8.2% in mass adult sun care and
4.4% in skin care (including market share of 6.3% in mass body care and 4.1% in mass
face care – more below under segment analysis), according to data from Euromonitor.
The company has market share of 37.4% in Brazil and 16.0% in the U.S. in the sun care
category and 12.4% in the U.S. and 6.1% market share in Brazil in the mass skin care
category.
Figure 78: Market Share by Country - Sun Care Figure 79: Market Share by Country - Body Care
40.0% 14.0%
35.0% 12.0%
30.0%
10.0%
25.0%
8.0%
20.0%
6.0%
15.0%
4.0%
10.0%
5.0% 2.0%
0.0% 0.0%
Brazil China India UK USA Brazil China India UK USA
Source: Euromonitor, J.P. Morgan Source: Euromonitor, J.P. Morgan
Additionally, we looked at five-year CAGR growth rates (2017 to 2022) of KVUE(cid:726)s
categories. The Euromonitor data shows analgesics/pain care (+9.1%), pediatric
consumer health (+7.5%), digestive (+6.0%), and allergy (+5.1%) had the highest five-
year CAGR growth rates globally. Similarly in the U.S., categories with the largest five-
year CAGRs include pediatric consumer health (+13.3%), analgesics/pain care
(+12.6%), and digestive (+12.3%). This is in line with management(cid:726)s commentary that
the company concentrated on products that were in high retail demand, especially
during the pandemic. Based on KVUE(cid:726)s largest categories as per the Euromonitor data,
skin care grew +2.9%, baby/child products increased by +1.0%, and oral care increased
+2.8% on a five-year CAGR globally, and in the U.S. the data shows that the largest
categories include mass skin care, including mass body care and facial care (+2.5%),
and allergy care (+5.3%) besides analgesics/pain care (+12.6%) as mentioned above.
See below scatter plots for market share both globally and in the U.S.
55
T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 80: Global Market Share Growth by Category
Y-Axis: KVUE Market Share change (2017 - 2022); X-Axis: KVUE Category 5Y CAGR
300
Smoke Cessation Allergy
200
100 Bath/ Hygiene Analgesics
Haircare
ShowerWound
0
Care
Digestive
-100 Paediatric Consumer
Health
-200 Sun Care
-300 Dermatologicals
Baby/Child
-400
Products
-500
-2% 0% 2% 4% 6% 8% 10%
Source: Euromonitor, J.P. Morgan
Figure 81: U.S. Market Share Growth by Category
Y-Axis: KVUE Market Share change (2017 - 2022); X-Axis: KVUE Category 5Y CAGR
1200 Paediatric Consumer
1000 Health
800
600 Analgesics
400
200 Oral Dermatologicals Allergy Digestive
Care
Wound Care
0Baby/Child Hygiene
Products
-200
Sun Care
-400 Eye
-600 Care Skin
Care
-2% 0% 2% 4% 6% 8% 10% 12% 14%
Source: Euromonitor, J.P. Morgan
Household Penetration in the U.S. Is Strong in Key Brands Yet Can Grow Further
To analyze the household penetration (HHP) of some of KVUE(cid:726)s iconic brands in the
U.S., we looked at an independent data vendor, Numerator. The sequential changes are
valuable to check, but we caveat the data in absolute terms may not be very reliable
given that it is based on consumers providing receipts, which we feel tends to skew
toward younger consumers, although the company notes matching to U.S. Census.
Using the HHP trends for the 52-week period ending 4/30, Tylenol (32.1%), Listerine
(28.9%), and Neutrogena (25.6%, in the face care category) appear to have some of the
highest household penetration in the U.S., although the data shows a deceleration in
HHP especially for the latter two brands. Note that Listerine(cid:726)s HHP has been worse
recently, while UW-rated Church & Dwight(cid:726)s TheraBreath HHP has improved (more
below under NielsenIQ). Additionally, the data points to high private label HHP,
especially in the categories pertaining to the Self Care segment that we examined below.
As such, management noted that the U.S. Self Care business has higher private label
exposure of about 25-30%, although this is much lower (~10%) for the overall company
in aggregate. We have provided more details in the tables below.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 82: Household Penetration - Allergy Care Figure 83: Household Penetration - Pain Relievers
52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23 52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Private Label 62.6% 65.5% 59.3% 60.7% 59.4%
Private Label 42.9% 45.2% 41.7% 43.2% 42.3%
Tylenol 24.9% 32.2% 29.3% 32.4% 32.1%
Benadryl 13.3% 14.1% 13.6% 14.5% 13.0%
Advil 19.6% 20.7% 18.2% 18.8% 19.4%
Claritin 10.5% 10.9% 10.3% 11.1% 10.0% Aleve 18.0% 17.5% 14.6% 14.2% 12.3%
Zyrtec 9.2% 9.1% 9.4% 10.0% 9.7% Motrin 9.2% 10.3% 7.2% 9.7% 9.8%
Bayer 10.8% 10.7% 12.0% 11.6% 9.7%
Flonase 7.0% 6.7% 6.0% 6.8% 6.8%
Excedrin 10.8% 9.7% 7.3% 8.6% 7.7%
Allegra 6.2% 6.0% 5.8% 6.3% 6.2% Midol 2.5% 2.8% 2.9% 3.2% 3.1%
Source: Numerator, J.P. Morgan Source: Numerator, J.P. Morgan
Figure 84: Household Penetration - Cold, Cough & Flu Figure 85: Household Penetration - Digestive Remedies
52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23 52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Private Label 58.6% 61.7% 42.2% 54.0% 56.6% Private Label 54.7% 56.6% 54.4% 55.0% 53.6%
Vicks 27.8% 31.9% 21.9% 34.3% 36.9% Tums 19.2% 21.2% 21.2% 21.8% 20.9%
Halls 32.0% 32.7% 20.2% 28.8% 31.1% Pepto-Bismol 12.1% 13.3% 13.1% 15.3% 15.2%
Mucinex 21.8% 22.1% 13.6% 23.8% 27.5% Dulcolax 6.9% 7.3% 8.4% 9.1% 9.6%
Ricola 17.2% 18.4% 10.7% 18.2% 21.1%
Miralax 7.4% 6.6% 7.3% 8.6% 8.2%
Robitussin 10.9% 11.6% 5.7% 10.4% 11.9%
Imodium 6.2% 6.1% 5.3% 6.8% 6.5%
TheraFlu 6.4% 7.0% 3.5% 5.8% 7.0%
Alka-Seltzer 6.7% 7.0% 8.1% 7.1% 5.9%
Sudafed 5.9% 6.5% 4.1% 6.3% 6.1%
Pepcid 2.5% 3.8% 4.6% 5.0% 4.3%
Zarbee's 4.9% 6.0% 3.4% 5.3% 5.3%
Source: Numerator, J.P. Morgan Source: Numerator, J.P. Morgan
Figure 86: Household Penetration - Mouthwash Figure 87: Household Penetration - Sun Care
52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23 52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Listerine 32.1% 33.0% 32.3% 31.9% 28.9% Banana Boat 19.8% 19.3% 17.7% 21.4% 21.7%
Crest 21.8% 23.6% 23.4% 24.4% 23.0% Private Label 22.3% 21.2% 19.3% 20.4% 19.7%
Private Label 24.9% 25.2% 23.7% 21.6% 20.1% Coppertone 15.6% 14.0% 13.1% 15.2% 15.5%
ACT (Oral Care) 9.0% 9.1% 8.7% 8.0% 8.3% Neutrogena 13.9% 13.7% 15.0% 14.4% 15.2%
Colgate 9.7% 8.4% 7.1% 7.0% 5.8% Jergens 5.4% 5.3% 4.7% 5.6% 5.4%
TheraBreath 1.3% 1.5% 3.0% 3.4% 4.9% CeraVe 1.8% 2.0% 2.8% 3.3% 5.2%
Aveeno 2.8% 2.6% 3.3% 2.8% 2.2%
L'Oreal Paris 1.7% 1.5% 1.4% 1.5% 1.5%
Source: Numerator, J.P. Morgan Source: Numerator, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 88: Household Penetration - Body Care Figure 89: Household Penetration - Face Care
52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23 52W-period ending 5/5/19, 5/3/20, 5/2/21, 5/1/22 and 4/30/23
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Gold Bond 14.6% 14.7% 14.6% 15.2% 14.5% Private Label 39.4% 41.0% 36.3% 34.5% 32.9%
Bath & Body Works 22.3% 22.0% 19.1% 20.0% 14.1% Neutrogena 28.7% 28.5% 27.5% 27.5% 25.6%
Private Label 19.2% 17.8% 15.6% 13.9% 13.1% CeraVe 3.9% 5.3% 11.0% 13.6% 15.4%
Vaseline 11.9% 11.8% 12.6% 12.3% 12.4% Cetaphil 7.9% 9.1% 10.4% 11.1% 10.6%
L'Oreal Paris 8.8% 8.4% 8.8% 7.6% 7.9%
Nivea 11.4% 12.5% 13.4% 12.9% 11.6%
Clean & Clear 14.5% 13.2% 11.1% 10.1% 7.1%
Aveeno 11.2% 11.2% 11.7% 11.0% 11.4%
Aveeno 6.6% 6.0% 6.1% 6.4% 4.8%
CeraVe 4.7% 5.9% 8.9% 10.4% 11.1%
Eucerin 6.0% 6.7% 7.3% 7.8% 6.8%
Olay 1.3% 1.4% 1.8% 1.9% 2.2%
Neutrogena 2.2% 2.2% 2.3% 2.3% 1.8%
Source: Numerator, J.P. Morgan Source: Numerator, J.P. Morgan
Market Share Improving in the U.S. Based on Tracked Channels
We carried out an in-depth analysis of some of KVUE(cid:726)s pertinent categories using
tracked channel data (NielsenIQ) to gauge how the company(cid:726)s market performance
(value and volume share as well as price) evolved over time, specifically in the U.S.
However, base period dynamics limit the degree of read-through from tracked channel
data. We carried out a YOY analysis of the recent NielsenIQ data available (ending
5/6/23) and also analyzed YOY data as of 12/31/22 (we will refer to this as prior year-
end or (cid:728)PYE(cid:729)) to see how KVUE categories performed YTD as well as YOY data as of
5/7/22 (we will refer to this as prior-year or (cid:728)PY(cid:729)) to see how KVUE performed in the
categories from a year ago (as of 5/6/23). These additional charts for PY and PYE are
added to the appendix for reference. Below we elaborate more on our findings.
In the four-week period ending May 6, KVUE posted modest positive dollar share
performance (+15 bps vs. -45 bps in the four-week period ending 12/31/22 or (cid:728)PYE(cid:729)
and -152 bps four-week period ending 5/7/22) as the company gained dollar share in 11
out of 19 categories (vs. eight categories as of PYE and six categories as of PY – both
out of 19 categories) that we track for the company. As we show in the table below, the
largest share gains occurred in antiseptic (+456 bps vs. +418 bps as of PYE and +558
bps as of PY) and baby bath (+408 bps vs. losing -18 bps as of PYE and -645 bps as of
PY), besides the outsized growth in baby powder (+1,138 bps vs. losing -107 bps as of
PYE and -377 bps as of PY), but this category makes up a very small percentage of
sales in the U.S. as per the tracked channels. Conversely, the largest share loss occurred
in baby lotion (-252 bps vs. -322 as of PYE and -49 bps as of PY) and facial skin care (-
197 bps vs. -266 bps as of PYE and -291 bps as of PY), with more moderate share loss
in cold & flu (-133 bps vs. -113 bps as of PYE but gained +159 bps as of PY). Given
that the 19 categories below account for roughly 78% of KVUE(cid:726)s sales in the tracked
channels, on a weighted basis, we estimate KVUE gained +15 bps (vs. losing -45 bps as
of PYE and -152 bps as of PY) of overall value share but lost -54 bps (vs. -32 bps as of
PYE and -83 bps as of PY) on a volume share basis in the latest four-week period
ending 5/6/23. KVUE retail price realization was up by ~15%, 15%, and 11% in the last
four, 13, and 52 weeks YOY.
Value Share Improved Sequentially Driven by Pricing as Volume Share
Deteriorated YTD
Sequentially, on a YOY four-week period basis, value share improved, but volume share
appears to have deteriorated YTD, although the metric improved from PY especially as
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
pricing at retail increased tremendously during the time line observed. More
specifically, KVUE gained +15 bps of value share in the four-week period ending
5/6/23, improving from losing -45 bps in the four-week period ending 12/31/22 and -
152 in the four-week period ending 5/7/22 as mentioned above. Similarly, the company
lost -54 bps of volume share in the four-week period ending 5/6/23, or 22 bps lower
from -32 bps volume share loss in the four-week period ending 12/31/22, but improving
from -83 bps volume share loss in the four-week period ending 5/7/22. During this time,
pricing at retail increased tremendously by +14.7% in the four-week period ending
5/6/23 and compares to up by +8.5% in the four-week period ending 12/31/22 and
+2.3% in the four-week period ending 5/7/22, as the company took pricing in 2H22 and
again in 1Q23.
Figure 90: KVUE Value & Volume Share Change by Key Categories – U.S.
Contribution to Total Sales in Latest 4, 13 & 52-Weeks, Weighted Change in Value Share & Dollar Equivalent Unit (EQ) Share
For Periods Ending 5/06/23
JOHNSON & JOHNSON % $ Mix % $ Mix % $ Mix YOY $ Share Change (bps) YOY EQ Share Change (bps)
L4W L13W L52W L4W L13W L52W L4W L13W L52W
KVUE
Acid Relief 2.6% 2.7% 2.7% 50 58 20 (29) (18) (19)
Allergy 13.9% 12.8% 11.1% 89 124 66 (64) (53) (63)
Antibiotic 2.2% 2.3% 2.4% 158 55 (92) (22) (134) (267)
Anti-Diarrhea 2.4% 2.4% 2.3% (101) (42) 76 (266) (187) (26)
Antiseptic 0.1% 0.1% 0.0% 456 410 482 437 396 485
Baby Bath 3.0% 3.2% 3.2% 408 206 (78) 244 2 (141)
Baby Lotion 0.8% 0.8% 0.8% (252) (312) (273) (28) (140) (260)
Baby Oil 0.5% 0.6% 0.5% 32 (47) (246) (55) (59) 24
Baby Powder 0.4% 0.4% 0.5% 1,138 572 175 1,594 713 150
Baby Soap 1.0% 1.0% 1.0% 198 102 (104) 257 303 50
Bandages 4.5% 4.5% 4.5% (72) (39) (64) (176) (127) (143)
Body Wash 2.2% 2.3% 2.3% (32) (28) (12) (50) (27) 4
Body Lotion 3.1% 3.4% 3.2% (87) (87) (100) (57) (32) (20)
Cold & Flu 1.1% 1.2% 1.4% (133) (6) 32 (3) (0) (1)
Digestive Aid 0.6% 0.7% 0.7% 102 19 (22) (322) (332) (199)
Facial Skin Care 9.7% 10.2% 10.2% (197) (215) (296) (191) (207) (255)
Mouthwash 8.3% 8.8% 9.1% (102) (61) (256) (109) (59) (151)
Pain Relief 16.2% 16.1% 16.9% 76 218 137 (35) (14) 13
Sun Care 5.1% 3.7% 4.0% 38 99 (148) 81 187 6
Weighted Total 77.6% 77.1% 76.8% 15 41 (53) (54) (53) (85)
Source: NielsenIQ, J.P. Morgan
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 91: KVUE Pricing Change by Key Categories – U.S.
Change in Pricing in Latest 4, 13 & 52-Weeks
For Periods Ending 5/06/23
JOHNSON & JOHNSON % $ Mix % $ Mix % $ Mix YOY EQ Price Change (%)
L4W L13W L52W L4W L13W L52W
KVUE
Acid Relief 2.6% 2.7% 2.7% 16.8% 13.8% 10.2%
Allergy 13.9% 12.8% 11.1% 13.7% 13.7% 10.8%
Antibiotic 2.2% 2.3% 2.4% 13.7% 13.0% 12.7%
Anti-Diarrhea 2.4% 2.4% 2.3% 16.5% 15.3% 11.0%
Antiseptic 0.1% 0.1% 0.0% 22.2% 42.8% 55.8%
Baby Bath 3.0% 3.2% 3.2% 18.1% 16.1% 13.7%
Baby Lotion 0.8% 0.8% 0.8% 16.2% 13.7% 12.3%
Baby Oil 0.5% 0.6% 0.5% 13.1% 11.4% 10.7%
Baby Powder 0.4% 0.4% 0.5% 15.6% 17.0% 15.2%
Baby Soap 1.0% 1.0% 1.0% 16.2% 11.8% 13.0%
Bandages 4.5% 4.5% 4.5% 12.5% 12.7% 10.5%
Body Wash 2.2% 2.3% 2.3% 19.6% 14.5% 7.8%
Body Lotion 3.1% 3.4% 3.2% 11.1% 9.3% 7.2%
Cold & Flu 1.1% 1.2% 1.4% -0.9% 11.9% 19.7%
Digestive Aid 0.6% 0.7% 0.7% 21.3% 17.4% 9.7%
Facial Skin Care 9.7% 10.2% 10.2% 17.7% 17.1% 15.2%
Mouthwash 8.3% 8.8% 9.1% 16.9% 14.1% 8.9%
Pain Relief 16.2% 16.1% 16.9% 14.8% 21.2% 13.4%
Sun Care 5.1% 3.7% 4.0% 8.4% 0.4% -1.9%
Weighted Total 77.6% 77.1% 76.8% 14.7% 15.0% 11.2%
Source: NielsenIQ, J.P. Morgan
Below we provide an in-depth discussion of the three segments – Self Care, Skin Health
& Beauty, and Essential Health – and examine the categories within each of these
segments further using data from Euromonitor, mainly for global market share/trends,
and NielsenIQ for U.S. market share/trends. As it specifically relates to NielsenIQ, we
carried out a YOY analysis of the recent NielsenIQ data available (ending 5/6/23) and
also analyzed YOY data as of 12/31/22 (we will refer to this as prior year-end or
(cid:728)PYE(cid:729)) to see how KVUE categories performed YTD as well as considering YOY data
as of 5/7/22 (we will refer to this as prior-year or (cid:728)PY(cid:729)) to see how KVUE performed in
the categories from a year ago (as of 5/6/23). We have not provided the charts pertaining
to PYE and PY data points but have only referred to the data in our analysis. Below, we
delve into some of the specific categories within each of KVUE(cid:726)s three segments.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Global Category Market Share
Self Care
Our analysis of the tracked channel data for some of the major categories within the Self
Care segment are laid out below from various tracked channel data sources including
Euromonitor and NielsenIQ.
Paincare. We utilized Euromonitor to assess how KVUE(cid:726)s market share fared globally
both at the company and brand level within the OTC paincare category. KVUE has a
global market share of 7.1% in this category. Looking further at the brand level, we get
the sense that KVUE(cid:726)s brands (both Tylenol and Motrin) have been gaining market
share globally. More specifically, the data shows that Tylenol grew market share
tremendously from 2.5% in 2013 to 4.6% in 2022, and Motrin also grew but at a lower
magnitude, from 0.9% in 2013 to 1.4% in 2022. Note that some of the other major
brands in the category, including Advil (Haleon), Aspirin (Bayer), and Aleve (Bayer),
lost market share during this time frame.
Figure 92: Paincare - Global Market Share by Company
18.0%
16.0% 15.2% 15.2%
14.0%
12.0%
10.0%
8.0% 5.9% 7.1%
5.5% 5.6%
6.0% 5.9% 5.4%
4.0%
4.0% 3.3%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Haleon Kenvue Sanofi Bayer Reckitt
Source: Euromonitor, J.P. Morgan
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 93: Paincare - Global Market Share by Brands
5.0% 4.6%
4.5%
3.9%
4.0%
3.5%
2.9%
3.0%
2.5%
2.0%
1.4%
1.5%
1.0%
1.2%
0.5%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Tylenol Advil Aspirin Motrin Aleve
Source: Euromonitor, J.P. Morgan
Looking specifically in the U.S. employing NielsenIQ, due to the iconic Tylenol and
Motrin brands, paincare makes up the largest component for both the overall company
and within the Self Care segment (as per category weight based on sales calculated
using data from NielsenIQ). The tracked channel data for the four-week period observed
shows that KVUE(cid:726)s dollar value share has remained consistent through the time line
considered with value share gain of +76 bps for the four-week period ending 5/6/23 (vs.
+75 bps in the four-week period ending 12/31/22 or PYE and +76 bps in the four-week
period ending 5/7/22 or PY). We note that private label (PL) lost -30 bps of value share
in the four-week period ending 5/6/23; however, PL gained +148 bps as of PYE and
gained more modestly (+53 bps) as of PY. As it relates to volume share, KVUE lost -35
bps in the four-week period ending 5/6/23 while PL gained +69 bps during this period.
Below we show how both value and volume share performed for the 4, 13, and 52
weeks ending 5/6/23 for KVUE and some of its competitors.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 94: Paincare - U.S. Value Share Figure 95: Paincare - U.S. Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
250 218 150
111
200
100
150 137 69 58
47
50
100 76 13
50 -
14 (4) (0) (0) (1)
- (14) (17)
(50) (19) (11) (34)(36) (30) (26)(30) (4) (50) (35) (69) (30)
(59) (100)
(100) (87) (83)
(123)
(150) (150)
KENVUE BAYER AG SANOFI PRIVATE LABEL HALEON KENVUE BAYER AG SANOFI PRIVATE LABEL HALEON
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Allergies. In the allergies category globally, KVUE leads with market share of 17.2% as
mentioned above, followed by Bayer (13.1%) and Sanofi (11.8%). As it relates to
brands, both of KVUE(cid:726)s brands, Zyrtec and Benadryl, have gained global market share
slightly during the time frame considered.
Figure 96: Allergy - Global Market Share by Company
20.0%
17.2%
18.0%
15.8%
16.0%
14.0% 13.1%
12.3% 11.8%
12.0% 11.8%
10.0%
8.0%
6.0%
4.1%
3.8%
4.0%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kenvue Bayer Sanofi Haleon
Source: Euromonitor, J.P. Morgan
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 97: Allergy - Global Market Share by Brands - KVUE Absolute Leader Combining Zyrtec and Benadryl
14.0%
11.8%
12.0%
10.0%
8.3%
8.0%
7.9%
6.0%
6.2%
4.0%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Claritin Zyrtec Allegra/Telfast Benadryl
Source: Euromonitor, J.P. Morgan
In the U.S., NielsenIQ tracked channel data shows that KVUE gained +89 bps of value
share in the four-week period ending 5/6/23, which is slightly below gain of +96 bps as
of PYE but improved from losing -37 bps as of PY. However, KVUE(cid:726)s volume share has
been pressured, losing -64 bps in the four-week period ending 5/6/23 (and compares to
losing -69 bps as of PYE but gaining +20 bps as of PY). We note here that private label
gained +85 bps of volume share in the four-week period ending 5/6/23 (vs. +88 bps as
of PYE but losing -90 bps as of PY). Below we show how both value and volume share
performed for the 4, 13 and 52 weeks ending 5/6/23 for KVUE and some of its
competitors.
Figure 98: Allergy - U.S. Value Share Figure 99: Allergy - U.S. Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
150 120 109
124
100 85
100 89 66 78 80 68
60
50 27 31 12 40 33 31
- 20 16 13
(10) (20) (19) (2) -
(50)
(42) (20)
(59) (15)
(100) (85) (40) (30) (30)(30)(28)
(60) (53)
(150) (136) (80) (64) (63)
KENVUE BAYER AG SANOFI PRIVATE LABEL HALEON KENVUE BAYER AG SANOFI PRIVATE LABEL HALEON
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Cough & Cold. In the cold, cough (and allergy) remedies category as per Euromonitor
data globally, KVUE leads with market share of 7.3% followed by Haleon (6.7%) and
Reckitt (5.7%). We note here KVUE(cid:726)s global brands including Sudafed (0.7%) and
Benylin (0.6%) market share compared to competitors including Vicks (4.7%, owned by
OW-rated Procter & Gamble), Halls (3.4%, owned by Mondelez International) and
Mucinex (2.5%, owned by Reckitt), among others.
Figure 100: Cold & Cough Global Market Share by Company
8.0% 7.5%
7.3%
6.7% 6.7%
7.0%
5.1%
6.0% 4.6% 5.7%
4.5% 5.0%
5.0% 4.6% 4.6%
4.5%
3.6%
4.0% 3.5%
3.0%
2.0%
1.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kenvue Haleon Reckitt Procter & Gamble Bayer Sanofi Mondelez
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 101: Cold & Cough Global Market Share by Brands
4.7%
5.0%
4.5%
4.0%
3.4%
3.5%
3.0%
2.5%
2.5%
2.0%
1.6%
1.5%
1.5%
1.0% 1.0%
0.7%
0.5%
0.6%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Vicks Halls Mucinex Ricola
Strepsils Sudafed Robitussin Benylin
Source: Euromonitor, J.P. Morgan
As per NielsenIQ, KVUE lost -133 bps of value share in the four-week period ending
5/6/23, sequentially worse from losing -113 bps as of PYE while gaining +159 bps as of
PY. As it relates to volume share, the company seems to have (cid:728)improved(cid:729) YTD,
although it lost -3 bps in the four-week period ending 5/6/23 vs. -13 bps PYE but
slightly gained +6 bps as of PY. Below we show how both value and volume share
performed for the 4, 13, and 52 weeks ending 5/6/23 for KVUE and some of its
competitors.
Figure 102: Cough & Cold - U.S. Value Share Figure 103: Cough & Cold - U.S. Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
1,000 7828 13 40
800 539 30 28 25
46 00 00 1843 43 419 401 1982 78 20 17
22 00 - 00 (133)(6)32 12 (94)36 14 1 -0 8 5 7 9 9 6 1 0 2 3
( ) (156) (148) (93)
(400) (230) (3)(0)(1) (2) (0) (1) (3)
(600) (10)
(800)
(20)
(1,000)
(940) (22)
(1,200) (30)
KENVUE PROCTER & BAYER AG RECKITT PRIVATE CHURCH & HALEON KENVUE PROCTER & BAYER AG RECKITT PRIVATE CHURCH & HALEON
GAMBLE LABEL DWIGHT GAMBLE LABEL DWIGHT
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Digestive Remedies. Globally, data from Euromonitor points to KVUE holding the
second largest market share position (7.2%) in the digestive remedies category, while
Haleon has the highest market share with 7.8% market share. As it relates to brands,
KVUE(cid:726)s larger brands include Imodium (2.4% global market share) and Pepcid (1.5%
market share on a global basis), while Dulcolax (Sanofi) has the largest market share
(2.5%). We have included charts below showing how KVUE stacks up against
competitors in the digestive remedies category globally overall. (KVUE has a few other
brands with small market share that are too small to show here.)
Figure 104: Digestive Remedies Global Market Share by Company
9.0%
8.0%
7.8%
8.0%
6.8% 7.2%
7.1%
7.0% 6.5%
5.9%
5.8%
6.0%
5.0%
4.0%
3.0% 2.6% 2.4%
2.3%
2.3%
2.0%
1.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Haleon Kenvue Sanofi Bayer Procter & Gamble Reckitt
Source: Euromonitor, J.P. Morgan
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 105: Digestive Remedies Global Market Share by Brands
3.0%
2.5%
2.5%
2.4%
2.2%
2.0%
1.7%
1.5%
1.5%
1.0%
0.5%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Dulcolax Imodium Tums Gaviscon Pepcid
Source: Euromonitor, J.P. Morgan
NielsenIQ data shows that KVUE gained +50 bps of value share in the four-week period
ending 5/6/23 in the acid relief category, which is an improvement from slightly gaining
+4 bps as of PYE but losing -6 bps as of PY. We also looked at the anti-diarrhea
category, where the company(cid:726)s performance is worse, losing value share of -101 bps in
the four-week period ending 5/6/23 (vs. gaining +217 bps as of PYE and +165 as of
PY). In the digestive aid category, KVUE gained +102 bps value share in the four-week
period ending 5/6/23 (vs. losing -265 bps PYE but gaining +51 bps PY) while PL lost -
49 bps value share during this time period and compares to gaining +319 as of PYE and
+77 bps as of PY. Below we show how both value and volume share performed for the
4, 13, and 52 weeks ending 5/6/23 for KVUE and some of its competitors for acid relief,
anti-diarrhea, and digestive aid categories.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 106: Acid Relief - Value Share Figure 107: Acid Relief - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
80 100
60 50 58 60 56 80 75
40 40 26 60 49
20 20 40 21 26
20
-
(1) -
((( 642 000 ))) (36)(26)(16) (10) ((( 642 000 ))) (20)(15)(11) (17)(4)
(36)(39)(28) (29)(18)(19)
(45) (36) (38) (44)(35)
(58)
(63)
(80) (72) (80) (70)
KENVUE PROCTER & BAYER AG SANOFI PRIVATE LABEL HALEON KENVUE PROCTER & BAYER AG SANOFI PRIVATE LABEL HALEON
GAMBLE GAMBLE
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Figure 108: Anti-Diarrhea - Value Share Figure 109: Anti-Diarrhea - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
250 229 400
200 166 300 289
150
200 160
100 76
100
50
7 -
- (26) (15) (16) (15) (14)
(100)
(50)
(42)
(100) (89) (200) (187)
(101) (100) (108)
(150) (300) (266)
KENVUE PROCTER & GAMBLE PRIVATE LABEL KENVUE PROCTER & GAMBLE PRIVATE LABEL
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Figure 110: Digestive Aid - Value Share Figure 111: Digestive Aid - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
120 102 400 326 335
100 94 300
80 200 200
60 49
100
40
19 -
20
(100)
-
(20) (200)
(199)
(40) (22) (300)
(60) (49) (400) (322) (332)
KENVUE PRIVATE LABEL KENVUE PRIVATE LABEL
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Skin Health & Beauty
Our analysis of the tracked channel data for some of the major categories within the
Skin Health & Beauty segment are laid out below using Euromonitor to gauge how
KVUE is performing globally and NielsenIQ for U.S. performance.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Face Care. Looking at the mass face care category on a worldwide basis, data from
Euromonitor shows that KVUE has market share of 4.1%, while L(cid:726)Oreal Groupe
(covered by Celine Pannuti) has the highest global market share of 12.5%. By brands,
Neutrogena has the fourth highest market share (2.7%), while Clean & Clear has a very
small global market share (0.7%).
Figure 112: Mass Face Care Global Market Share by Company
14.0%
12.5%
12.0%
10.0% 9.3%
8.0%
5.2%
5.6%
5.2% 5.1%
6.0%
4.9% 5.0%
4.3%
4.1%
4.0%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
L'Oréal Beiersdorf Unilever Procter & Gamble Kenvue
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 113: Mass Face Care Global Market Share by Brands
7.0%
6.0%
4.9%
5.0%
4.8%
4.0%
2.8%
3.0%
2.7%
2.0% 2.5%
0.7%
1.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
L'Oréal Paris Olay CeraVe Neutrogena Nivea Clean & Clear
Source: Euromonitor, J.P. Morgan
Face care makes up the largest component within the Skin Health & Beauty segment,
specifically in the U.S. (as per category weight based on sales calculated using data
from NielsenIQ). The tracked channel data for the four-week period observed shows
that KVUE(cid:726)s dollar value share has improved, albeit negative, through the time line
considered, with value share loss of -197 bps for the four-week period ending 5/6/23
(vs. -266 bps as of PYE and -291 bps as of PY). We note that L(cid:726)Oreal (covered by
Celine Pannuti) has been a clear value share winner also in the U.S., gaining +426 bps
in the four-week period ending 5/6/23, +419 bps as of PYE and +183 bps as of PY. On a
volume share basis, KVUE lost -191 bps in the four-week period ending 5/6/23 (vs. -
194 bps as of PYE and -136 bps as of PY), while L(cid:726)Oreal gained +411 bps of volume
share in the same period (compares to +484 bps as of PYE and +318 bps as of PY).
Below we show how both value and volume share performed for the 4, 13, and 52
weeks ending 5/6/23 for KVUE and some of its competitors.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 114: Face Care - Value Share Figure 115: Face Care - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
500 426 414 500 411 419 433
400 370 400
300 300
200
200
100
100
- 15 9 11 2
(( 21 00 00 )) (109)(130)(85) (58)(55)(29) (53)(54)(40) 0- (8) (10)
(1 0)
(86)
(197)(215)
(300) (200) (191) (182)
(296) (207)
(400) (300) (255) (236)
KENVUE PROCTER & GAMBLE L'OREAL SA UNILEVER GROUP PRIVATE LABEL KENVUE PROCTER & GAMBLE L'OREAL SA UNILEVER GROUP PRIVATE LABEL
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Body Care. With a global market share of 6.3% in the mass body care category, KVUE
has a long way to catch up with Beiersdorf, which has the largest global market share of
14.1% in this category according to the Euromonitor data. Turning to brands, Aveeno(cid:726)s
market share of 2.0% and Johnson(cid:726)s of 1.2% globally as of 2022 are also far behind in
market share from the #1 brand (Nivea owned by Beiersdorf with market share of 12%)
in this category.
Figure 116: Mass Body Care Global Market Share by Company
16.0%
14.3% 14.1%
14.0%
12.0%
10.3%
9.9%
10.0%
8.7%
8.3%
8.0%
6.9%
6.3%
6.0%
4.0% 3.4%
2.0%
1.5% 1.4%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Beiersdorf Unilever Natura&Co Kenvue L'Oréal Procter & Gamble
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 117: Mass Body Care Global Market Share by Brands
14.0%
12.0%
12.0%
10.0%
8.0%
6.0%
4.5%
4.0%
2.6%
2.3%
2.0% 2.0%
1.4%
1.2%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Nivea Vaseline Dove CeraVe
Aveeno Eucerin Olay Johnson's
Source: Euromonitor, J.P. Morgan
For the U.S. alone, the NielsenIQ data for both body lotion and body wash categories, as
part of the analysis for body care in the U.S., show that KVUE(cid:726)s value share in the body
lotion category has (cid:728)improved(cid:729) YTD in comparison, while that of body wash has
deteriorated YTD, albeit both categories are losing value share. More specifically,
KVUE lost -87 bps of value share in the four-week period ending 5/6/23 in the body
lotion category, where L(cid:726)Oreal gained +63 bps during this period) and is an
(cid:728)improvement(cid:729) from losing -224 bps as of PYE, but performance is worse from a year
ago when KVUE slightly lost -9 bps of value share in the four-week period ending
5/7/22. For body wash, in the four-week period ending 5/6/23, the data suggests KVUE
lost -32 bps of value share, while OW-rated PG gained +189 bps during the same
period, and compares to KVUE gaining +38 bps as of PYE. For volume share, KVUE
lost -57 bps in the four-week period ending 5/6/23 in the body lotion category, while
private label gained +81 bps during this period and is an (cid:728)improvement(cid:729) from KVUE
losing -138 bps as of the four-week period ending 12/31/22. KVUE lost -50 bps of
volume share in the four-week period ending 5/6/23, while OW-rated Procter & Gamble
gained +225 bps of volume share in body wash during the same period, and compares to
KVUE gaining +56 bps in the four-week period ending 12/31/22. Below we show how
both value and volume share performed for the 4, 13, and 52 weeks ending 5/6/23 for
KVUE and some of its competitors for both body lotion and body wash categories.
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 118: Body Lotion - Value Share Figure 119: Body Lotion - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
100 150
74
68 00 63 55 100 74 81 98
44
40 31 30 50 23 25 17
20 5 1
- -
(20) (18) (2) (50) (32)(20) (24)(26) (11) (36)
(40) (57) (56)
(60) (49) (41) (54) (100)
1(8 000) (63)(70)
( ) (87)(87) (74) (150) (137) (141)
(120) (100) (200) (158)
KENVUE BEIERSDORF AG L'OREAL SA SANOFI UNILEVER PRIVATE LABEL KENVUE BEIERSDORF AG L'OREAL SA SANOFI UNILEVER PRIVATE LABEL
GROUP GROUP
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Figure 120: Body Wash - Value Share Figure 121: Body Wash - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
300 300
225
189
200 151 142 200 151 142
100 100
- -
(100) (32) (28) (12) (52) (100) (50) (28) (12) (52) (66)
(136)(106) (122) (106) (122)
(200) (200) (163)
(300) (300)
(281)(279) (279)
(400) (400)
KENVUE PROCTER & GAMBLE COLGATE UNILEVER GROUP KENVUE PROCTER & GAMBLE COLGATE UNILEVER GROUP
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Sun care. KVUE has the third place in global market share (8.2%) according to data
from Euromonitor, far behind Beiersdorf (15.2%) but more comparable with L(cid:726)Oreal
(8.5%; covered by Celine Pannuti). KVUE competes in the sun care market with brands
including Neutrogena (4.7%), Johnson(cid:726)s (1.9%), Piz Buin (1.0%), Aveeno (0.5%), and
much smaller Dabao (0.1%).
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Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 122: Mass Adult Sun Care Global Market Share by Company
16.0% 15.2%
14.7%
14.0%
12.0%
8.8%
10.0% 9.5% 8.5%
8.2%
8.0% 7.3%
6.6%
6.0%
4.3%
4.0% 3.3%
2.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Beiersdorf L'Oréal Kenvue Edgewell Kao Corp
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 123: Mass Adult Sun Care Global Market Share by Brands
12.0%
10.3%
10.0%
8.0%
6.0%
4.7%
4.0%
3.5%
2.6%
2.0% 1.9%
1.0%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Nivea Banana Boat Garnier Neutrogena
Coppertone L'Oréal Johnson's Piz Buin
Source: Euromonitor, J.P. Morgan
For the U.S. alone, the tracked channel data for the four-week period observed shows
that KVUE(cid:726)s dollar value share deteriorated YTD but is a big improvement compared to
PY, with KVUE gaining +38 bps in the four-week period ending 5/6/23 (vs. +172 bps as
of PYE but losing -550 bps as of PY). As it relates to volume share, KVUE gained +81
bps in the four-week period ending 5/6/23 (vs. +343 bps as of PYE but losing -310 bps
as of PY). Below we show how both value and volume share performed for the 4, 13,
and 52 weeks ending 5/6/23 for KVUE and some of its competitors.
Figure 124: Suncare - Value Share Figure 125: Suncare - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
150 124 200 187
99
100 87 82 150
54
50 38 39 20 31 9 36 100 81
(5 - 0) (14) (24)(33) 50 6 16 9 11 8 51 26 42 18 42
-
(100)
(150) (50) (43) (37)(29)
(148)
(200) (100)
KENVUE PROCTER & GAMBLE BEIERSDORF AG L'OREAL SA PRIVATE LABEL KENVUE PROCTER & GAMBLE BEIERSDORF AG L'OREAL SA PRIVATE LABEL
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Essential Health
Our analysis of both Euromonitor (for global performance) and NielsenIQ (for U.S.
performance) tracked channel data for some of the major categories within the Essential
Health segment are laid out below.
Mouthwash. In the mouthwash category, KVUE clearly leads with market share of
35.1% globally, albeit decelerating in recent years, and nearly 3x larger than its closest
competitors – OW-rated Colgate-Palmolive (11.9%) and OW-rated Procter & Gamble
(9.6%). As we mentioned earlier, we believe KVUE has superior science, and the recent
claim of plaque removal 5x better than flossing alone will likely help household
penetration globally and market share improvement.
Figure 126: Mouthwash Global Market Share by Company
40.0%
36.5%
35.1%
35.0%
30.0%
25.0%
20.0%
15.0%
11.6% 11.9%
9.6%
9.9%
10.0%
4.5% 4.5%
5.0% 3.1% 3.0%
0.9% 2.6%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kenvue Colgate Procter & Gamble Haleon Sanofi Church & Dwight
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 127: Mouthwash Global Market Share by Brands
40.0%
34.9%
35.0%
30.0%
25.0%
20.0%
15.0%
10.1%
10.0%
5.2%
5.0%
3.0%
0.0% 2.1%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Listerine Colgate Crest Aquafresh
ACT TheraBreath Oral-B Scope
Source: Euromonitor, J.P. Morgan
For the U.S. alone, the NielsenIQ tracked channel data for the four-week period shows
that KVUE(cid:726)s dollar value share has (cid:728)improved,(cid:729) albeit negative, through the time line
considered with value share loss of -102 bps for the four-week period ending 5/6/23 (vs.
-344 bps as of PYE and -394 bps as of PY) in the U.S. It is worth noting that UW-rated
Church & Dwight (CHD) has been gaining value share in all three periods, with gain of
+499 bps in the four-week period ending 5/6/23, +375 bps in the four-week period
ending 12/31/22 (PYE) and +203 bps in the four-week period ending 5/7/22 (PY) in the
U.S. as per NielsenIQ, but globally Euromonitor points to market share of 2.6%. As it
relates to volume share, KVUE lost -109 bps in the four-week period ending 5/6/23 (vs.
losing -235 bps as of PYE and -202 bps as of PY), while CHD gained +260 bps in the
four-week period ending 5/6/23 (vs. gaining +181 bps as of PYE and +89 bps as of PY).
Below we show how both value and volume share performed for the 4, 13, and 52
weeks ending 5/6/23 for KVUE and some of its competitors.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 128: Mouthwash - Value Share Figure 129: Mouthwash - Volume Share
For Periods Ending 5/06/23, YOY (bps) For Periods Ending 5/06/23, YOY (bps)
600 300 260
499
500 250 210
408
400 320 200 155
150
300
100
200
100 22 26 5 -0 17 6 12 1 16 0 5 23
- (50) (25)(17)
(100) (102( )61) (21) (16) (51)(44) (48)(27) (90)(62)(17) (39) (22) (100) (59) (71)(41) (66)
(200) (180) (150) (109) (115)(108)
(300) (256) (209) (200) (151)
KENVUE PROCTER & COLGATE SANOFI PRIVATE CHURCH & HALEON KENVUE PROCTER & COLGATE SANOFI PRIVATE CHURCH & HALEON
GAMBLE LABEL DWIGHT GAMBLE LABEL DWIGHT
4W 13W 52W 4W 13W 52W
Source: NielsenIQ, J.P. Morgan Source: NielsenIQ, J.P. Morgan
Wound Care. KVUE has the largest global market share in the wound care category
with 19.2%, with a large gap from the next couple of competitors, Beiersdorf (11%) and
3M (5.3%). This is also evident in the brand share analysis as shown below with
KVUE(cid:726)s Band-Aid well above the others.
Figure 130: Wound Care Global Market Share by Company
25.0%
19.4% 19.2%
20.0%
15.0%
11.0%
10.7%
10.0%
5.5% 5.3%
5.0% 3.6% 3.6%
3.1%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kenvue Beiersdorf 3M Yunnan Baiyao Paul Hartmann
Source: Euromonitor, J.P. Morgan
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .


Andrea Teixeira, CFAAC North America Equity Research JPMORGAN
(1-212) 622-6735 29 May 2023
andrea.f.teixeira@jpmorgan.com
Figure 131: Wound Care Global Market Share by Brands
18.0%
16.1%
16.0%
14.0%
12.0% 10.8%
10.0%
8.0%
6.0%
3.8%
4.0%
2.5%
2.0%
1.5%
0.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Band-Aid Hansaplast Nexcare Johnson's Dermaplast
Source: Euromonitor, J.P. Morgan
For the U.S. alone, we analyzed the NielsenIQ data for both bandages and antiseptic
categories as part wound care. Within bandages, KVUE lost -72 bps of value share in
the four-week period ending 5/6/23 (vs. flat of -1 bp as of PYE but gaining +181 bps as
of PY) and lost -176 bps of volume share in the four-week period ending 5/6/23 (vs. -
111 bps as of PYE but gaining +260 bps as of PY) in the bandages category. There are
other competitors outside of KVUE(cid:726)s main peers in the bandages category that we did
not capture in our U.S. analysis. KVUE(cid:726)s antiseptic category in the U.S. appears to be
much smaller in comparison as per total category sales data from tracked channel. The
company gained +456 bps value share in the four-week period ending 5/6/23 (vs. +418
bps as of PYE and +558 bps as of PY) and +437 bps volume share in the four-week
period ending 5/6/23 (vs. +463 bps as of PYE and +676 bps as of PY). Below we show
how both value and volume share performed for the 4, 13, and 52 weeks ending 5/6/23
for KVUE and some of its competitors for both the bandages and antiseptic categories.
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T h is d o c u m e n t is b e in g p r o v id e d f o r t h e e x c lu s iv e u s e o f D A V I D W A N G a t M A R L O W E P A R T N E R S L P .