Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
(2) Previously referred to as Medical Devices
(3) Refer to supplemental sales reconciliation schedule
Page 1 of 17
Table 2 - Sales by Geographic
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)
SECOND QUARTER
SIX MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Sales to customers by
geographic area
U.S.
$ 12,197
11,919
2.3
%
2.3
-
$ 23,611
23,030
2.5
%
2.5
-
Europe
6,085
5,668
7.3
20.7
(13.4)
12,109
11,082
9.3
20.1
(10.8)
Western Hemisphere excluding U.S.
1,536
1,367
12.4
14.9
(2.5)
3,018
2,791
8.1
9.9
(1.8)
Asia-Pacific, Africa
4,202
4,358
(3.6)
4.7
(8.3)
8,708
8,730
(0.2)
5.6
(5.8)
International
11,823
11,393
3.8
13.9
(10.1)
23,835
22,603
5.5
13.3
(7.8)
Worldwide
$ 24,020
23,312
3.0
%
8.0
(5.0)
$ 47,446
45,633
4.0
%
7.8
(3.8)
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales
(5) Previously referred to as Medical Devices
Page 8 of 17
Table 3a - Supplemental Sales
Supplemental Sales Reconciliation (Unaudited)
(Dollars in Millions)
SECOND QUARTER
SIX MONTHS
Percent Change
Percent Change
2022
2021
Total
Operations
Currency
2022
2021
Total
Operations
Currency
Pharmaceutical
U.S.
$ 7,159
6,869
4.2
%
4.2
-
$ 13,791
13,315
3.6
%
3.6
-
International
6,158
5,611
9.8
22.1
(12.3)
12,395
11,266
10.0
19.4
(9.4)
Worldwide
13,317
12,480
6.7
12.3
(5.6)
26,186
24,581
6.5
10.8
(4.3)
COVID-19 Vaccine
U.S.
45
51
(11.5)
(11.5)
-
120
151
(20.4)
(20.4)
-
International
499
113
*
*
*
881
113
*
-
*
-
*
Worldwide
544
164
*
*
*
1,001
264
*
-
*
-
*
Pharmaceutical excluding COVID-19 Vaccine
U.S.
7,114
6,818
4.3
4.3
-
13,671
13,164
3.9
3.9
-
International
5,659
5,498
2.9
13.9
(11.0)
11,514
11,153
3.2
11.9
(8.7)
Worldwide
12,773
12,316
3.7
8.6
(4.9)
25,185
24,317
3.6
7.5
(3.9)
Worldwide
U.S.
12,197
11,919
2.3
2.3
-
23,611
23,030
2.5
2.5
-
International
11,823
11,393
3.8
13.9
(10.1)
23,835
22,603
5.5
13.3
(7.8)
Worldwide
24,020
23,312
3.0
8.0
(5.0)
47,446
45,633
4.0
7.8
(3.8)
COVID-19 Vaccine
U.S.
45
51
(11.5)
(11.5)
-
120
151
(20.4)
(20.4)
-
International
499
113
*
*
*
881
113
*
*
*
Worldwide
544
164
*
*
*
1,001
264
*
*
*
Worldwide
U.S.
12,152
11,868
2.4
2.4
-
23,491
22,879
2.7
2.7
-
International
11,324
11,280
0.4
9.8
(9.4)
22,954
22,490
2.1
9.5
(7.4)
Worldwide excluding COVID-19 Vaccine
$ 23,476
23,148
1.4
%
6.0
(4.6)
$ 46,445
45,369
2.4
%
6.1
(3.7)
Note: Columns and rows within tables may not add due to rounding
* Percentage greater than 100% or not meaningful
Page 9 of 17
Table 4 - QTD Earnings
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
SECOND QUARTER
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 24,020
100.0
$ 23,312
100.0
3.0
Cost of products sold
7,919
33.0
7,587
32.5
4.4
Gross Profit
16,101
67.0
15,725
67.5
2.4
Selling, marketing and administrative expenses
6,226
25.9
6,073
26.1
2.5
Research and development expense
3,703
15.4
3,394
14.6
9.1
Interest (income) expense, net
(26)
(0.1)
28
0.1
Other (income) expense, net
273
1.1
(488)
(2.1)
Restructuring
85
0.4
56
0.2
Earnings before provision for taxes on income
5,840
24.3
6,662
28.6
(12.3)
Provision for taxes on income
1,026
4.3
384
1.7
167.2
Net earnings
$ 4,814
20.0
$ 6,278
26.9
(23.3)
Net earnings per share (Diluted)
$ 1.80
$ 2.35
(23.4)
Average shares outstanding (Diluted)
2,667.9
2,671.6
Effective tax rate
17.6
%
5.8
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$ 8,171
34.0
$ 7,776
33.4
5.1
Net earnings
$ 6,912
28.8
$ 6,625
28.4
4.3
Net earnings per share (Diluted)
$ 2.59
$ 2.48
4.4
Effective tax rate
15.4
%
14.8
%
(1) See Reconciliation of Non-GAAP Financial Measures.
Page 10 of 17
Table 5 - YTD Earnings
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures)
SIX MONTHS
2022
2021
Percent
Percent
Percent
Increase
Amount
to Sales
Amount
to Sales
(Decrease)
Sales to customers
$ 47,446
100.0
$ 45,633
100.0
4.0
Cost of products sold
15,517
32.7
14,650
32.1
5.9
Gross Profit
31,929
67.3
30,983
67.9
3.1
Selling, marketing and administrative expenses
12,164
25.6
11,505
25.2
5.7
Research and development expense
7,165
15.1
6,572
14.4
9.0
In-process research and development
610
1.3
-0
-0
Interest (income) expense, net
(38)
(0.1)
76
0.2
Other (income) expense, net
171
0.4
(1,370)
(3.0)
Restructuring
155
0.3
109
0.2
Earnings before provision for taxes on income
11,702
24.7
14,091
30.9
(17.0)
Provision for taxes on income
1,739
3.7
1,616
3.6
7.6
Net earnings
$ 9,963
21.0
$ 12,475
27.3
(20.1)
Net earnings per share (Diluted)
$ 3.73
$ 4.67
(20.1)
Average shares outstanding (Diluted)
2,669.2
2,674.0
Effective tax rate
14.9
%
11.5
%
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income
$ 16,389
34.5
$ 16,067
35.2
2.0
Net earnings
$ 14,041
29.6
$ 13,549
29.7
3.6
Net earnings per share (Diluted)
$ 5.26
$ 5.07
3.7
Effective tax rate
14.3
%
15.7
%
(1) See Reconciliation of Non-GAAP Financial Measures.
Page 11 of 17
Table 6 - QTD Adj Op Sales
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SECOND QUARTER 2022 ACTUAL vs. 2021 ACTUAL
Segments
Consumer Health
Pharmaceutical
MedTech
Total
WW As Reported
(1.3)%
6.7%
(1.1)%
3.0%
U.S.
(3.6)%
4.2%
1.6%
2.3%
International
0.6%
9.8%
(3.6)%
3.8%
WW Currency
(3.6)
(5.6)
(4.5)
(5.0)
U.S.
-
-
-
-
International
(6.7)
(12.3)
(8.7)
(10.1)
WW Operational
2.3%
12.3%
3.4%
8.0%
U.S.
(3.6)%
4.2%
1.6%
2.3%
International
7.3%
22.1%
5.1%
13.9%
All Other Acquisitions and Divestitures
0.6
0.1
0.0
0.1
U.S.
0.2
0.2
(0.2)
0.1
International
0.8
0.1
0.2
0.3
WW Adjusted Operational
2.9%
12.4%
3.4%
8.1%
U.S.
(3.4)%
4.4%
1.4%
2.4%
International
8.1%
22.2%
5.3%
14.2%
Note: Percentages are based on actual, non-rounded figures and may not sum
Page 12 of 17
Table 7 - YTD Adj Op Sales
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
Adjusted Operational Sales Growth
SIX MONTHS 2022 ACTUAL vs. 2021 ACTUAL
Segments
Consumer Health
Pharmaceutical
MedTech
Total
WW As Reported
(1.4)%
6.5%
2.3%
4.0%
U.S.
(3.5)%
3.6%
3.5%
2.5%
International
0.3%
10.0%
1.2%
5.5%
WW Currency
(3.0)
(4.3)
(3.6)
(3.8)
U.S.
-
-
-
-
International
(5.4)
(9.4)
(6.8)
(7.8)
WW Operational
1.6%
10.8%
5.9%
7.8%
U.S.
(3.5)%
3.6%
3.5%
2.5%
International
5.7%
19.4%
8.0%
13.3%
Skin Health / Beauty
Dr. Ci Labo - Sedona
0.5
0.1
U.S.
0.0
0.0
International
0.9
0.2
All Other Acquisitions and Divestitures
0.1
0.1
0.1
0.1
U.S.
0.2
0.1
(0.1)
0.1
International
0.1
0.0
0.2
0.1
WW Adjusted Operational
2.2%
10.9%
6.0%
8.0%
U.S.
(3.3)%
3.7%
3.4%
2.6%
International
6.7%
19.4%
8.2%
13.6%
Note: Percentages are based on actual, non-rounded figures and may not sum
Page 13 of 17
Table 8 - Adj Earnings
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Second Quarter
Six Months Ended
(Dollars in Millions Except Per Share Data)
2022
2021
2022
2021
Net Earnings, after tax- as reported
$4,814
$6,278
$9,963
$12,475
Pre-tax Adjustments
Intangible Asset Amortization expense
1,095
1,202
2,203
2,417
Litigation related
385
(23)
385
(23)
IPR&D
-
-
610
-
Restructuring related
128
108
200
212
Acquisition, integration and divestiture related ¹
-
14
-
(524)
(Gains)/losses on securities
109
(243)
520
(208)
Medical Device Regulation 2
70
56
130
102
COVID-19 Vaccine related costs 3
276
-
276
-
Consumer Health separation costs
268
-
370
-
Other
-
-
(7)
-
Tax Adjustments
Tax impact on special item adjustments 4
(313)
(135)
(706)
(248)
Consumer Health separation tax related costs
2
-
98
-
Tax legislation and other tax related
78
(632)
(1)
(654)
Adjusted Net Earnings, after tax
$6,912
$6,625
$14,041
$13,549
Average shares outstanding (Diluted)
2,667.9
2,671.6
2,669.2
2,674.0
Adjusted net earnings per share (Diluted)
$2.59
$2.48
$5.26
$5.07
Operational adjusted net earnings per share (Diluted)
$2.75
$5.50
Notes:
1
Acquisition, integration and divestiture related for the six months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.
2
European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company's previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed by the end of 2023.
3
COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's modification of its COVID-19 vaccine research program and manufacturing capacity to levels that meet all customer contractual requirements.
4
The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.
Page 14 of 17
Table 9 - QTD IBT by Segment
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 QTD - Income Before Tax by Segment*
Dollars in Millions
Consumer Health Separation Costs
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment
$
784
866
4,420
4,294
1,141
1,746
(237)
(244)
(268)
- 0
5,840
6,662
% to Sales
20.6%
22.5%
33.2%
34.4%
16.5%
25.0%
-1.0%
-1.0%
-1.1%
0.0%
24.3%
28.6%
Intangible asset amortization expense
100
105
736
842
259
255
- 0
- 0
- 0
- 0
1,095
1,202
In-process research and development
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
Litigation related
78
122
36
(81)
271
(64)
- 0
- 0
- 0
- 0
385
(23)
Loss/(gain) on securities
- 0
(18)
102
(151)
7
(74)
- 0
- 0
- 0
- 0
109
(243)
Restructuring related
25
27
23
17
80
64
- 0
- 0
- 0
- 0
128
108
Acquisition, integration and divestiture related
- 0
- 0
- 0
- 0
- 0
14
- 0
- 0
- 0
- 0
- 0
14
Medical Device Regulation
- 0
- 0
- 0
- 0
70
56
- 0
- 0
- 0
- 0
70
56
COVID-19 Vaccine related costs
- 0
- 0
276
- 0
- 0
- 0
- 0
- 0
- 0
- 0
276
- 0
Consumer Health separation costs
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
268
- 0
268
- 0
Other
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
Adjusted Income Before Tax by Segment
$
987
1,102
5,593
4,921
1,828
1,997
(237)
(244)
- 0
- 0
8,171
7,776
% to Sales
25.9%
28.6%
42.0%
39.4%
26.5%
28.6%
-1.0%
-1.0%
0.0%
0.0%
34.0%
33.4%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 7/19/2022
Page 15 of 17
Table 10 - YTD IBT by Segment
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q2 YTD - Income Before Tax by Segment*
Dollars in Millions
Consumer Health Separation Costs
Consumer Health1
Pharmaceutical1
MedTech
Unallocated
Worldwide Total
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Reported Income Before Tax by Segment
$
1,470
1,708
8,344
9,463
2,618
3,375
(360)
(455)
(370)
- 0
11,702
14,091
% to Sales
19.9%
22.8%
31.9%
38.5%
18.9%
24.9%
-0.8%
-1.0%
-0.8%
0.0%
24.7%
30.9%
Intangible asset amortization expense
194
211
1,496
1,698
513
508
- 0
- 0
- 0
- 0
2,203
2,417
In-process research and development
- 0
- 0
610
- 0
- 0
- 0
- 0
- 0
- 0
- 0
610
- 0
Litigation related
78
122
36
(81)
271
(64)
- 0
- 0
- 0
- 0
385
(23)
Loss/(gain) on securities
0
(20)
496
(114)
24
(74)
- 0
- 0
- 0
- 0
520
(208)
Restructuring related
39
55
9
37
152
120
- 0
- 0
- 0
- 0
200
212
Acquisition, integration and divestiture related
- 0
- 0
- 0
(570)
- 0
46
- 0
- 0
- 0
- 0
- 0
(524)
Medical Device Regulation
- 0
- 0
- 0
- 0
130
102
- 0
- 0
- 0
- 0
130
102
COVID-19 Vaccine related costs
- 0
- 0
276
- 0
- 0
- 0
- 0
- 0
- 0
- 0
276
- 0
Consumer Health separation costs
- 0
- 0
- 0
- 0
- 0
- 0
- 0
- 0
370
- 0
370
- 0
Other
- 0
- 0
- 0
- 0
- 0
- 0
(7)
- 0
- 0
- 0
(7)
- 0
Adjusted Income Before Tax by Segment
$
1,781
2,076
11,267
10,433
3,708
4,013
(367)
(455)
- 0
- 0
16,389
16,067
% to Sales
24.1%
27.7%
43.0%
42.4%
26.7%
29.6%
-0.8%
-1.0%
0.0%
0.0%
34.5%
35.2%
1 Prior year income before tax has been reclassified as Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes
*Estimated as of 7/19/2022
Page 16 of 17
Table 11 - P&L Reconciliation
Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
Quarter to Date
Consumer Health separation tax related costs
Second Quarter
In-process research and development
Acquisition, integration and divestiture related
(Loss)/gain on securities
COVID-19 Vaccine Related Costs
Consumer Health separation costs
Tax legislation and other tax related
Second Quarter
July 3, 2022 GAAP
Intangible asset amortization
Litigation related
Restructuring related
Medical Device Regulation
Other
July 3, 2022 Non-GAAP
Cost of products sold
$ 7,919
(1,083)
(17)
(25)
(194)
- 0
- 0
- 0
- 0
6,600
Selling, marketing and admin expenses
6,226
(6)
6,220
Research and development expense
3,703
- 0
(39)
(110)
3,554
Other (Income) / Expense
273
(12)
(385)
(26)
- 0
(109)
28
(268)
- 0
- 0
(499)
In-process research and development
- 0
- 0
- 0
Restructuring
85
(85)
- 0
Provision for taxes on income
1,026
170
(29)
- 0
25
- 0
25
13
65
44
(2)
(78)
- 0
1,259
Net Earnings
4,814
925
414
- 0
103
- 0
84
57
211
224
2
78
- 0
6,912
Diluted Net Earnings per Share
$ 1.50
0.38
0.1
0.08
0.02
(0.10)
0.1
0.1
0.1
(0.07)
(0.03)
1.88
Consumer Health separation tax related costs
Second Quarter
In-process research and development
Acquisition, integration and divestiture related
(Loss)/gain on securities
COVID-19 Vaccine Related Costs
Consumer Health separation costs
Tax legislation and other tax related
Second Quarter
July 4, 2021 GAAP
Intangible asset amortization
Litigation related
Restructuring related
Medical Device Regulation
Other
July 4, 2021 Non-GAAP
Cost of products sold
$ 7,587
(1,202)
(20)
(20)
6,345
Selling, marketing and admin expenses
6,073
(6)
6,067
Research and development expense
3,394
- 0
(30)
3,364
Other (Income) / Expense
(488)
- 0
23
(32)
(14)
243
- 0
- 0
- 0
- 0
(268)
In-process research and development
- 0
- 0
- 0
Restructuring
56
(56)
- 0
Provision for taxes on income
384
163
(1)
- 0
17
3
(57)
10
- 0
- 0
- 0
632
- 0
1,151
Net Earnings
6,278
1,039
(22)
- 0
91
11
(186)
46
- 0
- 0
- 0
(632)
- 0
6,625
Year to Date
Consumer Health separation tax related costs
Six Months
In-process research and development
Acquisition, integration and divestiture related
(Loss)/gain on securities
COVID-19 Vaccine Related Costs
Consumer Health separation costs
Tax legislation and other tax related
Six Months
July 3, 2022 GAAP
Intangible asset amortization
Litigation related
Restructuring related
Medical Device Regulation
Other
July 3, 2022 Non-GAAP
Cost of products sold
$ 15,517
(2,191)
(33)
(47)
(194)
13,052
Selling, marketing and admin expenses
12,164
(12)
12,152
Research and development expense
7,165
- 0
(71)
(110)
6,984
Other (Income) / Expense
171
(12)
(385)
(12)
- 0
(520)
28
(370)
- 0
7
(1,093)
In-process research and development
610
(610)
- 0
Restructuring
155
(155)
- 0
Provision for taxes on income
1,739
338
(82)
138
37
- 0
121
24
65
67
(98)
1
(2)
2,348
Net Earnings
9,963
1,865
467
472
163
- 0
399
106
211
303
98
(1)
(5)
14,041
- 0
Diluted Net Earnings per Share
$ 5.63
1.43
1.50
0.26
0.19
0.10
(0.17)
1.50
1.50
1.50
(0.21)
(0.05)
8.68
Consumer Health separation tax related costs
Six Months
In-process research and development
Acquisition, integration and divestiture related (1)
(Loss)/gain on securities
COVID-19 Vaccine Related Costs
Consumer Health separation costs
Tax legislation and other tax related
Six Months
July 4, 2021 GAAP
Intangible asset amortization
Litigation related
Restructuring related
Medical Device Regulation
Other
July 4, 2021 Non-GAAP
Cost of products sold
$ 14,650
(2,417)
(47)
(37)
12,149
Selling, marketing and admin expenses
11,505
(11)
11,494
Research and development expense
6,572
- 0
(54)
6,518
Other (Income) / Expense
(1,370)
- 0
23
(56)
524
208
- 0
- 0
- 0
- 0
(671)
In-process research and development
- 0
- 0
- 0
Restructuring
109
(109)
- 0
Provision for taxes on income
1,616
340
(1)
- 0
37
(98)
(49)
19
- 0
- 0
- 0
654
- 0
2,518
Net Earnings
12,475
2,077
(22)
- 0
175
(426)
(159)
83
- 0
- 0
- 0
(654)
- 0
13,549
(1) 2021 primarily includes gains on the divestitures of two Pharmaceutical brands outside of the United States.
Page 17 of 17
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Johnson & Johnson published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2022 10:53:08 UTC.
Johnson & Johnson is one of the world's leading producers of healthcare products. Net sales break down by family of products as follows:
- pharmaceutical products (55.4%): drugs intended for the treatment of cardiovascular diseases, oncological diseases, gastro-intestinal illnesses, infectious, immunological, neurological, dermatological diseases, etc.;
- medical products and equipment (28.9%): diagnostic systems, orthopedic and gynecological equipment, surgical materials, etc. for use by healthcare professionals;
- consumer health products (15.7%): OTC drugs (Tylenol, Sudafed, Benadryl, Zyrtec, Motrin, Nicorette and other brands), health and beauty products (Aveeno, Clean & Clear, Dr. CI:Labo, Neutrogena and OGX), baby care products (Johnson's and Aveeno Baby), oral care products (Listerine), feminine hygiene products (Stayfree and Carefree and o.b.), wound care products (Band-Aid and Neosporin) etc.
At the end of 2022, Johnson & Johnson has 89 manufacturing facilities located in the United States (28), North America (9), Europe (27), Africa and Asia/Pacific (25).
Net sales are distributed geographically as follows: the United States (51.2%), Europe (24.7%), Asia/Pacific and Africa (17.7%) and other (6.4%).