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 Highlights

53 data points
Beta

Revenue

$82.58B

65.6% Gross Margin

Net Income

$14.71B

17.8% Net Margin

EPS (Diluted)

$5.51

Total Assets

$174.89B

Cash & Equivalents

$13.98B

Free Cash Flow

$20.19B

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.

Frequently Asked Questions

Johnson & Johnson reported total sales of $82.6 billion for the fiscal year ended January 3, 2021.

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.

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.

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.