KENVUE INC.

Red flags

• One customer represented approximately 12% of total net sales in FY2025, FY2024, and FY2023; the top 10 customers represented approximately 41% in each year.
• Total debt was $8.524 billion at December 28, 2025, including $750 million of current long-term debt and $700 million of commercial paper.
• The merger consideration’s stock component is fixed and will not be adjusted for changes in K-C’s share price, leaving the value received by Kenvue shareholders uncertain.
• Kenvue recorded a $340 million out-of-period adjustment in FY2024, including $84 million related to cloud-computing arrangements; FY2025 also included disclosure corrections for advertising expenses of $234 million for FY2024 and $228 million for FY2023.
• Product-safety and litigation exposure remains material around acetaminophen, talc, and phenylephrine, with potential effects including recalls, reformulations, withdrawals, and reputational damage.