Kenvue Inc (KVUE) 2023 Q4 法說會逐字稿

Hello, and welcome to the Kenvue Fourth Quarter and Full Year 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Kenvue 2023 年第四季及全年財報電話會議。 (操作員指示) 提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce your host, Tina Romani, Head of Investor Relations for Kenvue.

現在我很高興介紹您的主持人，Kenvue 投資者關係主管 Tina Romani。

Good morning, everyone. I'm pleased to be joined today by Thibaut Mongon, Chief Executive Officer; and Paul Ruh, Chief Financial Officer.

大家早安。我很高興今天能與執行長Thibaut Mongon和財務長Paul Ruh一起出席。

Before we get started, I'd like to remind you that today's call includes forward-looking statements regarding, among other things, our operating and financial performance, market opportunities and growth. These statements represent our current beliefs or expectations about future events and are subject to various risks, uncertainties and assumptions that could cause our actual results to differ materially. For information regarding these risks and uncertainties, please refer to our earnings materials related to this call posted on our website and our filings with the SEC.

在開始之前，我想提醒大家，今天的電話會議包含一些前瞻性陳述，涉及我們的營運和財務表現、市場機會和成長等。這些陳述代表了我們目前對未來事件的信念或預期，並受各種風險、不確定性和假設的影響，這些風險、不確定性和假設可能導致我們的實際結果與預期有重大差異。有關這些風險和不確定性的信息，請參閱我們網站上發布的與本次電話會議相關的收益資料以及我們向美國證券交易委員會 (SEC) 提交的文件。

During this call, we've also referenced certain non-GAAP financial information. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a subject for financial information presented in accordance with U.S. GAAP. These non-GAAP financial measures should be viewed in conjunction with the most comparable GAAP financial measure. A reconciliation of these items to the nearest U.S. GAAP measure can be found in this morning's press release and our presentation available on the IR website.

在本次電話會議中，我們也參考了一些非公認會計準則 (non-GAAP) 財務資訊。這些非公認會計準則 (non-GAAP) 財務資訊的呈現不應被孤立地看待，也不應將其作為按照美國公認會計準則 (US GAAP) 呈現的財務資訊的一部分。這些非公認會計準則 (non-GAAP) 財務指標應與最可比較的公認會計準則 (GAAP) 財務指標一併看待。這些項目與最接近的美國公認會計準則 (US GAAP) 指標的對帳表，請參閱今天早上的新聞稿以及我們在投資者關係 (IR) 網站上的簡報。

With that, I'll turn it over to Thibaut.

說完這些，我就把麥克風交給 Thibaut。

Thank you, Tina, and thank you to everyone for joining us today.

謝謝你，蒂娜，也感謝今天與我們一起的所有人。

2023 was a year of transformational change for our company and for 22,000 Kenvuers around the world. Our teams accomplished a tremendous amount, successfully standing up Kenvue as an independent public company, while continuing to drive profitable growth. While we accomplished a lot in 2023, we know we have areas where we need to increase our focus and improve. So as we enter 2024, we have identified 3 key priorities that will enable our continued transition as an independent company, while continuing to grow the business.

2023年對本公司以及全球22,000名Kenvue員工而言，是轉型變革的一年。我們的團隊取得了巨大的成就，成功將Kenvue打造為獨立的上市公司，同時繼續推動獲利成長。雖然我們在2023年取得了許多成就，但我們深知仍有一些領域需要進一步關注和改進。因此，在邁入2024年之際，我們確定了三大關鍵優先事項，這些事項將幫助我們繼續轉型為獨立的公司，同時繼續實現業務成長。

This year, we will reach more consumers, with a stronger focus on our 15 priority brands, free up resources to invest behind our brands and foster a culture that rewards performance and impact.

今年，我們將接觸更多的消費者，更加關注我們的 15 個優先品牌，釋放資源投資於我們的品牌，並培養獎勵績效和影響力的文化。

In 2023, we delivered on our long-term value creation algorithm centered around profitable growth, durable cash flow generation and disciplined capital allocation. Our 5% organic growth was broad-based across all 3 segments, all 4 regions and all 8 product categories. Self Care delivered another banner year of 8.4% organic growth, sustaining the momentum we have built over the past several years, resulting, once again, in strong revenue growth and share gain.

2023年，我們實現了以獲利性成長、持久現金流產生和嚴謹的資本配置為中心的長期價值創造策略。我們5%的有機成長涵蓋了所有三個業務部門、所有四個地區和所有八個產品類別。自助護理業務再創佳績，有機成長達8.4%，延續了過去幾年的強勁勢頭，再次實現了強勁的收入成長和市場份額成長。

Essential Health grew ahead of our long-term expectations with 3.6% organic growth, while continuing to execute our strategy to drive gross margin enhancement through successful value realization and premiumization initiatives.

Essential Health 的成長超出了我們的長期預期，有機成長率達到 3.6%，同時繼續執行我們的策略，透過成功的價值實現和高端化舉措來推動毛利率的提高。

And in Skin Health and Beauty, organic growth was 1.8% less than we expected, mostly due to specific missteps around in-store execution in the U.S., which we are actively addressing. And I'll give you more details about that in just a moment.

皮膚健康和美容業務的有機成長率低於預期1.8%，主要原因是美國門市執行方面存在一些失誤，我們正在積極解決。稍後我會詳細介紹。

We continued our successful multiyear program to expand gross margins in 2023 with 30 basis points of expansion through thoughtful revenue management initiatives and relentless supply chain optimization. This further demonstrates that we have the capabilities and the strategies in place to drive profitable growth even in a dynamic and uncertain macro backdrop. And finally, we utilize our strong free cash flow to initiate our dividend program, delivering our commitment of returning cash to shareholders.

我們延續了多年期的成功計劃，透過周到的收益管理舉措和持續的供應鏈優化，在2023年實現了30個基點的毛利率提升。這進一步證明，即使在充滿活力和不確定性的宏觀環境下，我們擁有推動獲利成長的能力和策略。最後，我們利用強勁的自由現金流啟動股息計劃，並履行向股東返還現金的承諾。

Pivoting to Q4 specifically, let's now have a look at the performance of each one of our segments, and I'll start with Skin Health and Beauty as our disappointing focus performance on top line, clearly fell short of expectations, both yours and ours. Looking by region, it is evident where we have strength to leverage and where we need to improve. EMEA and Latin America ended the year strong. In EMEA, organic growth improved sequentially quarter-over-quarter on positive consumer response to innovation launched earlier in the year. In Germany, for example, Neutrogena, Hydro Boost has fueled growth ahead of the category.

具體到第四季度，我們現在來看看我們各部門的表現。首先從皮膚健康和美容部門開始，因為我們令人失望的重點業務收入表現，明顯低於預期，無論是您還是我們。從地區來看，我們的優勢和需要改進的地方顯而易見。歐洲、中東和非洲地區以及拉丁美洲地區以強勁的勢頭結束了這一財年。在歐洲、中東和非洲地區，由於消費者對今年稍早推出的創新產品反應積極，有機成長環比有所提升。例如，在德國，露得清水潤煥活系列產品的成長速度領先其他品類。

In Latin America, where we continued to grow double digits, Neutrogena faced doubled sales in the quarter, supported by the successful launch of Hydro Boost refills. In China, weaker consumer demand continued to pressure the overall category in our skin care brands. However, it is our performance in the U.S. that did not meet our expectations. As we have talked with you about, we had ambitious fourth quarter recovery plan for the U.S., but frankly, the execution of this plan was disappointing. Restoring Neutrogena to the level of growth, we know the brand is capable of is a priority for me and for the team.

在拉丁美洲，我們持續保持兩位數成長，露得清本季銷售額翻了一番，這得益於水潤煥活補充裝的成功上市。在中國，疲軟的消費需求持續給我們護膚品牌的整體業務帶來壓力。然而，我們在美國市場的表現卻未能達到預期。正如我們之前與您討論過的，我們為美國市場制定了雄心勃勃的第四季度復甦計劃，但坦白說，該計劃的執行情況令人失望。讓露得清恢復到我們確信品牌能夠實現的成長水平，是我和團隊的首要任務。

So over the past several months, I spent significant time with our team in the U.S. and engage with our customers as the diagnosis is clear. We know our brand equities are healthy and our products resonate with consumers in the category. However, we must improve our in-store execution capabilities to drive stronger demand for our brands, better communicate our value proposition to consumers, launch innovation successfully and finally, support our brands with a robust level of marketing investments.

因此，在過去的幾個月裡，我花了大量時間與我們在美國的團隊溝通，並與我們的客戶進行交流，因為診斷已經很明確了。我們知道我們的品牌資產是健康的，我們的產品也引起了同類消費者的共鳴。然而，我們必須提升店內執行能力，以推動品牌需求的強勁成長，更好地向消費者傳達我們的價值主張，成功推出創新產品，並最終透過強勁的行銷投資來支持我們的品牌。

In early December, we shared that Jan Meurer, previously our Chief Growth Officer, will assume the position of Head of North America. With Jan's deep knowledge of our portfolio and our growth strategy, he has already outlined with his team the focused road map that they are executing to strengthen their capabilities and stabilize the business.

12月初，我們宣布前首席成長長Jan Meurer將出任北美區總裁。 Jan對我們業務組合和成長策略有著深入的了解，他已經與團隊共同製定了重點發展路線圖，旨在增強團隊能力並穩定業務。

Specifically, the recently redesigned North America Skin Health and Beauty leadership team is taking action in 3 areas: First, we are strengthening in-store presence and prominence through better planning with customers, enhanced packaging that clearly articulate dermatological benefits and more prominent in-store brand activation.

具體來說，最近重新組建的北美皮膚健康和美容領導團隊正在採取三個方面的行動：首先，我們透過更好地與客戶規劃、清晰表達皮膚病學益處的增強包裝和更突出的店內品牌激活來加強店內存在感和知名度。

Second, we are enhancing consumer engagements through distinct and consistent brand experiences delivered with the appropriate level of reach and frequency and supported by a revamped marketing effort. And third, we are amplifying innovations through bolstered demand generation activities with consumers and health care professionals.

其次，我們透過獨特一致的品牌體驗，以適當的覆蓋率和頻率，並輔以改進的行銷策略，提升消費者的參與度。第三，我們透過加強與消費者和醫療保健專業人士的需求挖掘活動，擴大創新。

So this will not be an overnight shift. It will take time for these actions to generate impact on our results, which we expect to occur in the second half of the year, but we are confident we have correctly diagnosed our weaknesses and are making the necessary changes.

所以這並非一朝一夕就能實現的轉變。這些行動需要時間才能對我們的表現產生影響，我們預計在下半年看到成效，但我們確信，我們已經正確診斷了自身的弱點，並正在做出必要的改變。

Additionally, we believe our strong partnerships with retailers, coupled with increased investment and a higher level of precision in our execution, will enable us to stabilize the business in the U.S. and deliver stronger growth in 2024.

此外，我們相信，我們與零售商的牢固合作夥伴關係，加上增加的投資和更高的執行精度，將使我們能夠穩定美國業務並在 2024 年實現更強勁的成長。

So now turning to the rest of the portfolio. In Self Care, our largest segment, is a very different picture. We ended the year in line with our expectations, delivering organic growth of 8.4% in 2023, on top of 10.9% growth in 2022. We continue to demonstrate our leadership in the fourth quarter, reading the season accurately and activating our brands with precision.

現在來看看投資組合的其他部分。我們最大的板塊——個人護理，情況截然不同。我們以符合預期的方式結束了這一財年，在2022年10.9%的成長基礎上，2023年實現了8.4%的有機成長。我們在第四季持續展現領導力，精準解讀季節，精準啟動我們的品牌。

Adult Tylenol continued to gain share in the U.S., with 78 consecutive weeks of share growth even as category volumes declined as expected with roughly 15% lower incidence levels this cold and flu season compared to 2022. And again, this quarter, we strengthened our leadership positions with relevant innovation, premiumization and leading health care professional endorsement. So looking to 2024, we intend to continue to deploy this winning formula around the world.

成人泰諾在美國的市佔率持續成長，儘管該類別銷售量如預期下降，且本季感冒和流感發生率較2022年下降約15%，但其市佔率仍連續78週成長。本季度，我們憑藉相關創新、高端化以及領先的醫療保健專業人士的認可，鞏固了我們的領導地位。展望2024年，我們計劃繼續在全球推廣此成功模式。

And finally, in Essential Health, performance was led by Oral Care and Women's Health, while Baby Care shipments were less robust this quarter. Oral Care grew 8%, with organic growth in all regions, including the U.S., where Listerine, despite being around 5x bigger than our next competitor, remains the most productive brand in the category and has now delivered 21 weeks of double-digit consumption growth.

最後，在基礎健康領域，口腔護理和女性健康產品表現強勁，而嬰兒護理產品本季的出貨量則略遜一籌。口腔護理產品成長了8%，所有地區（包括美國）均實現了有機成長。在美國，李施德林的銷量雖然比我們第二名的競爭對手高出約5倍，但仍是該類別中生產率最高的品牌，並且已連續21週實現了兩位數的消費增長。

The launch of Listerine gum therapy has done extremely well as the largest innovation in the U.S. mouthwash category in 2023, reaching 1 point of share in 12 months just for this code, and we have more great innovation planned in 2024.

李施德林牙齦護理產品的推出取得了極大的成功，成為2023年美國漱口水類別中最大的創新，僅憑這一代碼，12個月的市場份額就達到了1個百分點，我們計劃在2024年推出更多偉大的創新。

Which bring me to our priorities for this year. 2024 will be our first full year as an independent company. And you will see us starting to operate differently than what we have in the past, which will enable us to unleash the full potential of our portfolio.

這也引出了我們今年的重點。 2024年將是我們作為獨立公司的第一個完整年度。屆時，您將看到我們開始採用與過去不同的營運方式，這將使我們能夠充分釋放我們產品組合的潛力。

As I shared earlier, we have 3 priorities: First, we are going to reach more consumers, with a strong focus on our 15 priority brands. We are strengthening our plans to build attractive, consistent brand experiences for our 15 priority brands, which represent 2/3 of our growth. With strong retailer partnership, we will bring to market relevant innovation across all segments, driving mental availability, but also ensuring physical availability where and when our consumers need us. We are also raising our bar in terms of activation excellence in our focus markets, starting with the U.S. So you are going to see our top brands with a higher level of activation in 2024 as we fuel growth.

正如我之前分享的，我們有三大優先事項：首先，我們將觸達更多消費者，並專注於我們的15個重點品牌。我們正在強化計劃，為這15個重點品牌打造引人入勝、一致的品牌體驗，這些品牌貢獻了我們三分之二的成長。憑藉與零售商的強大合作關係，我們將為所有細分市場帶來相關的創新，提升消費者的心理可近性，並確保在消費者需要我們時，隨時隨地都能獲得實體服務。我們也將提升重點市場（從美國開始）的卓越啟動標準。因此，隨著我們持續成長，您將在2024年看到我們的頂級品牌擁有更高的活化水準。

In Self Care, we have strong plans to bring forward science-based category-leading innovations to meet the needs of consumers, maintain category-leading health care professional recommendation and ultimately, drive continued share gains.

在自我照護領域，我們制定了強有力的計劃，推出基於科學的領先類別創新，以滿足消費者的需求，保持領先類別的醫療保健專業人士推薦，並最終推動持續的市場份額成長。

And in Skin Health, we will stabilize the business in the U.S. with a plan I outlined today. Outside the U.S., in China, we will monitor consumer sentiment and thoughtfully calibrate our investment accordingly, while in the rest of the world, where we continue to see our growth in Europe and Latin America. This requires investment, and we have plans to invest more in brand activation in 2024, both with consumers and with health care professionals. Continued margin expansion and efficiencies across the business will fuel this investment.

在皮膚健康領域，我們將透過我今天概述的計劃穩定美國業務。在美國以外，在中國，我們將密切關註消費者情緒，並據此謹慎調整投資；而在世界其他地區，我們在歐洲和拉丁美洲的業務持續成長。這需要投資，我們計劃在2024年加大對品牌活化的投資，包括面向消費者和醫療保健專業人士的投入。持續的利潤成長和業務效率的提升將推動這項投資。

Which brings me to our second priority, which is to free up resources and invest in our brands. We expect gross margins to expand at an accelerated pace compared to 2023, which will fund increased investment in our brands. You've heard me say that over the past several years, we have been going to the gym on gross margin. And through this work, we will continue to strengthen this muscle, driving efficiency across our supply chain, managing our mix and implementing thoughtful revenue management initiatives.

這就引出了我們的第二個優先事項，那就是釋放資源，投資我們的品牌。我們預計毛利率將比2023年加速成長，這將為增加對品牌的投資提供資金。你們應該聽我說過，過去幾年，我們的毛利率一直居高不下。透過這項工作，我們將繼續增強這方面的實力，提高整個供應鏈的效率，管理我們的產品組合，並實施周到的收益管理計劃。

In addition, as we exit our transition services agreement with Johnson & Johnson, we are not simply replicating legacy processes, but rather intentionally reinventing our ways of working. And this includes implementing modern systems designed specifically to meet the needs of our new company and enable speed, agility, accuracy and a lower cost base.

此外，隨著我們與強生公司終止過渡服務協議，我們並非只是簡單地複製原有流程，而是有意識地重塑我們的工作方式。這包括實施專為滿足新公司需求而設計的現代化系統，以實現速度、靈活性、準確性和更低的成本。

For example, we are implementing a new integrated business planning process that will improve our demand forecasting capabilities and service levels through better integrating and automating retailer data and demand sensing. This plan will be implemented throughout the next 6 quarters, with the majority occurring this year. And all of this will be enabled by our teams around the world, which leads me to our final priority, fostering a culture that rewards performance and impact.

例如，我們正在實施一套新的整合業務規劃流程，透過更好地整合和自動化零售商數據和需求感知，提升我們的需求預測能力和服務水準。該計劃將在未來六個季度內實施，其中大部分將在今年完成。所有這些都將由我們遍布全球的團隊共同推動，這也引出了我們最後一個優先事項：打造獎勵績效和影響力的文化。

In 2024, we are deploying our new Kenvue performance management plan, with clear goals and a heightened sense of accountability for every Kenvuer. The plan introduces new incentive programs for all leaders, encouraging and rewarding impact on the 4 drivers of shareholder return: top line growth, margin expansion, earnings growth and free cash flow. Further, we are streamlining decision-making across the organization, including in my own leadership team. And most importantly, we are creating a culture based on our Kenvue values where everyone has a strong sense of purpose and belonging, an opportunity to grow and is rewarded for impact.

2024年，我們將部署全新的Kenvue績效管理計劃，為每位Kenvue員工設定清晰的目標，並強化他們的責任感。該計劃為所有領導者引入了新的激勵計劃，鼓勵並獎勵對股東回報四大驅動力（營收成長、利潤率提升、獲利成長和自由現金流）做出貢獻的員工。此外，我們正在精簡整個組織的決策流程，包括我自己的領導團隊。最重要的是，我們正在創造一種基於Kenvue價值觀的文化，讓每個人都擁有強烈的使命感和歸屬感，擁有成長的機會，並因其貢獻而獲得獎勵。

So in closing, we made significant progress in 2023. And while we still have a lot of work ahead of us, our priorities are clear in 2024 and give me confidence in our ability to deliver our plan for the year. I'm deeply grateful to our talented teams for their energy and passion to work together as one team to build our new company. It is inspiring to see 22,000 Kenvuers rally behind one purpose, helping people realize the extraordinary power of everyday care, and I know they will make us successful this year and into the future.

總而言之，我們在2023年取得了重大進展。雖然我們仍有許多工作要做，但我們2024年的優先事項非常明確，這讓我對我們實現年度計畫的能力充滿信心。我衷心感謝我們才華洋溢的團隊，感謝他們齊心協力、充滿熱情地打造我們的新公司。看到2.2萬名肯維爾人團結一致，共同實現同一個目標，幫助人們認識到日常護理的非凡力量，這令人鼓舞。我相信，他們將在今年乃至未來幫助我們成功。

And with that, I'll turn it over to Paul.

接下來，我將把發言權交給保羅。

2023 was a transformational year, where we delivered strong top line, gross margin expansion and robust cash generation, even in the face of a dynamic macro backdrop and significant cost headwinds. I will start with an overview of results for the fourth quarter and the year, then close with our outlook for 2024.

2023年是轉型之年，即使在宏觀經濟環境變化和成本大幅下降的背景下，我們依然實現了強勁的營收、毛利率成長和強勁的現金流創造。我將首先概述第四季和全年業績，最後展望2024年。

As you heard from Thibaut, fourth quarter performance did not meet our expectations as in-store execution fell short of plan in the U.S. Skin Health and Beauty business. While we don't expect recovery overnight, I'm encouraged by what the new leadership team has accomplished in the past couple of months, diagnosing the issue and putting an action plan in place that is already underway.

正如Thibaut所說，第四季業績未達預期，因為美國皮膚健康與美容業務的店內執行情況未達預期。雖然我們並不指望一夜之間就能恢復，但我對新領導團隊在過去幾個月的成就感到鼓舞，他們診斷了問題所在，並製定了目前正在實施的行動計劃。

Now getting to results. Fourth quarter organic sales declined 2.4%. It's important to consider our fourth quarter performance in the context of 6.2% organic growth last year, where we experienced outsized growth in Self Care, primarily driven by unprecedented demand for our OTC products. In this context, fourth quarter growth was 3.8% on a 2-year stack basis. Value realization contributed 5.8 points to fourth quarter growth, offset by a volume decline of 8.2 points.

現在來看看業績。第四季有機銷售額下降了2.4%。重要的是，要結合去年6.2%的有機成長率來衡量我們第四季的表現。其中，我們個人護理產品實現了超乎尋常的成長，這主要得益於市場對非處方藥產品前所未有的需求。在此背景下，以兩年疊加計算，第四季的成長率為3.8%。價值實現為第四季的成長貢獻了5.8個百分點，但銷量下降了8.2個百分點。

Let me deconstruct the volume decline as there are several unique drivers impacting volume that do not reflect the underlying strength of our brands. First, about 3 points come from lapping an early and strong cold, cough and flu season that drove double-digit organic growth last year. Further, this year saw a later start to the season, combined with approximately 15% lower incidence levels.

讓我來分析一下銷售下滑的原因，因為影響銷售的幾個獨特因素並未反映我們品牌的潛在實力。首先，大約3個百分點的下滑是由於我們避開了去年推動兩位數有機增長的早熟感冒、咳嗽和流感季。此外，今年的感冒、咳嗽和流感季開始得較晚，發病率也降低了約15%。

As we have shared previously, in parts of our OTC business, volume is characteristically linked to incidence levels, which can go up or down in any given season. For Kenvue, our focus is to be prepared to serve our consumers, while continuing to gain share, regardless of what the season may bring, and that is what you saw from us this quarter.

正如我們之前所述，在我們的部分非處方藥業務中，銷售通常與發病率水平相關，而發病率水平在任何特定季節都可能上升或下降。對於 Kenvue 而言，我們的重點是做好準備，為消費者提供服務，同時無論季節如何變化，持續提升市場份額，這正是您在本季度看到的。

Second, 2022 product discontinuations negatively impacted the quarter by about 1 point. Of note, as of the fourth quarter, we have fully lapped product discontinuations and do not expect to see any impact next year. Lastly, trade inventory reduction accounted for about 1 point, as retailers tighten their inventory levels.

其次，2022年產品停產對本季業績造成了約1個百分點的負面影響。值得注意的是，截至第四季度，我們已完全涵蓋了產品停產的影響，預計明年不會再產生任何影響。最後，由於零售商收緊了庫存水平，貿易庫存減少也造成了約1個百分點的負面影響。

In sum, a little over 5 points of volume decline is attributed to idiosyncratic elements of the fourth quarter, with the remaining 3 points mainly attributed to continued softness in China and our underperformance in U.S. Skin Health and Beauty, we have discussed.

總而言之，銷售量下降 5 個百分點以上是由於第四季度的特殊因素，其餘 3 個百分點主要歸因於中國市場持續疲軟以及我們在美國皮膚健康和美容領域的表現不佳，我們已經討論過。

For the full year, net sales grew 3.3% to $15.4 billion. Organic growth of 5% reflects the value realization of 7.7% and a volume decrease of 2.7%, of which approximately 2 points is attributed to the 2022 product discontinuations we have discussed all year and the suspension of personal care products in Russia through the first half.

全年淨銷售額成長3.3%，達到154億美元。 5%的有機成長反映了7.7%的價值實現和2.7%的銷售下降，其中約2個百分點的下降歸因於我們全年討論的2022年產品停產以及上半年俄羅斯個人護理產品的停產。

When normalizing volume to exclude these 2 distinct items, volume was slightly down on nearly 8 points of value realization, demonstrating the low elasticity of our brands. You also see the power of the portfolio and the fact that private label penetration remained relatively flat throughout the year, even as consumers look to be trending down in other categories. These dynamics give us confidence in our ability to improve volume growth as we progress through 2024.

當將這兩個不同的產品類別排除在外，將銷售量標準化後，銷售量略有下降，價值實現率下降了近8個百分點，這表明我們品牌的彈性較低。您還可以看到產品組合的強大實力，以及自有品牌滲透率在全年保持相對平穩的事實，即使在消費者對其他品類的購買力呈下降趨勢的情況下。這些動態使我們對在2024年實現銷售成長充滿信心。

Moving to gross margins. Fourth quarter gross margin expanded 220 basis points to 59.5% and full year adjusted gross margin increased 30 basis points to 58.4%. As we have discussed with you previously, there are some nonrecurring items in our results, as we refine our accounting and reporting methodologies to be more comparable with our peers. Impacts from these refinements were a benefit of approximately 50 basis points in the fourth quarter and 10 basis points for the full year.

再來說說毛利率。第四季毛利率上升了220個基點，達到59.5%，全年調整後毛利率上升了30個基點，達到58.4%。正如我們之前與您討論過的，由於我們改進了會計和報告方法，使其更易於與同行進行比較，我們的業績中出現了一些非經常性項目。這些改進措施在第四季帶來了約50個基點的收益，在全年帶來了約10個基點的收益。

Inflationary headwinds moderated during the fourth quarter, as positive trends in logistics offset ongoing pressures in energy and wage inflation, while FX continued to pressure gross margin by about 1 point during the quarter and for the full year.

由於物流行業的積極趨勢抵消了能源和工資通膨的持續壓力，通膨逆風在第四季度有所緩和，而外匯因素在本季度和全年繼續對毛利率造成約 1 個百分點的壓力。

Turning to adjusted operating income. Fourth quarter adjusted operating income margin expanded 190 basis points and full year adjusted operating income margin was flat. Adjusted operating income margin benefited from the nonrecurring items I just spoke about by about 180 basis points for the quarter and 70 basis points for the year.

談到調整後的營業利潤。第四季調整後營業利益率擴大了190個基點，全年調整後營業利益率持平。我剛才提到的非經常性項目，使調整後的營業利潤率在本季度增長了約180個基點，全年增長了約70個基點。

For taxes, our fourth quarter adjusted effective tax rate was 15.8%. The decrease versus prior year is primarily the result of tax law changes that negatively impacted 2022, the release of tax reserves, mostly due to statute of limitations expiring and benefits from effective tax planning. The full year adjusted effective tax rate was 23.4%. The decrease in adjusted effective tax rate versus prior year is primarily due to the release of tax reserves.

稅費方面，我們第四季的調整後有效稅率為15.8%。與去年相比，稅率的下降主要由於稅法變化對2022年產生了負面影響，稅收儲備的釋放也受到影響，這主要歸因於訴訟時效到期以及有效的稅務規劃帶來的收益。全年調整後有效稅率為23.4%。與去年相比，調整後有效稅率的下降主要由於稅收儲備的釋放。

And finally, adjusted net income was $586 million for the quarter and $2.4 billion for the year. Adjusted diluted earnings per share was $0.31 for the quarter and $1.29 for the year, including an approximate $0.03 benefit from the nonrecurring items I spoke about.

最後，本季調整後淨利為5.86億美元，全年調整後淨利為24億美元。本季度調整後稀釋每股收益為0.31美元，全年調整後稀釋每股收益為1.29美元，其中包括我之前提到的非經常性項目帶來的約0.03美元收益。

Now turning to cash and capital allocation. For the year, we generated $2.7 billion in free cash flow. It is worth noting that the free cash flow benefited from separation-related items and the timing of working capital at the end of the year. During the year, we demonstrated our commitment to disciplined capital allocation, as outlined during IPO. We strengthened our balance sheet, reduced our leverage and returned cash to our shareholders. We have executed on our capital allocation priorities, including a 64% dividend payout ratio and reducing our gross leverage from 2.5x to 2.2.

現在談談現金和資本配置。本財年，我們創造了27億美元的自由現金流。值得注意的是，自由現金流受益於與公司分離相關的項目以及年底營運資本的合理分配。本財年，我們兌現了IPO時就已闡明的嚴謹資本配置承諾。我們增強了資產負債表，降低了槓桿率，並向股東返還了現金。我們執行了資本配置優先事項，包括64%的股利支付率，並將總槓桿率從2.5倍降至2.2倍。

As you model 2024, it will be important to consider the working capital timing benefit in 2023 as well as the fact that we're retaining a full year of dividends and have a full year of interest expense, which brings me to the outlook for 2024.

在規劃 2024 年時，重要的是要考慮 2023 年的營運資本時機效益，以及我們保留全年股息和全年利息支出的事實，這使我對 2024 年的前景有所了解。

First, I want to echo Thibaut's point that we have strong conviction in our ability to execute our plan for the year. We have a clear strategy in place. And in 2024, we are focused on reaching more consumers, optimizing the way we work, to invest behind our brands and rewarding performance and impact. We will drive efficiencies through further investments in supply chain, technology and a recently implemented integrated business planning process. We will then redeploy the dollars generated from these operating efficiencies into consumer-facing brand support. Volume growth and market share capture will be of particular focus for this incremental investment. And finally, we will accelerate the exits of TSAs, establishing a new operating infrastructure that meets our needs as an independent company.

首先，我想重申Thibaut的觀點：我們堅信有能力執行今年的計畫。我們制定了清晰的戰略。 2024年，我們將專注於觸達更多消費者，優化工作方式，增加對品牌的投資，並獎勵績效和影響力。我們將透過進一步投資供應鏈、技術和最近實施的整合業務規劃流程來提高效率。之後，我們將把這些營運效率提升帶來的資金重新部署到面向消費者的品牌支援上。此次增量投資將特別關注銷售成長和市佔率提升。最後，我們將加快TSA的退出，建立新的營運基礎設施，以滿足我們作為獨立公司的需求。

In summary, it will be a year focused on enhanced engagement with consumers, while continuing our transition to a truly stand-alone entity. In 2024, we expect to achieve organic growth in the range of 2% to 4%. We expect quarterly organic sales growth to improve sequentially as we progress through the year and as compared to this, and impacts on the strategic initiatives that Thibaut outlined begin to materialize. We expect certain headwinds to continue in the first half of 2024, such as a lower flu season versus last year.

總而言之，我們將專注於加強與消費者的互動，同時繼續向真正獨立的實體轉型。 2024年，我們預計將實現2%至4%的有機成長。我們預計，隨著全年的推進，季度有機銷售成長將環比提升，Thibaut所概述的策略舉措也將開始顯現。我們預計2024年上半年仍將面臨一些不利因素，例如流感季的客流量較去年同期下降。

Softness in China and persistent impact of in-store issues with our Skin Health and Beauty portfolio. However, as we accelerate investment behind our brands, particularly focused on in-store presence and prominence, enhancing consumer engagement and amplifying innovation, we expect to see growth accelerate as these actions begin to have more of an impact in the second half of the year.

中國市場疲軟，以及我們皮膚健康和美容產品組合店內問題的持續影響。然而，隨著我們加快對品牌的投資，尤其註重提升店內影響力和知名度、增強消費者參與度以及加大創新力度，我們預計這些舉措將在下半年產生更大影響，屆時增長將加速。

We also think it's prudent to acknowledge that 2024 could be another volatile year as economic and geopolitical headlines impact consumer confidence. The lower end of our guidance reflects the potential for a weaker consumer and the possibility for all knowns in our seasonal businesses.

我們也認為，鑑於經濟和地緣政治新聞會影響消費者信心，2024年可能又是一個動盪的年份，這一點值得謹慎看待。我們預期的下限反映了消費者信心可能會走弱，以及我們季節性業務中所有已知因素可能出現的情況。

Looking to the first quarter, we expect organic growth to be about flat. While we don't plan to guide quarterly as part of our normal practice, given the outsized performance in the first quarter of 2023, which benefited from nonrecurring retailer inventory rebuilds, combined with a strong cold, cough and flu season, we thought it would be helpful to provide perspective on Q1.

展望第一季度，我們預計有機成長將基本持平。雖然我們通常不打算發布季度業績指引，但考慮到2023年第一季的出色表現（受益於非經常性零售商庫存重建，加上強勁的感冒、咳嗽和流感季），我們認為提供對第一季的展望將有所幫助。

Moving down the P&L. We expect to maintain a healthy gross margin profile, with adjusted gross profit margin expected to be closer to 2021 levels. We expect adjusted operating income margin to be slightly below last year. While the operating efficiency we spoke about begin to materialize, partially offsetting the increased investment in our brands that includes an approximately 15% increase in our marketing spend as well as the absorption of a full year of public company costs.

損益表方面，我們預期毛利率將保持健康，調整後毛利率預計將接近2021年的水準。我們預計調整後的營業利潤率將略低於去年。我們先前提到的營運效率正在逐漸顯現，這部分抵消了我們品牌投資的增加，其中包括約15%的行銷支出成長以及全年上市公司成本的吸收。

Regarding other guidance items and EPS. At current spot rates, we expect translational foreign currency impact of about 1 point to reported net sales. We expect net interest expense to be approximately $400 million, evenly split across quarters. We expect an adjusted tax rate of 25.5% to 26.5%, which reflects the changes in tax loss, primarily the enactment of Pillar 2 legislation adopting the OECD's global minimum tax.

關於其他指引項目和每股盈餘。以目前即期匯率計算，我們預期外幣折算對報告淨銷售額的影響約為1個百分點。我們預計淨利息支出約4億美元，將平均分攤至各季度。我們預計調整後的稅率為25.5%至26.5%，這反映了稅收損失的變化，主要是第二支柱立法的頒布，該立法採用了經合組織(OECD)的全球最低稅率。

Regarding EPS, assuming a full year 2024 weighted average share count of 1.92 billion shares, we expect adjusted earnings per share to be in the range of $1.10 to $1.20. This range assumes about a $0.04 foreign exchange headwind based on current rates.

關於每股盈餘，假設2024年全年加權平均股數為19.2億股，我們預期調整後每股盈餘將在1.10美元至1.20美元之間。此區間假設根據目前匯率，外匯逆風約為0.04美元。

To show a comparable view across years, we have included a slide in our presentation that outlines a rebased starting point for 2024. In other words, a like-for-like view as we've been a public company for the entirety of 2023. This rebased view includes a full year of public company costs, a full year of interest expense and a normalized tax rate and share count. At the midpoint, our earnings per share guidance is about flat when comparing to the rebased 2023 adjusted diluted EPS.

為了展示不同年份的可比性，我們在簡報中加入了一張投影片，概述了2024年重新調整後的起點。換句話說，這是一個同比視角，因為我們在2023年全年都是上市公司。這項重新調整後的視角包含了全年上市公司成本、全年利息支出以及標準化稅率和股份數量。在中間點，我們的每股盈餘預期與重新調整後的2023年調整後稀釋每股盈餘基本持平。

In closing, we are proud of what we have achieved in our first year of Kenvue, while also acknowledging challenges in our Skin Health and Beauty business that we have plans in place to improve. As for 2024, our priorities are reaching more consumers, freeing up resources to invest behind our brands and fostering a culture that rewards performance and the impact. Thank you.

最後，我們為 Kenvue 成立第一年所取得的成就感到自豪，同時也承認皮膚健康和美容業務面臨挑戰，並已製定計劃加以改進。展望 2024 年，我們的首要任務是觸達更多消費者，釋放資源用於投資我們的品牌，並培養獎勵績效和影響力的文化。謝謝。

And with that, we'll take your questions.

接下來，我們將回答您的問題。

(Operator Instructions) Our first question comes from the line of Stephen Powers of Deutsche Bank.

（操作員指示）我們的第一個問題來自德意志銀行的史蒂芬鮑爾斯。

Maybe I can start, just on the top line. I think just given the momentum we have exiting '23, I think some people could look at the call for flat organic in the first quarter, given the comparisons as ambitious and also the 2% to 4% for the full year is potentially ambitious.

我先從營收說起。考慮到我們2023年即將結束的勢頭，我認為有些人可能會認為第一季有機成長率持平的預期是雄心勃勃的，而且全年2%到4%的成長率也可能是雄心勃勃的。

So maybe just a little bit more color on your visibility to that organic forecast and some of the building blocks that we should be looking for as we get into the year.

因此，也許您可以更詳細地了解有機預測的可見性，以及我們在進入新的一年時應該尋找的一些基本要素。

Yes, sure. Steve, Regarding your question on the top line and our ambitions for 2024. We continue to see our categories growing 3% to 4% in '24 and beyond. Our guidance for 2024 reflects a range of scenarios. It does embed a sequential improvement as we move through the year and as we lap the unusual compares of 2023 that we talked about, but also the fact that we expect our increased investment and the plans that I outlined earlier, generate impact, especially in the second half of the year.

是的，當然。史蒂夫，關於你關於營收和2024年目標的問題，我們預計我們的產品類別在2024年及以後將持續成長3%至4%。我們對2024年的預期反映了一系列情境。它確實體現了我們全年業績的持續改善，也反映了我們之前提到的與2023年不同尋常的業績對比。此外，我們預計增加的投資以及我之前概述的計劃將產生影響，尤其是在下半年。

So that's what makes us confident in our plan for the year. But we also think it's prudent to acknowledge some of the dynamics at play in 2024, and that's why our guidance also contemplates certain headwinds that could materialize, such as further softness in China, the time it will take to improve in-store execution in Skin as well as the possibility for (inaudible) seasonal businesses. But I reiterate that we are confident in our plans for the year.

正因如此，我們對今年的計畫充滿信心。但我們也認為，謹慎地承認2024年的一些動態因素是必要的，因此我們的業績指引也考慮了可能出現的一些不利因素，例如中國市場經濟的進一步疲軟、改善護膚品店內執行力所需的時間，以及（聽不清楚）季節性業務的可能性。但我重申，我們對今年的計畫充滿信心。

Okay. Very good, very good. And then maybe this is for Paul on the margin forecast. I guess just some clarifications. The press release talked about the strong gross margin outlook that you talked about just a few minutes ago as well. And then -- but it contemplates 50 basis points of FX headwinds.

好的。非常好，非常好。接下來，也許這是保羅關於利潤率預測的問題。我想只是一些澄清。新聞稿中提到了強勁的毛利率前景，你幾分鐘前也提到了這一點。但是——它考慮了50個基點的外匯不利因素。

I just wanted to clarify, is that 50 basis points all within SG&A? And if maybe you can give some color as to the drivers of that transactional headwind in SG&A, number one? And number two, you talked about year-over-year rates of increase in advertising. I'm just -- I guess I'm a little curious as to where we finished '23.

我只是想澄清一下，這50個基點是全部包含在銷售、一般及行政費用（SG&A）中嗎？您能否解釋一下銷售、一般及行政費用（SG&A）中交易逆風的驅動因素？第一，您提到了廣告費用的年成長率。我只是有點好奇，我們23年的業績如何？

I don't know if you can -- I'm sure it's going to be in the K, but maybe just give a little color on where advertising finished as a percentage of sales in '23 and how you expect that to trend into '24?

我不知道您是否可以——我確信它會在 K 中，但也許您可以稍微說明一下 23 年廣告佔銷售額的百分比，以及您預計 24 年的趨勢如何？

In regards to your first part of the question, yes, we are very pleased with our gross margin trajectory. As you know, and Thibaut mentioned, we have developed a muscle in terms of continued sustained gross profit margin enhancement. And the FX that I talked about is embedded in gross margin and also in SG&A, but primarily in gross margin.

關於您問題的第一部分，是的，我們對毛利率走勢非常滿意。如您所知，Thibaut也提到過，我們在持續提升毛利率方面已經取得了長足的進步。我之前提到的外匯影響已經包含在毛利率和銷售、一般及行政費用（SG&A）中，但主要還是包含在毛利率中。

To your second question, year-over-year rates of advertising, we will disclose advertising in our K. Advertising year-over-year versus '22 was slightly down. But I can tell you that we have very strong plans to increase our advertising. I mentioned 15%, where approximately $300 million more that will seal the progressive growth enhancement that Thibaut talked about.

關於您的第二個問題，廣告費用較去年同期上漲率，我們將在K線圖中揭露。與2022年相比，廣告費用較去年同期略有下降。但我可以告訴您，我們有非常強勁的計劃來增加廣告費用。我提到了15%的增幅，這意味著大約3億美元的額外支出將確保Thibaut所說的漸進式成長。

Our next question comes from the line of Anna Lizzul of Bank of America.

我們的下一個問題來自美國銀行的 Anna Lizzul。

I wanted to ask on Q4 Skin Health and Beauty. I know you said the volume weakness was mostly driven by the U.S. But can you be more specific on how much of the weakness was driven by China on Dr. Di:Labo? And are you expecting this to recover in Q1 in terms of your guidance?

我想問一下第四季皮膚健康和美容產品銷售的問題。我知道您說過銷量疲軟主要是受美國市場影響。但您能否更具體地說明，Dr. Di:Labo 的銷量疲軟在多大程度上是由中國市場造成的？您是否預期該品牌的銷售量會在第一季回升，並給出您的預期？

And then also in the U.S., on Skin Health and Beauty, in Q3, you had highlighted some innovation in Sun Care for Neutrogena, which helped last quarter that volumes saw a significant deceleration here in Q4. So in terms of the recovery in disruption, where are you at in your conversations with retailers?

此外，在美國，關於皮膚健康和美容，您在第三季度重點介紹了露得清防曬產品的一些創新，這在一定程度上幫助公司上個季度的銷量在第四季度大幅下降。那麼，就市場波動帶來的復甦而言，您與零售商的溝通進度如何？

So let me answer your question on skin health and where -- what do we see in China and the U.S. So in China, we saw a weak demand for our brands, especially Dr. Ci:Labo, due to PR issues that you are familiar with.

那麼讓我來回答您關於皮膚健康的問題，以及我們在中國和美國看到了什麼。在中國，由於您熟悉的公關問題，我們發現我們的品牌需求疲軟，尤其是城野醫生。

We believe that these PR issues are dissipating as we speak. But we are going to be thoughtful about continuing to monitor how the categories are doing, how the consumer sentiment is going in China. And while we are going to see gradual recovery in '24, we are not contemplating in our guidance a strong recovery, especially in the first half of the year in our Skin Care brands in China.

我們相信，這些公關問題正逐漸消散。但我們會謹慎地持續關注各品類的表現，以及中國消費者的情緒。雖然我們將在2024年看到逐步復甦，但我們的預期並未包含強勁復甦，尤其是在上半年，我們在中國護膚品牌的業績不會強勁復甦。

I remind you that China is about 7% of our revenue as a total company, but we have our total portfolio represented in China, and Skin Health is not the largest part of our portfolio in China.

我提醒您，中國市場約占我們公司總收入的 7%，但我們的全部產品組合都在中國，而皮膚健康並不是我們在中國產品組合中最大的部分。

Regarding the U.S., we had an ambitious recovery plan in Q4. And as I said in my prepared remarks, we -- the outcome of this plan was not what we expected. What's good is that we understand exactly what is going on. Our brands are healthy. Neutrogena, for example, is -- has a very high penetration in the U.S. Online sales are doing well. We grew double digit on Amazon with a brand like Neutrogena, for example. So what we really need to improve is execution, and Jan and his team are laser-focused on improving this execution.

關於美國市場，我們在第四季制定了一項雄心勃勃的復甦計畫。正如我在準備好的演講中所說，該計劃的結果並不如預期。值得慶幸的是，我們清楚地了解情況。我們的品牌表現良好。例如，露得清在美國擁有很高的滲透率。線上銷售表現良好。例如，我們在亞馬遜上憑藉露得清等品牌實現了兩位數的成長。因此，我們真正需要改進的是執行力，而Jan和他的團隊正全心全意地致力於改善執行力。

And it's going to be broad-based. It goes beyond just distribution, but it starts with our in-store presence and prominence. And here, I'm talking about better on-shelf execution, increasing displays, increasing fixtures, updating the packaging where needed to make our range easier to shop, making sure that we have the price pack architecture everywhere and ultimately, making it easier for our customers or for our consumers to shop in-store for their needs.

這項改革將涵蓋廣泛。它不僅涉及分銷，而是從提升我們的店內形象和知名度開始。在這裡，我指的是更好的貨架執行，增加陳列、增加固定裝置，並在需要時更新包裝，以便更方便地購買我們的產品，確保我們擁有統一的價格包裝架構，最終讓我們的顧客或消費者能夠更輕鬆地在店內購買他們所需的產品。

It's also about engaging with consumers in a bigger way than what we did in 2023. We have industry-leading ROI on the advertising. So really '24 is about increasing the reach and frequency of our engagement activities -- brand activation activities with both consumer and health care professionals. We are going to put more products in their hands, think about samples, because we know that once they try our product, they'll love them.

這也意味著我們將以比2023年更大的規模與消費者互動。我們的廣告投資報酬率在業界領先。因此，2024年的真正重點是提升我們互動活動的覆蓋率和頻率—與消費者和醫療保健專業人士進行品牌活化活動。我們將向他們提供更多產品，例如試用裝，因為我們知道，一旦他們嘗試了我們的產品，他們就會愛上它。

And lastly, we will deploy innovation at a bigger scale, amplifying our 2023 programs, and we are excited about what we have in the plan for 2024 in terms of innovation. And retailers are excited about it as well.

最後，我們將更大規模地部署創新，擴大我們2023年的計畫。我們對2024年的創新計畫感到興奮不已。零售商們也對此感到興奮。

So it's -- in a nutshell, it's a heightened focused -- a heightened focus, more precision around execution, more presence with consumers, amplified innovation. As I said, it's not going to happen overnight. The recovery will not be linear, but we are confident that this stronger plan will help stabilize the business. And with, again, a higher level of precision in execution, we expect growth to -- in '24 to definitely be ahead of '23.

簡言之，就是更專注，更精準執行，更貼近消費者，並增強創新。正如我所說，這不會一蹴可幾。復甦不會是直線性的，但我們相信，這項更強有力的計畫將有助於穩定業務。而且，憑藉更高水準的精準執行，我們預期2024年的成長肯定會超過2023年。

Great. That's super helpful. And if I can ask a follow-up on health care. In Q4, just outside of cold, cough and flu, could you comment on the rest of the portfolio? I think you had mentioned last quarter you were seeing some gains in your other categories. So I was wondering if there are some bright spots there? Or if they were also somewhat of a drag in the quarter?

太好了。這太有幫助了。請問您能否繼續問一下醫療保健方面的問題？第四季度，除了感冒、咳嗽和流感產品之外，您能否評論一下其他產品組合？我記得您上個季度提到過，其他產品類別也取得了一些成長。所以我想知道這方面是否有一些亮點？或者它們在本季是否也造成了一些拖累？

Yes, it's a great question because we talk a lot about the season and Paul described very well the dynamics there and how pleased we are with our performance during the season, but the strength of our leadership position doesn't happen by accident. It's an outcome of a lot of work that permits throughout the entire Self Care portfolio, and that's true for analgesics, but it's also true for allergy, for digestive health, for smoking cessation.

是的，這個問題問得很好，因為我們經常談論這個賽季，保羅也很好地描述了賽季的動態，以及我們對賽季表現的滿意程度。但我們的領先地位並非偶然。這是整個自我照護產品組合中大量工作的成果，這不僅體現在鎮痛藥領域，也體現在過敏、消化健康和戒菸領域。

And in these other areas of the business, we are very pleased with our performance. We see continued performance in smoking cessation, good performance in digestive health. Allergy, while we had lower incidences, strong share gains or innovation like Zyrtec chewables continues to do very well. So our strong performance in Self Care is broad-based across the portfolio.

在其他業務領域，我們對業績非常滿意。戒菸領域持續表現良好，消化健康領域也表現良好。過敏領域，雖然發病率較低，但市佔率強勁成長，像Zyrtec咀嚼片這樣的創新產品也持續表現良好。因此，我們在個人護理領域的強勁表現涵蓋了整個產品組合。

Our next question comes from the line of Andrea Teixeira of JPMorgan.

我們的下一個問題來自摩根大通的 Andrea Teixeira。

I have a question and a follow-up. Thibaut, can you elaborate more on the time of the displays? You just mentioned the fixtures and the shelf space recovery in the U.S., in particular, ahead of the spring I heard that a large retailer is probably moving some of the beauty resets into the summer.

我有個問題想跟進一下。 Thibaut，您能詳細說說展示時間嗎？您剛才提到了美國的貨架空間和貨架空間的恢復，尤其是在春季來臨之前。我聽說一家大型零售商可能會把一些美妝產品的重置時間安排到夏季。

Is that impacting your expectations, number one? And number two, like you had mentioned you're seeing progress throughout the year, which obviously has to do also with the comps. But is it fair to assume flat to slightly negative Q1 or first half of the year for organic turning positive potential inflecting in Q2? And then the second half of the year is where we should be able to see significant progress on that?

第一，這會影響您的預期嗎？第二，正如您所提到的，您看到全年都在取得進展，這顯然也與可比銷售額有關。但是，假設第一季或上半年的自然收入持平或略微下降，在第二季轉為正成長，這樣合理嗎？那麼，下半年我們應該可以看到顯著的進展嗎？

And a follow-up, in terms of the shipments against consumption on POS, I know it's hard to really focus on Nielsen, but unfortunately, that's what we can see in terms of consumption. Should investors expect that, that track channel data will remain weak for most of the first half of the year and should start to see better trends towards June and July, given the reset?

接下來，關於POS機出貨量與消費量的關係，我知道很難真正關注尼爾森的數據，但不幸的是，我們在消費方面只能看到這些。投資人是否應該預期，追蹤通路數據在上半年大部分時間仍將保持疲軟，而考慮到數據重置，6月和7月應該會開始出現好轉趨勢？

Are you confident that with the innovation that you called upon all the work that you have done to simplify the SKUs and also lapping those SKU simplifications, which is probably going to be a tailwind, all else equal? So should we be seeing slightly better than progress as you look in the first quarter against fourth quarter?

您是否相信，在其他條件相同的情況下，您為簡化SKU所做的所有工作，以及SKU簡化工作，都可能帶來順風效應？您是否相信，第一季的進展應該會比第四季略好？

That's a big question, Andrea. So -- and it's an important one. So let me unpack your question in terms of phasing in what we would -- what we plan to see unfolding in Skin Health and Beauty for the year.

安德里亞，這個問題很大。所以——而且很重要。那麼，讓我來解釋一下你的問題，關於今年我們計劃在皮膚健康和美容領域開展哪些分階段的工作。

First of all, I think the way you are describing the year is directionally correct. We are not guiding by segment, by quarter. But I think the way to describe the phasing throughout the year is directionally correct and in line with the way we see it.

首先，我認為您描述今年的方針是正確的。我們不是按部門或季度來製定指導方針。但我認為，描述全年分階段發展的方式方向正確，也符合我們的預期。

Given the noise you have in the comps, you talked about the impact of discontinuation, the suspension of our sales in Russia in the first half of the year, these are going to be tailwinds for -- in terms of growth rate, but we have headwinds like, for example, in Q1, the large replenishments we saw in retailer inventory once we got out of the majority of our supply chain issue in the back half of '22. That's going to be a headwind for us.

考慮到您在可比較數據中遇到的噪音，您談到了停產的影響，以及上半年我們在俄羅斯的銷售暫停，這些對於增長率來說將是順風，但我們也面臨阻力，例如在第一季度，我們在2022年下半年擺脫了大部分供應鏈問題後，零售商的庫存出現了大量補貨。這對我們來說將是一個阻力。

So if -- but if you exclude these comp dynamics, what we are laser-focused as an organization is deploying the plan that I just highlighted, and making sure that we execute with precision. That does include the stronger presence in-store, but that also includes amplifying our reach to consumers and health care professionals.

所以，如果撇開這些公司動態不談，我們作為一個組織，最關注的就是部署我剛才強調的計劃，並確保精準執行。這不僅包括加強店內影響力，還包括擴大我們對消費者和醫療保健專業人士的覆蓋範圍。

And so that's where you will have different phasing of the impact of these different aspects of the plan throughout the year. I can tell you that we are executing our higher investment plan in terms of media as of January. So you will see a lag, as we all know, between the spend in advertising and the consumption that has already started in terms of in-store activation that will happen throughout the year depending on the rhythm each retailer has.

因此，該計劃不同方面的影響將在全年不同階段顯現。我可以告訴您，我們從一月開始執行更高的媒體投資計畫。因此，正如我們所知，廣告支出與已經開始的店內激活消費之間存在滯後，而店內激活消費將在全年持續發生，具體取決於每個零售商的節奏。

So we are laser-focused on executing these building blocks. You also mentioned that we are doing very well online, where the brand experience is very strong, and we grew the brand, like Neutrogena, double digit. That's something that is not easy for you to track, but that continues to be a source of strength for us. And so we are laser-focused on the tracked channel, if you will, which is what you see and which is where we have the biggest area for improvement.

因此，我們正全心全意地執行這些基石。您也提到，我們的線上業務表現非常出色，品牌體驗非常出色，像露得清這樣的品牌也實現了兩位數的成長。這對您來說並非易事，但這始終是我們的力量來源。因此，我們正全心全意地關注可追蹤的管道，也就是您所看到的，也是我們最有改進空間的領域。

And then that's helpful. If I can squeeze one question for Paul in terms of like the cadence for gross margin. You did call out the TSA/TMA phasing, and I understand it's about $100 million potential savings. Is that fully included in potentially the second half? Should we think about, okay, part of it be impacted in this outlook for operating margin being flattish given all the investments that you're making?

這很有幫助。我可以問保羅一個關於毛利率變化節奏的問題嗎？您確實提到了運輸安全管理局（TSA）和運輸管理管理局（TMA）的分階段實施，我知道這大約可以節省1億美元。這筆費用會完全計入下半年嗎？考慮到您進行的所有投資，我們是否應該考慮，在營業利潤率持平的預期中，這筆費用會部分受到影響？

So in other words, whatever you gain this year is going to be reinvested into marketing, and the 15% that you called out in A&P. And then you're still going to have more benefit into 2025. Is that the way we should be thinking?

換句話說，今年你賺的錢都會重新投入行銷中，包括你之前提到的廣告和宣傳的15%。這樣到2025年，你仍然會獲得更多收益。我們該這樣想嗎？

Yes, directionally correct, Andrea. Thank you for your question. As you know, gross margin is the result of several elements, including value realization. We have about 60% of the value realization as a carryover from last year, and we will take surgical pricing in addition to another 40%. So that's one in addition to premiumization and mix, and also the efficiency that we talked about.

是的，方向正確，安德里亞。謝謝你的提問。如你所知，毛利率是由多種因素共同決定的，其中包括價值實現。我們約有60%的價值實現是去年結轉的，此外，我們還將考慮手術定價，這還不包括40%。所以，除了高端化、產品組合以及我們之前提到的效率之外，這還需要考慮其他因素。

In addition, of course, you have the inflation and ForEx impact. Inflation is still positive, but it's coming down. So you will see a progression to contribution to gross margin enhancement in terms of that inflation. We're exiting TSAs as we speak. Day by day, we're talking about hundreds of TSAs, and that impact both our gross profit line and also our operating income line, and those are spread throughout the year, where you will be seeing is the investment starting right out of the gate.

此外，當然還有通貨膨脹和外匯的影響。通貨膨脹率仍然為正，但正在下降。因此，你會看到通貨膨脹對毛利率提升的貢獻逐步顯現。我們正在逐步退出TSA。我們每天都在談論數百個TSA，這不僅影響我們的毛利，也影響我們的營業收入，而且這些TSA貫穿全年，你會看到投資從一開始就開始了。

Some of that will take -- will bear fruits later, if it's more equity advertising or promotional spend will deliver the benefits in the shorter term. So that's how we see the cadence. So it's definitely more of a -- it's a balance with an enhancement towards the second half, and we intend to continue that into 2025. When going into '25, but that philosophy of heightened investment should continue beyond '24.

如果更多的股權廣告或促銷支出能在短期內帶來效益，其中一些措施將在後期見效。這就是我們對節奏的看法。因此，這絕對是一種平衡，下半年會有所增強，我們打算將這種策略延續到2025年。雖然我們即將進入2025年，但這種加大投資的理念應該會延續到2024年以後。

Our next question comes from the line of Filippo Falorni of Citi.

我們的下一個問題來自花旗銀行的 Filippo Falorni。

I wanted to go back to the question on marketing investment. I think the initial plan was to spend more in 2023. But I think, Paul, you said advertising was slightly down in 2023. So maybe what drove, I guess, the decline?

我想回到關於行銷投資的問題。我認為最初的計劃是在2023年增加支出。但保羅，你說2023年的廣告支出略有下降。那麼，我想，是什麼導致了這種下降呢？

And then as you think about the investment into 2024, can you give us a little bit more concrete examples of where you're spending the advertising by product, by category and your expected ROI on those investments?

然後，當您考慮 2024 年的投資時，您能否給我們一些更具體的例子，說明您按產品、按類別在哪些方面投入了廣告費用，以及這些投資的預期投資回報率？

Yes. Let me start with the first part of the question, and maybe I'll turn it over to Thibaut for your second one.

是的。我先回答問題的第一部分，之後我可能會把第二部分交給Thibaut。

Particularly, the investment in advertising, yes, was slightly down year-over-year, and that was primarily the result of a reduction in Asia Pacific, where we did not see investable propositions in towards the back half of the year.

特別是廣告投資，與去年同期相比略有下降，這主要是由於亞太地區的投資減少，我們在下半年沒有看到可投資的提議。

But looking into 2024, investing in our brand is a key priority to fulfill the growth. I mentioned approximately 15% is about $300 million more. We want to start out of the gate. And the most important thing is our philosophy of maximizing ROI is what we're going after. And that it will be applied to all the categories as long as we see those investable propositions, and we maximize ROI across the portfolio. Thibaut, anything you want to add?

但展望2024年，投資我們的品牌是實現成長的關鍵優先事項。我提到過，大約15%的成長意味著3億美元。我們希望從一開始就有所作為。最重要的是，我們追求的是最大化投資報酬率的理念。只要我們看到那些可投資的方案，我們就會將這個理念應用於所有類別，並最大化整個投資組合的投資報酬率。 Thibaut，您還有什麼要補充的嗎？

Yes. And Filippo, this additional -- this overall investment is broad-based to activate our brands with consumers and with health care professionals. So I remind you that our advertising line only captures part of our investment to activate brands as everything that's related to health care professional engagement is not reflected in that line.

是的。 Filippo，這筆額外的——這筆整體投資是廣泛的，旨在激活我們與消費者和醫療保健專業人士的品牌。所以我提醒你，我們的廣告業務只涵蓋了我們用於激活品牌的部分投資，因為與醫療保健專業人士參與相關的所有內容都沒有反映在這項業務中。

In 2024, we are going to increase our investment in both areas. And we are going to apply this additional investment across the portfolio, but very focused behind our 15 priority brands that I highlighted in my prepared remarks.

2024年，我們將增加對這兩個領域的投資。這些新增投資將應用於整個產品組合，但重點將集中在我在準備好的演講中強調的15個重點品牌。

So a very focused plan, but with more fuel behind a philosophy that Paul highlighted of extremely high ROI. We have I believe, industry-leading ROIs on our marketing investment. These are the capabilities that we have developed over the years with state-of-the-art analytics systems and capabilities.

所以這是一個非常有針對性的計劃，但更注重的是Paul強調的極高投資報酬率的理念。我相信，我們的行銷投資報酬率在業界處於領先地位。這些能力是我們多年來憑藉先進的分析系統和能力累積的。

So we intend to continue to use this disciplined approach to deploy a higher level of dollars. And so that's, once again, what makes us confident in our ability to deliver the plan we outlined this year.

因此，我們打算繼續採用這種嚴謹的方法來部署更多資金。這再次讓我們對實現今年制定的計劃充滿信心。

Got it. And then if I can follow up quickly on the Skin Health and Beauty segment. That is a segment that has been underperforming over the last couple of quarters. You mentioned, obviously, this quarter, the challenges. I guess can you review a little bit more like what are you changing in the way you manage this business? And what gives you the confidence in the improvement as you get through 2024 for Skin Health and Beauty?

明白了。然後我可以快速跟進皮膚健康和美容業務。這個業務在過去幾個季度表現不佳。您顯然提到了本季面臨的挑戰。我想您能否再簡單回顧一下，您在管理這項業務的方式上做了哪些改變？是什麼讓您對2024年皮膚健康和美容業務的改善充滿信心？

Yes, Filippo, what's very clear about Skin Health and Beauty is that the opportunities to improve are really isolated to 2 areas -- 2 important areas, but 2 areas. One is the China market. And the other one is, I would say, in-store performance in the U.S. So our plan is laser focused to improve our performance in these 2 areas, while we continue to fuel growth in the other areas where it's working well, namely Europe and Latin America.

是的，Filippo，關於皮膚健康和美容業務，非常明確的一點是，改進的機會實際上集中在兩個領域——兩個重要的領域，但就是兩個領域。一個是中國市場。另一個，我想說，是美國的店內業績。因此，我們的計劃將專注於提升這兩個領域的業績，同時繼續推動其他表現良好的地區（即歐洲和拉丁美洲）的成長。

So in China, it's not entirely in our hands, and that's why I talked about our position to thoughtfully track how the categories are developing in that market, make sure that we do not invest ahead of the curve to get a strong return. So we are monitoring consumer sentiment.

所以在中國，情況並不完全由我們掌控。這就是為什麼我談到我們的立場，即認真追蹤中國市場各品類的發展情況，確保我們不會為了獲得豐厚回報而提前投資。所以我們正在監測消費者情緒。

And as we see the right conditions for our skin care brand in China, we will invest appropriately. In the U.S. in-store, what's different in '23 -- in '24 compared to '23 is a higher level of precision in the execution, the heightened focus. I can tell you that many people in the organization are focused on this plan.

當我們發現我們護膚品牌在中國的條件合適時，我們會進行適當的投資。在美國門市，2023年和2024年與2023年相比，不同的是執行的精準度更高，重點也更加突出。我可以告訴你，公司裡很多人都專注於這個計畫。

The plan that Jan, our new leader for North America, and his team, with the support of the entire organization have put together and started executing as we speak, is very precise, and this heightened focus, increased level of precision and higher level of investment. Again, we would expect this to deliver stronger results, especially in the back half of the year.

我們北美新任負責人Jan及其團隊在全公司支持下制定並已開始執行的計劃非常精準，而且更加註重重點、更加精準，並加大了投資力度。我們再次期待該計劃能帶來更強勁的業績，尤其是在下半年。

It's not going to happen overnight. But over time, we are confident that we are going to see the full potential of our brands being unleashed in that market.

這並非一朝一夕就能實現。但隨著時間的推移，我們相信，我們品牌的潛力將在這個市場中充分釋放。

Our next question comes from Susan Anderson of Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Susan Anderson。

Alec Legg for Susan. But on the gross margin, you said you expect it to get to fiscal '21 levels. I guess, what are the key drivers of those gains in fiscal '24 versus '21? And how should we think about how that progresses through the year?

蘇珊，Alec Legg。但是關於毛利率，您說您預計它會達到21財年的水平。我想問一下，24財年與21財年相比，毛利率成長的主要驅動因素是什麼？我們該如何看待毛利率在今年的趨勢？

Thank you, Alec. And it's a great question, and one that I'm happy to talk about because this is an area of strength for Kenvue. And we've been on this journey of increasing our margins and enhancing our margins through a complete suite of levers that include value realization and efficiencies throughout the value chain since 2019.

謝謝，Alec。這個問題問得很好，我很樂意談論，因為這是Kenvue的優勢領域。自2019年以來，我們一直致力於透過一系列措施來提高利潤率，包括價值實現和整個價值鏈的效率。

I would actually say that we are managing our gross margin profile in a very competitive way. And I would say, above average compared to our industry peers. If you think about the dynamics of the balance of the year, I would continue to see all those things: continued value realization, mix management, premiumization.

實際上，我想說的是，我們的毛利率管理非常有競爭力。而且，我認為，我們的毛利率高於業內同業的平均水準。如果你思考今年剩餘時間的動態，我會繼續看到以下這些面向：持續的價值實現、產品組合管理以及高端化。

We are starting to see some of the tailwinds of the inflation now that were previously headwinds. Although we still have ForEx, something that we are mindful of, the efficiencies that we have in place and the discipline that we have in terms of managing that value chain will allow us to continue to -- in this journey of driving gross margin enhancement.

我們現在開始看到一些通膨帶來的順風，而之前這些順風曾經是逆風。雖然我們仍然專注於外匯業務，但我們現有的效率以及在管理價值鏈方面的紀律將使我們能夠繼續推進毛利率提升。

And then potentially a quick follow-up. Are you able to comment on the Acetaminophen lawsuit? It seems like the judge had a positive ruling for the defendants.

然後可能還有個快速的後續問題。您能評論一下對乙醯氨基酚的訴訟嗎？看起來法官對被告做出了積極的裁決。

Yes, we really don't have any update there. We're going through the process to dismiss the MDL.

是的，我們確實沒有任何進展。我們正在進行撤銷MDL的程序。

Our next question comes from the line of Navann Ty of BNP Paribas.

我們的下一個問題來自法國巴黎銀行的 Navann Ty。

So we understand low marketing expense drove the underperformance in the product activation. But was there something else, such as not the right product to play or maybe the packaging, not highlighting enough the health care recommendation would be helpful to know? And what are the right levels of overall SG&A and maybe R&D to address that?

所以，我們理解低行銷費用是導致產品啟動效果不佳的原因。但是否有其他原因，例如產品本身不合適，或者包裝設計不夠，沒有充分突出醫療保健建議，了解這些因素是否有幫助？為了解決這個問題，銷售、行政和管理費用（SG&A）以及研發費用的合理水準應該是多少？

Yes, let me take this one. I think overall, the execution of our recovery plan in the fourth quarter fell short of expectations on the number of elements that I talked about. In a nutshell, it's making sure that our brands are more prominent in store, easier to shop and supported by the appropriate level of engagement activities, both at the consumer and health care professional level.

是的，我來回答這個問題。我認為整體而言，我們在第四季復甦計畫的執行情況，在我提到的許多方面，都未能達到預期。簡而言之，就是要確保我們的品牌在門市中更加突出，更容易購買，並在消費者和醫療保健專業人士層面，獲得適當程度的互動活動的支持。

While all these elements were included in the plan, the level of investment or the precision of the execution was not what we expected, and the outcome was not what we expected.

雖然計劃中包括了所有這些要素，但投資水平或執行的精確度並不像我們預期的那樣，結果也不像我們預期的那樣。

Now lessons learned. This -- all these lessons are included in the buildup of the plan for 2024. And that's why you see us in the U.S., executing a plan that is different from what we had in 2023 in these different dimensions. And so you will see this broad-based activation plan put in place.

現在我們吸取了教訓。所有這些教訓都包含在2024年計劃的製定中。這就是為什麼你會看到我們在美國執行的計劃與2023年的計劃在各個方面都有所不同。因此，你將看到這項基礎廣泛的啟動計畫得以實施。

But I would say, if you think about the 3 priorities I outlined for the company more broadly in 2024, you will see a different Kenvue in 2024 compared to what you saw in 2023. It's going to be our first full year as an independent company. And so you will see, especially our 15 priority brands, being activated at a much higher level in 2024, with strong building blocks across these 15 brands and across 3 segments.

但我想說，如果你更廣泛地思考我為公司2024年概述的三大重點，你會看到2024年的Kenvue與2023年有所不同。這將是我們作為獨立公司的第一個完整年度。因此，你會看到，尤其是我們的15個重點品牌，將在2024年以更高的水平活躍起來，並在這15個品牌和三大細分市場中擁有強大的基石。

You are going to see us being much more agile and moving with speed and urgency to capitalize on all the opportunities we see in the market and unleash the full potential of our portfolio. That requires investment. That investment is going to be fueled by the continued -- and that was accelerated gross profit margin enhancement that Paul referred to.

您將會看到我們變得更加敏捷，行動更加迅速，更加緊迫，以充分利用我們在市場上看到的所有機會，並充分釋放我們產品組合的潛力。這需要投資。而這種投資將由持續的——也就是保羅提到的毛利率加速提升——來推動。

As we exit our TSAs with Johnson & Johnson, it's also an opportunity for us to reinvent the way we work, work faster, better, make it easier for our teams to operate, but also do it at a lower cost base. And this combination of expanded margin and efficiencies in the organization is what's going to fuel this investment and allow us to fuel growth in 2024.

我們與強生公司解除TSA協議，也為我們提供了一個重塑工作方式的機會，讓我們能夠更快、更好地工作，讓團隊更輕鬆地開展工作，同時降低成本。利潤率的提升和組織效率的提升，將進一步推動這項投資，並協助我們在2024年實現成長。

Now the year will be a bit noisy for the -- due to the unusual compares we have in 2023. But if you look at the underlying strength of the business and the building blocks we have to drive growth in 2024 and profitable growth in 2024 and bring our long-term algo to life, we are confident in our plans.

由於 2023 年的情況不同尋常，今年對我們來說會有些吵雜。但如果你看看業務的潛在實力以及我們在 2024 年推動成長和獲利成長的基礎，並實現我們的長期演算法，我們對我們的計畫充滿信心。

Can I ask actually a follow-up on the litigation? If you can discuss at all the next steps to end the litigation?

我可以問一下訴訟的後續狀況嗎？您能討論一下結束訴訟的後續步驟嗎？

Yes, Navann, like I said, there's really not much I can share. We're going through the process. Now that the court has granted our motion to exclude expert testimony, so we're going through the process through -- to allow the court to determine whether the cases are dismissed.

是的，納文，就像我說的，我能分享的真的不多。我們正在走程序。既然法院已經批准了我們排除專家證詞的動議，所以我們正在走程序——讓法院來決定是否駁回這些案件。

Our final question for the day comes from Peter Grom of UBS.

今天的最後一個問題來自瑞銀的彼得·格羅姆 (Peter Grom)。

I guess I had a more conceptual question on the guidance. But over time, we've kind of seen some of your staples tiers that have underperformed from a top line perspective or a share perspective. We kind of rejigger investments to try and fuel growth.

我想我之前問的是一個關於績效指引的概念性問題。但隨著時間的推移，我們發現你們的一些主打產品在營收和市場佔有率方面表現不佳。我們調整了投資策略，試圖刺激成長。

In many cases, that coincides with rebasing earnings to set the company up for a stronger growth, not in the current year, but more in future years. Is that what's going on here? Like has your thought process on the need for investment and innovation evolved versus where we were 6 to 9 months ago? Or has this kind of earnings performance been contemplated for some time?

在許多情況下，這與調整獲利基數，為公司實現更強勁的成長奠定基礎——不是在當前年度，而是在未來幾年。現在的情況是這樣嗎？與6到9個月前相比，您對投資和創新需求的思考過程是否有所演變？或者說，這種獲利表現是經過一段時間的思考後才做出的？

And then I guess just a follow-up to Steve's question earlier on the organic growth, is the flat performance in 1Q a function of weaker category growth and the improvement just as something that the category accelerates? Or is the underlying improvement assuming that your performance relative to the category improved substantially?

然後我想補充史蒂夫之前關於有機成長的問題，第一季業績持平是因為品類成長較弱，而業績改善只是因為品類加速成長嗎？還是說，潛在的改善是假設貴公司相對於品類的績效大幅改善？

Because it would just seem that if you're kind of exiting the year at more mid-single-digit growth, that would imply some pretty decent share gains. So just any color on kind of the share assumptions would be helpful.

因為看起來，如果今年底公司能達到中等個位數的成長，就代表市佔率會有相當不錯的成長。所以，任何關於市場佔有率假設的細節都會有所幫助。

Yes, to answer quickly your Q1 question, Peter. And we have included in our slide deck -- a slide that I think you will helpful as you model '24 with all the puts and takes in the different quarters of 2023.

是的，彼得，我快速回答你第一季的問題。我們在投影片裡放了一張投影片，我認為這張投影片會對你有幫助，因為它可以用來模擬2024年的情況，並展示2023年各季度的收益和收益。

You will see that Q1 has a number of items that are going to make the compares very challenging for us. So it's really about a unique event that happened last year. I talked, for example, about the inventory replenishment, but also the fact that we expect the season to continue to be below last year in -- as we exit the winter, similar to what we have seen in Q4 of 2023. So it's a mix of unique items to what happened at Kenvue last year and a continued lower level of incidence in Q1, similar to what we saw in Q4.

您會發現，第一季有很多專案會為我們的比較帶來很大挑戰。所以這其實與去年發生的一個特殊事件有關。例如，我談到了庫存補充，但也談到了我們預計隨著冬季的結束，本季的產量將繼續低於去年，類似於我們在2023年第四季看到的情況。所以，這與去年Kenvue發生的情況相比，既有獨特的項目，也有第一季持續較低的發生率，類似我們在第四季看到的情況。

To your broader question about whether or not we are changing our philosophy? I would say, commitment to our long-term algorithm is stronger than ever. Our commitment to deliver strong TSR through a 3% to 4% top line growth year-over-year, growing earnings faster than share and having a disciplined capital allocation strategy is what we started deploying in '23. You are going to see -- as we moved through '24 and '25. And also we become fully independent, and exit our transition service agreements with Johnson & Johnson, you are going to see this long-term algorithm brought to life in a meaningful way.

關於你關於公司是否正在改變經營理念的更廣泛問題，我想說的是，我們對長期策略的承諾比以往任何時候都更加堅定。我們致力於透過實現3%至4%的營收年增、獲利成長快於股價成長以及製定嚴謹的資本配置策略來實現強勁的股東總回報，這些承諾都是我們在2023年開始實施的。隨著我們邁入2024年和2025年，你會看到這一切。此外，隨著我們完全獨立，並退出與強生公司的過渡服務協議，你會看到這個長期策略以有意義的方式得以實現。

That -- and that was always the plan to make sure that we exit our TSAs and reinvent our ways of working. So we make it fit for purpose for our company, with ways of working that fit what we need to be successful as Kenvue, but also do it at a low base. And the combination of this lower cost base and the continued improving improvement in gross margin that we have demonstrated our ability to do for years, again in '23, and we're having to do it again in '24, this is what brings a fuel to bring more investment to our brands.

一直以來，我們都會制定計劃，確保退出TSA（交易服務協議），並重塑我們的工作方式。因此，我們會使其更符合公司的目標，採用符合Kenvue成功所需的工作方式，同時保持較低的成本基數。較低的成本基數加上我們多年來持續提升的毛利率（2023年和2024年我們都會再次證明這一點），這些因素共同作用，將為我們的品牌帶來更多投資。

There is no limit to our investment in our brands. We are very disciplined in our approach. We go for a return on investment approach. We believe that we have strong investable propositions in terms of building blocks and activities for '24, as an example. And that's why we feel confident that the higher investment that we mentioned will give us good results in '24 and beyond.

我們對品牌的投資沒有上限。我們行事嚴謹，追求投資報酬。我們相信，就‘24’的基石和活動而言，我們擁有強大的可投資方案。因此，我們相信，我們之前提到的更高額度的投資將在‘24’及以後為我們帶來良好的業績。

Thank you. We have reached the end of our question-and-answer session. I would like to turn the floor back over to Thibaut Mongon, for concluding remarks.

謝謝。我們的問答環節已經結束。我想把發言權交還給Thibaut Mongon，請他做總結發言。

All right. So thank you all for participating on today's call. 2023 was, as we talked about, a transformation for Kenvue. I think we have been very clear about our priorities for 2024, reaching more consumers, investing in our brands and foster a culture that rewards performance and impact.

好的。感謝大家參加今天的電話會議。正如我們之前提到的，2023年是Kenvue的轉型期。我認為我們已經非常明確了2024年的優先事項：觸達更多消費者，投資我們的品牌，並培養一種獎勵績效和影響力的文化。

So we look forward to updating you throughout the year as we continue to advance these efforts. And for now, have a nice day, and thank you again.

因此，我們期待在全年持續推進這些工作的同時，為您提供最新進展。祝您有美好的一天，再次感謝您。

Thank you. This concludes today's conference call. We thank you for your participation. Have a wonderful day. You may disconnect your lines at this time.

謝謝。今天的電話會議到此結束。感謝您的參與。祝您有美好的一天。現在您可以掛斷電話了。