10-KPeriod: FY2021

Johnson Controls International plc Annual Report, Year Ended Sep 30, 2021

Filed November 15, 2021For Securities:JCI

Summary

Johnson Controls International plc (JCI) reported for the fiscal year ended September 29, 2021, a net sales increase of 6% to $23.7 billion, driven by organic growth and favorable foreign currency translation. Net income attributable to Johnson Controls significantly increased to $1.64 billion from $631 million in the prior year, reflecting improved gross profit, lower SG&A expenses, and reduced restructuring costs, partially offset by a higher income tax provision. The company continues its strategic focus on smart, healthy, and sustainable buildings, leveraging its OpenBlue software platform. Significant headwinds were noted from supply chain disruptions and increased input material costs, which the company actively mitigated through various measures. The company also highlighted its ongoing commitment to shareholder returns through a substantial share repurchase program and dividend payments.

Financial Highlights

54 data points
Beta

Revenue

$23.67B

34.1% Gross Margin

Net Income

$1.64B

6.9% Net Margin

EPS (Diluted)

$2.27

Total Assets

$41.89B

Cash & Equivalents

$1.34B

Free Cash Flow

$2.55B

Financial Statements
Beta
Revenue$23.67B
Cost of Revenue$15.61B
Gross Profit$8.06B
R&D Expenses$275.00M
SG&A Expenses$5.26B
Operating Income$1.51B
Interest Expense$219.00M
Net Income$1.64B
EPS (Basic)$2.28
EPS (Diluted)$2.27
Shares Outstanding (Basic)716.60M
Shares Outstanding (Diluted)721.10M

Key Highlights

  • 1Net sales increased by 6% to $23.7 billion in fiscal year 2021, driven by organic growth, favorable foreign currency translation, and acquisitions.
  • 2Net income attributable to Johnson Controls surged to $1.64 billion, a significant improvement from $631 million in fiscal year 2020.
  • 3Segment EBITA increased by 15% to $3.4 billion, with strong performance in the Global Products and Building Solutions EMEA/LA segments.
  • 4The company repurchased approximately $1.3 billion of its ordinary shares in fiscal year 2021 under its share repurchase program.
  • 5Johnson Controls announced plans to optimize its cost structure, aiming for annualized savings of $300 million in SG&A and $250 million in cost of sales by fiscal year 2023.
  • 6The company is investing 75% of its new product R&D in climate-related innovation to develop sustainable products and services.
  • 7Despite experiencing supply chain disruptions and increased commodity costs, the company demonstrated effective mitigation strategies, though these trends are expected to continue into fiscal year 2022.

Frequently Asked Questions

In fiscal year 2021, Johnson Controls reported a 6% increase in net sales to $23.7 billion and a significant rise in net income attributable to Johnson Controls to $1.64 billion, up from $631 million in fiscal year 2020. This performance was driven by organic growth, favorable foreign currency, acquisitions, and successful cost management initiatives.

Johnson Controls' strategic priorities include capitalizing on key growth vectors like decarbonization, healthy buildings, and smart buildings; accelerating growth in high-growth digital services, regions, and verticals; and sustaining a high-performance, customer-centric culture. The company is particularly focused on leveraging its OpenBlue software platform to deliver outcome-based solutions.

The company faced challenges from supply chain disruptions, increased commodity costs, and labor shortages, largely due to global macroeconomic trends and the ongoing impact of the COVID-19 pandemic. Johnson Controls mitigated these issues through proactive measures such as adjusting purchasing strategies, expanding its supplier network, implementing price increases, and driving productivity improvements. However, the company anticipates these trends will continue into fiscal year 2022.