01—Abstract
Summary
Summary of the 10-K filed February 22, 2021. Cited figures are marked; the original filing is the authoritative source.
Johnson & Johnson's 2021 10-K report highlights a year of resilient sales growth, with total sales reaching $82.6 billiona, 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 billionb, 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 billionc, underscoring its commitment to innovation. Significant litigation expenses, particularly related to talc and opioid settlements, impacted profitability.
The company accrued $4.0 billiond 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.
02—Key points
Key Highlights
- Total sales reached $82.6 billion, a 0.6% increase, primarily driven by the Pharmaceutical segment.
- The Pharmaceutical segment demonstrated strong growth, with sales up 8.0% to $45.6 billion, led by key immunology and oncology products.
- The 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.
- Consumer Health segment sales grew by 1.1% to $14.1 billion, supported by OTC products and eCommerce, but faced headwinds in other categories.
- Research and Development expenses were $12.2 billion, reflecting continued investment in innovation across all segments.
- Significant litigation expenses, particularly for talc and opioid settlements, had a material impact on reported earnings.
- The company maintained a strong financial position, with $14.0 billion in cash and cash equivalents and continued dividend growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 22, 2021Financial Statements
| 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 |
05—Questions
Frequently Asked Questions
What were Johnson & Johnson's total sales for the fiscal year ended January 3, 2021?
Johnson & Johnson reported total sales of $82.6 billion for the fiscal year ended January 3, 2021.
Which segment drove the most growth for Johnson & Johnson in fiscal year 2020?
The Pharmaceutical segment was the primary growth driver, with sales increasing by 8.0% to $45.6 billion. Key products like STELARA®, TREMFYA®, DARZALEX®, and IMBRUVICA® contributed significantly to this growth.
How did the COVID-19 pandemic impact Johnson & Johnson's business segments?
The COVID-19 pandemic negatively impacted the Medical Devices segment, causing an 11.6% decline in sales due to the deferral of elective procedures. The Consumer Health segment saw some benefit from increased demand for OTC medicines but faced challenges in other areas. Pharmaceutical sales generally benefited from increased healthcare needs.
What is the status of Johnson & Johnson's litigation concerning talc and opioids?
Johnson & Johnson is facing significant litigation related to talc and opioid products. The company has accrued substantial reserves for these matters, including $4.0 billion for talc-related reserves and an additional $1.0 billion for opioid litigation settlements. The company continues to believe it has strong legal defenses.
06—Continue