Johnson & Johnson Reports Q4 and Full-Year 2022 Results

Johnson & Johnson Reports Q4 and Full-Year 2022 Results




Johnson & Johnson Reports Q4 and Full-Year 2022 Results

  • 2022 Fourth-Quarter reported sales decline of 4.4% to $23.7 Billion primarily driven by unfavorable foreign exchange and reduced COVID-19 Vaccine sales vs. prior year. Operational growth excluding COVID-19 Vaccine of 4.6%*
  • 2022 Fourth-Quarter earnings per share (EPS) of $1.33 decreasing 24.9% and adjusted EPS of $2.35 increasing by 10.3%*
  • 2022 Full-Year reported sales growth of 1.3% to $94.9 Billion primarily driven by strong commercial execution partially offset by unfavorable foreign exchange. Operational growth of 6.1%*
  • 2022 Full-Year earnings per share (EPS) of $6.73 decreasing 13.8% and adjusted EPS of $10.15 increasing by 3.6%*
  • Company guides 2023 adjusted operational sales growth excluding COVID-19 Vaccine of 4.0%* and adjusted operational EPS of $10.50, reflecting growth of 3.5%*

NEW BRUNSWICK, N.J.–(BUSINESS WIRE)–Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2022. “Our full year 2022 results reflect the continued strength and stability of our three business segments, despite macroeconomic challenges,” said Joaquin Duato, Chairman of the Board and Chief Executive Officer. “I am inspired by our employees who make a difference in the health and lives of people around the world every day. As we look ahead to 2023, Johnson & Johnson is well-positioned to drive near-term growth, while also investing strategically to deliver long-term value.”

OVERALL FINANCIAL RESULTS

Q4

 

Full Year

($ in Millions, except EPS)

2022

2021

% Change

 

2022

2021

% Change

Reported Sales

$23,706

$24,804

(4.4)%

 

$94,943

$93,775

1.3%

Net Earnings

$3,520

$4,736

(25.7)%

 

$17,941

$20,878

(14.1)%

EPS (diluted)

$1.33

$1.77

(24.9)%

 

$6.73

$7.81

(13.8)%

 

 

 

 

 

 

 

Q4

 

Full Year

Non-GAAP* ($ in Millions, except EPS)

2022

2021

% Change

 

2022

2021

% Change

Operational Sales1,2

 

 

0.9%

 

 

 

6.1%

Adjusted Operational Sales1,3

 

 

0.8%

 

 

 

6.2%

Adjusted Net Earnings1,4

$6,218

$5,678

9.5%

 

$27,038

$26,195

3.2%

Adjusted EPS (diluted)1,4

$2.35

$2.13

10.3%

 

$10.15

$9.80

3.6%

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Excludes intangible amortization expense and special items

Note: values may have been rounded

REGIONAL SALES RESULTS

Q4 % Change
($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

U.S.

$12,516

$12,163

2.9%

2.9

2.7

International

11,190

12,641

(11.5)

(1.1)

(10.4)

(1.0)

Worldwide

$23,706

$24,804

(4.4)%

0.9

(5.3)

0.8

 
 
 
Full Year % Change
($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

U.S.

$48,580

$47,156

3.0%

3.0

3.0

International

46,363

46,619

(0.6)%

9.1

(9.7)

9.3

Worldwide

$94,943

$93,775

1.3%

6.1

(4.8)

6.2

 1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

 2 Excludes the impact of translational currency

 3 Excludes the net impact of acquisitions and divestitures and translational currency

 Note: Values may have been rounded

SEGMENT SALES RESULTS

Q4

 

% Change

($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

Consumer Health4

$ 3,767

$ 3,728

1.0%

6.4

(5.4)

6.4

Pharmaceutical4

13,163

14,217

(7.4)

(2.5)

(4.9)

(2.3)

MedTech

6,776

6,859

(1.2)

4.9

(6.1)

4.4

Worldwide

$ 23,706

$ 24,804

(4.4)%

0.9

(5.3)

0.8

 

 

 

 

 

 

 

 

 

 

 

 

Full Year

 

% Change

($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

Consumer Health

$ 14,953

$ 15,035

(0.5)%

3.6

(4.1)

3.9

Pharmaceutical

52,563

51,680

1.7

6.7

(5.0)

6.8

MedTech

27,427

27,060

1.4

6.2

(4.8)

6.1

Worldwide

$ 94,943

$ 93,775

1.3%

6.1

(4.8)

6.2

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes

Note: Values may have been rounded

FULL YEAR 2022 SEGMENT COMMENTARY:

Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Consumer Health

Consumer Health worldwide adjusted operational sales increased 3.9%* predominately driven by over-the-counter (OTC) products. Major contributors to growth in OTC were TYLENOL and MOTRIN analgesics, as well as upper respiratory products and digestive health products in the international markets. Additionally, Skin Health/Beauty adjusted operational growth was primarily driven by NEUTROGENA outside the U.S. Growth was partially offset by Oral Care in the international markets.

Pharmaceutical

Pharmaceutical worldwide adjusted operational sales grew 6.8%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and ZYTIGA (abiratone acetate), an oral, once daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

MedTech

MedTech worldwide adjusted operational sales grew 6.1%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, and wound closure products in General Surgery.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:

The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investors section of the company’s website at news releases, as well as www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

Regulatory

DePuy Synthes Receives FDA Clearance for TELIGEN System

Press Release

U.S. FDA Approves TECVAYLI (teclistamab-cqyv), the First Bispecific T-cell Engager Antibody for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma

Press Release

Janssen Submits Biologics License Application to U.S. FDA for Talquetamab for the Treatment of Patients with Relapsed or Refractory Multiple Myeloma

Press Release

Data Release

New TREMFYA (guselkumab) Data Shows an Overall Clinical Response Rate of Approximately 80 Percent in a Phase 2b Induction Study of Adults with Moderately to Severely Active Ulcerative Colitis

Press Release

Janssen to Highlight Latest Scientific Advances in Hematologic Diseases at ASH 2022 with Clinical and Real-World Data Across Innovative Pipeline and Distinguished Portfolio

Press Release

Late-Breaking Data from Pivotal Phase 3 PRECISION Study Demonstrates Significant and Sustained Effect of Aprocitentan on Lowering Blood Pressure for Patients with Difficult-to-Control Hypertension

Press Release

New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Active Psoriatic Arthritis Patients With Early Efficacy Had Meaningful Long-Term Improvement in Health-Related Quality of Life

Press Release

New TREMFYA (guselkumab) Post-Hoc Analysis Reveals Early Efficacy Predicted Longer-Term Efficacy And Sustained Achievement Among A Diverse Active Psoriatic Arthritis Patient Population

Press Release

CERENOVUS Reveals Positive Outcomes with Thrombectomy in Global Registry Studying Stroke-Inducing Blood Clots

Press Release

Other

Johnson & Johnson Names CEO Joaquin Duato as Chairman of the Board

Press Release

Johnson & Johnson Completes Acquisition of Abiomed

Press Release

FULL-YEAR 2023 GUIDANCE:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.

($ in Billions, except EPS)

January 2023

Adjusted Operational Sales1,2,5

Change vs. Prior Year / Mid-point

3.5% – 4.5% / 4.0%

Operational Sales2,5/ Mid-point2,5

Change vs. Prior Year / Mid-point

$96.9B – $97.9B / $97.4B

4.5% – 5.5% / 5.0%

Estimated Reported Sales3,5/ Mid-point3,5

Change vs. Prior Year / Mid-point

$96.9B – $97.9B / $97.4B

4.5% – 5.5% / 5.0%

 

 

Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4

Change vs. Prior Year / Mid-point

$10.40 – $10.60 / $10.50

2.5% – 4.5% / 3.5%

Adjusted EPS (Diluted)3,4 / Mid-point3,4

Change vs. Prior Year / Mid-point

$10.45 – $10.65 / $10.55

3.0% – 5.0% / 4.0%

1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

2 Non-GAAP financial measure; excludes the impact of translational currency

3 Calculated using Euro Average Rate: January 2023 = $1.08 (Illustrative purposes only)

4 Non-GAAP financial measure; excludes intangible amortization expense and special items

5 Excludes COVID-19 Vaccine

Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company’s website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:

At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:

* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company’s website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company’s website at quarterly results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
 
(Unaudited; Dollars in Millions)

FOURTH QUARTER

 

TWELVE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2022

 

2021

 

Total

 

Operations

 

Currency

 

2022

 

2021

 

Total

 

Operations

 

Currency

Sales to customers by
segment of business
 
Consumer Health (1)
U.S.

$

1,696

1,529

10.9

 

%

10.9

 

 

$

6,599

6,516

1.3

 

%

1.3

 

International

 

2,071

2,199

(5.8

)

3.2

 

(9.0

)

 

8,354

8,519

(1.9

)

5.3

(7.2

)

 

3,767

3,728

1.0

 

6.4

 

(5.4

)

 

14,953

15,035

(0.5

)

3.6

(4.1

)

 
Pharmaceutical (1)
U.S.

 

7,375

7,418

(0.6

)

(0.6

)

 

 

28,604

27,954

2.3

 

2.3

 

International

 

5,788

6,799

(14.9

)

(4.5

)

(10.4

)

 

23,959

23,726

1.0

 

11.9

(10.9

)

 

13,163

14,217

(7.4

)

(2.5

)

(4.9

)

 

52,563

51,680

1.7

 

6.7

(5.0

)

 
Pharmaceutical excluding COVID-19 Vaccine (1,3)
U.S.

 

7,375

7,205

2.4

 

2.4

 

 

 

28,484

27,320

4.3

 

4.3

 

International

 

5,099

5,394

(5.5

)

6.0

 

(11.5

)

 

21,900

21,975

(0.3

)

10.3

(10.6

)

 

12,474

12,599

(1.0

)

3.9

 

(4.9

)

 

50,384

49,295

2.2

 

6.9

(4.7

)

 
MedTech (2)
U.S.

 

3,445

3,216

7.1

 

7.1

 

 

 

13,377

12,686

5.4

 

5.4

 

International

 

3,331

3,643

(8.6

)

2.9

 

(11.5

)

 

14,050

14,374

(2.3

)

6.9

(9.2

)

 

6,776

6,859

(1.2

)

4.9

 

(6.1

)

 

27,427

27,060

1.4

 

6.2

(4.8

)

 
U.S.

 

12,516

12,163

2.9

 

2.9

 

 

 

48,580

47,156

3.0

 

3.0

 

International

 

11,190

12,641

(11.5

)

(1.1

)

(10.4

)

 

46,363

46,619

(0.6

)

9.1

(9.7

)

Worldwide

 

23,706

24,804

(4.4

)

0.9

 

(5.3

)

 

94,943

93,775

1.3

 

6.1

(4.8

)

 
U.S.

 

12,516

11,950

4.7

 

4.7

 

 

 

48,460

46,522

4.2

 

4.2

 

International

 

10,501

11,236

(6.5

)

4.4

 

(10.9

)

 

44,304

44,868

(1.3

)

8.2

(9.5

)

Worldwide excluding COVID-19 Vaccine (3)

$

23,017

23,186

(0.7

)

%

4.6

 

(5.3

)

$

92,764

91,390

1.5

 

%

6.2

(4.7

)

 
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.
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
 
(Unaudited; Dollars in Millions)

FOURTH QUARTER

 

TWELVE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2022

 

2021

 

Total

 

Operations

 

Currency

 

2022

 

2021

 

Total

 

Operations

 

Currency

Sales to customers by
geographic area
 
U.S.

$

12,516

12,163

2.9

 

%

2.9

 

 

$

48,580

47,156

3.0

 

%

3.0

 

 
Europe

 

5,816

6,925

(16.0

)

(6.3

)

(9.7

)

 

23,449

23,594

(0.6

)

11.0

(11.6

)

Western Hemisphere excluding U.S.

 

1,545

1,459

5.9

 

11.8

 

(5.9

)

 

6,125

5,750

6.5

 

10.2

(3.7

)

Asia-Pacific, Africa

 

3,829

4,257

(10.0

)

3.1

 

(13.1

)

 

16,789

17,275

(2.8

)

6.2

(9.0

)

International

 

11,190

12,641

(11.5

)

(1.1

)

(10.4

)

 

46,363

46,619

(0.6

)

9.1

(9.7

)

 
Worldwide

$

23,706

24,804

(4.4

)

%

0.9

 

(5.3

)

$

94,943

93,775

1.3

 

%

6.1

(4.8

)

 
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
 
(Unaudited; in Millions Except Per Share Figures) FOURTH QUARTER
 

2022

 

2021

 

Percent

 

 

Percent

 

 

 

Percent

 

Increase

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

23,706

 

100.0

 

$

24,804

100.0

(4.4

)

Cost of products sold

 

7,765

 

32.8

 

 

7,955

32.1

(2.4

)

Gross Profit

 

15,941

 

67.2

 

 

16,849

67.9

(5.4

)

Selling, marketing and administrative expenses

 

6,512

 

27.4

 

 

7,154

28.9

(9.0

)

Research and development expense

 

3,841

 

16.2

 

 

4,720

19.0

(18.6

)

In-process research and development

 

173

 

0.7

 

 

0

0.0

Interest (income) expense, net

 

(77

)

(0.3

)

 

47

0.2

Other (income) expense, net

 

1,207

 

5.1

 

 

9

0.0

Restructuring

 

84

 

0.4

 

 

83

0.3

Earnings before provision for taxes on income

 

4,201

 

17.7

 

 

4,836

19.5

(13.1

)

Provision for taxes on income

 

681

 

2.9

 

 

100

0.4

581.0

 

Net earnings

$

3,520

 

14.8

 

$

4,736

19.1

(25.7

)

 
Net earnings per share (Diluted)

$

1.33

 

$

1.77

(24.9

)

 
Average shares outstanding (Diluted)

 

2,650.1

 

 

2,670.2

 
Effective tax rate

 

16.2

 

%

 

2.1

%

 
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income

$

7,418

 

31.3

 

$

6,339

25.6

17.0

 

Net earnings

$

6,218

 

26.2

 

$

5,678

22.9

9.5

 

Net earnings per share (Diluted)

$

2.35

 

$

2.13

10.3

 

Effective tax rate

 

16.2

 

%

 

10.4

%

 
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
 
(Unaudited; in Millions Except Per Share Figures)

TWELVE MONTHS

 

 

 

 

 

 

 

 

 

2022

 

2021

 

Percent

 

 

Percent

 

 

 

Percent

 

Increase

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

94,943

 

100.0

 

$

93,775

100.0

1.3

 

Cost of products sold

 

31,089

 

32.7

 

 

29,855

31.8

4.1

 

Gross Profit

 

63,854

 

67.3

 

 

63,920

68.2

(0.1

)

Selling, marketing and administrative expenses

 

24,765

 

26.1

 

 

24,659

26.3

0.4

 

Research and development expense

 

14,603

 

15.4

 

 

14,714

15.7

(0.8

)

In-process research and development

 

783

 

0.8

 

 

900

1.0

Interest (income) expense, net

 

(214

)

(0.2

)

 

130

0.1

Other (income) expense, net

 

1,871

 

2.0

 

 

489

0.5

Restructuring

 

321

 

0.3

 

 

252

0.3

Earnings before provision for taxes on income

 

21,725

 

22.9

 

 

22,776

24.3

(4.6

)

Provision for taxes on income

 

3,784

 

4.0

 

 

1,898

2.0

99.4

 

Net earnings

$

17,941

 

18.9

 

$

20,878

22.3

(14.1

)

 
Net earnings per share (Diluted)

$

6.73

 

$

7.81

(13.8

)

 
Average shares outstanding (Diluted)

 

2,663.9

 

 

2,674.0

 
Effective tax rate

 

17.4

 

%

 

8.3

%

 
Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income

$

31,880

 

33.6

 

$

30,464

32.5

4.6

 

Net earnings

$

27,038

 

28.5

 

$

26,195

27.9

3.2

 

Net earnings per share (Diluted)

$

10.15

 

$

9.80

3.6

 

Effective tax rate

 

15.2

 

%

 

14.0

%

 
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
 

Fourth Quarter

 

Twelve Months Ended

(Dollars in Millions Except Per Share Data)

2022

 

2021

 

2022

 

2021

Net Earnings, after tax- as reported

$3,520

 

$4,736

 

$17,941

 

$20,878

 

 
Pre-tax Adjustments
Intangible Asset Amortization expense

1,061

 

1,121

 

4,305

 

4,697

 

Litigation related

262

 

274

 

866

 

2,328

 

IPR&D

173

 

 

783

 

900

 

Restructuring related

140

 

140

 

463

 

473

 

Acquisition, integration and divestiture related ¹

196

 

26

 

196

 

(478

)

(Gains)/losses on securities

6

 

(198

)

690

 

(533

)

Medical Device Regulation 2

88

 

73

 

296

 

234

 

COVID-19 Vaccine related costs 3

821

 

 

1,474

 

 

Consumer Health separation costs

470

 

67

 

1,089

 

67

 

Other

 

 

(7

)

 

 
Tax Adjustments
Tax impact on special item adjustments 4

(507

)

(184

)

(1,592

)

(1,281

)

Consumer Health separation tax related costs

35

 

 

494

 

 

Tax legislation and other tax related

(47

)

(377

)

40

 

(1,090

)

Adjusted Net Earnings, after tax

$6,218

 

$5,678

 

$27,038

 

$26,195

 

Average shares outstanding (Diluted)

2,650.1

 

2,670.2

 

2,663.9

 

2,674.0

 

Adjusted net earnings per share (Diluted)

$2.35

 

$2.13

 

$10.15

 

$9.80

 

Operational adjusted net earnings per share (Diluted)

$2.46

 

$10.70

 

 
Notes:

1

Acquisition, integration and divestiture related for 2022 primarily includes costs related to the Abiomed acquisition. Acquisition, integration and divestiture related for 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 during 2024.
 

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 remaining 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.

Contacts

Press Contacts:

Tesia Williams

media-relations@its.jnj.com

Investor Contacts:

Jessica Moore

RA-JJCUS-InvestorRel@ITS.JNJ.com

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