Early Access

10-KPeriod: FY2021

JOHNSON & JOHNSON Annual Report, Year Ended Jan 3, 2021

Filed February 22, 2021For Securities:JNJ

Summary

Johnson & Johnson's 2021 10-K report highlights a year of resilient sales growth, with total sales reaching $82.6 billion, a 0.6% increase driven by volume despite a negative currency impact. The Pharmaceutical segment was the primary growth driver, increasing sales by 8.0% to $45.6 billion, fueled by strong performance in Immunology (STELARA®, TREMFYA®) and Oncology (DARZALEX®, IMBRUVICA®, ERLEADA®). The Medical Devices segment experienced an 11.6% decline in sales to $23.0 billion, largely attributed to COVID-19 related disruptions and the deferral of elective medical procedures. The Consumer Health segment saw a modest 1.1% increase in sales to $14.1 billion, with OTC medicines benefiting from COVID-19 related demand, while Skin Health/Beauty faced challenges. The company's R&D investment remained robust at $12.2 billion, underscoring its commitment to innovation. Significant litigation expenses, particularly related to talc and opioid settlements, impacted profitability. The company accrued $4.0 billion for talc-related reserves and an additional $1.0 billion for opioid litigation settlements. Despite these challenges, Johnson & Johnson maintained a strong liquidity position and continued its dividend growth, marking its 58th consecutive year of dividend increases.

Financial Statements
Beta
Revenue$82.58B
Cost of Revenue$28.43B
Gross Profit$54.16B
SG&A Expenses$22.08B
Interest Expense$201.00M
Net Income$14.71B
EPS (Basic)$5.59
EPS (Diluted)$5.51
Shares Outstanding (Basic)2.63B
Shares Outstanding (Diluted)2.67B

Key Highlights

  • 1Total sales reached $82.6 billion, a 0.6% increase, primarily driven by the Pharmaceutical segment.
  • 2The Pharmaceutical segment demonstrated strong growth, with sales up 8.0% to $45.6 billion, led by key immunology and oncology products.
  • 3The Medical Devices segment saw a significant sales decrease of 11.6% to $23.0 billion, primarily due to the impact of COVID-19 on elective procedures.
  • 4Consumer Health segment sales grew by 1.1% to $14.1 billion, supported by OTC products and eCommerce, but faced headwinds in other categories.
  • 5Research and Development expenses were $12.2 billion, reflecting continued investment in innovation across all segments.
  • 6Significant litigation expenses, particularly for talc and opioid settlements, had a material impact on reported earnings.
  • 7The company maintained a strong financial position, with $14.0 billion in cash and cash equivalents and continued dividend growth.

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